Tenon Medical Q2 2025 Earnings Report

Tenon Medical EPS Results

• Actual EPS: -$0.36
• Consensus EPS: -$0.47
• Beat/Miss: Beat by +$0.11
• One Year Ago EPS: N/A

Tenon Medical Revenue Results

• Actual Revenue: $0.56 million
• Expected Revenue: $0.91 million
• Beat/Miss: Missed by -$346.00 thousand
• YoY Revenue Growth: N/A

Tenon Medical Announcement Details

• Quarter: Q2 2025
• Date: 8/13/2025
• Time: After Market Closes
• Conference Call Date: Wednesday, August 13, 2025
• Conference Call Time: 4:30PM ET

Tenon Medical (NASDAQ:TNON), a medical device company, engages in the development of surgical implant systems to treat severe lower back pain in the United States and Puerto Rico. The company offers CATAMARAN SI-Joint Fusion System to fuse sacroiliac joints (SI-Joints) to treat SI-Joint dysfunction that often causes severe lower back pain; and features fixation device that passes through the axial and sagittal planes of the ilium and sacrum, as well as transfixes the SI joints. Tenon Medical, Inc. was incorporated in 2012 and is headquartered in Los Gatos, California.

Tenon Medical Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: We completed the strategic acquisition of SciVantage, set for integration in 60–90 days to enhance our commercial infrastructure, active case volume, and product pipeline.
• Positive Sentiment: We received FDA clearance for expanded Catamaran uses, with successful initial cases demonstrating reduced morbidity, blood loss, and operative time in lumbar fusion adjunctive procedures.
• Positive Sentiment: The Catamaran SE platform is on track for full commercial launch in the coming weeks, and Symmetry Plus alpha surgeries are expected to begin in Q4 to drive next-generation SI joint fusion solutions.
• Negative Sentiment: Second-quarter revenue declined to $564,000 from $901,000 a year ago due to lower procedure volumes and strategic commercial shifts, with gross margin falling to 43% from 52%.
• Positive Sentiment: Operating expenses were reduced by 29% year-over-year, and we closed the quarter with $7.8 million in cash, no debt, and strengthened financial flexibility.

Presentation

[Operator]

Greetings, and welcome to the Tenon Inc. Second Quarter twenty twenty five Earnings Conference Call. At this time, all in listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded.

[Operator]

It is now my pleasure to introduce your host, Steven Foster, CEO and President. Thank you. You may begin.

[Steven Foster, CEO, President & Director at Tenon Medical]

Thank you, Maria, and good afternoon, everyone. I'm pleased to welcome you to today's second quarter twenty twenty five financial results and corporate update conference call for Medical. We recently marked a pivotal step forward for Tenon Medical highlighted by a strategic acquisition on top of a second quarter that included continued clinical validation and meaningful progress towards diversification of our product offering. Speaking to our recent announcement, a significant focus of our second quarter initiatives was the thorough due diligence and successful completion of the strategic acquisition of SciVantage, which we announced subsequent to quarter end. With integration to take place over the next sixty to ninety days, this transaction delivers active case volume, revenue generating technologies, and a robust pipeline that will continue to scale.

[Steven Foster, CEO, President & Director at Tenon Medical]

The deal significantly enhances our commercial organization and unlocks new pathways through hospital approval processes, distribution networks, and market access. Importantly, the transaction energizes our commercial infrastructure and the tools and talent to drive sustainable top line growth. In tandem, we continue to advance the Catamaran platform with real world adoption in complex spine procedures. Doctor. Andrew Trontis completed initial Catamaran cases demonstrating successful integration into lumbar fusion constructs.

[Steven Foster, CEO, President & Director at Tenon Medical]

These procedures now supported by FDA clearance for uses and adjunct to thoracolumbar fixation validate Catamaran's role in preparing and immobilizing the SI joint in preparation for fusion while reducing morbidity, blood loss, and operative time. This expanded indication opens a new market opportunity and expands our footprint in the sacropelvic fixation space. The Catamaran SE, our second generation low profile implant, remains on track for full commercial launch in the coming weeks. The SE platform has already shown favorable feedback and alpha review. Combined with the SciVantage assets, we now offer a multi product dynamic approach fusion solution that differentiates Tenon in an increasingly competitive sacral pelvic marketplace.

