Tenon Medical Reports Second Quarter 2025 Financial Results

Rhea-AI Summary

Tenon Medical (NASDAQ:TNON) reported Q2 2025 financial results, highlighting its strategic acquisition of SiVantage portfolio. The company posted revenue of $0.6 million, down from $0.9 million in Q2 2024, with a net loss of $2.8 million compared to $3.8 million in the prior year.

Key highlights include operating expenses reduction of 29% year-over-year, FDA clearance for Catamaran® as an adjunct to thoracolumbar fixation, and successful completion of initial case series. The company maintained a strong financial position with $7.8 million in cash and no outstanding debt as of June 30, 2025.

The SiVantage acquisition is expected to accelerate topline growth through immediate revenue generation, expanded market access, and strengthened hospital pathways, with integration planned over the next 60-90 days.

Positive

• Strategic acquisition of SiVantage portfolio expected to provide immediate revenue impact
• Operating expenses reduced by 29% year-over-year
• FDA clearance received for expanded Catamaran indication in sacro-pelvic market
• Strong cash position of $7.8M with no outstanding debt
• Net loss improved to $2.8M from $3.8M year-over-year

Negative

• Revenue declined to $0.6M from $0.9M in Q2 2024
• Gross margin decreased to 43% from 52% year-over-year
• Lower surgical procedure volumes in Q2 2025
• Gross profit declined to $0.2M from $0.5M in Q2 2024

Insights

Financial Analyst

Tenon reported mixed Q2 results with declining revenue but reduced losses amid strategic SiVantage acquisition and expanded Catamaran indications.

Tenon Medical's Q2 2025 results present a mixed financial picture with concerning revenue declines offset by strategic positioning moves. Revenue fell to $0.6 million from $0.9 million year-over-year, representing a 33% decrease. This decline appears primarily driven by lower procedure volumes and account mix changes, which management attributes to a strategic shift in commercial initiatives ahead of the SiVantage acquisition.

Gross margin deterioration is notable, declining to 43% from 52% in Q2 2024. This compression stems from fixed production overhead costs being spread across fewer procedures. While concerning, this suggests potential margin recovery if volumes increase through the SiVantage integration.

The company's expense management shows discipline with operating expenses down 29% year-over-year to $3.1 million. This contributed to a narrowed net loss of $2.8 million compared to $3.8 million in Q2 2024. At the current burn rate, Tenon's $7.8 million cash position provides approximately 6-7 quarters of runway if operations remain stable.

The SiVantage acquisition represents the cornerstone of Tenon's turnaround strategy. Management expects this deal to immediately boost revenue through active cases and revenue-generating technologies. More importantly, it enhances hospital approval pathways and broadens distribution networks – two critical factors for medical device commercialization. The 60-90 day integration timeline suggests we should see impact by Q4 2025.

The expanded FDA indication for Catamaran as an adjunct to thoracolumbar fixation opens a significant new market opportunity in sacropelvic fixation. Initial case completions validate the technical feasibility, but commercial traction remains to be proven. This regulatory win, combined with the SiVantage acquisition, positions Tenon to potentially reverse its revenue decline trajectory in coming quarters.

Medical Device Specialist

Tenon's expanded FDA clearance and SiVantage acquisition create growth opportunities despite weak Q2 financials.

From a medical technology perspective, Tenon's quarter represents a pivotal strategic repositioning despite disappointing financial metrics. The most significant development is the expanded FDA clearance for the Catamaran system as an adjunct to thoracolumbar fixation. This regulatory milestone fundamentally transforms Tenon's addressable market by enabling integration into lumbar fusion constructs – a substantially larger market than standalone SI joint procedures.

The company reports completed initial cases under this expanded indication, demonstrating successful integration into complex spine procedures with reported benefits in reduced morbidity, blood loss, and operative time. These clinical advantages, if consistently reproducible, could drive adoption among spine surgeons who previously wouldn't consider a standalone SI joint device.

The SiVantage acquisition appears strategically complementary, expanding Tenon's portfolio beyond a single-product focus to offer multiple approaches for sacroiliac pathologies. This multi-approach strategy better aligns with how spine surgeons actually practice, allowing them to select appropriate techniques based on patient-specific factors.

Tenon's emphasis on fusion rather than fixation represents a scientifically sound approach, as long-term stability in the SI joint region depends on biological integration rather than mechanical constraints alone. The upcoming second interim analysis from the MAINSAIL post-market clinical trial will be crucial in validating this fusion-centric approach.

The reported physician engagement activities (16 physicians in training sessions) suggest modest but focused educational efforts. For a specialized device company, this training intensity is appropriate though not exceptional. The company appears to be prioritizing quality of adoption over quantity, consistent with building clinical evidence through early adopters.

