SI

Interested in Shoulder Innovations, Inc.? Here are five stocks we like better. Revenue and outlook increased: Second-quarter revenue rose 56% year over year to $17.2 million, prompting Shoulder Innovations to raise its 2026 revenue guidance to $67 million–$69 million. Growth was driven by surgeon adoption: Implant volume increased approximately 50% to 2,238 units, with gains across all territories and most growth attributed to share wins from larger competitors. Margins and losses improved while investment continued: Gross margin expanded to 78.3%, and net loss narrowed to $10.2 million. The company is continuing to invest in robotics, software and new implants, including plans to submit its InSet NEO robotic platform to the FDA in the first half of 2027. 3 Quiet Outperformers Boosting Dividends as Markets Retreat Shoulder Innovations (NYSE:SI) reported second-quarter net revenue of $17.2 million, up 56% from $11 million a year earlier, as the company added surgeons, expanded use among existing customers and advanced several product launches. The company raised its full-year 2026 revenue outlook to $67 million to $69 million, from a prior range of $65 million to $68 million. Chief Executive Officer Rob Ball said the updated guidance represents growth of 42% to 46% over 2025. Management said the outlook incorporates typical orthopedic seasonality, including lower sequential procedure volumes in the third quarter and a second-half mix shift that can affect average selling prices. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling 3 Mining Stocks Poised to Ride the Precious Metals Boom Ball said Shoulder Innovations added more new customers in the second quarter than it did in the first quarter, following a first-quarter pace of additions that was more than double the prior-year rate. The company’s commercial organization targets approximately 1,800 high-volume U.S. surgeon specialists. Total implant volume among the company’s core, contender and prospect customers increased about 50% year over year to 2,238 units in the second quarter. Ball said most of that growth came from core surgeons, both in the number of physicians using the company’s products and the number of procedures those surgeons performed. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High MarketBeat Week in Review – 7/8 - 7/12 Every company territory grew year over year during the quarter, with a majority posting growth above 80%, according to Ball. Shoulder Innovations also expanded its commercial presence at two hospital systems, gaining full access at both centers. The company held more than 90 surgeon engagement events year to date, reaching hundreds of surgeons. Ball said the company’s April national symposium in Napa was its largest event to date by surgeon attendance and was followed by increased procedure volumes among attendees. → No Hangover: Revisiting Microsoft One Week After Earnings During the question-and-answer session, Ball said the company believes a “vast majority” of its growth is coming from share gains against larger incumbent competitors, though it is also capturing some market growth as it expands its presence in centers with fellowship programs. Second-quarter gross margin rose to 78.3%, compared with 76.2% a year earlier. Chief Financial Officer Jeff Points attributed the improvement to strong average selling prices and negotiated cost-reduction programs across product lines. Selling, general and administrative expense increased to $20.1 million from $12.8 million in the prior-year quarter, driven primarily by commercial headcount additions, higher variable selling expense and public-company costs. Points said that excluding public-company costs, the company generated operating leverage in SG&A compared with the prior year. Research and development expense increased to $3.4 million from $1.4 million, reflecting investment in new product development, including the company’s robotic platform. Net loss narrowed to $10.2 million from $19.2 million a year earlier, while adjusted EBITDA loss narrowed to $8 million from $18.1 million. Points said the year-earlier losses included a significant charge related to changes in the fair value of preferred stock, warrant liabilities and a Series E purchase option. Cash, cash equivalents and marketable securities totaled $99 million as of June 30. The company expects cash burn to improve in the second half compared with the first half after it increased inventory and asset purchases during the first two quarters. Shoulder Innovations also closed two debt facilities with Stifel Venture Banking totaling up to $50 million, including a funded term loan used to refinance its existing credit facility and an undrawn line of credit. Points said the company expects to file a shelf registration statement on Form S-3 but has no imminent plans for a primary equity offering. The company continued commercial launches of the I135 RFX humeral stem for more complex fractures, the N22 Glenosphere for patients with metal hypersensitivity, and a titanium plasma spray reverse base plate. Ball said all three products contributed to higher average selling prices and represented a growing share of procedures year to date. Management is also updating its ProVoyance enabling technology platform and developing a shoulder-specific micro robotic system, called InSet NEO. The company plans to submit InSet NEO to the FDA in the first half of 2027 and expects to begin a robotic training program in early 2027. Ball said the company is not yet disclosing its commercial strategy or pricing structure for the robotic platform. However, he said Shoulder Innovations believes its portable platform could support different economic arrangements with ambulatory surgery centers and hospitals, including pricing through implants, capital purchases or other structures. Additional pipeline milestones include: A limited third-quarter availability of the InSet Clutch guide system for anatomic and reverse glenoid procedures. A planned 2027 FDA submission for InSet1, a patient-matched, additively manufactured solution for complex reverse procedures. A limited user release in the third quarter for subscapularis-sparing instrumentation. Initial surgical cases for the next-generation InSet GO anatomic glenoid implant in the fourth quarter. Ball said the product could save up to 10 minutes per procedure. The company also announced an exclusive collaboration with an additive manufacturing device provider for severe deformity and complex revision cases, as well as a relationship with a soft-tissue device manufacturer. Management expects to begin commercializing certain soft-tissue devices before year-end but does not expect the partnership to contribute material revenue in 2026. Looking ahead, Points said gross margins are expected to remain at similar levels for the rest of 2026, subject to product mix and average selling price variation. The company has also filed a separate FDA 510(k) related to additive manufacturing capabilities that could reduce costs on certain products by up to 30% beginning sometime in 2027. Shoulder Innovations (NYSE:SI) is a medical device company focused on the design, development and commercialization of shoulder implant systems and related surgical instruments for orthopedic surgery. The company’s product portfolio includes modular shoulder prostheses, humeral and glenoid components, and instrumentation kits designed to facilitate both primary and revision shoulder arthroplasty procedures. Emphasizing a patient-centric approach, Shoulder Innovations works to offer implant solutions that aim to restore mobility and reduce post-operative complications. In addition to its core implant offerings, Shoulder Innovations provides comprehensive clinical support and training programs for surgeons and operating room teams. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Shoulder Innovations Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Q2 2026 net revenue grew 56% year-over-year to $17.2 million, with gross margin improving to 78.3%. Raised full-year 2026 revenue guidance to $67-$69 million, representing 42%-46% growth. New customer additions accelerated in Q2, with each territory growing year-over-year and most exceeding 80% growth. Robotics platform (Inset Neo) development is nearly a year ahead of schedule, with FDA submission planned for H1 2027. Multiple new product launches (I-135 RFX, N22 Glenosphere, TPS base plate) are contributing to higher average selling prices. New partnerships in additive manufacturing and soft tissue devices expand market reach and product portfolio. Clinical data registry shows promising early results, including reduced complications and improved outcomes. Cash position remains strong at $99 million, with improved cash burn expected in H2 2026. New debt facilities with Stifel provide up to $50 million and future cost savings. Gross margin expansion expected from additional cost reduction initiatives, including a 510(k) for additive manufacturing that could cut costs by up to 30% on certain products. SG&A expenses increased significantly to $20.1 million in Q2, up from $12.8 million year-over-year, due to commercial expansion and public company costs. R&D expenses more than doubled to $3.4 million in Q2, driven by robotics and new product development investments. Net loss was $10.2 million in Q2, though improved from a $19.2 million loss in the prior year. Adjusted EBITDA loss was $8 million in Q2, reflecting ongoing operating losses. Guidance implies a flat second half versus first half, with typical orthopedic seasonality and a shift in procedure mix expected to impact ASPs. Q3 SG&A as a percentage of revenue is expected to increase from Q2 before declining in Q4. The company filed a shelf registration statement, which may create overhang due to potential insider selling. New partnerships are not expected to contribute material revenue in the near term. The company faces competitive pressure from a competitor's new robotic system in shoulder surgery. Cash burn, while improving, remains a concern as the company continues to invest heavily in growth initiatives. Warning! GuruFocus has detected 6 Warning Signs with SI. Is SI fairly valued? Test your thesis with our free DCF calculator. Q: Can you discuss the dynamics behind the full-year 2026 guidance raise, given