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Tenon Medical, Inc. (TNON)
NASDAQ:TNON
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Tenon Medical, Inc.
(NASDAQ:TNON)
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Rating:49Neutral
Price Target:
$0.75
▼(-24.60% Downside)
Action:ReiteratedDate:01/14/26
The score is held back most by persistent large losses and ongoing cash burn, despite improving revenue and gross margins and a healthier, low-debt balance sheet. Technicals remain bearish with the stock below major moving averages. The latest earnings call and financing activity are constructive for growth and liquidity, but profitability and self-funding are not yet in sight.
Positive Factors
Revenue Growth Momentum
Consistent, material top-line growth (record Q3 +32% YoY) signals durable commercial adoption of Tenon’s SI joint systems. Sustained revenue scale improves unit economics and supports investment in sales/clinical programs, strengthening the company’s ability to expand procedure volume over the next several quarters.
Product & Regulatory Expansion
Achieving FDA 510(k) clearance for the Symmetry Plus system is a structural win: it permanently broadens the commercial product set and reduces regulatory barriers to adoption. Combined with full commercial launch of Catamaran SE, this enlarges addressable market and supports differentiated clinical positioning over time.
Lower Leverage & Improved Margins
A near-zero debt profile and materially improved gross margins (66% in the quarter, TTM margins up) strengthen financial resilience. Lower leverage reduces bankruptcy risk and gives management flexibility to invest in commercialization and trials without heavy interest burdens, supporting longer-term strategic execution.
Negative Factors
Persistent Cash Burn
Sustained negative operating and free cash flow (~-$11.3M TTM) is a core structural weakness. Ongoing burn forces management to prioritize liquidity over organic investment, shortens runway absent recurring financing, and creates execution risk if revenue cadence falters or integration costs persist.
Very Weak Profitability
Extremely negative net margins (~-396% TTM) and large operating losses indicate the business is far from self-sustaining. Poor profitability erodes equity returns and limits reinvestment capacity, making long-term success contingent on sustained revenue acceleration and tighter cost control to reach breakeven.
Reliance on External Financing
Recent $2.85M PIPE shows the company depends on external capital to fund operations. Recurrent financings can dilute shareholders and signal limited internal cash generation. This structural reliance increases execution risk if capital markets worsen or if future raises are required to fund growth and integration.
Tenon Medical, Inc. (TNON) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.27M
Dividend YieldN/A
Average Volume (3M)1.98M
Price to Earnings (P/E)―
Beta (1Y)1.53
Revenue Growth-2.47%
EPS Growth91.23%
CountryUS
Employees27
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.29
Shares Outstanding11,106,444
10 Day Avg. Volume185,475
30 Day Avg. Volume1,976,642
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.38
Price to Sales (P/S)0.70
P/FCF Ratio-0.23
Enterprise Value/Market Cap0.38
Enterprise Value/Revenue1.10
Enterprise Value/Gross Profit2.11
Enterprise Value/Ebitda-0.29
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.98
Revenue Forecast (FY)$6.57M
Tenon Medical, Inc. Business Overview & Revenue Model
Company DescriptionTenon Medical, Inc., a medical device company, develops surgical implant systems to optimize sacroiliac joint fixation/fusion surgery and corresponding outcomes. It sells The CATAMARAN SIJ Fusion System that includes instruments and implants designed to prepare and fixate the SI-Joint for fusion in the United States and Puerto Rico. The company was founded in 2012 and is based in Los Gatos, California.
How the Company Makes MoneyTenon Medical primarily generates revenue through the sale of its spinal implants and related surgical instruments to hospitals and surgical centers. The company’s revenue model is based on direct sales to healthcare providers, which involves establishing long-term contracts and relationships with hospitals and orthopedic practices. Key revenue streams include the sale of its proprietary spinal implant systems and accessories, as well as potential licensing agreements for its technologies. Additionally, strategic partnerships with healthcare institutions and participation in surgical training programs contribute to increased product adoption and, ultimately, revenue growth.
Tenon Medical, Inc. Earnings Call Summary
Earnings Call Date:Mar 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Positive
The call presented strong operational and commercial progress—record revenues, large quarter-over-quarter growth, meaningful gross margin improvement, FDA 510(k) clearance for SImmetry+, early clinical validation, expanded IP and follow-on financings to extend runway. These positives were tempered by a significant year-over-year decline in cash, continued large net losses and an operating expense base that remains several times revenue, meaning continued execution and successful commercialization will be critical. The company has taken steps to mitigate liquidity risk via financings and expects continued momentum into 2026, but material execution and burn-rate risks remain.Q4-2025 Updates
Positive Updates
Record Annual and Quarterly Revenue Growth
Full year revenue of $3.9M, a 20% increase vs. 2024; Q4 revenue of $1.5M, a 92% increase vs. Q4 2024 ($0.8M), reflecting strong second-half momentum and new physician adoption.
