# Shoulder Innovations (SI) Q2 2025 Financial Results Summary
**Release Date:** September 9, 2025
Shoulder Innovations, Inc. (SI), a medical technology company focusing on shoulder surgical care, reported its financial results for the second quarter ending June 30, 2025. Here’s a summary of the key points from the report:
## Recent Business Highlights
– **Net Revenue:** Increased **33%** year-over-year to **$11.0 million** in Q2 2025 (up from $8.3 million in Q2 2024).
– **Gross Margin:** Stood at **76.2%**, slightly down from **76.9%** in Q2 2024.
– **Total Implant Systems Sold:** Increased by **34%** year-over-year, with **1,503 systems** sold in Q2 2025.
– **Financing:** Closed a **$40 million** convertible notes financing.
– **Initial Public Offering (IPO):** Successfully completed IPO, raising **$75 million** of gross proceeds.
– **New Board Member:** Appointed **Rick Buchholz** to the Board of Directors.
– **Product Expansion:** Launched the **InSet™ 70**, expanding the I-Series humeral stem product line.
## Second Quarter 2025 Financial Results
– **Net Revenue Growth:** Revenue reached **$11.0 million**, reflecting a **33%** increase from **$8.3 million** in Q2 2024.
– **Gross Margin:** Reported at **76.2%**, compared to **76.9%** in the same quarter last year.
– **Selling, General, and Administrative (SG&A) Expenses:** Increased **40%** to **$12.8 million** (from $9.2 million in Q2 2024). The rise is attributed to:
– Increased headcount in the commercial department.
– Higher legal costs related to litigation.
– Escalated legal, accounting, and professional service fees associated with the transition to a public company.
– **Research and Development (R&D) Expenses:** Increased **21%** to **$1.4 million** from **$1.2 million** in Q2 2024, reflecting investments in new product development.
– **Operating Loss:** Reported at **$5.9 million**, up from a loss of **$4.0 million** in Q2 2024.
– **Net Loss:** Increased significantly to **$19.2 million** from **$4.2 million** year-over-year, largely due to a **$13.1 million** expense related to the fair value changes in preferred stock warrant liability and Series E purchase options.
– **Adjusted EBITDA:** Loss of **$18.1 million**, compared to a loss of **$3.2 million** in Q2 2024.
## Balance Sheet Highlights (as of June 30, 2025)
– **Cash, Cash Equivalents, and Marketable Securities:** Totaled **$39.6 million**.
– Received approximately **$115 million** in gross proceeds from convertible notes (July 2025) and IPO (August 1, 2025).
## 2025 Financial Outlook
– **Expected Revenue:** For full year 2025, anticipated revenue is in the range of **$42 million to $44 million**, reflecting growth of approximately **33% to 39%** over 2024.
## Quarterly Dividend and Share Repurchase
– The report did not indicate any declaration of a quarterly dividend or any share repurchase activity.
## Summary of Key Metrics
– **Net Revenue:**
– Q2 2025: **$11.0 million** (+33% YoY)
– **Gross Margin:**
– Q2 2025: **76.2%** (-0.7% YoY)
– **Selling, General, and Administrative Expenses:**
– Q2 2025: **$12.8 million** (+40% YoY)
– **Research and Development Expenses:**
– Q2 2025: **$1.4 million** (+21% YoY)
– **Operating Loss:**
– Q2 2025: **$5.9 million** (loss increased YoY)
– **Net Loss:**
– Q2 2025: **$19.2 million** (up from $4.2 million YoY due to non-recurring expenses)
– **Adjusted EBITDA:**
– Q2 2025: **-$18.1 million** (increased loss YoY)
Shoulder Innovations aims to leverage the funds raised from its financing to further enhance its expansion and product offerings within the shoulder surgery market, while managing operational costs in the face of increasing revenue.
