Tenon Medical, Inc. (TNON) AI Stock Analysis

• Market Cap: $12.11M
• Dividend Yield: N/A
• Average Volume (3M): 189.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• Revenue Growth: -2.47%
• EPS Growth: 91.23%
• Country: US
• Employees: 27
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.40
• Shares Outstanding: 11,106,444
• 10 Day Avg. Volume: 240,436
• 30 Day Avg. Volume: 189,548
• 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 Cap: 0.30
• Enterprise Value/Revenue: 1.12
• Enterprise Value/Gross Profit: 2.13
• Enterprise Value/Ebitda: -0.29
• 1Y Price Target: $2.75
• Price Target Upside: 152.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $1.00 ▼(-8.26% Downside)

Tenon Medical, Inc. shows potential with strong revenue growth and strategic product launches. However, the company faces significant challenges with profitability and valuation, relying on external financing. Technical indicators suggest a bearish trend, while recent corporate events and earnings call provide some positive sentiment. Overall, the stock score reflects a cautious outlook with potential for improvement if profitability and operational efficiency are enhanced.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and successful integration of new products, positioning Tenon Medical for sustained expansion in the spinal device market.

Product Innovation

The FDA clearance for new products enhances Tenon's competitive edge and supports long-term growth by expanding its product portfolio and improving patient outcomes.

Balance Sheet Health

A debt-free balance sheet provides financial flexibility and reduces risk, allowing Tenon Medical to invest in growth initiatives without the burden of interest expenses.

Negative Factors

Profitability Challenges

Ongoing net losses highlight challenges in achieving profitability, which could limit Tenon's ability to self-fund growth and require continued reliance on external financing.

Cash Flow Concerns

Negative cash flow from operations indicates potential liquidity issues, necessitating external funding to sustain operations and invest in growth, which may not be sustainable long-term.

Rising Operating Expenses

Increasing operating expenses without corresponding revenue increases can pressure margins and delay profitability, impacting Tenon's financial health and strategic flexibility.

Tenon Medical, Inc. Business Overview & Revenue Model

Company Description

Tenon Medical, Inc. (TNON) is a medical device company focused on developing innovative solutions for the treatment of spinal conditions. The company operates primarily in the healthcare sector, specializing in minimally invasive surgical products designed to enhance patient outcomes and streamline surgical procedures. Tenon Medical's core offerings include advanced spinal implants and instrumentation aimed at addressing complex spinal disorders, catering to both surgeons and patients through their state-of-the-art technology and design.

How the Company Makes Money

Tenon 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. Financial Statement Overview

Summary

Tenon Medical, Inc. shows strong revenue growth potential but faces challenges with profitability. The company benefits from low leverage and a healthy equity ratio, yet relies heavily on external funding due to negative cash flows and income. Improved cost management is crucial for future financial health.

Income Statement

Tenon Medical, Inc. has shown significant revenue growth over the years, with a 11.91% increase in 2024. However, the company is still experiencing negative net income, leading to a negative net profit margin. The gross profit margin is 52.23%, indicating potential for profitability if cost control can be improved. The EBIT and EBITDA margins are negative due to high operating expenses relative to revenue.

Balance Sheet

The company's debt-to-equity ratio is low at 0.07, which is favorable and suggests low financial leverage. However, the return on equity is negative due to consistent net losses. The equity ratio is 60.67%, indicating a strong equity position relative to total assets, but the overall financial stability is impacted by recurring losses.

Cash Flow

Tenon Medical, Inc.'s operating cash flow remains negative, though there has been an improvement over the previous year. The free cash flow is also negative, but financing cash flow is positive, indicating reliance on external financing to sustain operations. The operating cash flow to net income ratio is not optimal due to ongoing losses.

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

• Technical Analysis Sentiment: Negative
• Last Price: 1.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TNON, the sentiment is Negative. The current price of 1.09 is below the 20-day moving average (MA) of 1.11, below the 50-day MA of 1.16, and below the 200-day MA of 1.19, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 45.67 is Neutral, neither overbought nor oversold. The STOCH value of 30.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TNON.

Tenon Medical, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVNO	58 Neutral	$6.57M	-0.30	-57.19%	―	―	18.94%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TNON	49 Neutral	$12.11M	-0.38	-197.26%	―	-2.47%	91.23%
PAVM	48 Neutral	$8.62M	-0.52	20.03%	―	-99.28%	-46.16%
SSKN	43 Neutral	$7.54M	-0.47	-207.19%	―	-5.19%	-0.81%
LFWD	43 Neutral	$12.44M	-0.22	-127.95%	―	-2.02%	-32.93%
HSCS	40 Underperform	$7.44M	-0.38	-220.42%	―	-41.03%	35.71%

Tenon Medical, Inc. Corporate Events

Tenon Medical Secures $2.85 Million in Stock Offering

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.

Tenon Medical Issues Restricted Stock Units to Directors

On October 13, 2025, Tenon Medical, Inc. issued 866,642 restricted stock units (RSUs) to its directors and officers under its 2022 Equity Incentive Plan. These RSUs will vest in two installments, with 50% converting into common stock on January 1, 2026, and the remaining 50% on July 31, 2026, utilizing an exemption from the Securities Act of 1933.

Tenon Medical Approves Key Proposals at Annual Meeting

Tenon Medical, Inc. held its 2025 Annual Meeting of Stockholders virtually on September 18, 2025, after previous sessions were adjourned due to a lack of quorum. During the meeting, stockholders voted on several key proposals, including the election of seven board members, the approval of warrant exercisability, amendments to the 2022 Equity Incentive Plan, and the ratification of Haskell & White LLP as the independent auditor for 2025. All proposals were approved, indicating strong shareholder support for the company’s strategic decisions.