Substantial Gross Profit and Margin Improvement
Q4 gross profit of $1.0M (69% gross margin) vs. $0.4M (46%) prior-year quarter — a 188% increase in gross profit and a 23 percentage-point margin improvement. FY gross profit of $2.4M (60% margin), up 38% and +8 percentage points vs. prior year.
Regulatory Clearance and Commercial Rollout
Received FDA 510(k) clearance for the next-generation SImmetry+ SI-Joint Fusion System and completed early clinical cases in Q4, supporting initial commercial rollout and physician validation.
Strengthened Financial Position via Financings
Completed a $2.85M At-The-Market PIPE during the quarter and, subsequent to quarter-end, closed a $4.3M private placement of senior convertible notes — providing additional runway to fund commercial expansion and clinical programs.
Operational Efficiency and Cost of Sales Reduction
Management reported reductions in cost of sales and improved operational efficiencies leading to better field productivity and absorption of fixed costs, contributing materially to gross margin expansion.
Commercial and Clinical Engagement Metrics
Hosted 24 physicians and targeted training sessions in Q4 alone; management reported record metrics across users and surgeries and expressed strong physician enthusiasm for the expanded portfolio.
Intellectual Property Expansion
Notices of allowance received for multiple patent applications; global estate now includes 29 issued U.S. patents, 9 international patents and 31 pending applications, enhancing platform defensibility.
Negative Updates
Decline in Cash Balance
Cash and cash equivalents declined to $3.8M at quarter end from $6.5M a year earlier, a decrease of approximately 42%, creating near-term liquidity sensitivity prior to subsequent financings.
Continued Net Losses
Net loss for FY2025 was $12.6M (or $1.70 per share) versus $13.7M the prior year — an improvement but still a substantial operating loss relative to revenue.
High Operating Expense Base Relative to Revenue
FY operating expenses totaled $15.2M versus revenue of $3.9M (operating expenses ≈ 3.9x annual revenue), indicating a high burn rate despite modest year-over-year reduction from $15.5M.
Quarterly Operating Expense Increase
Q4 operating expenses increased to $3.9M from $3.5M in the prior-year quarter (≈11% increase), driven by higher variable sales and marketing spend associated with increased revenue.
Reliance on Future Commercial Execution
Growth outlook is dependent on successful commercialization of newly cleared SImmetry+, additional product launches, and expanded physician adoption; the company provided no formal revenue guidance, underscoring execution risk.
Potential Dilution and Financing Risk
Subsequent financing included senior convertible notes and an earlier ATM PIPE; while these strengthened runway, they introduce potential dilution/convertible debt considerations for shareholders.
Company Guidance
Management did not provide formal numeric 2026 guidance but gave clear directional guidance: they expect continued revenue growth and improving gross margins as they commercialize SImmetry+ and other pipeline launches while using recent financings to expand the commercial footprint. Key metrics cited on the call include record FY‑2025 revenue of $3.9M (up 20% YoY) and Q4 revenue of $1.5M (up 92% YoY; ~ $6M annualized run‑rate), Q4 gross profit $1.0M (69% margin, +23 ppt vs Q4‑2024) and FY gross profit $2.4M (60% margin, +8 ppt YoY), Q4 operating expenses of $3.9M (management called this a better baseline for 2026) and FY operating expenses of $15.2M (down from $15.5M), net loss of $2.8M (‑$0.29/share) in Q4 and $12.6M (‑$1.70/share) for the year (improved from $13.7M), cash of $3.8M at year‑end with no debt at quarter end, a $2.85M ATM PIPE in‑period and a subsequent $4.3M senior convertible note financing, 29 issued U.S. patents/9 international/31 pending, plus operational metrics like 24 physicians trained in Q4 and completed early clinical SImmetry+ cases — all of which management said position the company to accelerate adoption and margin expansion in 2026.Tenon Medical, Inc. Financial Statement Overview
Summary
Revenue and gross margin are improving (TTM revenue up ~9.7% with gross margin ~52%), and leverage is now low with positive equity. However, profitability and cash flow remain very weak, with extremely negative net margin (~-396%) and significant ongoing cash burn (TTM operating/FCF about -$11.3M), implying continued funding needs.Income Statement
Revenue has scaled meaningfully over time and is up about 9.7% in TTM (Trailing-Twelve-Months), with gross margin improving to ~52% (vs. ~42% in 2023 and negative in 2022). However, profitability remains very weak: TTM (Trailing-Twelve-Months) net margin is roughly -396% with large operating losses (EBIT and EBITDA deeply negative), indicating the cost structure is still far above the current revenue base despite modest year-over-year improvement versus 2023–2024.18
