Shoulder Innovations, Inc. (SI)
NYSE:SI
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Shoulder Innovations, Inc.
(NYSE:SI)
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Rating:57Neutral
Price Target:
$16.00
▲(10.04% Upside)
Action:Reiterated
Date:05/15/26
The score is held back primarily by weak financial quality—widening losses and accelerating cash burn—despite strong revenue growth and high gross margins. Technicals are moderately supportive with price above key moving averages, and the earnings call was a positive catalyst due to raised guidance and continued adoption momentum, but valuation remains constrained by ongoing losses (negative P/E).
Positive Factors
Revenue growth & high gross margins
Sustained high revenue growth alongside ~77% gross margins demonstrates attractive unit economics and scalable product economics. Over the next 2–6 months this structural combination should enable operating leverage as fixed costs are spread across rising volumes, supporting margin improvement potential if SG&A growth moderates.
Negative Factors
Accelerating cash burn
Material negative operating and free cash flow and an accelerating burn rate signal the business is not self-funding. Over the next several months this structural cash outflow increases dependency on existing liquidity or capital markets, raising execution risk if revenue or funding assumptions weaken before break-even is reached.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & high gross margins
Sustained high revenue growth alongside ~77% gross margins demonstrates attractive unit economics and scalable product economics. Over the next 2–6 months this structural combination should enable operating leverage as fixed costs are spread across rising volumes, supporting margin improvement potential if SG&A growth moderates.
Read all positive factors
Shoulder Innovations, Inc. (SI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$308.58M
Dividend YieldN/A
Average Volume (3M)130.13K
Price to Earnings (P/E)―
Beta (1Y)0.16
Revenue Growth55.89%
EPS Growth-156.74%
CountryUS
Employees300
SectorHealthcare
Sector Strength45
IndustryMedical - Specialties
Share Statistics
EPS (TTM)-1.80
Shares Outstanding20,738,226
10 Day Avg. Volume53,279
30 Day Avg. Volume130,135
Financial Highlights & Ratios
PEG Ratio0.85
Price to Book (P/B)7.23
Price to Sales (P/S)23.67
P/FCF Ratio-31.09
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue5.88
Enterprise Value/Gross Profit7.65
Enterprise Value/Ebitda-7.27
Forecast
1Y Price Target
$21.50Price Target Upside47.87% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-1.56
Revenue Forecast (FY)$64.12M
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....
Shoulder Innovations, Inc. Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Sep 15, 2026
Earnings Call Sentiment Positive
The call presented a strong operating and commercial momentum: sizable revenue and volume growth, improving gross margins, accelerating surgeon adoption and meaningful product and technology milestones (I-135 full launch, N22 limited release, >500 patients in registry, and a progressing robotic partnership). These positives were offset by increased operating expenses and larger net and adjusted EBITDA losses as the company invests to scale, a Q1 cash burn driven by inventory and working capital, and some seasonality and ASP/mix variability risk embedded in the updated guidance. Overall, management expressed high conviction in the trajectory and raised full-year guidance while noting near-term investment-related impacts.Positive Updates
Strong Top-Line Growth
Net revenue of $16.7M in Q1 2026, up 65% year-over-year and 16% sequentially, driven by new surgeon adoption, increased utilization and higher ASPs.
Negative Updates
Widening Operating Losses
Net loss increased to $8.4M in Q1 2026 from $4.7M a year earlier; adjusted EBITDA loss rose to $7.0M from $3.5M, primarily driven by higher SG&A and R&D investments.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Net revenue of $16.7M in Q1 2026, up 65% year-over-year and 16% sequentially, driven by new surgeon adoption, increased utilization and higher ASPs.