[Steven Foster, CEO, President & Director at Tenon Medical]

In addition to the full commercial launch of the Catamaran SE platform this quarter, we are actively preparing for initial alpha surgeries using the newly developed Symmetry Plus system expected to begin in Q4 this year. Symmetry Plus represents a next generation fusion platform designed further enhance our SI joint portfolio with differentiated features for long term fusion outcomes. We believe the Symmetry Plus system will complement our existing offerings and support our commitment to delivering true fusion solutions tailored to both primary and adjunctive SI joint procedures. Our clinical progress remains equally strong. We continue to collect important clinical validation through both early adopter experience and our main sale post market study, which remains on track for the publication of the second interim analysis this quarter.

[Steven Foster, CEO, President & Director at Tenon Medical]

As the number of enrolled patients grows, we are confident that primary endpoints of VAS and ODI scores along with patient satisfaction will show positive trends. The secondary endpoint of fusion assessed via CT scan and confirmed by independent radiologists will reinforce the binding by AO principles of arthrodesis pays off. We are confident the inclusion of CT scan fusion data, ODI and VAS scores will provide powerful evidence supporting our CAD MRAN approach. The CyVantage transaction also brings with it meaningful fusion data that will support the approach and technologies currently under development that is a result of this transaction. Physician education remains a top priority.

[Steven Foster, CEO, President & Director at Tenon Medical]

In the second quarter, we hosted 16 physician workshops, engaging key opinion leaders to support our long term adoption strategy and accelerate the learning curve for our new users. On the financial side, we reduced our operating expenses by 29% year over year, demonstrating a tighter discipline while preserving investments in our growth strategy. We ended the quarter with $7,800,000 in cash and no debt, giving us flexibility to continue executing our strategic roadmap with confidence. Looking ahead, Tenon is entering a period of sustained momentum between the CyVantage integration, Ketameran SE launch and upcoming main sale interim data publication, we're poised to execute against key milestones that will expand our addressable market, strengthen our clinical foundation and drive top line growth. With that, I'll turn the call over to Kevin Williamson to discuss our financials.

[Kevin Williamson, CFO at Tenon Medical]

Thank you, Steve. I will now provide a summarized review of our financial results. A full breakdown is available in our press release that crossed the wire this afternoon. Revenue for the 2025 was $564,000 compared to $901,000 in the same period last year. Revenue for the six months ended 06/30/2025 was 1,300,000.0 compared to 1,600,000.0 in the six months ended 06/30/2024.

[Kevin Williamson, CFO at Tenon Medical]

The year over year decline was primarily due to lower procedure volumes and account mix headwinds in the 2025, driven primarily by the strategic shift in our commercial initiatives with the impending CyVantage acquisition. With the transaction now closed, we are already seeing increased volume and interest in the tenant on story, which we expect to be meaningful moving forward. Gross profit was 245,000 or 43% of revenue in the 2025, compared to 470,000 or 52% of revenue in the prior year quarter. For the six months ended 06/30/2025, gross profit was 568,000 or 44% of revenue compared to 940,000 or 58% of revenue for the previous year's period. The decline in gross margin was a result of reduced procedure volumes and lower revenue with consistent variable direct product costs and relative fixed production overhead costs year over year.

[Kevin Williamson, CFO at Tenon Medical]

Operating expenses totaled 3,100,000.0 in Q2 twenty twenty five, down from 4,300,000.0 in the prior year period. For the six months ended 06/30/2025, operating expenses totaled 7,100,000.0 compared to 8,300,000.0 in the prior year period. The 29% reduction in the quarter was driven by lower expenses across G and A, R and D and sales and marketing. The reduction in G and A and R and D was primarily driven by disciplined spending and project timing, as well as a reduction in stock based compensation, which is expected to continue. The reduction in sales and marketing expenses was driven by lower variable expense due to lower revenue, as well as disciplined investment in our commercial infrastructure and sales force, reflecting our focus on the impending acquisition.

[Kevin Williamson, CFO at Tenon Medical]

Net loss for the second quarter was 2,800,000.0 or $0.36 per share, compared to a net loss of 3,800,000.0 or $8.16 per share in the 2024. For the six months ended 06/30/2025, net loss was 6,400,000.0 compared to 7,400,000.0 in the same year ago period. This improvement was primarily attributable to the decrease in operating expenses in the 2025. We ended the quarter with 7,800,000.0 in cash and cash equivalents compared to 6,500,000.0 as of 12/31/2024. Additionally, the company continues to operate with no outstanding debt, giving us the flexibility to advance our growth strategy, including the integration of CyVantage acquisition, product development and upcoming launches of Catamaran SE and Symmetry Plus, continued focus on clinical data and market access efforts, and rapid expansion of our commercial footprint.