Very Negative
Balance Sheet
Leverage has improved substantially: total debt is low in TTM (Trailing-Twelve-Months) (~$0.22M) and the debt-to-equity level is modest (~0.05), a major step up from 2023 when leverage was high. Equity is positive (~$4.8M) and assets are ~$10.4M, suggesting improved capitalization versus earlier years that included negative equity. The key weakness is continued heavy losses driving very poor returns on equity (TTM roughly -191%), which can pressure the balance sheet over time if losses persist.52
Neutral
Cash Flow
Cash generation remains a major concern: TTM (Trailing-Twelve-Months) operating cash flow is about -$11.3M and free cash flow about -$11.3M, reflecting ongoing cash burn. Free cash flow burn has improved versus prior periods (growth shown as positive in TTM and 2024), and free cash flow is broadly in line with the net loss (suggesting limited non-cash distortion). Still, the business is not close to self-funding at the current scale.20
Very Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.23M | 3.28M | 2.93M | 691.00K | 160.00K | 43.82K |
| Gross Profit | 1.69M | 1.71M | 1.24M | -641.00K | 105.00K | 25.56K |
| EBITDA | -12.41M | -12.98M | -15.13M | -18.27M | -6.35M | -537.52K |
| Net Income | -12.81M | -13.67M | -15.58M | -18.92M | -7.05M | -585.18K |
Balance Sheet | ||||||
| Total Assets | 10.37M | 9.84M | 6.34M | 11.09M | 9.27M | 390.90K |
| Cash, Cash Equivalents and Short-Term Investments | 3.44M | 6.54M | 2.43M | 8.57M | 7.32M | 245.63K |
| Total Debt | 216.00K | 428.00K | 1.86M | 911.00K | 14.62M | 574.98K |
| Total Liabilities | 5.57M | 3.87M | 5.57M | 4.84M | 29.82M | 1.83M |
| Stockholders Equity | 4.80M | 5.97M | 778.00K | 6.25M | -20.55M | -3.14M |
Cash Flow | ||||||
| Free Cash Flow | -11.34M | -10.06M | -12.54M | -12.87M | -4.39M | -167.36K |
| Operating Cash Flow | -11.30M | -9.88M | -12.18M | -12.03M | -4.29M | -167.36K |
| Investing Cash Flow | -794.00K | -186.00K | 6.14M | -2.88M | -4.50M | 0.00 |
| Financing Cash Flow | 6.37M | 14.13M | 6.30M | 14.11M | 11.47M | 254.80K |
Tenon Medical, Inc. Technical Analysis
Neutral
1.00
Price Trends
0.85
Negative
0.99
Negative
1.07
Negative
Market Momentum
>-0.01
Negative
51.43
Neutral
54.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TNON, the sentiment is Neutral. The current price of 1 is above the 20-day moving average (MA) of 0.81, above the 50-day MA of 0.85, and below the 200-day MA of 1.07, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.43 is Neutral, neither overbought nor oversold. The STOCH value of 54.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TNON.
Tenon Medical, Inc. Risk Analysis
Tenon Medical, Inc. disclosed 61 risk factors in its most recent earnings report. Tenon Medical, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
The price of our common stock may be volatile, and you may be unable to resell your shares at or above the price paid. Q4, 2023
2.
If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, our stock price and trading volume could decline. Q4, 2023
3.
We have not paid dividends in the past and do not expect to pay dividends in the future, and any return on investment may be limited to the value of our stock. Q4, 2023
Tenon Medical, Inc. Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $9.27M | -0.56 | -190.80% | ― | -2.47% | 91.23% | |
49 Neutral | $14.50M | -0.43 | 20.03% | ― | -99.28% | -46.17% | |
46 Neutral | $1.50M | -14.23 | -476.74% | ― | -5.19% | -0.81% | |
46 Neutral | $10.42M | -4.03 | -127.95% | ― | -2.02% | -32.93% | |
42 Neutral | $8.06M | -0.03 | -57.19% | ― | ― | 18.94% | |
40 Underperform | $8.18M | >-0.01 | -220.42% | ― | -41.03% | 35.71% |
* Healthcare Sector Average
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Tenon Medical, Inc. Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Tenon Medical Secures $2.85 Million in Stock Offering
Positive
Nov 17, 2025
On November 10, 2025, Tenon Medical, Inc. entered into securities purchase agreements with accredited investors to issue 2,217,904 shares of common stock and warrants, raising approximately $2.85 million. The offering, which closed on November 14, 2025, aims to support working capital, corporate purposes, and the company’s growth strategy, including product launches and expansion of commercial operations.
The most recent analyst rating on (TNON) stock is a Buy with a $2.50 price target. To see the full list of analyst forecasts on Tenon Medical, Inc. stock, see the TNON Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.