that the second half appears essentially flat versus the first half, and address any competitive pressures, such as a competitor's new robotic system? A: Rob Ball, CEO: The guidance raise reflects our high conviction in the business, driven by an accelerating pace of new customer additions and robust pipeline activity. There are no specific market dynamics or competitive changes impacting our outlook for the second half. We continue to present numbers we consider to be very high conviction, and the guidance accounts for normal orthopedic seasonality and procedure mix shifts. Q: Regarding the Inset Neo robotic system, can you frame up the potential economic impact, including selling strategy, ASPs, and the timeline for its introduction? A: Rob Ball, CEO: We are not yet ready to share our specific economic strategy, but the portability and structure of our platform give us unique flexibility to build economic relationships with both ASCs and hospitals. We can structure pricing into the implant, the capital purchase, or a combination. We will begin with a careful limited user release to ensure perfection, and we believe the economic benefit will be commensurate with the clinical value provided, which we expect to be quite meaningful. Q: For the new Inset Go glenoid implant, which saves up to 10 minutes per procedure, is the primary opportunity to break into new accounts and increase utilization, or can you also leverage this for pricing power? A: Rob Ball, CEO: The economic benefit for surgeons is less about per-minute cost and more about the ability to fit an additional surgery into their day. A 10-minute saving is material and can enable that. We recently had a major hospital perform 8 surgeries in one day due to the efficiency of our system. This simplification is positively received by both the surgeon and the entire OR staff, which is a constructive advantage for us. Q: What typically triggers a surgeon to significantly increase their utilization of your system, and is there a specific point where they transition more of their procedural volume over? A: Rob Ball, CEO: There is no single recipe, as each surgeon interaction is managed individually by our experienced commercial team. However, a key shift has been our transition from being seen as "the Inset glenoid company" to "the Inset platform company." Surgeons now recognize the benefits of our lateralized reverse platform, and we are seeing more surgeons start with our reverse system. When they do, we tend to build volume quite quickly because the outcome results are immediately evident. Q: Given that some peers reported softer U.S. extremities numbers, are you taking market share from incumbents, or are you also growing the overall market? A: Rob Ball, CEO: While I can't quantify the exact ratio, the vast majority of our growth is coming from taking share from larger market incumbents. A small portion, perhaps 10%, is related to expanding the market, such as capturing graduating fellows with shoulder specialty training. We are in the very early innings of this, and the dominant driver is capturing existing market share from competitors. Q: How are you planning the transition for your Provoyance enabling technology platform as you integrate new programs, software advancements, and robotics, and what is the impact on the existing user base? A: Rob Ball, CEO: Provoyance has been a key enabler for our core surgeons, who often learn about it through peer-to-peer training. As we expand its utility, we will use the same surgeon-to-surgeon communication model. The long-term vision is to shift decision-making from the OR to the pre-operative software level, making the OR a function of the pre-conceived plan. This will accelerate innovation, create a stickier environment, and drive greater surgeon loyalty. Q: Can you provide more detail on the new partnerships announced, specifically the additive manufacturing collaboration for complex revisions and the soft tissue device relationship? A: Rob Ball, CEO: We announced an exclusive collaboration with a leader in additive manufacturing for severe deformity cases, which are often complex revisions where our current solutions may not be optimal. This expands our offerings into these challenging cases. Additionally, we have a new relationship with a soft tissue device manufacturer that will allow us to begin commercializing several devices before year-end. While we don't expect material revenue from this partnership initially, it provides strategic advantages as our commercial organization grows. Q: Can you elaborate on the progress of your clinical data registry and the plans to accelerate publication of results? A: Rob Ball, CEO: Our clinical data collection is ahead of expectations. Preliminary reviews show improvements in post-operative acromial fractures, reduced instability complications, and better range of motion. We have identified an opportunity to accelerate publication by partnering with centers holding large retrospective data sets. This requires a modest investment but could advance our publication timeline by several quarters. Q: Regarding the new debt facilities with Stifel Venture Banking, can you explain the strategic rationale and the expected impact on your financial position? A: Jeff Points, CFO: We closed two new debt facilities totaling up to $50 million, consisting of a fully funded term loan to refinance our existing credit facility and a separate undrawn line of credit. This refinancing strengthens our financial foundation, provides material future cost savings on our existing debt, and offers financial flexibility as we scale. We remain confident in our balance sheet and our ability to fund growth plans with our $99 million in cash and marketable securities. Q: Can you provide more color on the gross margin performance and the outlook for the remainder of 2026? A: Jeff Points, CFO: Q2 gross margin was 78.3%, up from 76.2% in the prior year, driven by strong ASPs and negotiated cost reduction programs. We expect similar margins for the balance of 2026, with potential quarter-to-quarter fluctuations based on product mix and ASP. We recently filed a 510(k) for additive manufacturing of certain products, which could provide incremental cost reductions of up to 30% on certain products beginning in 2027. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Generates First Half 2026 Revenue Growth of 60% GRAND RAPIDS, Mich., Aug. 6, 2026 /PRNewswire/ -- Shoulder Innovations, Inc. (Shoulder Innovations, or the company) (NYSE: SI), a commercial-stage medical technology company exclusively focused on transforming the shoulder surgical care market, today reported financial results for the second quarter ended June 30, 2026. Second Quarter Financial Highlights Generated net revenue of $17.2 million in the second quarter, a 56% increase over the second quarter of 2025 Achieved gross margin of 78.3% for the second quarter compared to 76.2% for the second quarter of 2025 Increased average selling price of our implant systems to $7,674 in the second quarter, a 5% increase over the second quarter of 2025 Increased full year 2026 net revenue guidance to $67 million to $69 million, representing growth of approximately 42% to 46% over full year 2025 net revenue Recent Business Highlights Sold 2,238 total implant systems in the second quarter, an approximate 50% increase over the second quarter of 2025 Initiated full commercial launch of the N-22 glenosphere for patients with metal hypersensitivity Initiated full commercial launch of a new titanium plasma spray (TPS) baseplate line extension for reverse procedures Closed two new credit facilities for an aggregate amount of up to $50 million with Stifel Venture Banking, refinancing existing debt and adding undrawn working capital capacity Expanded commercial organization in the second quarter to support increased business scale "Our second quarter results build on a strong start to the year and reflect remarkable momentum across every dimension of our business," said Rob Ball, CEO of Shoulder Innovations. "We continued to rapidly onboard new surgeons against a large, underpenetrated market opportunity, deepened utilization within our existing surgeon base, and advanced a broad and increasingly differentiated product pipeline. This performance resulted in net revenue growth of 56% and implant volume growth of approximately 50%, enabling us to increase our outlook for the full year." Mr. Ball continued, "Our confidence in what lies ahead has never been stronger. The commercial organization we've built continues to perform, our innovation pipeline is growing, and our conviction in the team's ability to execute is high. With a strengthened financial foundation following our recent debt refinancing, we believe Shoulder Innovations remains in the early stages of what we can accomplish in transforming shoulder surgical care, and we look forward to demonstrating that in the back half of 2026 and beyond." Second Quarter 2026 Financial Results Net revenue in the second quarter of 2026 increased 56% to $17.2 million, compared to $11.0 million in the second quarter of 2025. The increase was due to an increase in the number of implant systems sold, as well as an increase in the number of customers. Gross margin in the second quarter of 2026 was 78.3%, compared to 76.2% in the second quarter of 2025. The increase was was due to increases in the average selling price of implant systems, as well as benefits from negotiated cost reduction programs. Selling, general and administrative expenses in the second quarter of 2026 increased 56% to $20.1 million, compared to $12.8 million in the second quarter of 2025. The increase was primarily due to investments in the commercial organization, higher variable selling expenses, and increased costs associated with becoming a public company. Research and development expenses in the second quarter of 2026 increased 141% to $3.4 million, compared to $1.4 million in the second quarter of 2025. The increase was due to investment in new product development efforts, including development related to the robotic platform strategic partnership. Operating loss in the second quarter of 2026 was $10.0 million, compared to a loss of $5.9 million in the second quarter of 2025. Net loss in the second quarter of 2026 was $10.2 million, compared to a net loss of $19.2 million in the second quarter of 2025. The increase in operating loss was primarily related to increased operating expenses, while the decrease in net loss was primarily due to a significant prior year charge related to changes in the fair value of the company's preferred stock warrant liability and Series E purchase option. Adjusted EBITDA in the second quarter of 2026 was a loss of $8.0 million, compared to a loss of $18.1 million in the second quarter of 2025. The decrease in loss was primarily due to a significant prior year charge related to changes in the fair value of the company's preferred stock warrant liability and Series E purchase option. As of June 30, 2026, cash and cash equivalents, and marketable securities totaled $99.0 million. 