Overall, while financial metrics disappoint, Tenon's technological and regulatory positioning has meaningfully improved. The expanded indication and portfolio diversification create multiple pathways to potential growth if execution on integration and commercialization proves successful.

~ Recently Announced Strategic Acquisition of SiVantage Portfolio Energizes Tenon's Commercial Organization and Accelerates Topline Growth ~

~ FDA Clearance Unlocks New Sacro-Pelvic Market Opportunity for Catamaran® as Adjunct to Thoracolumbar Fixation with Initial Case Series Successfully Completed ~

~ Operating Expenses Down 29% Year-over-Year as Company Advances Toward Integration of SiVantage Assets, Addition of Commercial Team, and full Commercial Launch of Catamaran SE ~

~ Cash on Hand of Approximately $7.8 Million at Quarter End ~

LOS GATOS, CA / ACCESS Newswire / August 13, 2025 / Tenon Medical, Inc. (NASDAQ:TNON) ("Tenon Medical" or the "Company"), a company transforming care for patients suffering from certain Sacroiliac Joint (SIJ) disorders, today reported financial results for the second quarter ended June 30, 2025.

Financial Results and Business Updates

• Second Quarter 2025 Results:

  • Revenue of $0.6 million, compared to $0.9 million in the second quarter of 2024.

  • Gross profit of $245,000, compared to $470,000 in the second quarter of 2024.

  • Gross margin of 43%, compared to 52% in the second quarter of 2024.

  • Cash and cash equivalents of $7.8 million as of June 30, 2025.

  • Net loss of $2.8 million for the second quarter of 2025, compared to a net loss of $3.8 million in the second quarter of 2024.

• SiVantage acquisition delivers immediate revenue, expands market access, and strengthens hospital pathways; integration over the next 60-90 days expected to accelerate commercial momentum.

• Initial Catamaran® cases completed by Andrew Trontis, MD under expanded indication demonstrate successful integration into lumbar fusion constructs unlocking new market opportunities in sacropelvic fixation.

• Catamaran adoption grows in complex spine procedures, showing reduced morbidity, blood loss, and operative time.

• Hosted 16 physicians in targeted workshop activities and Catamaran focused training sessions within the Second Quarter.

• Clinical validation continues through early adopter experience and ongoing MAINSAIL trial data.

"A substantial portion of our second quarter efforts were dedicated to the comprehensive due diligence and the successful execution of our strategic acquisition of SiVantage, reflecting our commitment to disciplined growth and will have a meaningful and immediate impact on Tenon's topline performance," said Steve Foster, President and Chief Executive Officer of Tenon Medical. "The SiVantage portfolio brings active cases, revenue-generating technologies, and a robust pipeline that will continue to expand as integration progresses over the next 60 to 90 days. Beyond the immediate commercial impact, this acquisition strengthens our hospital approval pathways, enhances market access, and broadens our distribution network. Most importantly, it energizes our commercial organization with the tools, talent, and technologies needed to drive sustainable top-line growth.

At Tenon, we believe fusion, not fixation, is the true measure of success for SI procedures. Our expanded portfolio now offers physicians a differentiated, multi-product, multi-approach set of solutions engineered to promote biologic healing, deliver reproducible outcomes, and restore lasting structural stability. This acquisition reinforces our commitment to innovation, clinical excellence, and delivering authentic fusion solutions backed by biomechanical and clinical data.

Looking ahead to the second half of the year, Tenon is entering a period of strong momentum and strategic execution. The acquisition of the SiVantage assets, combined with key upcoming catalysts, including the full market launch of the Catamaran® SE and the imminent release of the second interim data analysis from the MAINSAIL post-market clinical trial, positions us to advance our mission of achieving true biologic fusion. These milestones not only strengthen our clinical and commercial foundation but also support our broader goal of driving sustainable topline growth and delivering long-term value to our shareholders," concluded Mr. Foster.

Second Quarter 2025 Financial Results

Revenue was $0.6 million in the second quarter of 2025, compared to $0.9 million in the same period of 2024. Revenue for the six months ended June 30, 2025, was $1.3 million, compared to $1.6 million in the six months ended June 30, 2024. The decrease in the three months ended June 30, 2025, was primarily driven by procedure volumes and account mix. The number of surgical procedures was lower in the second quarter of 2025 than in the prior year driven primarily by the strategic shift in our commercial initiatives with the impending acquisition.

Gross profit was $0.2 million, or 43% of revenue, in the second quarter of 2025, compared to $0.5 million, or 52% of revenue, in the second quarter of 2024. For the six months ended June 30, 2025, gross profit was $0.6 million, or 44% of revenues, compared to $0.9 million, or 58% of revenue, for the six months ended June 30, 2024. Gross margin declined due to the reduced procedure volume and lower revenue, with consistent relative production overhead costs in the period.