[Kevin Williamson, CFO at Tenon Medical]

In summary, we believe the steps taken this quarter, both financially and strategically position Pennant well to accelerate growth, while maintaining a lean and focused cost structure. I'll now hand the call back to Steve for closing comments.

[Steven Foster, CEO, President & Director at Tenon Medical]

Thank you, Kevin. We are energized by this progress made in Q2 and the strong momentum building into the 2025. From the SI vantage acquisition to the launch of Catamaran SC and ongoing clinical validation, are executing across all pillars of our strategy. Chenon remains focused on delivering solutions that promote true biologic fusion and structural stability for patients suffering from sacropelvic disorders. We're confident in our long term, trajectory and remain committed to driving value for our patients, physicians and shareholders.

[Steven Foster, CEO, President & Director at Tenon Medical]

I thank you all for attending. Now I'd like to hand the call over to our operator to begin our question and answer session with covering analysts. Maria?

[Operator]

Thank you. We will now be conducting a question and answer session. Our first question comes from Scott Henry with AGP. Please proceed with your question.

[Scott Henry, MD & Senior Research Analyst at Alliance Global Partners]

Thank you, and good afternoon. I'm excited for you with the Civantage acquisitionmerger, however you want to phrase it. I find that smaller companies are often in a race for scale. And you want to achieve scale to leverage the cost in the whole business model. Is that what you're trying to get here?

[Scott Henry, MD & Senior Research Analyst at Alliance Global Partners]

Do you think this could help bring you scale, make the company more viable, in the big picture?

[Steven Foster, CEO, President & Director at Tenon Medical]

Yeah. Hi, Scott. This is Steve, and thanks for the great question. You couldn't be more right. I think it gets us a number of things.

[Steven Foster, CEO, President & Director at Tenon Medical]

Certainly gives us a pathway to scale. But as we move to a more intensive commercialization, what happens in medical devices, you're trying to leverage, and build access. And when I say access, access to hospital system, contract groups, and things of that nature. So one of the things that happens here is we combine all of the work that was done in the two organizations in the access part of the equation. This gives salespeople on the street the ability to go and get after these opportunities.

[Steven Foster, CEO, President & Director at Tenon Medical]

That's one. Two, you know, 10 on a month ago was a single product, company. Now that's changed. Now we're going to be able to, this is what I noticed in this whole thing, right? As physicians start to really think about the problems they're trying to solve in the sacropelvic region, they need flexibility and they need options.

[Steven Foster, CEO, President & Director at Tenon Medical]

Having a one size fit all, was starting to become an issue. This gives us a chance to have multiple approaches to the anatomy, multiple formats of implant to address the issue, whether they're dealing with a primary situation, a revision situation, or an adjunctive situation in a bigger procedure. So we become more diversified, we get more access out there to your point, we get to build scale more effectively And and quite candidly, as excited about I am about the products, I'm more excited about the people. These guys are people I've known for many years now. Great respect for bringing some real force power to the team that I'm just yeah.

[Steven Foster, CEO, President & Director at Tenon Medical]

I'm I'm I'm it's hard for me to describe how excited I am about it. I think we're gonna be able to do things commercially, at a much higher clip and in a much more intense way. So very excited about all those parts.

[Scott Henry, MD & Senior Research Analyst at Alliance Global Partners]

Okay. That's fantastic. As we try to get our arms around this combined company, I don't know if you can talk to the combined revenue, the combined OpEx, gross margin picture or will there be filings with that? I just pulled up an eight ks. It's pretty long.

[Scott Henry, MD & Senior Research Analyst at Alliance Global Partners]

I don't see any tables in there, but they might be in there. Just trying to get an idea of how how we can kinda build a picture of this combined entity.

[Steven Foster, CEO, President & Director at Tenon Medical]

Sure. And I'll let Kevin comment in a moment. But as part of the transaction transaction and as part of us closing, there are some audited financials being done that need to be completed before we can share the kind of details you're looking for. So we'll need a short period of time here to wrap those things up, and then we'll be able to provide more specifics. Kevin, if you want to comment real quickly, it might be appropriate.