2026 Financial Outlook Shoulder Innovations expects net revenue for the full year 2026 to be in the range of $67 million to $69 million, representing growth of approximately 42% to 46% over full year 2025 net revenue. This compares to prior guidance of $65 million to $68 million, representing growth of approximately 37% to 44% over full year 2025 net revenue. Conference Call Management will host a conference call today, August 6, 2026, at 4:30 p.m. ET / 1:30 p.m. PT to discuss the company's second quarter 2026 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 13761097. 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 U.S. GAAP, we believe that non-GAAP financial measures can be useful in evaluating and comparing our financial and operational performance over multiple periods, identifying trends affecting our business, formulating business plans and making strategic decisions. We use and present Adjusted EBITDA for this purpose. We define Adjusted EBITDA as net loss before interest (income) expense, net, income tax expense, loss on extinguishment of debt, depreciation and amortization, and stock-based compensation expense. We have reconciled our historic non-GAAP financial measures to the applicable most comparable GAAP measures in this press release. 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 (income) expense, net, 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 press release 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 [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/shoulder-innovations-reports-second-quarter-2026-financial-results-and-raises-full-year-outlook-302845323.html

BrightSpring Health Services, Inc. (BTSG) came out with quarterly earnings of $0.45 per share, beating the Zacks Consensus Estimate of $0.37 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +21.62%. A quarter ago, it was expected that this company would post earnings of $0.29 per share when it actually produced earnings of $0.39, delivering a surprise of +34.48%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. BrightSpring Health Services, Inc., which belongs to the Zacks Medical Services industry, posted revenues of $3.87 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 6.11%. This compares to year-ago revenues of $3.15 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. BrightSpring Health Services, Inc. shares have added about 94.6% since the beginning of the year versus the S&P 500's gain of 8.7%. While BrightSpring Health Services, Inc. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for BrightSpring Health Services, Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.44 on $3.79 billion in revenues for the coming quarter and $1.70 on $15.04 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical Services is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Shoulder Innovations, Inc. (SI), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This company is expected to post quarterly loss of $0.46 per share in its upcoming report, which represents a year-over-year change of +99.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Shoulder Innovations, Inc.'s revenues are expected to be $16.85 million, up 53% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BrightSpring Health Services, Inc. (BTSG) : Free Stock Analysis Report Shoulder Innovations, Inc. (SI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Shareholders of Shoulder Innovations, Inc. (NYSE:SI) will be pleased this week, given that the stock price is up 18% to US$15.63 following its latest quarterly results. Results were mixed, with revenues of US$17m beating expectations by 15%. Shoulder Innovations continued to be lossmaking, reporting a US$0.41 statutory loss per share, in line with analyst forecasts. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Taking into account the latest results, the most recent consensus for Shoulder Innovations from four analysts is for revenues of US$67.3m in 2026. If met, it would imply a huge 25% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 20% to US$1.70. Before this earnings announcement, the analysts had been modelling revenues of US$64.1m and losses of US$1.57 per share in 2026. Overall it looks as though the analysts were a bit mixed on the latest consensus updates. Although there was a nice uplift to revenue, the consensus also made a moderate increase in its losses per share forecasts. See our latest analysis for Shoulder Innovations The consensus price target stayed unchanged at US$21.25, seeming to suggest that higher forecast losses are not expected to have a long term impact on the valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Shoulder Innovations at US$24.00 per share, while the most bearish prices it at US$19.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects. Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Shoulder Innovations' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 35% growth on an annualised basis. This is compared to a historical growth rate of 56% over the past year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.0% annually. So it's pretty clear that, while Shoulder Innovations' revenue growth is expected to slow, it's still expected to grow faster than the industry itself. The most important thing to take away is that the analysts increased their loss per share estimates for next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at US$21.25, with the latest estimates not enough to have an impact on their price targets. Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Shoulder Innovations analysts - going out to 2028, and you can see them free on our platform here. It is also worth noting that we have found 1 warning sign for Shoulder Innovations that you need to take into consideration. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Interested in Shoulder Innovations, Inc.? Here are five stocks we like better. Shoulder Innovations posted strong Q1 2026 results, with net revenue rising 65% year over year to $16.7 million and gross margin improving to 77.7%. Management also raised full-year revenue guidance to $65 million–$68 million, up from the prior range of $62 million–$65 million. Growth was driven by surgeon adoption and higher utilization, with total implant volume up 51% year over year to 2,184 units. The company said education events and brand-building efforts are helping convert new surgeons, and its core surgeon base is expanding quickly. The company advanced its product pipeline, including full commercial launch of the i135 RFX humeral stem, limited release of the N22 Glenosphere, and continued robotics development with a 510(k) submission targeted for 2027. Management said the robotics program is slightly ahead of schedule and designed as a portable “Robotics as a Service” offering. 3 Quiet Outperformers Boosting Dividends as Markets Retreat Shoulder Innovations (NYSE:SI) reported a sharp increase in first-quarter revenue and raised its full-year sales outlook, citing new surgeon adoption, higher utilization among existing customers and progress across its product pipeline. Chief Executive Officer Rob Ball said 2026 was “off to a strong start,” with the company rapidly onboarding new surgeons, increasing use within its customer base and reaching several product milestones. For the first quarter ended March 31, 2026, Shoulder Innovations reported net revenue of $16.7 million, up 65% from the prior year and 16% sequentially. Gross margin was 77.7%. → Micron Investors Face a High-Stakes Moment After the Latest Rally 3 Mining Stocks Poised to Ride the Precious Metals Boom Based on the quarter’s performance, the company raised its 2026 net revenue guidance to a range of $65 million to $68 million, representing growth of 37% to 44% over 2025. Its prior outlook called for revenue of $62 million to $65 million, or growth of 31% to 37%. Ball said the company’s growth strategy remains centered on three priorities: adding new surgeons, increasing penetration among existing surgeon customers and expanding its product portfolio to address unmet needs. He said Shoulder Innovations’ commercial organization continues to focus on roughly 1,800 high-volume shoulder specialists in the U.S. → How Bad Could Tesla’s Cybertruck Recall Be for Shares? MarketBeat Week in Review – 7/8 - 7/12 The company ended 2025 with 134 “core and contender” surgeons, up 61% year over year, and Ball said Shoulder Innovations will update that figure annually. He added that the company is seeing momentum from brand awareness, its proprietary business intelligence platform and productivity gains from commercial leadership hires made in 2025. Shoulder Innovations also continued to invest in surgeon education. Ball said the company’s Customer Experience and Medical Education team conducted 44 company-sponsored educational events in the first quarter, excluding industry meetings. In April, the company hosted a national symposium in Napa Valley, with surgeon attendance up more than 70% from the prior year’s event, making it the largest symposium since the program began four years ago. → Reading the Stripes: Is The Industrial Recession Over? Ball said the educational programs are translating into commercial activity. Among attending surgeons at the Napa course who were not already core or contender customers, more than 70% had either performed their first case with the company’s system, committed to their first case or committed to increasing volume within a few weeks of the meeting. Total implant volume across core, contender and prospect customers increased 