Operating expenses totaled $3.1 million in the second quarter of 2025, compared to $4.3 million in the second quarter of 2024. For the six months ended June 30, 2025, operating expenses totaled $7.1 million compared to $8.3 in the prior year period. The decrease was due to reduced general and administrative expenses, timing of R&D project spending, and a shift in investment in commercial infrastructure and salesforce strategy.

Net loss was $2.8 million, or $0.36 per share, in the second quarter of 2025, compared to a net loss of $3.8 million, or $8.16 per share, in the second quarter of 2024. For the six months ended June 30, 2025, net loss was $6.4 million compared to $7.4 million in the same year ago period. The year-over-year improvement was largely driven by reduced operating expenses.

As of June 30, 2025, cash and cash equivalents totaled $7.8 million, compared to $6.5 million at December 31, 2024. The Company had no outstanding debt as of quarter-end, positioning it to continue executing on its strategic initiatives, including the integration of the SiVantage assets and expanded commercial team.

Second Quarter 2025 Earnings Conference Call

Management will host a conference call at 4:30 p.m. ET (1:30 p.m. PT) today, August 13, 2025, to discuss Tenon's second quarter 2025 financial results, provide a corporate update, and conclude with Q&A with the Company's covering analyst. To participate, please use the following information:

Date:	Wednesday, August 13, 2025
Time:	4:30 p.m. Eastern time
Dial-in:	1-877-407-0792
International Dial-in:	1-201-689-8263
Webcast:	TNON Conference Call

Please dial in at least 10 minutes before the start of the call to ensure timely participation.

An audio playback of the call will be available through August 27, 2025, on Tenon's Investor Relations website at http://ir.tenonmed.com/ or via telephone replay by dialing 1-844-512-2921 (USA) or 1-412-317-6671 (International). The access code will be 13754961.

About Tenon Medical, Inc.

Tenon Medical, Inc., a medical device company formed in 2012, has developed The Catamaran SI Joint Fusion System that offers a novel, less invasive approach to the SI joint using a single, robust titanium implant. The system features the Catamaran™ Fixation Device which passes through both the axial and sagittal planes of the ilium and sacrum, stabilizing and transfixing the SI Joint along its longitudinal axis. The angle and trajectory of the Catamaran surgical approach is also designed to provide a pathway away from critical neural and vascular structures and into the strongest cortical bone. Since the national launch of the Catamaran SI Joint Fusion System in October 2022, Tenon is focused on three commercial opportunities with its System in the SI Joint market which includes: 1) Primary SI Joint procedures, 2) Revision procedures of failed SI Joint implants and 3) SI Joint fusion adjunct to a spine fusion construct. For more information, please visit www.tenonmed.com.

The Tenon Medical logo shown above, and Catamaran®, PiSIF®, CAT PiSIF®, ETAD®, Posterior Inferior Sacroiliac Fusion®, CAT SIJ Fusion System®, Catamaran SIJ Fusion System®, Catamaran Inferior Posterior Fusion System®, Catamaran Transfixation Fusion System®, and Catamaran Transfixation Fusion Device®, SImmetry® are registered trademarks of Tenon Medical, Inc. MAINSAIL^TM, and SImmetry+™ are also trademarks of Tenon Medical, Inc.

Safe Harbor

This press release contains "forward-looking statements," which are statements related to events, results, activities or developments that Tenon expects, believes or anticipates will or may occur in the future. Forward-looking often contains words such as "intends," "estimates," "anticipates," "hopes," "projects," "plans," "expects," "seek," "believes," "see," "should," "will," "would," "target," and similar expressions and the negative versions thereof. These forward-looking statements, include, but are not limited to, statements regarding the completion of the Offering, the satisfaction of customary closing conditions related to the Offering and the anticipated use of proceeds therefrom. Such statements are based on Tenon's experience and perception of current conditions, trends, expected future developments and other factors it believes are appropriate under the circumstances, and speak only as of the date made. Forward-looking statements are inherently uncertain and actual results may differ materially from assumptions, estimates or expectations reflected or contained in the forward-looking statements as a result of various factors. For details on the uncertainties that may cause Tenon's actual results to be materially different than those expressed in any forward-looking statements, please review Tenon's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and updated from time to time in our Form 10-Q filings and in our other public filings on file with the SEC at www.sec.gov, particularly the information contained in the section entitled "Risk Factors." We undertake no obligation to publicly update or revise any forward-looking statements to reflect new information or future events or otherwise unless required by law.

