Shoulder Innovations, Inc. manufactures medical devices. It has developed a shoulder replacement system. The company was founded by Stephen B. Gunther and ...
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Operator: Welcome, ladies and gentlemen, to the first quarter 2026 earnings conference call for Shoulder Innovations. [Operator Instructions] Please note that this conference is being recorded and will be available on the company's website for replay shortly. I would now like to turn the call over to Sam Bentzinger, Investor Relations at Gilmartin Group, for a few introductory comments. Please go ahead. Sam Bentzinger: Good afternoon, and thank you for participating in today's call. Joining me from Shoulder Innovations are Rob Ball, Chief Executive Officer; and Jeff Points, 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 should not 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 10-K 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 should not 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 a 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 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. Robert Ball: 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% …
| Report Date | Employees | Form Type | Filing Date | SEC Filing |
|---|---|---|---|---|
| Dec 31, 2025 | 72 | 10-K | Mar 10, 2026 | View |
Est. EPS $-0.51 · Revenue $15.47M · 2 analysts
Est. EPS $-0.48 · Revenue $19.09M · 2 analysts
| Metric | Latest | YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength. | QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes. |
|---|---|---|---|
| The total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three). |
| Name | Title | Compensation | Gender | Year Born | Status |
|---|---|---|---|---|---|
Alan J. Lane | Chief Executive Officer & Director | USD 1,055,822 | Male | 1962 | Active |
Kathleen Fraher | Executive Vice President & Chief Risk Officer | USD 623,544 |
| Female |
| 1978 |
| Active |
Benjamin C. Reynolds | Pres | USD 614,029 | Male | 1978 | Active |
Judith Knowles | Sec. | — | Female | — | Active |
Elaine Batlis | Executive Vice President & Mang. of Warehouse Lending Division | — | Female | 1955 | Active |
Alaric Eby | Chief Product Devel. Officer | — | Male | — | Active |
Antonio R. Martino | Chief Financial Officer | — | Male | 1968 | Active |
John Bonino | Chief Legal Officer | — | Male | 1949 | Active |
Hunter Stenback | Head of Investor Relations | — | — | — | Active |
Son-Jai Paik | Chief HR Officer | — | Male | 1973 | Active |
Est. EPS $-1.88 · Revenue $68.42M · 2 analysts
Est. EPS $-0.36 · Revenue $21.03M · 1 analysts
| $47.3M |
| +49.6% |
| +2.8% |
| Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day. | $-40.4M | -158.4% | -21.2% |
| Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials. | +76.5% | -0.6% | +0.7% |
| Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on). | -55.6% | -19.9% | -8.8% |
| Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales. | -85.3% | -72.7% | -17.9% |
| Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock. | $-36.0M | -98.4% | +36.7% |
| FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine. | -76.1% | -32.6% | +38.5% |
| Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe. | 10.7% | +139.6% | +5.8% |
| Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking. | 11.07x | +141.0% | -9.4% |
| Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground. | $169.9M | +294.4% | -5.2% |
| Metric | Annual (A vs E) | Annual Surprise | Quarter (A vs E) | Quarter Surprise |
|---|---|---|---|---|
| EPS Surprise | -1.96 vs -2.14 | +8.2% | -0.49 vs -0.51 | +3.4% |
| Revenue Surprise | $47.3M vs $45.6M | +3.8% | $17.2M vs $15.5M | +11.1% |
| Date | Executive | Title | Security | Side | Shares | Price |
|---|---|---|---|---|---|---|
| Aug 26, 2026 | Gilde Healthcare Holding B.V. | 10 percent owner | Common Stock | D | 1,196 | $22.60 |
| Aug 24, 2026 | Gilde Healthcare Holding B.V. | 10 percent owner | Common Stock | D | 681 | $22.62 |
| Aug 21, 2026 | Gilde Healthcare Holding B.V. | 10 percent owner | Common Stock | D | 20,516 | $22.61 |
| Aug 20, 2026 | Gilde Healthcare Holding B.V. | 10 percent owner | Common Stock | D | 3,900 | $22.60 |
| Aug 18, 2026 | Ahearn Matthew Fraser | director, officer: Chief Operating Officer | Common Stock | D | 12,586 | $20.94 |