51% year over year in the first quarter to 2,184 units. Ball said the company more than doubled the number of new customers entering its funnel compared with the first quarter of 2025. He also said the core surgeon category was the company’s fastest-growing segment both year over year and sequentially. Shoulder Innovations advanced several product initiatives during the quarter. Ball said the company began a limited user release of its i135 RFX products early in the first quarter, later expanded the product’s indication to include more complex fractures and recently moved the InSet 135 RFX humeral stem into full commercial launch following expanded clearance from the U.S. Food and Drug Administration. With the broader label, Ball said the i135 addresses primary, revision and fracture total shoulder arthroplasty cases. He said the product helps the company support nearly the full spectrum of shoulder arthroplasty procedures performed by its surgeon customers in both operating rooms and ambulatory surgery settings. The company also began a limited user release of its N22 Glenosphere in the first quarter. Ball described N22 as the first product in a new line intended for patients with metal hypersensitivity who may experience adverse reactions associated with metal implants. He said the company views the product as an incremental addressable market and expects to provide more detail on full launch plans in future updates. Ball also pointed to the company’s clinical data registry, which has enrolled more than 500 patients across anatomic and reverse shoulder arthroplasty configurations. He said the company believes the registry will help build evidence to support its position with surgeons, health systems and patients over time. Shoulder Innovations also updated investors on its robotic surgery initiative with Interventional Systems. Ball said the robotic solution is being designed to integrate with the company’s ProVoyance preoperative planning platform, creating a connected workflow from planning through intraoperative execution. In March, the company conducted another cadaver lab that Ball said reinforced management’s conviction in the technology for robotic shoulder arthroplasty. He said the session included the full procedure, beginning with a CT scan through ProVoyance and ending with robotic placement of the device in a cadaveric specimen. Ball said development of the robotic solution is running “slightly ahead of schedule,” with a 510(k) submission targeted for 2027. During the Q&A session, Jefferies analyst Matt Taylor asked how the robotic system could contribute to customer stickiness or share gains. Ball said the company is focused on a platform that is “time-transparent” and uses the same surgical techniques surgeons use today. He also said Shoulder Innovations expects to offer a different economic model, describing it as “Robotics as a Service” rather than a capital acquisition. Ball said the robotic system is intended to be portable and provided on an event-by-event basis in a case about the size of a carry-on suitcase. Chief Financial Officer Jeff Points said first-quarter revenue rose to $16.7 million from $10.1 million a year earlier, driven by commercial expansion and increased adoption of implant systems across new and existing surgeons. Gross margin improved to 77.7% from 76.9%, which Points attributed to improved average selling prices and cost reduction programs. Selling, general and administrative expenses increased to $18.2 million from $10.5 million in the prior year. Points said the increase was primarily driven by commercial headcount, higher variable selling expenses and professional service fees tied to the company’s transition to being public. However, SG&A expenses declined as a percentage of revenue from 128% in the third quarter of 2025 to 109% in the first quarter of 2026. Research and development expenses rose to $3.8 million from $1.6 million a year earlier, mainly due to new product development, including a second milestone payment and development costs related to the robotics partnership. The company reported a net loss of $8.4 million, compared with a loss of $4.7 million in the prior-year period. Adjusted EBITDA loss was $7.0 million, compared with a loss of $3.5 million a year earlier. Shoulder Innovations had $108.5 million in cash and cash equivalents as of March 31, 2026. Points said the updated full-year revenue guidance reflects confidence in continued growth from surgeon adoption, deeper penetration with existing customers and new product launches. He also said the outlook accounts for typical industry seasonality, including lower sequential volumes in the third quarter of 2026. In response to questions from Goldman Sachs analyst David Roman about whether the guidance was conservative given the first-quarter performance, Points said the company sets annual guidance with “high conviction.” Ball added that management does not see marketplace factors that would fundamentally change its view of the business trajectory. BTIG analyst Ryan Zimmerman asked about average selling prices. Ball said Shoulder Innovations has focused on improving pricing by targeting centers where the company can achieve higher prices and by improving the commercial team’s ability to navigate negotiations. He said new products made a small contribution to first-quarter average selling prices and could contribute more meaningfully in future years. Points said he expects average selling prices to remain “in this neighborhood” through the rest of the year, while noting some variation is possible. Ball closed the call by saying the first quarter reflected strength across the business, including revenue growth, margin expansion, surgeon onboarding, increased utilization and product progress. He said the company believes its commercial organization is performing and that the U.S. shoulder market remains large and underpenetrated. Shoulder Innovations (NYSE:SI) is a medical device company focused on the design, development and commercialization of shoulder implant systems and related surgical instruments for orthopedic surgery. The company’s product portfolio includes modular shoulder prostheses, humeral and glenoid components, and instrumentation kits designed to facilitate both primary and revision shoulder arthroplasty procedures. Emphasizing a patient-centric approach, Shoulder Innovations works to offer implant solutions that aim to restore mobility and reduce post-operative complications. In addition to its core implant offerings, Shoulder Innovations provides comprehensive clinical support and training programs for surgeons and operating room teams. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Shoulder Innovations Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Generates First Quarter Net Revenue Growth of 65% Year-Over-Year GRAND RAPIDS, Mich., May 13, 2026 /PRNewswire/ -- Shoulder Innovations, Inc. (Shoulder Innovations, or the company) (NYSE: SI), a commercial-stage medical technology company exclusively focused on transforming the shoulder surgical care market, today reported financial results for the first quarter ended March 31, 2026. First Quarter Financial Highlights Generated net revenue of $16.7 million in the first quarter, a 65% increase over the first quarter of 2025 Achieved gross margin of 77.7% for the first quarter compared to 76.9% for the first quarter of 2025 Increased average selling price of our implant systems to $7,650 in the first quarter, a 9% increase over the first quarter of 2025 Increased full year 2026 net revenue guidance to $65 million to $68 million, representing growth of approximately 37% to 44% over full year 2025 net revenue Recent Business Highlights Sold 2,184 total implant systems in the first quarter, a 51% increase over the first quarter of 2025 Initiated full commercial launch of the InSet™ I-135RFX Humeral Stem following a successful limited user release and FDA clearance of additional fracture indications Expanded commercial organization in the first quarter to support increased business scale "We are very pleased with our first quarter performance, which reflects accelerating revenue growth and intensifying commercial momentum across our entire organization," said Rob Ball, CEO of Shoulder Innovations. "Net revenue growth of 65%, implant volume growth of 51%, and continued improvement in gross margin demonstrate the strength and efficiency of our rapidly expanding ecosystem." Mr. Ball continued, "Building on this traction, recent product portfolio milestones, including the full commercial launch of our InSet™ I-135RFX Humeral Stem, meaningfully extend the comprehensive suite of solutions we offer surgeons and their patients. This disciplined financial and operational execution to start the year provides us with increased confidence in the trajectory of the business and enables us to increase our full year 2026 revenue guidance." First Quarter 2026 Financial Results Net revenue in the first quarter of 2026 increased 65% to $16.7 million, compared to $10.1 million in the first quarter of 2025. The increase was due to an increase in the number of implant systems sold, as well as an increase in the number of customers. Gross margin in the first quarter of 2026 was 77.7%, compared to 76.9% in the first quarter of 2025. Selling, general and administrative expenses in the first quarter of 2026 increased 73% to $18.2 million, compared to $10.5 million in the first quarter of 2025. The increase was primarily due to investments in the commercial organization, higher variable selling expenses, and increased costs associated with becoming a public company. Research and development expenses in the first quarter of 2026 increased 137% to $3.8 million, compared to $1.6 million in the first quarter of 2025. The increase was due to investment in new product development efforts, including a milestone payment and development related to the robotic platform strategic partnership. Operating loss in the first quarter of 2026 was $9.0 million, compared to a loss of $4.3 million in the first quarter of 2025. Net loss in the first quarter of 2026 was $8.4 million, compared to a net loss of $4.7 million in the first quarter of 2025. The increase in operating loss and net loss was primarily related to increased operating expenses. Adjusted EBITDA in the first quarter of 2026 was a loss of $7.0 million, compared to a loss of $3.5 million in the first quarter of 2025. The increase in loss was primarily due to the aforementioned increased operating expenses. As of March 31, 2026, cash and cash equivalents, and marketable securities totaled $108.5 million. 