Shoulder Innovations Reports Fourth Quarter and Full Year 2025 Financial Results
Rhea-AI Summary
Shoulder Innovations (NYSE: SI) reported strong 2025 results with Q4 net revenue $14.4M (+65% YoY) and full-year net revenue $47.3M (+50% YoY). Gross margin was ~76.5% for the year. Company sold 1,976 implant systems in Q4 and ended 2025 with 134 core and contender surgeons.
SG&A and R&D rose materially, driving a full-year net loss of $40.4M. Cash and marketable securities totaled $124.3M. 2026 revenue guidance: $62M–$65M (≈31%–37% growth).
Positive
- Net revenue $47.3M (+50% YoY) full year 2025
- Q4 revenue $14.4M (+65% YoY)
- Sold 1,976 implant systems in Q4 (+62% YoY)
- Cash and marketable securities $124.3M at 12/31/2025
- 2026 guidance $62M–$65M (≈31%–37% growth)
Negative
- Full-year net loss widened to $40.4M from $15.6M
- SG&A increased 59% to $54.8M for full year 2025
- Adjusted EBITDA loss widened to $36.1M for 2025
- R&D increased 72% to $7.7M for full year 2025
News Market Reaction – SI
On the day this news was published, SI gained 7.36%, reflecting a notable positive market reaction. Argus tracked a peak move of +2.0% during that session. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $18M to the company's valuation, bringing the market cap to $269M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
No peers were flagged in the momentum scanner and no same-day peer headlines were recorded, suggesting the move was primarily company-specific.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 11 | Quarterly earnings | Positive | +32.0% | Strong Q3 growth and raised full-year 2025 revenue guidance. |
| Sep 09 | Quarterly earnings | Positive | -5.8% | Solid Q2 growth and financings but higher net loss from warrant changes. |
Earnings events have triggered large but mixed reactions, with one strong rally and one notable selloff despite growth.
Recent history shows Shoulder Innovations delivering rapid growth with widening losses. In Q2 2025, revenue rose 33% to $11.0M alongside a larger net loss tied to warrant valuation changes and financing. In Q3 2025, revenue grew 58% to $11.8M and guidance increased to $45–46M, driving a 32.04% gain. Today’s full-year 2025 results continue this pattern of strong top-line expansion with elevated operating expenses and losses.
Historical Comparison
Past earnings releases for Shoulder Innovations produced average moves of about 13.13%, underscoring how sensitive the shares have been to financial updates and guidance.
Across recent earnings, the company reported accelerating revenue growth, expanded implant volumes, and higher guidance for 2025, while losses widened due to increased operating spend and financing-related valuation changes.
Market Pulse Summary
The stock moved +7.4% in the session following this news. A strong positive reaction aligns with the company’s pattern of sharp moves around earnings, where prior results triggered average shifts of about 13.13%. The report combined rapid revenue growth and high gross margins with significantly higher operating and net losses. Investors weighing sustainability would likely focus on ongoing cash burn versus the $124.3M cash balance and how execution against the $62–65M 2026 revenue outlook evolves.
Key Terms
adjusted ebitda financial
stock-based compensation financial
u.s. gaap financial
non-gaap financial measures financial
convertible notes financial
AI-generated analysis. Not financial advice.
