SI-BONE Raises 2026 Revenue Forecast to $230-$233 Million

Medical device firm SI-BONE reported first-quarter earnings and raised its full-year guidance. A new rule proposed by the U.S. Centers for Medicare & Medicaid Services (CMS), if approved, could significantly increase hospital reimbursement rates for procedures involving its core product, iFuse Bedrock Granite.

First-quarter results exceeded expectations, demonstrating significant operating leverage. The financial report shows the company's global revenue for Q1 reached $52.6 million, an 11.2% year-over-year increase, surpassing market expectations of $51.11 million. The net loss narrowed to $4.3 million from $6.5 million in the same period last year. Adjusted EBITDA reached $2.5 million, a surge of over 440% year-over-year. CEO Laura Francis stated on the earnings call that operating expense growth was only 4%, significantly lower than revenue growth, achieving nearly 2.5x operating leverage.

Full-Year Guidance Raised Based on the strong Q1 performance, the company raised its full-year 2026 revenue guidance from the previous range of $228.5-$232.5 million to $230-$233 million, representing an expected year-over-year growth of approximately 14% to 16%. The full-year gross margin expectation was raised from 78% to approximately 79%.

CMS Proposed Rule: Potential Major Benefit for Granite Procedures CMS, in its proposed rule for the Fiscal Year 2027 Inpatient Prospective Payment System, suggested creating a new MS-DRG grouping and increasing the payment standard for complex spinal fusion procedures utilizing iFuse Bedrock Granite. According to the company, the new rule could increase the average hospital reimbursement per procedure by up to $50,000. The proposal is expected to take effect on October 1, 2026.

Analyst Perspectives Several investment banks maintained positive ratings on SI-BONE, though some institutions lowered their price targets due to overall sector valuation compression. Truist lowered its target price from $20 to $18, and TD Cowen lowered its target from $22 to $18, both maintaining Buy ratings.