2026 Financial Outlook Shoulder Innovations expects net revenue for the full year 2026 to be in the range of $65 million to $68 million, representing growth of approximately 37% to 44% over full year 2025 net revenue. This compares to prior guidance of $62 million to $65 million, representing growth of approximately 31% to 37% over full year 2025 net revenue. Conference Call Management will host a conference call today, May 13, 2026, at 4:30 p.m. ET / 1:30 p.m. PT to discuss the company's first quarter 2026 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 13759613. 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 U.S. GAAP, we believe that non-GAAP financial measures can be useful in evaluating and comparing our financial and operational performance over multiple periods, identifying trends affecting our business, formulating business plans and making strategic decisions. We use and present Adjusted EBITDA for this purpose. We define Adjusted EBITDA as net loss before interest (income) expense, net, income tax expense, depreciation and amortization, and stock-based compensation expense. We have reconciled our historic non-GAAP financial measures to the applicable most comparable GAAP measures in this press release. 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 (income) expense, net, 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 press release 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 [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/shoulder-innovations-reports-first-quarter-2026-financial-results-and-raises-full-year-outlook-302771392.html

Shoulder Innovations (NYSE:SI) reported first-quarter financial results on Wednesday. The transcript from the company's first-quarter earnings call has been provided below. This transcript is brought to you by Benzinga APIs. For real-time access to our entire catalog, please visit https://www.benzinga.com/apis/ for a consultation. Access the full call at https://event.choruscall.com/mediaframe/webcast.html?webcastid=ospnpF1X Shoulder Innovations Inc reported a strong start to 2026 with Q1 net revenue of $16.7 million, marking a 65% increase year-over-year and a 16% sequential growth. Gross margin improved to 77.7%. The company raised its full-year 2026 net revenue guidance to $65-$68 million, representing 37% to 44% growth, up from the previous estimate of $62-$65 million. Strategic focus remains on expanding surgeon adoption, increasing procedural volume, and launching new products, including the i135 RFX and the N22 Glenosphere. Significant progress was made in commercial expansion, with a focus on 1,800 high-volume shoulder specialists in the U.S., and the successful onboarding of new surgeons. The development of a shoulder-specific micro-robotic solution is progressing ahead of schedule, with a 510k submission targeted for 2027, aiming to enhance market differentiation and surgeon engagement. SG&A expenses increased due to higher headcount and public company transition costs, but efficiencies are being realized. The company expects SG&A expenses as a percentage of revenue to fluctuate through 2026. Future outlook suggests stable gross margins for 2026 with potential fluctuations due to product mix and cost initiatives. Cash burn is expected to decrease significantly from Q2 onward. Sam Bensinger (Investor Relations) Good afternoon and thank you for participating in today's call. Joining me from Shoulder Innovations Inc are Rob Ball, Chief Executive Officer and Jeff Points, Chief Financial Officer. Earlier today, Shoulder Innovations Inc issued a press release announcing financial results for the first quarter ended March 31st. A copy of the press release is available on the Investor Relations section of the company's website. Before we begin, I'd like to remind you that management will make remarks during this call that constitute forward looking statements within the meanings of federal securities laws and that these are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform act of 1995. Any statements contained in this call that relate to expectations or predictions of future events, results or performance are forward looking statements. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward looking statements. Accordingly, you shouldn't place undue reliance on these statements. For a full list and description of the risks and uncertainties associated with our business, please refer to the Risk Factors section of our most recent Annual report on Form 10K and in our other filings with the securities and Exchange Commission. Additionally, during this conference call, the Company will discuss certain financial measures that have not been prepared in accordance with GAAP. This non-GAAP information shouldn't be considered in isolation or as a substitute for or superior to results prepared in accordance with GAAP. Please refer to the tables in our earnings release for reconciliation of these measures to the most directly comparable GAAP financial measure. This conference call contains time sensitive information and is accurate only as of the live broadcast today, May 13, 2026. Shoulder Innovations Inc disclaims any intention or obligation except as required by law, to update or revise any financial projections or forward looking statements, whether because of new information, future events or otherwise. With that, I'll turn the call over to Rob. Rob Ball (Chief Executive Officer) Thanks Sam. Good afternoon everyone and welcome to our first quarter earnings call. I'm very pleased to report that 2026 is off to a strong start. Through the first few months of the year, we've rapidly onboarded new surgeons deepened utilization within our existing customer base and achieved several important product milestones. This performance reflects intensifying momentum across our entire organization which enabled us to deliver first quarter net revenue of $16.7 million, an increase of 65% year over year and 16% sequentially. First quarter gross margin also came in strong at 77.7% and we see further opportunity for expansion as the organization continues to mature. Given the strength of these results, our growing scale and the efficiency of our commercial organization more broadly, we have increased conviction in the trajectory of our business and as a result we are raising our full year 2026 net revenue guidance today to a range of 65 to 68 million representing growth of 37 to 40%, 44% over 2025. This compares to our prior range of 62 to 65 million or 31 to 37% growth. Jeff will provide additional color on our outlook shortly. Our ability to deliver this growth in 2026 is grounded in the same three strategic priorities we discussed in our last two calls, which include driving adoption among new surgeons, increasing penetration in our existing surgeon customer base to increase procedural volume, and adding products to our portfolio to address the remaining unmet needs of patients and surgeons. This includes both expanding indications and enabling technology. We've made meaningful progress on all three priorities in the first quarter, which I'll walk through now. Let me start with new surgeon adoption. Our W2 commercial leadership organization remains laser focused on the roughly 1800 high volume shoulder specialists in the us and that targeted approach continues to translate into rapid growth in our customer base of core and contender surgeon customers. We are very pleased with the new surgeon adoption trends we're seeing through the early part of 2026 and we expect that momentum to be durable throughout the year. As a reminder, we ended 2025 with 134 core and contender surgeons up 61% year over year, and we'll update that figure on an annual cadence. Surgeon adoption continues to be driven by focused execution from our commercial leadership team supported by our proprietary business intelligence platform. We are increasingly seeing the brand awareness we built in the market over the past year compound that effort. And finally, we're benefiting from the accelerating productivity gains within the W2 commercial leadership cohort hired in 2025. To capitalize on this growing momentum, we again added top talent to our commercial leadership team through Q1 to support further scaling of our business, particularly as we secure additional hospital approvals in key new territories. We are making progress with activating these markets and believe there is significant greenfield opportunity remaining across the us for our team to we look forward to the contributions from these new commercial leaders as they ramp over the next couple of quarters and build deeper relationships within their territories. Meanwhile, we've continued to invest in our unique high touch surgeon to surgeon education programs facilitated by our customer experience and medical education team. We are seeing tangible results in terms of new surgeon adoption coming out of these sessions and increasingly view them as an integral part of our broader commercial strategy. Excluding industry meetings, our CEME team conducted 44 total Shoulder Innovations Inc sponsored educational events in first quarter and the peer to peer dynamic these events create generates organic advocacy that compounds across the shoulder surgical community. Most recently in April, we hosted our first national symposium of 2026 in Napa Valley. Surgeon attendance was up over 70% versus last year's event, making it the largest symposium in Shoulder Innovations Inc's history since we launched the program four years ago. These symposiums combine didactic content, case-based discussion and hands on experience with our inset shoulder arthroplasty portfolio and Provoyance pre-operative planning platform with curriculum designed, written and proctored all by surgeons. The consistent positive feedback we receive from attendees at these events validates the incredible work of our CEME team in creating a true differentiator in the marketplace that's generating tangible results both in terms of generating interest among new