SI-BONE(US:SIBN)2025-11-10 21:47Financial Performance - Revenue for Q3 2025 reached $48.656 million, a 20.5% increase from $40.340 million in Q3 2024[17] - Gross profit for Q3 2025 was $38.846 million, compared to $31.903 million in Q3 2024, reflecting a gross margin improvement[17] - Operating expenses increased to $44.229 million in Q3 2025 from $39.536 million in Q3 2024, primarily driven by higher sales and marketing costs[17] - Net loss for Q3 2025 was $4.566 million, an improvement from a net loss of $6.575 million in Q3 2024[17] - Revenue for the three months ended September 30, 2025, was $48,656, an increase from $40,340 in the same period of 2024, representing a growth of 8.1%[34] - For the nine months ended September 30, 2025, the net loss was $17,260, compared to a net loss of $26,418 for the same period in 2024[25] - For the three months ended September 30, 2025, the net loss was $4,566,000, compared to a net loss of $6,575,000 for the same period in 2024, representing a 30.6% improvement[80] - The basic and diluted net loss per share for the three months ended September 30, 2025, was $(0.11), an improvement from $(0.16) in the same period of 2024[80] - For the nine months ended September 30, 2025, the net loss was $17,260,000, down from $26,418,000 in the same period of 2024, indicating a 34.7% reduction[80] - The basic and diluted net loss per share for the nine months ended September 30, 2025, was $(0.40), compared to $(0.64) for the same period in 2024[80] Assets and Liabilities - Total current assets as of September 30, 2025, were $210.784 million, up from $207.779 million at the end of 2024[16] - Total liabilities decreased to $62.147 million as of September 30, 2025, compared to $63.473 million at the end of 2024[16] - Stockholders' equity increased to $172.126 million as of September 30, 2025, from $166.964 million at the end of 2024[16] - As of September 30, 2024, the total stockholders' equity was $164,974, with a net loss of $6,575 for the quarter[22] - The company reported cash and cash equivalents of $26,487 as of September 30, 2025, down from $30,225 at the end of the same period in 2024[25] - As of September 30, 2025, total marketable securities amounted to $140.660 million, with unrealized gains of $75, and unrealized losses of $2[42] - The allowance for credit losses increased to $985,000 as of September 30, 2025, from $588,000 at the end of 2024, with write-offs of $140,000 during the period[51] - The company reported accrued liabilities of $17.587 million as of September 30, 2025, a decrease from $19.492 million as of December 31, 2024[50] - The company had purchase commitments related to inventory management amounting to $3.5 million as of September 30, 2025, up from $0.4 million at the end of 2024[56] Inventory and Expenses - The company experienced a decrease in inventory of $10,334 for the nine months ended September 30, 2025, compared to a decrease of $5,922 in 2024[25] - Inventory as of September 30, 2025, consisted of finished goods valued at $31.2 million and work-in-progress and components valued at $4.5 million, compared to $24.0 million and $3.1 million respectively as of December 31, 2024[48] - Depreciation expense for the three months ended September 30, 2025, was $1.5 million, compared to $1.1 million for the same period in 2024[49] - Stock-based compensation for the nine months ended September 30, 2025, was $19,547, slightly down from $19,734 in 2024[25] - Stock-based compensation expense for the three months ended September 30, 2025 totaled $6.226 million, slightly down from $6.306 million in the same period of 2024[78] Future Outlook and Strategy - The company expects to derive a significant portion of revenue from products addressing sacropelvic anatomy in the future[12] - The company is focused on developing additional revenue opportunities, including new indications for use and new products[12] - The company anticipates challenges related to supply chain factors, including tariffs and availability of raw materials[12] - The company launched new products including iFuse INTRA and iFuse TORQ TNT in 2024, expanding its product line for sacroiliac joint treatment[27] - International revenue accounted for less than 10% of total revenue during the periods presented, indicating a strong reliance on the U.S. market[34] Debt and Financing - As of September 30, 2025, the outstanding principal of the term loan is $36.0 million, with net outstanding debt of $35.540 million after deducting unamortized debt issuance costs[62] - The effective interest rate for the three and nine months ended September 30, 2025 was 7.3%, down from 9.2% and 9.3% for the same periods in 2024[69] - The future principal payments under the Fourth Amended Loan Agreement total $36.0 million, with $6.0 million due in 2027, $18.0 million in 2028, and $12.0 million in 2029[69] - The Company has a secured revolving credit facility of up to $15.0 million as part of its financing arrangements[64] - The Third Amendment to the Loan and Security Agreement sets the maturity date for the term loan as September 1, 2029, with the first principal repayment due on October 1, 2027[66] - The Company was in compliance with all debt covenants as of September 30, 2025[69] Compliance and Risks - The company is cooperating with an investigation by the U.S. Department of Justice regarding compliance with the federal Anti-Kickback Statute, which may have a material impact on its financial condition[60] - The company has foreign currency risks primarily related to revenue and operating expenses denominated in currencies other than the U.S. dollar, particularly the Euro[156] - A hypothetical 100 basis point change in foreign exchange rates during the periods presented would not have had a material impact on the condensed consolidated financial statements[157] - The company’s exposure to interest rate risk is considered low, with a floating annual interest rate on the Third Amendment Term Loan set at the greater of the prime rate minus 0.5% or 4.25%[159] - The company has not entered into derivatives or other financial instruments to hedge foreign currency exchange risk but may consider this in the future[157] Employee Stock Purchase Plan - The total accumulated employee payroll deductions related to the Employee Stock Purchase Plan (ESPP) amounted to $0.6 million as of September 30, 2025[76] - Proceeds from the issuance of common stock under the employee stock purchase plan were $1,568 for the nine months ended September 30, 2025, compared to $1,472 in 2024[25] - The Company granted 1,305,384 Restricted Stock Units (RSUs) with an average grant date fair value of $16.79 during the nine months ended September 30, 2025[74] - As of September 30, 2025, there are 910,018 stock options outstanding with a weighted average exercise price of $11.41[70]