Detailed financial statements for Shoulder Innovations, Inc. (SI): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year with up to 20 years of history.
Shoulder Innovations, Inc. manufactures medical devices. It has developed a shoulder replacement system. The company was founded by Stephen B. Gunther and Michael DeVries in 2009 and is headquartered in Grand Rapids, MI.
Analysis Summary
Trailing-twelve-month margins: gross margin 77.3%, operating margin -58.5%, net margin -58.3%.
At the current price of $18.00, SI has negative trailing earnings (P/E not meaningful) and an ROE of -25.67%. Market capitalisation stands at $373M.
Balance sheet quality for SI: current ratio of 11.1, net cash position of $109.3M. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Income Statement (10y)
| Year | 2023 | 2024 | 2025 |
|---|
| Revenue | $19.3M | $31.6M | $47.3M |
| Cost of Revenue | $4.0M | $7.3M | $11.1M |
| Gross Profit | $15.3M | $24.3M | $36.2M |
| Research & Development | $3.0M | $4.5M | $7.7M |
| Selling, General & Admin | $23.1M | $34.5M | $54.8M |
| Operating Expenses | $26.1M | $39.0M | $62.5M |
| Operating Income | -$10.9M | -$14.7M | -$26.3M |
| EBITDA | -$10.3M | -$12.1M | -$37.1M |
| Interest Expense | $761000 | $1.3M | $70000 |
| Pre-tax Income | -$12.7M | -$15.6M | -$40.4M |
| Income Tax | 0 | 0 | 0 |
| Net Income | -$12.7M | -$15.6M | -$40.4M |
| EPS | $-0.63 | $-0.77 | $-1.96 |
| EPS (Diluted) | $-0.63 | $-0.77 | $-1.96 |
| Shares Outstanding (Diluted) | $19.9M | $19.9M | $20.6M |
Income Statement (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|
| Revenue | $11.8M | $14.4M | $16.7M | $17.2M |
| Gross Profit | $9.0M | $11.1M | $13.0M | $13.4M |
| Operating Income | -$7.6M | -$8.5M | -$9.0M | -$10.0M |
| EBITDA | -$7.8M | -$7.4M | -$7.7M | -$10.2M |
| Net Income | -$8.7M | -$7.8M | -$8.4M | -$10.2M |
| EPS | $-0.43 | $-0.38 | $-0.41 | $-0.49 |
| EPS (Diluted) | $-0.43 | $-0.38 | $-0.41 | $-0.49 |
Balance Sheet (10y)
| Year | 2023 | 2024 | 2025 |
|---|
| Cash & Equivalents | $6.2M | $6.1M | $26.9M |
| Short-term Investments | $26.6M | $8.9M | $97.4M |
| Receivables | $4.7M | $5.1M | $8.3M |
| Inventory | $9.9M | $14.0M | $21.6M |
| Total Current Assets | $47.8M | $35.1M | $157.2M |
| Property, Plant & Equipment | $5.7M | $7.6M | $12.6M |
| Goodwill | 0 | 0 | 0 |
| Intangible Assets | $700000 | $400000 | $100000 |
| Total Assets | $54.3M | $43.1M | $169.9M |
| Accounts Payable | $2.0M | $4.9M | $8.9M |
| Short-term Debt | 0 | 0 | 0 |
| Total Current Liabilities | $4.3M | $7.6M | $14.2M |
| Long-term Debt | $14.4M | $14.7M | $14.9M |
| Total Liabilities | $94.0M | $97.8M | $29.2M |
| Retained Earnings | -$41.4M | -$57.0M | -$97.4M |
| Total Equity | -$39.7M | -$54.7M | $140.8M |
| Total Debt | $14.5M | $14.7M | $15.0M |
| Net Debt | -$18.3M | -$314000 | -$109.3M |
| Working Capital | $43.6M | $27.5M | $143.0M |
Balance Sheet (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|
| Cash & Equivalents | $54.9M | $26.9M | $11.5M | $24.5M |
| Total Assets | $177.8M | $169.9M | $160.4M | $152.0M |