surgeons and helping to drive our second key strategic priority of increasing utilization and procedural growth within our customer base. For example, of the attending surgeons at our NAPA course who are not already core or contender customers, more than 70% have already either performed their first case with our system committed to their first case, or committed to increasing volume, and that progression has occurred in just a few weeks since the meeting. When looking at the first quarter specifically, total implant volume across our core contender and Prostate customers increased 51% year over year to 2184 units. As has been the case in recent quarters, this volume growth reflected a combination of several additional compelling dynamics. First, surgeons are entering our new customer funnel faster. In fact, in the first quarter we more than doubled the number of new customers entering our funnel as compared to the first quarter of 2025. Second, surgeons are scaling through the funnel from prospect to contender to core at a faster pace, and third, we're seeing increased volume from existing surgeons within their current prospect, contender and core categories. Within these dynamics, the standout signal is that our highest growth surgeon category in the first quarter was core both year over year and sequentially, which is the strongest possible signal of where our business is heading. The one category where growth has moderated is contender, and that's by design because we are losing those contenders to core status. Importantly, even as we rapidly added core surgeons, we've continued to see increases in units per surgeon both year over year and sequentially in that category. This is particularly meaningful proof point. New entrants to the core category typically join at the lower end of the volume range, which would normally compress the average. But our highest volume core surgeons more than offset that dynamic, demonstrating that our existing core surgeons are continuing to grow their utilization even as the segment expands. To ensure we continually equip these surgeons in best in class product portfolio, we've also remained focused on our third strategic priority of developing and launching new technologies to address the remaining unmet needs of patients and surgeons, both through new indications and enabling technology. We've had an active few months on this front to start the year and I want to highlight a couple specific areas of progress, starting with new indications. Consistent with our prior communicated timing, we initiated a limited user release of our i135 RFX products in early Q1. We recently expanded the indication to include more complex fractures, and two weeks ago we announced the transition of our inset 135 RFX humeral stem from a limited user release to full commercial launch following receipt of that expanded clearance from FDA. With this broader label, the i135 now addresses primary revision and fractured total shoulder arthroplasty cases. And equally important, its addition to our portfolio means that shoulder innovations can now nearly support the full spectrum of shoulder arthroplasty procedures our surgeon customers perform in both the operating room and ambulatory surgery settings. The i135 joins the smaller form factor i195 and i70 launched in 2024 and 2025 respectively, as the third addition to the I Series humeral stem product line. Consistent with those earlier launches, the i135 is built on our exclusive inset lateral lateral implant philosophy, which independent peer reviewed research has shown reduces complications and maximizes postoperative range of motion. Today, surgeons have used EI135 in both anatomic and reverse shoulder arthroplasty configurations, and consistent feedback has highlighted its ease of use, straightforward surgical technique and seamless integration with our two tray surgical instrumentation system. Underpinning the clinical confidence behind the 135 and our entire implant portfolio is the real world evidence we're building through our Clinical data registry. We've now enrolled over 500 patients across both anatomic and reverse shoulder arthroplasty configurations, and we continue to believe this registry will generate a robust body of evidence that strengthens our position with surgeons, health systems and patients over time separately. On the new product front, we initiated a limited user release of our N22 Glenosphere in the first quarter and have been pleased with its reception so far. As a reminder, the M22 is the first introduction our new line of technologies designed for patients with metal hypersensitivity who may experience adversity associated with allergic reactions from metal implants. We view this as an exciting, incremental addressable market and look forward to providing further updates on our full launch plans in the months ahead. Turning now to Enabling Technology since announcing in December our strategic partnership with Interventional Systems to introduce a shoulder specific micro robotic solution for shoulder arthroplasty, we've made tangible progress with respect to product development and remain incredibly excited with the mid and longer term economic and competitive opportunities associated with this technology. As a reminder, the solution is designed to integrate directly with our provoiance platform to deliver a seamless enabling technology experience from pre-operative planning through intra-operative execution, allowing surgeons to plan in provoyance and deploy that plan in the operating room as a single connected workflow. In March we performed yet another cadaveric lab which further reinforced our conviction that interventional systems technology is indeed the right product for this robotic application in shoulder arthroplasty. This particular cadavericic session encompassed the entire procedure, beginning with a CT scan through Provoz, through operating the robot, placing the device in a cadavericic specimen as intended. Product development for the robotics solution is progressively slightly ahead of schedule. We are targeting 510 submission in 2027. We look forward to sharing additional updates regarding timing and product features on our future earnings call this year. As a final note, and stepping back across everything we've discussed today, we are increasingly finding that focused shoulder specific nature of our ecosystem is attracting interest from partners who see the value in reaching this market through us. And that excitement is only growing as we scale, whether through programs like our Robotic Development Initiative or Best in Class Implant Portfolio or the strong clinical outcomes surgeons are achieving with our products. As we look ahead, we are excited about a number of near term opportunities we see to further expand the breadth of our shoulder solutions we offer surgeons and patients, both through our own innovative vision, through the relationships that market leadership attracts. We look forward to sharing more updates on these opportunities in coming quarters. With that, I'll now turn the call over to Jeff to review our first quarter results in more detail and provide an update on our outlook for 2026. Jeff Points (Chief Financial Officer) Thanks, Rob and good afternoon everyone. As Rob mentioned, net revenue for the first quarter of 2026 was 16.7 million, a 65% increase from 10.1 million in the prior year. Our unique commercial model and proprietary business intelligence capabilities drove continued commercial expansion in the first quarter, resulting in increased adoption of our implant systems across new and existing surgeons. Gross margin for the first quarter of 2026 was 77.7% compared to 76.9% in the prior year. The improvement was driven by improved ASPs along with benefits from cost reduction programs. Selling general and administrative expenses in the first quarter of 2026 were 18.2 million compared to 10.5 million in the prior year. The increase in SG&A expenses was primarily driven by increased headcount in the commercial organization, higher variable selling expenses, and increased professional service fees related to our transition to a public company. SG&A expenses have continued to decline as a percentage of revenue over the last few quarters, declining from 128% of revenue in Q3 of 2025 to 109% in Q1 of 2026, demonstrating our ability to drive operating leverage alongside our accelerating revenue growth. While this trend may not continue in every sequential quarter going forward, we're focused on balancing ongoing investments in our commercial organization with improving operating leverage and increasing productivity. Research and development expenses in the first quarter of 2026 were 3.8 million compared to 1.6 million in the prior year. The increase was primarily driven by investment in new product development efforts, including a second milestone payment and development costs related to the robotic platform Strategic Partnership. Net loss in the first quarter of 2026 was 8.4 million, compared to a loss of 4.7 million in the prior year. The adjusted EBITDA loss in the first quarter of 2026 was 7.0 million, compared to a loss of 3.5 million in the prior year. The increase in both net loss and the adjusted EBITDA loss were primarily related to the increase in in the aforementioned operating expenses. Our cash and cash equivalents as of March 31, 2026 were 108.5 million. As mentioned in March, we are proactively increasing our inventory and asset purchases in the first half of the year to ensure preparedness for accelerated growth. This, combined with working capital changes, contributed to our cash burn in the first quarter. Looking ahead, we expect to see significantly lower cash burn starting in Q2 and continuing through the balance of 2026. We continue to believe we are in a strong financial position to continue investing in growth while maintaining our ability to achieve cash flow Break even with cash in hand Turning now to our guidance and outlook for 2026 on the top line, we expect full year 2026 net revenue to range from 65 to 68 million, representing growth of 37% to 44% year over year. This guidance reflects our continued high degree of conviction in our ability to deliver industry leading growth by driving adoption among new surgeons, increasing penetration in our existing