Fourth Quarter Net Revenue Growth Accelerates to
Financial Highlights
- Generated net revenue of
$14.4 million 65% increase over the prior year quarter - Generated net revenue of
$47.3 million 50% increase over the prior year - Achieved gross margin of
76.7% for the fourth quarter and76.5% for the full year - Initiating full year 2026 net revenue guidance of
$62 million $65 million 31% to37% over full year 2025 net revenue
Full Year and Recent Business Highlights
- Sold 1,976 total implant systems in the fourth quarter, a
62% increase over the prior year quarter - Ended 2025 with 134 core surgeons and contender surgeons, a
61% increase over the prior year - Commenced limited user release of the InSet™ I-135RFX Humeral Stem for primary, revision, and certain fracture indications of the humeral head
- Commenced limited user release of the N-22 Humeral Head for patients with metal hypersensitivity
- Appointed Drew Hykes, former CEO of Inari Medical, to Board of Directors
- Announced a strategic partnership with Interventional Systems to introduce a robotic platform for shoulder arthroplasty
"2025 was a transformational year for Shoulder Innovations. We continued to add new surgeon customers at an accelerated pace, drove rapid commercial adoption of our advanced implant systems, and solidified our position as an innovation leader in the shoulder space, all while beginning our journey as a public company," said Rob Ball, CEO of Shoulder Innovations. "These efforts culminated in record full-year net revenue of
Mr. Ball continued, "Looking into 2026, our momentum remains strong. Our key strategic priorities are focused on delivering sustained growth through world class execution and innovation. With a growing product portfolio, a comprehensive enabling technology strategy, our expanding commercial talent, and a strong balance sheet, we believe we are well positioned to further extend and strengthen our leadership position in shoulder surgical care in the years ahead."
Fourth Quarter 2025 Financial Results
Net revenue in the fourth quarter of 2025 increased
Gross margin in the fourth quarter of 2025 was
Selling, general, and administrative expenses in the fourth quarter of 2025 increased
Research and development expenses in the fourth quarter of 2025 increased
Operating loss in the fourth quarter of 2025 was
Adjusted EBITDA in the fourth quarter of 2025 was a loss of
Full Year 2025 Financial Results
Net revenue in the full year of 2025 increased
Gross margin in the full year of 2025 was
Research and development expenses in the full year of 2025 increased
Operating loss in the full year of 2025 was
Adjusted EBITDA in the full year of 2025 was a loss of
As of December 31, 2025, cash and cash equivalents, and marketable securities totaled
2026 Financial Outlook
Shoulder Innovations expects net revenue for the full year 2026 to be in the range of
Conference Call
Management will host a conference call today, March 10, 2026, at 4:30 p.m. ET / 1:30 p.m. PT to discuss the company's fourth quarter and full year 2025 financial results. Those interested in listening to the conference call may do so by dialing (877) 407-8216 for domestic callers or (412) 902-1015 for international callers and providing access code 13758375. A live and archived webcast of the event will be available in the "Investor Relations" section of the Shoulder Innovations website at https://ir.shoulderinnovations.com.
Use of Non-GAAP Financial Measures and Key Business Metrics
In addition to our results and measures of performance determined in accordance with
We believe that Adjusted EBITDA, together with a reconciliation to net loss, provides meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our business, results of operations, or outlook. However, Adjusted EBITDA has limitations as an analytical tool, and you should not consider this measure in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. Some of these potential limitations include: (i) other companies, including companies in our industry which have similar business arrangements, may report Adjusted EBITDA, or similarly titled measures but calculate them differently, which reduces their usefulness as comparative measures; (ii) although depreciation and amortization expenses are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditures for such replacements or for new capital expenditure requirements; (iii) Adjusted EBITDA also does not reflect changes in, or cash requirements for, our working capital needs or the potentially dilutive impact of stock-based compensation; and (iv) Adjusted EBITDA does not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on existing or future debt that we may incur. Because of these and other limitations, you should consider Adjusted EBITDA only as supplemental to other GAAP-based financial measures.
In addition, we believe that the number of implant systems sold is a key business metric and a useful indicator of our ability to drive demand for our implant systems, generate net revenue and expand our business. We regularly review a number of operating and financial metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate our business plan and make strategic decisions.