[Kevin Williamson, CFO at Tenon Medical]

Yeah, happy to. So Scott, there's about a seventy five day post close period to file the audited financials for CyVantage. So we should have those filed here come mid October based on that timeline. So can't speak directly to the numbers, but it is an immediate revenue pickup meaningful for Tenon with the Symmetry product line that's out there. And I think, as Steve mentioned, even more specifically, we're excited for the pickup we believe is going to come from the Symmetry Plus launch that's coming up here in Q4.

[Kevin Williamson, CFO at Tenon Medical]

But immediate revenue now and more to go as Symmetry Plus gets launched in Q4.

[Scott Henry, MD & Senior Research Analyst at Alliance Global Partners]

Okay. And for clarification, is there anything that needs to be done to complete this merger? Are there any votes or this final?

[Kevin Williamson, CFO at Tenon Medical]

No. Yeah. It's closed. It's closed and approved. The the only remaining item to it is is filing the audited 2024 financials, and then stub review period for 2025 for SiteVantage.

[Kevin Williamson, CFO at Tenon Medical]

That's all in the works and have, again, a seventy five day post close period to get those filed with the SEC.

[Scott Henry, MD & Senior Research Analyst at Alliance Global Partners]

Okay. And final question, more on the micro side. Obviously, revenues declined in the quarter, but expenses went way down too. I don't know if you're optimizing to get ready for the planned acquisition. But how should we think about Catamaran and you also have the SE launch coming up.

[Scott Henry, MD & Senior Research Analyst at Alliance Global Partners]

How should we think about the Catamaran revenues sequentially in third quarter and fourth quarter?

[Steven Foster, CEO, President & Director at Tenon Medical]

Yes, this is Steve. I agree. I think it's fair to say Q2, we were a bit obsessed with working through all of this and getting it done with our new CyVantage partners. That was a little bit disruptive for certain. I don't anticipate that softness, being ongoing.

[Steven Foster, CEO, President & Director at Tenon Medical]

I really think we'll recover very quickly. We just felt ourselves a bit on hold with adding street personnel, sales personnel, replacing any changes, things of that nature until we got this thing closed. So that's that's that's kind of where my mind is as it relates to Catamaran.

[Scott Henry, MD & Senior Research Analyst at Alliance Global Partners]

Okay. Fair fair enough. And and based on, I mean, what are we, a month and a half into Q3, are you expecting I mean, a lot of that stuff is still ongoing, was ongoing. Should we temper our expectations in Q3 and then wait for kind of the Q4 combined rollout? Would that be a reasonable way to think of it?

[Kevin Williamson, CFO at Tenon Medical]

Think it is reasonable

[Steven Foster, CEO, President & Director at Tenon Medical]

and Kevin, go ahead and comment. But yes, think it is reasonable certainly in July. We're still wrapping this up as very intensive at the end, as you can imagine. But things have really started to turn very quickly. Now that we're closed, I'm very encouraged that we'll recover and recover very quickly.

[Kevin Williamson, CFO at Tenon Medical]

Yeah, I'll add there, Scott. I think, you know, the excitement of announcing the deal, getting, you know, officially getting the teams together and getting going here, I think you'll see, you know, Catamaran revenue back to where you've seen it before and, you know, plus the incremental revenue that we're going pick up from Synergy immediately. So, you know, feel good about where Catamaran is at, where Catamaran revenue is at, and I think a big piece of it that Steve alluded to is leveraging the hospital agreements, hospital approvals, the distributor agreements across both sides and now starting to kind of cross sell through the synergies, both products into both sides and then grow from there. So I think you'll see a good bounce back in Q3.

[Scott Henry, MD & Senior Research Analyst at Alliance Global Partners]

Okay, great. Thank you both for taking the questions.

[Steven Foster, CEO, President & Director at Tenon Medical]

Thank you, Scott.

[Operator]

Our next question comes from Nicholas Sherwood with Maxim. Please proceed with your question.

[Nicholas Sherwood, Equity Research Associate at Maxim Group]

Hi, thank you. Kind of talking about the acquisition, what sort of is the incremental physician and hospital network that you've kind of acquired through the acquisition? And have you begun cross selling to the sort of legacy physician partners from both Kenon and SI Advantage or are you still waiting for everything to be integrated before you begin doing that?