surgeon customer base and through commercial launches of new products. In addition, guidance accounts for seasonal dynamics that are typical in our industry, specifically lower sequential volumes in Q3 before a step up in Q4. Regarding gross margins, we are very pleased with our progress on margin improvement and expect similar margins for the balance of 2026, noting there could be some quarter to quarter fluctuations based on product mix and aspect Cost down initiatives remain a significant focus and area of progress and we're confident they will continue to drive further gross margin improvement as we further scale our business at our current full year Revenue guidance, we expect SG&A expenses as a percentage of revenue to increase slightly from Q1. As our conviction around business growth increases, we will continue to identify and invest in greenfield opportunities across new geographic areas for commercial team footprint expansion. Specifically, we expect this increase in SG&A expenses as a percentage of revenue will be more significant in Q2 and Q3 before declining in Q4. Finally, with currently contemplated innovation programs, we expect R and D expenses as a percentage of revenue to moderate late 2026. With that, I'll turn the call back to Rob for a few closing remarks. Rob Ball (Chief Executive Officer) Thanks Jeff. In sum, the first quarter was a strong start to 2026 across every dimension of the business. We grew net revenue 65% year over year, expanded gross margin, rapidly onboarded new surgeons, deepened utilization within our existing base, and advanced several meaningful product milestones, all while continuing to build the clinical, commercial and product foundation that we believe will be drive durable above market growth for years to come. The commercial organization we build is performing, the market opportunity in front of us remains large and underpenetrated and the confidence we have in our team's ability to execute has never been higher. We believe Shoulder Innovations is still in the early stages of what we can accomplish in transforming shoulder surgical care and we look forward to demonstrating that through our continued performance throughout 2026 and beyond. With that, I'll now turn the call over to the operator for Q and A operator. OPERATOR Thank you and at this time we'll conduct the Q and a session. If you would like to ask a question, please press star one on your telephone keypad. a confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please, while we pull for questions. and your first question comes from David Roman with Goldman Sachs. please state your question. David Roman (Equity Analyst) Thank you. Good afternoon, everyone. Maybe we could just dive into the results here for Q1 in a little bit more detail. And as you kind of reflect on the sequential and year over year improvement here in growth, can you just maybe detail from your perspective what you saw transpire throughout the quarter and to what extent that is the result of product launches, commercial execution, short, some combination of all of the above. But maybe you could just break down what you think helped support such a significant inflection here on a sequential basis. And I had one follow up on the outlook. Rob Ball (Chief Executive Officer) Yeah, sure. Thanks, David. Appreciate the question. We certainly saw contributions in our growth in Q1 from all segments that you described. So obviously the key priorities that I described in the call, you know are the key ones that are driving the growth. And so, you know we're executing as expected. New customer growth is obviously a meaningful contributor to what's driving growth and what drove growth in Q1. But that was also supported by, you know very nice volume increases from our existing customer base and some additional increase associated with, you know, average selling prices as well. So all of those were key components of growth. You know, I'd characterize that that's all a function of just downright excellent execution across the entire organization, particularly in the commercial organization and the way that they work together with the CEME team, kind of leveraging our business intelligence platform or identifying the right targets to invest and spend time on. And that's just producing results, quite frankly. David Roman (Equity Analyst) That's helpful perspective and maybe if I kind of translate that into the outlook here, appreciating, Jeff, the comments on seasonality for Q3, but as I look at the number here in Q Q1 and try to kind of square that with the guidance you're given, even when considering the seasonality dynamic, it does look like a relatively conservative representation of the outlook. So maybe you could help us understand of the things that you saw go well in Q1, what have you translated to the balance of the year? What have you sort of risk adjusted in your outlook? And how are you thinking about the risks and opportunities in the guidance, in the updated guidance Here. Jeff Points (Chief Financial Officer) Yeah, thanks for the question, David. So obviously we're really pleased with Q1. We had a, we had a great quarter. We're off to a great start for the year. The guidance that we're giving obviously is a, it's an annual number. We're still very early in the year. And so as we set that annual guidance number, it's a number that we have high conviction around when we set that. And again, there's, there's lots of variables and inputs that will go into that as far as what will drive annual results, as far as like, will ASP stay where they're at, units, new customers, et cetera. And I think we've considered all those as we've kind of set the annual guidance number. Okay. And maybe just like you just push there just a little bit more. So there's anything here that you're, it doesn't sound like you're seeing anything in the business that would contemplate a worsening of those metrics. This just happens to be an early in the year. So you're taking a balanced approach. Is that a fair way to summarize the outlook? I think that's very fair. I mean, I think we're, we're providing guidance that we have a very, very high degree of conviction in. We obviously are, you know, kind of excited about the performance we were able to deliver in Q1. And we don't see, we don't have any, any view of any perspectives in the marketplace today that, you know, kind of fundamentally change, you know, our view on the trajectory of the business. David Roman (Equity Analyst) Great, very helpful and nice to see the momentum here. Great, thank you. Thank you. OPERATOR Your next question comes from Ryan Zimmerman with btig. Please state your question. Ryan Zimmerman (Equity Analyst) Thank you for taking the questions and congrats on the quarter here. You know, kind of lifting off where David finished on the quarter. I'm just wondering, you know, Rob, you're getting really good growth and you're getting really good conversion in your core contender segment of the business. But as you scale, I have to imagine, and I appreciate your thoughts on this, that there is a bit of a broadening of the customer base. And so as I think about this kind of contribution from the prospects or the non core contenders, how do you see that, you know, changing over time? Because I would imagine that, you know, it is, as numbers grow, a little harder to move into that core contender segment. Rob Ball (Chief Executive Officer) But I may be wrong. Well, I think, Ryan, your question, I appreciate the question first and it may be well received if we were a lot further ahead of where we are right now. I mean, so we've characterized the market as we're focused on high volume surgeons. There's 1,800 of those, obviously we reported at the end of last year, 10334 corn contender. And so we just perceive ourselves as having a long, long way to go. I'd also like just to characterize that we are focused on building a platform here. This isn't a product and so we see that platform as a substantial foundation through which to continue to deliver both arthroplasty and other products. So not only do we see that opportunity for growth in continuing into that core and contender in a meaningful way, we believe we'll be able to continue to drive additional revenues through that channel as time goes on. So hopefully that's helpful. That is. Ryan Zimmerman (Equity Analyst) And the ASPs were ahead of where Rob Ball (Chief Executive Officer) we thought they would be. Is that a reflection of new indications and higher ASPs per case? Is that a reflection of a higher mix of reverse shoulders? And what do you think about the durability of the aspect this quarter relative to the balance of the year? Yeah, I'll make a couple comments here on, you know, from a, from a product perspective and let Jeff follow up on his thoughts on durability based on the metrics. You know, I think we, I've shared in the last couple calls that we have been focused on delivering improvement in average selling prices and we've indeed focused there and have executed there. And that's through a function of identifying the right centers to spend time on where we can derive higher prices. And I'd also say it's a function of our commercial organization becoming more skilled at navigating negotiation with those centers and selling into the SKUs, if you will, that augment price. I'll put it that way. And so that's been a really helpful dynamic as we've learned as an organization collectively on how to do that well. And so that's obviously resulted in a great outcome here. I think we are characterized as just ever so slightly ahead of schedule as it relates to new products in Q1. And I'd characterize, as I had before, that those products do have higher ASPs and that contributed in a very small way in Q1 to the average selling prices. Now we're hopeful that can have a more meaningful contribution in out years. I'll put it that way, More so in 27 if you will. But it did play a very small role here in the quarter. But Jeff, I'll let you. Jeff Points (Chief Financial Officer) Yeah, I'll just say, Ryan, that I Would expect there'll be some variation as we go forward in ASPs. Obviously we saw a really nice increase here in Q1, which contributed to just gross margins as well. I mean, the higher ASPs, along with a cost down, cost down programs kind of