About Shoulder Innovations
Shoulder Innovations is a commercial-stage medical technology company exclusively focused on transforming the shoulder surgical care market, with a current offering of advanced implant systems for shoulder arthroplasty. These systems are a core element of Shoulder Innovations' ecosystem, which is designed to improve core components of shoulder surgical care – preoperative planning, implant design and procedural efficiency – to benefit each stakeholder in the care chain. Shoulder Innovations' ecosystem is also comprised of enabling technologies, efficient instrument systems, specialized support and surgeon-to-surgeon collaboration. Together, these elements seek to address the long-standing clinical and operational challenges in the shoulder surgical care market by delivering predictable outcomes, procedural simplicity, and efficiency across all sites of care.
Forward-Looking Statements
This press release contains, and other communications of the company may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as "believe," "expect," "anticipate," "intend," "estimate," "project," "outlook," "forecast," "target," "trend," "plan," "goal," or other words of comparable meaning or future-tense or conditional verbs such as "may," "will," "should," "would," or "could."
Statements concerning the company's future are forward-looking statements, and are based on management's current expectations, assumptions and beliefs about the company's business, financial performance, creation of long-term shareholder value, operating results, the industry in which we operate and possible future events. These statements include, but are not limited to, statements regarding the company's anticipated growth prospects and future operating and financial performance. Forward-looking statements convey the company's expectations, intentions, or forecasts about future events, circumstances, results, or aspirations. Forward-looking statements are not guarantees of future results and are subject to risks, uncertainties, assumptions and other important factors, which may change over time and many of which are beyond the company's control, and which could cause the company's actual results to materially and adversely differ from those expressed in any forward-looking statement, including (i) our history of significant net losses; (ii) failure to manage the growth of our business; (iii) our inability to compete successfully against our existing or potential competitors; (iv) failure to develop, retain, or expand an effective dedicated commercial leadership team; (v) risks associated with litigation; (vi) our dependence upon the adoption of our implant systems by hospitals, ambulatory surgery centers, surgeons and patients; (vii) our ability to enhance our implant systems, expand our indications and develop and commercialize additional products in a timely manner; (viii) risks associated with our third-party manufacturers and suppliers; (ix) demand forecasts for our implant systems; (x) our ability to demonstrate to shoulder specialists or key opinion leaders the merits of our implant systems; (xi) federal and state healthcare laws and government regulation and oversight over our devices and operations; (xii) our ability to obtain and maintain patent and other intellectual property protection over our products; (xiii) risks associated with our common stock; and (xiv) the other important factors described in our most recently filed Annual Report on Form 10-K and subsequent other filings with the Securities and Exchange Commission.
These documents are available in the Investor Relations section of the company's website at www.shoulderinnovations.com (information on the website is not incorporated by reference into this presentation and should not be considered part of this document). You should not place undue reliance on forward-looking statements. The information in this press release is provided as of today's date only, and, except as required by federal securities law, we do not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or for any other reason after today.
Contact
Brian Johnston or Sam Bentzinger
Gilmartin Group LLC
ir@shoulderinnovations.com
