Strong 1Q Beat and Raise; Guide Looks Conservative; Pipeline Momentum; Buy

研报英文原文证据摘录

Strong 1Q Beat and Raise; Guide Looks Conservative; Pipeline Momentum; Buy

yment related to the robotic strategic partnership.

Adjusted EBITDA loss was -$7MM vs -$3.5MM in 1Q25 due to higher op expenses.

For 2026, SI increased sales guide to $65-$68MM (+37-44%) vs prior $62-$65MM & cons $64MM

driven by increasing surgeon adoption and utilization with durable ASPs. Guidance accounts for

typical seasonality (3Q step-down, 4Q step-up) with SI noting GM could fluctuate in the quarters

based on product mix and ASP. As SI invests in SG&A, expenses as a % of sales could be more

significant in 2Q and 3Q before declining in 4Q and R&D expenses are expected to moderate

late in '26.

SI initiated full commercial launch of the InSet I-135RFX Humeral Stem following a successful

limited release and FDA clearance of additional fracture indications, broadening the platform to

address nearly the full spectrum of shoulder arthroplasty procedures across care settings.

SI continues to build differentiation through pipeline expansion (e.g., N22 for metal

hypersensitivity), growing real-world clinical evidence, and advancing its microrobotic shoulder

solution (progressing ahead of schedule) which can integrate directly with its planning and

execution software. SI is targeting 510K submission in '27 and will share additional updates

regarding timing and features later this year. Matthew Taylor, CFA * | Equity Analyst

1 (212) 778-8721 | matt.taylor@jefferies.com

Given this result, we are increasing our numbers to the high end of guide, and ticking up our out-

Young Li * | Equity Analystyear estimates. Increasing our PT to $22 ~4x '27E sales; our prior PT $21 was based on 4x.

+1 (212) 778-8671 | young.li@jefferies.com

FY (Dec) 2024A 2025A 2026E 2027E Michael Sarcone, CFA * | Equity Analyst