| Three Months Ended | Six Months Ended | |||
|---|---|---|---|---|
| June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | |
| Net Revenue | $ 11,013 | $ 8,260 | $ 21,145 | $ 15,444 |
| Cost of Goods Sold | $ 2,620 | $ 1,906 | $ 4,961 | $ 3,572 |
| Gross Profit | $ 8,393 | $ 6,354 | $ 16,184 | $ 11,872 |
| Selling, General, and Administrative Expenses | $ 12,849 | $ 9,172 | $ 23,351 | $ 16,876 |
| Research and Development | $ 1,406 | $ 1,162 | $ 2,989 | $ 2,232 |
| Operating Loss | $ -5,862 | $ -3,980 | $ -10,156 | $ -7,236 |
| Interest expense, net | $ 216 | $ 292 | $ 583 | $ 609 |
| Change in fair value of Series E purchase option | $ 11,719 | $ 11,719 | ||
| Other expense (income), net | $ 1,399 | $ -100 | $ 1,400 | $ -73 |
| Total Other Expense | $ 13,334 | $ 192 | $ 13,702 | $ 536 |
| Loss before income tax expense | $ -19,196 | $ -4,172 | $ -23,858 | $ -7,772 |
| Income Tax Expense | ||||
| Net Loss | $ -19,196 | $ -4,172 | $ -23,858 | $ -7,772 |
| Unrealized gain (loss) on marketable securities | $ 1 | $ -57 | $ -115 | $ -15 |
| Total Other Comprehensive income (loss), net | $ 1 | $ -57 | $ -115 | $ -15 |
| Comprehensive loss | $ -19,195 | $ -4,229 | $ -23,973 | $ -7,787 |
| Net loss per share | $ -165.53 | $ -72.74 | $ -232.13 | $ -135.51 |
| Weighted average shares outstanding | 115,965 | 57,354 | 102,775 | 57,354 |
| June 30, 2025 | December 31, 2024 | |
|---|---|---|
| Assets | ||
| Current Assets | ||
| Cash and cash equivalents | $ 27,054 | $ 6,123 |
| Marketable securities | $ 12,581 | $ 8,921 |
| Trade accounts receivable, net of allowance for credit losses | $ 6,886 | $ 5,122 |
| Inventories, net | $ 17,081 | $ 13,955 |
| Prepaid expenses | $ 691 | $ 431 |
| Other current assets | $ 4,618 | $ 573 |
| Total Current Assets | $ 68,911 | $ 35,125 |
| Property and equipment, net | $ 8,506 | $ 7,487 |
| Operating lease right-of-use asset | $ 162 | $ 68 |
| Intangible assets, net | $ 250 | $ 400 |
| Total Assets | $ 77,829 | $ 43,080 |
| Liabilities, Convertible Preferred Stock, and Stockholders’ Deficit | ||
| Current Liabilities | ||
| Accounts payable | $ 6,042 | $ 4,860 |
| Current operating lease obligations | $ 82 | $ 47 |
| Accrued liabilities | $ 6,370 | $ 2,740 |
| Total Current Liabilities | $ 12,494 | $ 7,647 |
| Long-Term Liabilities | ||
| Preferred stock warrant liability | $ 1,967 | $ 970 |
| Long-term debt | $ 14,784 | $ 14,658 |
| Other long-term liabilities | $ 84 | $ 25 |
| Total Long-Term Liabilities | $ 16,835 | $ 15,653 |
| Total Liabilities | $ 29,329 | $ 23,300 |
| Convertible Preferred Stock | $ 126,700 | $ 74,475 |
| Stockholders’ Deficit | ||
| Common stock, $0.001 par value, 280,986,575 shares authorized, and 2,839,173 issued and outstanding as of June 30, 2025 | $ 1 | $ 1 |
| Additional paid-in capital | $ 2,616 | $ 2,148 |
| Accumulated deficit | $ -80,899 | $ -57,041 |
| Accumulated other comprehensive income | $ 82 | $ 197 |
| Total Stockholders’ Deficit | $ -78,200 | $ -54,695 |
| Total Liabilities, Convertible Preferred Stock, and Stockholders’ Deficit | $ 77,829 | $ 43,080 |
