SI · SHOULDER INNOVATIONS, INC.

Shoulder Innovations delivered strong Q1 2026 results with net revenue surging 65% year-over-year to $16.7 million, fueled by a 51% increase in implant system sales to 2,184 units and a 9% rise in average selling price to $7,650. Gross margin improved slightly to 77.7% from 76.9%, reflecting operational efficiencies amid scaling. However, operating expenses escalated, with SG&A up 73% to $18.2 million due to commercial investments, public company costs, and variable selling expenses, and R&D up 137% to $3.8 million for new product development including a robotic platform partnership milestone. This drove operating loss to $9.0 million and net loss to $8.4 million, wider than prior year. Adjusted EBITDA loss widened to $7.0 million from $3.5 million. Balance sheet remains solid with $108.5 million in cash and marketable securities as of March 31, 2026. Management raised FY2026 revenue guidance to $65-68 million from $62-65 million, signaling confidence in momentum from the full launch of InSet™ I-135RFX Humeral Stem and commercial expansion. CEO Rob Ball highlighted accelerating growth, product milestones, and ecosystem strength, positioning the company for sustained traction in shoulder surgical care.