| Total Liabilities | $29.9M | $29.2M | $27.3M | $27.7M |
| Total Equity | $147.8M | $140.8M | $133.0M | $124.3M |
| Total Debt | $14.9M | $15.0M | $15.0M | $14.8M |
Cash Flow (10y)
| Year | 2023 | 2024 | 2025 |
|---|
| Net Income | -$12.7M | -$15.6M | -$40.4M |
| Depreciation & Amortization | $1.6M | $2.2M | $3.2M |
| Stock-based Compensation | $451000 | $754000 | $996000 |
| Change in Working Capital | -$4.8M | -$1.0M | -$6.8M |
| Operating Cash Flow | -$13.1M | -$14.1M | -$28.6M |
| Capital Expenditure | -$2.7M | -$4.0M | -$7.4M |
| Acquisitions | 0 | 0 | 0 |
| Stock Repurchased | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 |
| Free Cash Flow | -$15.9M | -$18.2M | -$36.0M |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|
| Operating Cash Flow | -$8.6M | -$8.8M | -$12.4M | -$7.4M |
| Capital Expenditure | -$2.8M | -$2.3M | -$2.7M | -$2.2M |
| Free Cash Flow | -$11.4M | -$11.1M | -$15.1M | -$9.5M |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Stock-based Compensation | $298000 | $381000 | $726000 | $1.1M |
Growth & Margins (10y)
| Year | 2023 | 2024 | 2025 |
|---|
| Revenue Growth (YoY) | | +64.1% | +49.6% |
| Net Income Growth (YoY) | | -23.4% | -158.4% |
| EPS Growth (YoY) | | -22.2% | -154.5% |
| Shares Change (YoY) | | +0.0% | +3.5% |
| FCF Growth (YoY) | | -14.3% | -98.4% |
| Gross Margin | 79.2% | 77.0% | 76.5% |
| Operating Margin | -56.4% | -46.3% | -55.6% |
| EBITDA Margin | -53.2% | -38.3% | -78.4% |
| Net Margin | -65.7% | -49.4% | -85.3% |
| FCF Margin | -82.5% | -57.4% | -76.1% |
| Effective Tax Rate | -0.0% | -0.0% | -0.0% |
Per-Share Data (10y)
| Year | 2023 | 2024 | 2025 |
|---|
| FCF Per Share | $-0.80 | $-0.91 | $-1.75 |
| Dividends Per Share | $0.00 | $0.00 | $0.00 |
| Shares Outstanding (Basic) | $19.9M | $19.9M | $20.6M |
What to look at in Healthcare / Pharma
The R&D pipeline is the invisible asset. Patents expiring = revenues evaporating. Look at innovation and cash flow.
- R&D / Revenue — Shows investment in future pipeline. Serious pharma reinvests 15-20%
- 5y EPS growth — After patent expirations, are they still growing?
- Gross margin — Branded pharma >70%. Generics much lower — defines the business type
- FCF / Net Income — Earnings quality — big pharma should convert >90%
- ROIC — Capital reinvested efficiently — key in pharma due to long R&D cycles
- Net debt / EBITDA — Pharma acquisitions pile up debt — watch the post-M&A picture
- P/E vs own 10y history — The best comparison is with its own history, not with peers
Profitability
| Return on Equity | -25.67% |
| Return on Invested Capital | -25.25% |
| Return on Assets | -23.05% |
| Gross Margin | 77.34% |
| Operating Margin | -58.53% |
| Net Margin | -58.33% |
Financial Health
| Debt / Equity | 0.12 |
| Current Ratio | 10.71 |
Key Ratios (10y)
| Year | 2023 | 2024 | 2025 |
|---|
| P/E | -23.89 | -19.55 | -7.30 |
| P/B | -7.55 | -5.48 | 2.10 |
| P/S | 15.56 | 9.48 | 6.23 |
| Gross Margin | 79.2% | 77.0% | 76.5% |
| Operating Margin | -56.4% | -46.3% | -55.6% |
| Net Margin | -65.7% | -49.4% | -85.3% |