starting to kick in improved gross margins. But I would expect these ASPs to kind of stay in this neighborhood as we go throughout the rest of the year. Ryan Zimmerman (Equity Analyst) Very helpful, thank you. Nice quarter. OPERATOR Thank you. Your next question comes from Matt Taylor with Jefferies. Please state your question. Matt Taylor (Equity Analyst) Hi. Thanks for taking the question. Can you hear me okay? I hear you. Rob Ball (Chief Executive Officer) Great. Hey Matt. Thanks Matt. Great. Hey guys. Yeah, I just wanted to double click on. You made a lot of comments about the robotic system and the progress you're making there. Maybe you could just talk about how you're expecting that to start to contribute either to the stickiness of your business or your ability to drive even more share and give some thoughts on how it's really differentiated from the other solutions in the market. Sure. So I appreciate the question, Matt. So I think, you know, kind of. I'll start with the end of your question first. You know, from a differentiation standpoint, we were focused on a number of things to deliver to the market with respect to robotic enabled and surgery. And indeed I think we're accomplishing that. One is we wanted to develop a platform that was completely time transparent, leverage the exact same surgical technique that surgeons use today. So there was no ambiguity about the fact that we could indeed drive optimized outcomes. And so that is a key differentiator for us. It's a very simple platform that indeed will be time transparent. The second differentiator we wanted to make sure that we delivered was the fact that the system was kind of able to provide a fundamentally different economic model to the marketplace. More thought of as robotics as a service instead of a capital acquisition. And so that requires that it be a portable platform. And indeed that is indeed what we're delivering. We will provide the robotic and event by event basis in a case about the size of a carry on suitcase, you know. So I think those are two components of differentiation that are particularly special as it relates specifically to the shoulder arthroplasty market. That's going to, you know, kind of provide a lot of traction. I characterize that as we have continued to do customer discovery with those differentiators in the marketplace, we have received a resounding yes as it relates to answering the question have we or are we delivering something that the market wants here? And so that's been very constructive on a number of levels. One of which has been engaging with our current surgeon customers about the excitement of that future and them being excited about what that means for their own practice and indeed them kind of imagining what that means for the practice. So from a brand equity and a stickiness standpoint, it's been powerful. I'd say another impact of that platform has been really, quite frankly, an entirely new innovation cycle that we consider built around robotics, which I think is going to be quite exciting. I've shared a little bit about that recently and I'm planning here to share more here in the next couple quarters in more detail. Matt Taylor (Equity Analyst) Great, thanks, Rob. OPERATOR Your next question comes from Matthew o' Brien with Piper Sandler. Please state your question. Matthew o' Brien Afternoon. Thanks for taking that question. I mean, just to follow up a little bit on both David and Ryan's questions on the outlook for the year increase. And Jeff, based on what you're saying on the pricing side, it seems like most of the bump is just due to price over the next several quarters, but it seems like the volumes are again much better than we were modeling in Q1. So is there something else you're factoring into the guide? I don't know if it's the robotic competition or any sales churn or something else that we're just not thinking about that would potentially impact the outlook for the year or to David's point is that, hey, it's just early in the year and we're just trying to be as conservative as possible. Jeff Points (Chief Financial Officer) Yeah, thanks Matt, for the question. So in my prepared remarks I talked about seasonality in Q3. That's obviously very common for our industry. We would expect Q3 to be lighter and then have a step up in Q4. I will say as well that our ASP is somewhat dependent on the reverse percentage. So that obviously is a little bit lower as you get later in the year due to payer mix. We saw that in Q4 of 2025. We'd expect to see the same in 2026. So that that could be a little variation that I mentioned earlier as we get later in the year. So. But there's nothing else that I would specifically mention. Obviously we expect to continue to drive units. You know, ASP should, should kind of remain durable for the ongoing foreseeable future. And we're feeling really good about the business. Rob Ball (Chief Executive Officer) Yeah, for sure we are feeling good about the business. I'll just double click on something that Jeff said in the prepared remarks that we have deployed a fair amount of cash here in Q1 related to both you know, kind of inventory and assets and leaning into the commercial organization. And I'd characterize that the purpose for that is being very prepared for above expectations growth and to find ourselves not in a circumstance where we can't support a business that continues to accelerate. So, you know, I'll just, I'll just, you know, kind of emphasize that indeed we prepared ourselves for the opportunity that things go a lot faster and to make sure that we aren't constrained in our ability to support, you know, even higher levels of growth. Matthew o' Brien Got it. Very clear. Thanks, Rob. And then Jeff, on the gross margin side and the update tonight, you know, well above what we were modeling for gross margin here in Q1 and a stable outlook there, I don't want to go out too far, but just looking at that metric, looking at some of the leverage we saw in SGA, specifically in Q1, and then your commentary about R and D ramping down later this year, are we getting to the point where we can start talking about shoulder reaching EBITDA profitability maybe earlier than other orthopedic companies historically have or you know, kind of TBD there? Jeff Points (Chief Financial Officer) Thanks. Yeah, obviously, Matt, we're not providing any sort of threshold on that, but you know, we're not providing a revenue threshold or a timeline. But obviously with the profile that we have, you've got a really strong margin profile. Obviously we're starting to see leverage in kind of the SGA line. We're demonstrating that, you know, we believe we're on track for that and we're balancing our investments that we're making with long term profitability. And so you'll likely, over time see continued progress in that area. Rob Ball (Chief Executive Officer) Yeah, I'll just, I'll lean into that a little bit harder. I'd say that, you know, I don't know. I don't know, Matt, what compared to others means. But I will say we have passion around the fact that we've constructed a highly capital efficient business that drives above market gross margins. And the natural consequence of building a business like that is above market performance as it relates to ebitda. So I mean, that's by design. That's our intent here. Matthew o' Brien Okay. I mean, I can be more specific, Rob. I mean, it's like 200, $250 million. Historically, most of these companies turn profitable. I don't want to put a number there for you, but it would seem like you're likely earlier than that. OPERATOR We're not going to put a number on it either, Matt, but I'd say most particularly because to the extent that we are effectively deploying capital. We're going to continue to effectively deploy capital. So that's got it. Okay, thank you. Thank you. Thank you. And there are no further questions at this time. So I'll hand the floor back to Rob Ball for some concluding remarks. Thank you. Rob Ball (Chief Executive Officer) Thank you very much, Operator. Just appreciate everyone engaging today. Appreciate the questions from the analysts, and I'm hopeful that we provided you some encouraging news around our trajectory. And we're excited to share again with you here in a couple months. So everyone have a great afternoon. Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice. UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga: SHOULDER INNOVATIONS (SI): Free Stock Analysis Report This article Shoulder Innovations Q1 2026 Earnings Call Transcript originally appeared on Benzinga.com ﾩ 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Viatris (VTRS) came out with quarterly earnings of $0.59 per share, beating the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $0.5 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +13.46%. A quarter ago, it was expected that this generic drugmaker would post earnings of $0.52 per share when it actually produced earnings of $0.57, delivering a surprise of +9.62%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Viatris, which belongs to the Zacks Medical Services industry, posted revenues of $3.52 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 4.84%. This compares to year-ago revenues of $3.25 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Viatris shares have added about 28.1% since the beginning of the year versus the S&P 500's gain of 7.6%. While Viatris has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Viatris was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.62 on $3.65 billion in revenues for the coming quarter and $2.44 on $14.56 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical Services is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Shoulder Innovations, Inc. (SI), is yet to report results for the quarter ended March 2026. The results are expected to be released on May 13. This company is expected to post quarterly loss of $0.44 per share in its upcoming report, which represents a year-over-year change of +99.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Shoulder Innovations, Inc.'s revenues are expected to be $14.35 million, up 41.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Viatris Inc. (VTRS) : Free Stock Analysis Report Shoulder Innovations, Inc. (SI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research