SI
SI-BONE, Inc. (SIBN)·Q2 2025 Earnings Summary
Executive Summary
- Q2 2025 delivered worldwide revenue of $48.6M (+21.7% YoY), gross margin of 79.8% (+80 bps YoY), diluted EPS of -$0.14, and positive adjusted EBITDA of $1.0M; cash and equivalents were $145.5M with $1.1M net cash generated, reaching cash flow breakeven in the quarter .
- The company raised FY25 guidance: revenue to $195–$198M (from $193.5–$197.5M) and gross margin to 78.5–79.0% (from 78%); expects OpEx growth ~10% and positive adjusted EBITDA for FY25 .
- Consensus vs actual: Q2 revenue beat by ~$0.5M ($48.12M cons. vs $48.63M actual) and EPS beat by ~$$0.04 (-$0.178 cons. vs -$0.14 actual) — both positive surprises; Q1 also beat revenue and EPS, while Q4 slightly beat revenue and EPS as well (values marked with asterisks; see Estimates Context for detail; Values retrieved from S&P Global)*.
- Structural catalysts: CMS finalized NTAP for iFuse TORQ TNT effective Oct 1, 2025 (up to ~$4,136 add-on), proposed continuation of Granite’s TPT into CY2026, and the European launch of TORQ; sales execution remains strong with 1,440 active U.S. physicians (+25% YoY) and TTM revenue per territory at ~$2.1M (+~23%) .
What Went Well and What Went Wrong
What Went Well
- Robust U.S. growth: U.S. revenue rose 22.8% to $46.4M on ~25% procedure volume growth; worldwide revenue grew 21.7% to $48.6M .
- Profitability and cash flow: Third consecutive quarter of positive adjusted EBITDA ($1.0M) and achieved cash flow breakeven with $1.1M net cash generated; gross margin expanded to 79.8% (+80 bps YoY) .
- Strategic momentum and physician engagement: Active U.S. physicians reached 1,440 (+25% YoY) and TTM revenue per territory hit $2.1M (+~23%); management emphasized “asset-light model and disciplined execution” supporting sustainable growth .
- “We delivered double-digit procedure volume growth across all our U.S. target markets … and achievement of cash flow breakeven this quarter underscore the power of our asset-light model and disciplined execution.” — CEO Laura Francis .
What Went Wrong
- Pricing/mix pressure: Management reiterated assumptions for low-single-digit ASP decline (~3–4%) in the back half, driven by procedure mix and depreciation related to new capacity and systems .
- Operating expenses elevated: OpEx rose ~10% YoY to $45.8M on growth investments, higher commissions, and elevated G&A .
- International softness/timing: International revenue was flat at $2.2M; Europe’s TORQ clearance came later than expected, pushing training/revenue impact into H2 and 2026 .
Financial Results
Key P&L and Cash Metrics
Revenue by Geography
Operating KPIs
Consensus vs Actual (Revenue and EPS)
Values retrieved from S&P Global.*
Guidance Changes
Earnings Call Themes & Trends
Management Commentary
- “We delivered double-digit procedure volume growth across all our U.S. target markets … consistent delivery of positive Adjusted EBITDA and achievement of cash flow breakeven this quarter underscore the power of our asset-light model and disciplined execution.” — CEO Laura Francis .
- “Gross margin was 79.8%, expanding by 80 basis points year over year, driven by actions to improve manufacturing and supply chain efficiencies over the last twelve months.” — CFO Anshul Maheshwari .
- “In June, we received regulatory approval to launch iFuse TORQ in Europe … we expect torque to accelerate adoption and growth across our international markets.” — CEO Laura Francis .
- “We anticipate filing our 510(k) for this groundbreaking product sometime in 2026.” — CEO Laura Francis on third BDD device .
- “Our trailing twelve month revenue per territory increased to $2,100,000 representing 23% growth over the comparable prior year period.” — CEO Laura Francis .
Q&A Highlights
- Guidance cadence and seasonality: Management embeds ~4% Q3 sequential decline due to vacations/conferences with typical Q4 ramp; upside drivers include faster Granite adoption, better-than-assumed ASP, and TNT capacity with NTAP from Oct 1 .
- Gross margin trajectory: FY guide lifted to 78.5–79.0%; ASP decline (~3–4%) and added depreciation for TNT capacity and systems headwinds; medium-term GM expected to stabilize around 76–77% as new products scale .
- Interventional engagement: TORQ remains product of choice; INTRA adoption where CPT 27278 reimbursement is clearly defined; CMS proposed ~18% increase for in-office CPT 27278 .
- Europe rollout: TORQ clearance later than expected; minimal near-term revenue impact; training in late Q3/Q4; Europe expected to accelerate in 2026 .
- Commercial expansion: Target ~100 U.S. territories over ~15 months; hybrid model sustains productivity; agents expand case coverage .
- Reimbursement: Granite TPT with $0 device offset; CMS proposals include APC Level 7 outpatient payments and removal of open SIJ fusion from inpatient-only list; strengthens outpatient economics .
Estimates Context
Results vs Wall Street consensus:
Values retrieved from S&P Global.*
Implication: Consensus models likely need to reflect sustained mid-teens to high-teens top-line growth and improved profitability cadence, including updated FY25 gross margin range and NTAP/TPT reimbursement tailwinds .
Key Takeaways for Investors
- Raising FY25 guidance and Q2 execution signal durable demand across SIJ fusion, pelvic fixation (Granite), and trauma (TNT), underpinned by favorable reimbursement; expect continued momentum into H2 with typical Q4 seasonality strength .
- Gross margin resilience (~79.8% in Q2) amidst mix/depreciation headwinds reflects supply chain and manufacturing efficiencies; medium-term GM stabilization expected at 76–77% as new products scale .
- Physician base and density are powerful leading indicators: 1,440 active U.S. physicians (+25% YoY) and ~$2.1M TTM revenue per territory (+~23%) support sustained growth and operating leverage .
- Reimbursement catalysts (NTAP for TNT, Granite TPT continuation, outpatient APC changes) provide upside to access and economics, potentially accelerating adoption in H2 and 2026 .
- Europe TORQ launch creates a 2026 growth lever; near-term impact limited by timing/training — model incremental contribution starting in 2026 .
- Cash breakeven achieved in Q2 with $1.1M net cash generated; liquidity remains strong at $145.5M, supporting continued R&D and commercial investments ahead of 2026 launches .
- Trading lens: Near-term catalysts include Q3 seasonality management and Q4 ramp, NTAP effective Oct 1, Granite outpatient economics; medium-term thesis rests on platform breadth, physician density, and margin scalability .
Non-GAAP note: Adjusted EBITDA excludes interest income/expense, depreciation and amortization, and stock-based compensation; reconciliation provided in the press release/8-K **[1459839_cd236b1282f541f8833c704607e8156c_5]** **[1459839_0001459839-25-000073_exhibit991_q225earningsrel.htm:4]**.