Tenon Medical (TNON) investor relations material

Executive summary

• Achieved record full-year 2025 revenue of $3.9 million, up 20% year-over-year, with Q4 revenue of $1.5 million, a 92% increase over Q4 2024, driven by strong adoption of Catamaran and SImmetry+ platforms and new physician users.

• Gross profit reached $1.0 million in Q4 (up 188% YoY) and $2.4 million for the year (up 38% YoY), with gross margin improvements to 69% in Q4 and 60% for the year.

• Secured FDA 510(k) clearance for SImmetry+ SI joint fusion system, supporting commercial rollout and expanding the product portfolio.

• Strengthened balance sheet with $2.85 million PIPE financing in Q4 and $4.3 million private placement of senior convertible notes post-quarter to fund growth initiatives.

• Expanded intellectual property portfolio to 29 issued U.S. patents, 9 international patents, and 31 pending applications.

Financial highlights

• Q4 2025 revenue was $1.5 million, up 92% from $0.8 million in Q4 2024; full-year 2025 revenue was $3.9 million, up 20% from $3.3 million in 2024.

• Q4 gross profit was $1 million (69% margin), up from $0.4 million (46% margin) in Q4 2024; full-year gross profit was $2.4 million (60% margin), up from $1.7 million (52% margin) in 2024.

• Q4 operating expenses were $3.9 million, up from $3.5 million in Q4 2024; full-year operating expenses were $15.2 million, down from $15.5 million in 2024.

• Q4 net loss was $2.8 million ($0.29/share), improved from $3.1 million ($0.98/share) in Q4 2024; full-year net loss was $12.6 million ($1.70/share), improved from $13.7 million ($11.26/share) in 2024.

• Ended 2025 with $3.8 million in cash and no debt; subsequent $4.3 million convertible note financing extended runway into 2026.

Outlook and guidance

• Expect continued revenue growth in 2026, leveraging Q4 momentum, new product launches, and improved field productivity.

• Q4 2025 operating expense level seen as a good baseline for 2026, reflecting normalized run rate post-integration costs.

• Commercialization of SImmetry+ and additional pipeline launches anticipated to be key growth drivers.

• Management confident in meeting and exceeding expectations for 2026, citing strong adoption and active pipeline.

• Well positioned for sustainable growth with a differentiated portfolio and strengthened competitive position.