Shoulder Innovations, Inc Condensed Statements of Operations and Comprehensive Loss (in thousands, except share and per share amounts) | ||||
Three Months Ended | Twelve Months Ended | |||
December | December | December | December | |
31, 2025 | 31, 2024 | 31, 2025 | 31, 2024 | |
Net Revenue | $ 14,416 | $ 8,725 | $ 47,317 | $ 31,623 |
Cost of Goods Sold | 3,359 | 1,957 | 11,115 | 7,282 |
Gross Profit | 11,057 | 6,768 | 36,202 | 24,341 |
Selling, General, and Administrative Expenses | 16,340 | 9,137 | 54,768 | 34,505 |
Research and Development | 3,217 | 1,167 | 7,731 | 4,489 |
Operating Loss | (8,500) | (3,536) | (26,297) | (14,653) |
Other Expense | ||||
Interest expense, net | (591) | 391 | 70 | 1,316 |
Change in fair value of convertible notes, net | — | — | 2,217 | — |
Change in fair value of Series E purchase option | — | — | 11,719 | — |
Other expense (income), net | (137) | (135) | 56 | (350) |
Total Other Expense | (728) | 256 | 14,062 | 966 |
Loss before income tax expense | (7,772) | (3,792) | (40,359) | (15,619) |
Income Tax Expense | — | — | — | — |
Net Loss | (7,772) | (3,792) | (40,359) | (15,619) |
Other Comprehensive (loss), net | ||||
Unrealized gain (loss) on marketable securities | 78 | (205) | (80) | (159) |
Total Other Comprehensive loss (income), net | 78 | (205) | (80) | (159) |
Comprehensive loss | $ (7,694) | $ (3,997) | ||
Net loss per share attributed to common stock – basic and diluted: | ||||
Net loss per share | $ (0.38) | $ (45.22) | $ (4.65) | |
Weighted average shares outstanding: | ||||
Weighted average common shares outstanding – basic and diluted | 20,603,017 | 83,882 | 8,673,148 | 64,530 |
Shoulder Innovations, Inc Condensed Balance Sheets (Unaudited) (in thousands, except share and per share amounts) | ||
December 31, | December 31, | |
2025 | 2024 | |
Assets | ||
Current Assets | ||
Cash and cash equivalents | $ 26,871 | $ 6,123 |
Marketable securities | 97,434 | 8,921 |
Trade accounts receivable, net of allowance for credit losses | 8,268 | 5,122 |
Inventories, net | 21,591 | 13,955 |
Prepaid expenses | 1,518 | 431 |
Other current assets | 1,483 | 573 |
Total Current Assets | 157,165 | 35,125 |
Property and equipment, net | 12,532 | 7,487 |
Operating lease right-of-use asset | 110 | 68 |
Intangible assets, net | 100 | 400 |
Total Assets | 169,907 | 43,080 |
Liabilities, Convertible Preferred Stock, and Stockholders' Equity (Deficit) | ||
Current Liabilities | ||
Accounts payable | 8,874 | 4,860 |
Current operating lease obligations | 62 | 47 |
Accrued liabilities | 5,259 | 2,740 |
Total Current Liabilities | 14,195 | 7,647 |
Long-Term Liabilities | ||
Preferred stock warrant liability | — | 970 |
Long-term debt | 14,911 | 14,658 |
Long-term operating lease obligations | 51 | 25 |
Total Long-Term Liabilities | 14,962 | 15,653 |
Total Liabilities | 29,157 | 23,300 |
Commitments and contingencies | ||
Convertible Preferred Stock | — | 74,475 |
Stockholders' Equity (Deficit) | ||
Common stock, | ||
authorized and 20,623,457 and | ||
as of December 31, 2025 and of December 31, 2024, respectively | 21 | 1 |
Preferred stock, | ||
and no shares issued and outstanding as of December 31, 2025 and | — | — |
Additional paid-in capital | 238,012 | 2,148 |
Accumulated deficit | (97,400) | (57,041) |
Accumulated other comprehensive income | 117 | 197 |
Total Stockholders' Equity (Deficit) | 140,750 | (54,695) |
Total Liabilities, Convertible Preferred Stock, and Stockholders' Equity | ||
(Deficit) | $ 169,907 | $ 43,080 |
Shoulder Innovations, Inc Reconciliation of Reported Net Loss to Adjusted EBITDA (in thousands, except share and per share amounts) | ||||
Three Months Ended | Twelve Months Ended | |||
2025 | 2024 | 2025 | 2024 | |
Net loss | $ (7,772) | $ (3,792) | $ (40,359) | $ (15,619) |
Interest expense, net | (591) | 391 | 70 | 1,316 |
Income tax expense | — | — | — | — |
Depreciation and amortization expense | 980 | 619 | 3,208 | 2,196 |
Stock-based compensation expense | 381 | 179 | 996 | 754 |
Adjusted EBITDA | $ (7,002) | $ (2,603) | $ (36,085) | $ (11,353) |
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SOURCE Shoulder Innovations
FAQ
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