Investor Contact

Shannon Devine
MZ North America
203-741-8811
tenon@mzgroup.us

Tenon Medical, Inc.
Condensed Balance Sheets (Unaudited)
(In thousands, except share data)

		June 30,				December 31,
		2025				2024
ASSETS
Current assets:
Cash and cash equivalents		$	7,846			$	6,535
Accounts receivable, net			770				863
Inventory, net			688				606
Prepaid expenses and other current assets			580				206
Total current assets			9,884				8,210
Property and equipment, net			842				752
Deposits			51				51
Operating lease right-of-use asset			268				399
Deferred offering costs			69				431
TOTAL ASSETS		$	11,114			$	9,843
Liabilities and Stockholders' EQUITY
Current liabilities:
Accounts payable		$	894			$	369
Accrued expenses			1,108				910
Current portion of accrued commissions			271				303
Current portion of operating lease liability			290				287
Total current liabilities			2,563				1,869
Accrued commissions, net of current portion			1,838				1,862
Operating lease liability, net of current portion			-				141
Total liabilities			4,401				3,872
Commitments and contingencies (Note 7)
Stockholders' equity:
Series A convertible preferred stock, $0.001 par value; 4,500,000 shares authorized at June 30, 2025 and December 31, 2024; 256,968 shares issued and outstanding at June 30, 2025 and December 31, 2024			3,300				3,300
Series B convertible preferred stock, $0.001 par value; 491,222 shares authorized at June 30, 2025 and December 31, 2024; 86,454 shares issued and outstanding at June 30, 2025 and December 31, 2024			452				452
Common stock, $0.001 par value; 130,000,000 shares authorized at June 30, 2025 and December 31, 2024; 7,592,217 and 3,138,804 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively			8				3
Additional paid-in capital			78,084				70,962
Accumulated deficit			(75,131	)			(68,746	)
Total stockholders' equity			6,713				5,971
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	11,114			$	9,843

Tenon Medical, Inc.
Condensed Statements of Operations and Comprehensive Loss (Unaudited)
(In thousands, except per share data)

		Three Months Ended June 30,								Six Months Ended June 30,
		2025				2024				2025				2024
Revenue		$	564			$	901			$	1,290			$	1,620
Cost of sales			319				431				722				680
Gross Profit			245				470				568				940
Operating Expenses
Research and development			503				708				1,194				1,377
Sales and marketing			1,119				1,448				2,766				2,829
General and administrative			1,480				2,186				3,142				4,112
Total Operating Expenses			3,102				4,342				7,102				8,318
Loss from Operations			(2,857	)			(3,872	)			(6,534	)			(7,378	)
Other Income (Expense)
Gain on investments			88				39				149				66
Interest expense			-				-				-				(34	)
Other income (expense), net			-				7				-				(56	)
Total Other Income (Expense), net			88				46				149				(24	)
Net Loss		$	(2,769	)		$	(3,826	)		$	(6,385	)		$	(7,402	)
Net Loss Per Share of Common Stock
Basic and diluted		$	(0.36	)		$	(8.16	)		$	(1.14	)		$	(17.92	)
Weighted-Average Shares of Common Stock Outstanding
Basic and diluted			7,591				469				5,605				413
Consolidated Statements of Comprehensive Loss:
Net loss		$	(2,769	)		$	(3,826	)		$	(6,385	)		$	(7,402	)
Foreign currency translation adjustment			-				-				-				46
Total comprehensive loss		$	(2,769	)		$	(3,826	)		$	(6,385	)		$	(7,356	)

SOURCE: Tenon Medical, Inc.

View the original press release on ACCESS Newswire

FAQ

What were Tenon Medical's (TNON) Q2 2025 earnings results?

Tenon Medical reported Q2 2025 revenue of $0.6 million, a net loss of $2.8 million ($0.36 per share), and ended the quarter with $7.8 million in cash.

How will the SiVantage acquisition impact Tenon Medical's business?

The SiVantage acquisition is expected to provide immediate revenue growth, expand market access, strengthen hospital pathways, and enhance distribution networks. Integration is planned over 60-90 days.

What is the significance of Tenon's FDA clearance for Catamaran?

The FDA clearance allows Catamaran to be used as an adjunct to thoracolumbar fixation, unlocking new market opportunities in sacropelvic fixation, with initial case series already successfully completed.

How did Tenon Medical's operating expenses change in Q2 2025?

Operating expenses decreased by 29% year-over-year to $3.1 million in Q2 2025, compared to $4.3 million in Q2 2024, due to reduced administrative expenses and R&D project timing.

What is Tenon Medical's current cash position and debt status?

As of June 30, 2025, Tenon Medical had $7.8 million in cash and cash equivalents with no outstanding debt, positioning it well for executing strategic initiatives.