Shoulder Innovations Raises Annual Revenue Guidance on Volume Growth
The medical device maker increased its full-year net revenue outlook to as high as $69 million
Shoulder Innovations (SI) reported net revenue of $17.2 million for the second quarter of 2026, representing a 56% increase year over year.
The result marks a slight deceleration in growth compared to the 65% year over year increase reported in the first quarter, where revenue reached $16.7 million. Despite the slower pace of growth, the company raised its full-year 2026 net revenue guidance to a range of $67 million to $69 million, up from a previous forecast of $65 million to $68 million.
Growth was driven by a 50% year over year increase in implant system volume, which reached 2,238 units. The average selling price of these systems rose 5% over the prior-year period to $7,674, though this was a slower increase than the 9% growth seen in the first quarter.
Gross margin expanded to 78.3% in the second quarter, up from 77.7% in the first quarter and 76.2% in the second quarter of 2025.
Operating losses widened to $10.0 million, compared to a $9.0 million loss in the first quarter and a $5.9 million loss in the second quarter of 2025. The company increased research and development expenses 141% year over year to $3.4 million. Selling, general and administrative expenses rose 56% year over year to $20.1 million, a deceleration from the 73% increase reported in the first quarter.
Adjusted EBITDA loss improved to $8.0 million from an $18.1 million loss in the second quarter of 2025, although the loss widened from $7.0 million in the first quarter of 2026.
The company launched the N-22 glenosphere and a titanium plasma spray baseplate line extension during the quarter. In June 2026, Shoulder Innovations closed two new credit facilities with Stifel Venture Banking for up to $50 million to refinance existing debt and provide working capital.