Shoulder Innovations, Inc. (SI) AI Stock Analysis

• Market Cap: $298.31M
• Dividend Yield: N/A
• Average Volume (3M): 130.13K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.15
• Revenue Growth: 39.97%
• EPS Growth: -148.57%
• Country: US
• Employees: 300
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Specialties
• EPS (TTM): -0.64
• Shares Outstanding: 20,601,685
• 10 Day Avg. Volume: 53,279
• 30 Day Avg. Volume: 130,135
• PEG Ratio: -0.88
• Price to Book (P/B): 15.39
• Price to Sales (P/S): 9.63
• P/FCF Ratio: -16.77
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $21.67
• Price Target Upside: 49.65% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $14.50 ▲(0.14% Upside)

Shoulder Innovations, Inc. shows potential with revenue growth, but significant challenges remain. The company's financial performance is hindered by high operating losses and negative cash flow, while technical indicators suggest a possible overbought condition. The negative P/E ratio and lack of dividend yield further impact the stock's valuation.

Positive Factors

Revenue Growth

Exceeding revenue expectations indicates strong demand for SI's products and suggests effective market penetration, supporting long-term growth.

Market Opportunity

The large addressable market for shoulder arthroplasty offers substantial growth potential, positioning SI to capture significant market share.

Product Innovation

Innovative products and solutions enhance SI's competitive edge, fostering adoption and potentially leading to increased market share.

Negative Factors

Profitability Challenges

Ongoing profitability issues could hinder reinvestment in growth and innovation, impacting long-term financial health.

High Operating Losses

Continued high operating losses may strain resources, requiring strategic adjustments to achieve sustainable profitability.

Increased Leverage

Rising leverage could limit financial flexibility and increase risk, necessitating careful management to maintain stability.

Shoulder Innovations, Inc. Business Overview & Revenue Model

Company Description

Shoulder Innovations, Inc. manufactures medical devices. It has developed a shoulder replacement system. The company was founded by Stephen B. Gunther and Michael DeVries in 2009 and is headquartered in Grand Rapids, MI.

How the Company Makes Money

Shoulder Innovations, Inc. generates revenue primarily through the sale of its orthopedic surgical products, including implants and instruments used in shoulder surgeries. The company utilizes a direct sales model, partnering with hospitals, surgical centers, and orthopedic surgeons to provide its products. Additionally, SI may engage in strategic partnerships with larger medical device companies to expand its distribution channels and market reach. Revenue is also supplemented through training programs for surgical staff and ongoing support services, ensuring that healthcare providers are well equipped to use SI's products effectively.

Shoulder Innovations, Inc. Financial Statement Overview

Summary

Shoulder Innovations, Inc. is experiencing revenue growth, but profitability and cash flow challenges persist. The company needs to address its high operating losses and improve cash flow management to enhance financial stability. The balance sheet shows increased leverage, which could be a risk if not carefully managed.

Income Statement

Shoulder Innovations, Inc. shows a significant increase in revenue from the previous year, indicating growth potential. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin remains strong, but the high operating losses are concerning.

Balance Sheet

The company's debt-to-equity ratio has increased, suggesting a rise in leverage, which could pose a risk if not managed properly. The return on equity is negative, reflecting ongoing losses. However, the equity ratio indicates a reasonable level of equity financing relative to total assets.

Cash Flow

Cash flow from operations is negative, which is a concern for liquidity. The free cash flow to net income ratio is positive, indicating that the company is generating cash relative to its net losses, but the overall cash flow position is weak.

Breakdown	TTM	Dec 2024	Dec 2023
Income Statement
Total Revenue	32.90M	31.62M	19.27M
Gross Profit	25.14M	24.34M	15.27M
EBITDA	-29.70M	-12.11M	-10.25M
Net Income	-32.59M	-15.62M	-12.65M
Balance Sheet
Total Assets	177.76M	43.08M	54.29M
Cash, Cash Equivalents and Short-Term Investments	137.29M	15.04M	32.81M
Total Debt	14.92M	14.73M	14.46M
Total Liabilities	14.91M	97.78M	94.03M
Stockholders Equity	162.85M	19.78M	34.74M
Cash Flow
Free Cash Flow	-24.95M	-18.16M	-15.89M
Operating Cash Flow	-19.83M	-14.14M	-13.14M
Investing Cash Flow	-78.31M	13.96M	-28.97M
Financing Cash Flow	146.96M	66.00K	44.73M

Shoulder Innovations, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MMSI	78 Outperform	$5.13B	44.32	8.30%	―	11.49%	-2.89%
LMAT	75 Outperform	$1.95B	41.90	15.02%	0.96%	13.07%	27.98%
VCEL	71 Outperform	$1.83B	290.70	4.52%	―	14.05%	241.86%
ATEC	58 Neutral	$3.35B	―	-540.40%	―	27.11%	17.66%
ICUI	57 Neutral	$3.10B	-82.51	-0.35%	―	-0.81%	93.27%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SI	45 Neutral	$298.31M	-8.08	―	―	39.97%	-148.57%

Shoulder Innovations, Inc. Corporate Events

Shoulder Innovations Reports Strong Q3 Growth and Raises Guidance

Shoulder Innovations, Inc. is a commercial-stage medical technology company focused on revolutionizing the shoulder surgical care market with its advanced implant systems and enabling technologies. In its third-quarter 2025 earnings report, the company announced a significant 58% increase in revenue, reaching $11.8 million, and raised its full-year revenue guidance. Key highlights include the sale of 1,584 implant systems, a 53% increase from the previous year, and a gross margin of 76.2%. The company also expanded its I-Series humeral stem product line with the launch of the InSet™ 70 and received FDA clearance for new fracture indications. Despite the impressive revenue growth, the company reported an operating loss of $7.6 million, attributed to increased operating expenses and changes in the fair value of financial liabilities. Shoulder Innovations ended the quarter with $137 million in cash and marketable securities, bolstered by proceeds from its recent IPO and convertible notes issuance. Looking ahead, the company is optimistic about capturing further market share within the $2.8 billion global shoulder surgical care market, driven by its innovative product ecosystem and expanding customer base.

Shoulder Innovations’ Clinical Study: A Game Changer for Shoulder Arthroplasty?

Shoulder Innovations, Inc. is conducting a study titled ‘Shoulder Innovations Clinical Data Registry’ to gather long-term clinical outcomes for anatomic and reverse total shoulder arthroplasty. This observational study aims to provide valuable insights into shoulder replacement procedures, which are crucial for improving patient care and advancing medical knowledge in this field.

Shoulder Innovations Reports Strong Revenue Growth Amid Losses

Shoulder Innovations, Inc. is a commercial-stage medical technology company focused on revolutionizing the shoulder surgical care market with advanced implant systems for shoulder arthroplasty. In its second quarter of 2025, the company reported a 33% increase in net revenue, reaching $11 million, alongside a gross margin of 76.2%. The company also completed an IPO, raising $75 million, and closed a $40 million convertible notes financing. Key achievements include a 34% increase in implant system sales and the expansion of its I-Series humeral stem product line. Despite these successes, the company reported a net loss of $19.2 million, attributed mainly to changes in the fair value of its preferred stock warrant liability. Looking forward, Shoulder Innovations anticipates continued revenue growth, projecting a 33% to 39% increase for the full year 2025, supported by its strategic financial positioning and growing customer base.