Tenon Medical, Inc. Q4 2025 Earnings Call Summary

• Achieved record full-year revenue of $3.9 million, driven by significant second-half momentum and a 92% increase in fourth-quarter revenue compared to the prior year.

• Performance was primarily propelled by growth in surgical procedure volumes across both Catamaran and SImmetry+ platforms, fueled by new physician adoption.

• Transitioned from a single-product provider to a multi-solution organization following the SiVantage transaction, allowing the company to address diverse patient anatomies and surgeon preferences.

• Improved gross margins to 69% in the fourth quarter through operational effectiveness initiatives, better field productivity, and increased leverage of commercial infrastructure.

• Strengthened the intellectual property estate to 29 issued U.S. patents and 31 pending applications, reinforcing the defensibility of both core technologies.

• Enhanced financial flexibility through a $2.85 million ATM PIPE and a subsequent $4.3 million private placement of senior convertible notes to fund commercial expansion.

• Management expects the fourth-quarter revenue run rate of $6 million to serve as a baseline for growth throughout 2026.

• The commercial rollout of the SImmetry+ system will be a primary catalyst for 2026, with a phased launch approach including upcoming additions to the construct.

• Anticipates further gross margin expansion as higher revenue volumes continue to absorb fixed costs within the cost of goods sold.

• Plans to submit new technologies to the FDA shortly to address primary cases, revision cases, and adjuncts to complex multi-level spine procedures.

• The current cash position and recent financing are expected to provide sufficient runway to fund commercial and clinical priorities deep into 2026.

• Received FDA 510(k) clearance for the next-generation SImmetry+ SI-Joint Fusion System, enabling a lateral surgical approach.

• Successfully completed early clinical ‘alpha’ cases with SImmetry+ at leading Centers of Excellence to validate market readiness.

• Operating expenses in the fourth quarter increased to $3.9 million, primarily due to higher variable sales and marketing costs driven by increased revenue.

• Management noted that while they do not provide specific future projections, the 2026 outlook is dependent on the successful execution of the new product pipeline.

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