[Steven Foster, CEO, President & Director at Tenon Medical]

Yeah thanks for the question. A couple of things. Yeah the there's going to be overlap between the two groups, if you will, at the physician level, as well as at the hospital and facility level. Right? Our challenge is to integrate that and leverage that as best we can.

[Steven Foster, CEO, President & Director at Tenon Medical]

Right? The reality is Tenon had some some some access and contracting and pricing stuff done. So did CyVantage. Some of it overlaps. Some of it's incremental.

[Steven Foster, CEO, President & Director at Tenon Medical]

So it builds from day one, gives us a chance to reinforce that group and then continue to expand from there. As to the sales folks and cross selling that, it's happening immediately. We're not waiting for the audits to be done or anything like that. We've already begun the training process, to get everyone prepared to sell across the portfolio, position it appropriately, supported appropriately, what have you. Our folks are very consultative out there with the physicians and their staff.

[Steven Foster, CEO, President & Director at Tenon Medical]

And so all of that process has begun in earnest, and we'll continue to do so probably for the next sixty days or so.

[Nicholas Sherwood, Equity Research Associate at Maxim Group]

Okay. Perfect. Thank you for that detail. Then kind of a follow-up. Is the, kind of the the reimbursement landscape for the Symmetry product and the Symmetry Plus product?

[Nicholas Sherwood, Equity Research Associate at Maxim Group]

Is it a similar, like Medicare reimbursement code as the Catamaran system? Does it have private payer coverage? Can you kind of talk about how that exists and then any synergies there with the acquisitions? Certainly.

[Steven Foster, CEO, President & Director at Tenon Medical]

So the SI joint, there are three distinct CPT codes that cover SI procedures. The SciVantage technology is coming over, participates with those codes just like Catamaran does. So I would position that as very similar. Coverage goes to supporting these technologies with data. I mentioned in the prepared comments that not only are we excited about this second interim analysis coming out from our main sale trial and reinforcing that Catamaran delivers on its promises, But the SaiVantage portfolio also brings prospective data, to the mix that shows that Symmetry and we believe also Symmetry Plus can deliver on very specific aspects of safety and effectiveness.

[Steven Foster, CEO, President & Director at Tenon Medical]

So we feel like we're well positioned with data to continue the pursuit of proper coverage of these technologies, but no new incremental codes or anything like that. The CyVantage technology participates with the SI codes that are in existence.

[Nicholas Sherwood, Equity Research Associate at Maxim Group]

Okay. That makes sense. And then my last question is just what kind of color can you give us on this Symmetry Plus launch? Do we have an idea of when that will be kind of how much of a catalyst we expect that to be for the top line? Just kind of break down what you're thinking.

[Steven Foster, CEO, President & Director at Tenon Medical]

Excellent. Yeah, really excited about it. It is a lateral approach technology that will be state of the art and really bringing some features that we believe are gonna be very compelling for physicians. From a timing perspective, we anticipate Alpha surgeries beginning in the October timeframe with that technology. And when I refer to Alpha, these are our physician advisors, our close relationship physicians who use these technologies and give us specific feedback.

[Steven Foster, CEO, President & Director at Tenon Medical]

What do they like? What do they not like? What needs to be tweaked, etcetera. And candidly, the number of tweaks will determine the timing of a full scale launch. But usually those things run two to three months and then we build out, you know, make any changes, out inventory and execute on a full launch.

[Steven Foster, CEO, President & Director at Tenon Medical]

So I think what would be fair is saying in October, November, December will be an alpha, and then you'll see a launch of that technology in early, the early part of next year.

[Nicholas Sherwood, Equity Research Associate at Maxim Group]

Okay. Perfect. Well, that ends my questions, I'll return to the queue. Thank you for answering them.

[Steven Foster, CEO, President & Director at Tenon Medical]

Thank you.

[Operator]

I would now like to turn the call back over to Mr. Foster for his closing remarks.

[Steven Foster, CEO, President & Director at Tenon Medical]

Great. Thank you, Maria. I'd like to thank each of you for joining our earnings conference call today and look forward to continuing to update you on our ongoing progress and growth. If we were unable to answer any of your questions, please reach out to our IR firm, MZ Group, who would be more than happy to assist. And with that, I wish you a good day.

[Operator]

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

Participants

Executives

• Steven Foster, CEO, President & Director
• Kevin Williamson, CFO

Analysts

• Scott Henry, MD & Senior Research Analyst at Alliance Global Partners
• Nicholas Sherwood, Equity Research Associate at Maxim Group