Read all positive updates
Company Guidance
Management raised full‑year 2026 net revenue guidance to $65–68 million (growth of 37%–44% vs. 2025; prior range $62–65M or 31%–37%) after a strong Q1: net revenue $16.7M (+65% YoY, +16% sequential), total implant volume 2,184 units (+51% YoY) and gross margin 77.7% (vs. 76.9% a year ago). Q1 operating metrics included SG&A $18.2M (vs. $10.5M prior year) with variable selling expense down from 128% of revenue in Q3 2025 to 109% in Q1 2026, R&D $3.8M (vs. $1.6M), net loss $8.4M, adjusted EBITDA loss $7.0M, and cash & equivalents $108.5M at 3/31/26. Guidance assumes similar gross margins for the balance of 2026 (subject to quarter‑to‑quarter product‑mix and ASP variability), typical seasonality (lighter Q3, step‑up in Q4), a modest rise in SG&A as a percent of revenue in Q2–Q3 to fund greenfield expansion before declining in Q4, and R&D as a percent of revenue moderating late in the year; management also noted increased inventory/asset purchases in H1 but expects significantly lower cash burn starting in Q2 and believes current cash can support the path to cash‑flow breakeven.Shoulder Innovations, Inc. Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
66
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 53.89M | 47.32M | 31.62M | 19.27M |
| Gross Profit | 41.40M | 36.20M | 24.34M | 15.27M |
| EBITDA | -43.55M | -26.30M | -12.11M | -10.25M |
| Net Income | -44.08M | -40.36M | -15.62M | -12.65M |
Balance Sheet | ||||
| Total Assets | 160.36M | 169.91M | 43.08M | 54.29M |
| Cash, Cash Equivalents and Short-Term Investments | 108.54M | 124.31M | 15.04M | 32.81M |
| Total Debt | 15.01M | 15.02M | 14.73M | 14.46M |
| Total Liabilities | 15.00M | 14.96M | 97.78M | 94.03M |
| Stockholders Equity | 133.02M | 154.94M | 19.78M | 34.74M |
Cash Flow | ||||
| Free Cash Flow | -43.79M | -36.02M | -18.16M | -15.89M |
| Operating Cash Flow | -34.49M | -28.61M | -14.14M | -13.14M |
| Investing Cash Flow | -85.65M | -95.60M | 13.96M | -28.97M |
| Financing Cash Flow | 125.26M | 144.96M | 66.00K | 44.73M |
Shoulder Innovations, Inc. Risk Analysis
Shoulder Innovations, Inc. disclosed 79 risk factors in its most recent earnings report. Shoulder Innovations, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Shoulder Innovations, Inc. Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.81B | -64.80 | 6.41% | ― | 22.45% | 602.15% | |
72 Outperform | $2.32B | 39.69 | 16.19% | 0.95% | 13.27% | 36.99% | |
68 Neutral | $3.85B | 25.02 | 8.95% | ― | 11.34% | 12.26% | |
57 Neutral | $308.58M | -8.95 | -89.55% | ― | 55.89% | -156.74% | |
57 Neutral | $3.23B | 26.54 | 2.19% | ― | -10.76% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $1.27B | -12.36 | -443.09% | ― | 22.55% | 27.87% |
* Healthcare Sector Average
SI
Shoulder Innovations, Inc.
15.10
0.85
5.96%
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35.15
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LMAT
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99.52
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MMSI
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63.63
-31.48
-33.10%
Shoulder Innovations, Inc. Corporate Events
Business Operations and StrategyProduct-Related Announcements
Shoulder Innovations Launches Expanded InSet Humeral Stem System
Positive
Apr 27, 2026
Shoulder Innovations, Inc., a commercial-stage medical technology company focused on advanced implant systems for shoulder arthroplasty, is building an ecosystem that integrates implant design, preoperative planning, efficient instruments and spec...
Business Operations and Strategy
Shoulder Innovations Leases New Michigan Headquarters Facility
Positive
Apr 14, 2026
On April 13, 2026, Shoulder Innovations, Inc. entered into a lease agreement for a newly constructed 15,200-square-foot office and warehouse building in Byron Center, Michigan, which will serve as its corporate headquarters. The initial 10-year le...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Shoulder Innovations Reports Transformational 2025 Growth and Guidance
Positive
Mar 10, 2026
Shoulder Innovations reported that 2025 was a transformational year, with net revenue rising 50% to $47.3 million on strong adoption of its implant systems and a 61% increase in core and contender surgeons, despite a wider full-year net loss of $4...
Business Operations and StrategyExecutive/Board Changes
Shoulder Innovations Adds Medtech Veteran Drew Hykes to Board
Positive
Mar 2, 2026
On March 2, 2026, Shoulder Innovations announced that medtech veteran Drew Hykes joined its Board of Directors and Compensation Committee, effective February 26, 2026, while Independent Director Geoff Pardo resigned. The move signals a governance ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.