Tenon Medical, Inc. (TNON) AI Stock Analysis

• Market Cap: $12.43M
• Dividend Yield: N/A
• Average Volume (3M): 9.21M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• Revenue Growth: -12.60%
• EPS Growth: 95.87%
• Country: US
• Employees: 27
• Sector: Healthcare
• Sector Strength: 53
• Industry: Medical - Devices
• EPS (TTM): -0.36
• Shares Outstanding: 8,879,220
• 10 Day Avg. Volume: 2,972,114
• 30 Day Avg. Volume: 9,205,432
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.29
• Enterprise Value/Revenue: 1.23
• Enterprise Value/Gross Profit: 2.70
• Enterprise Value/Ebitda: -0.29
• 1Y Price Target: $1.50
• Price Target Upside: 0.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: $1.50 ▲(0.67% Upside)

Tenon Medical, Inc. has potential for growth through strategic acquisitions and product development, as highlighted in the earnings call. However, ongoing profitability challenges and a negative valuation score weigh heavily on the overall stock score. Positive technical indicators provide some optimism, but financial performance remains a primary concern.

Positive Factors

Market Opportunity

TNON's Catamaran SI Joint Fusion System received an expanded indication from the FDA for use in augmenting thoracolumbar fusion, significantly increasing the company’s total addressable market and potentially accelerating adoption.

Product Potential

Despite sluggish year-over-year growth, there is a bullish view on the potential of the Catamaran System as a superior option in SI-joint fusion.

Valuation

With a significant market opportunity and superior technology, TNON is considered undervalued, supporting a Buy rating.

Negative Factors

Reimbursement Challenges

Reimbursement uncertainty remains a key risk, leading to lower revenue estimates and a reduced price target.

Revenue Expectations

Revenue fell slightly short of expectations due to ongoing reimbursement preapproval challenges for Sacroiliac Joint fusion surgery.

Revenue Performance

TNON’s revenue growth was relatively flat year-over-year due to continued reimbursement related headwinds.

Tenon Medical, Inc. Business Overview & Revenue Model

Company Description

Tenon 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 Money

Tenon Medical, Inc. generates revenue primarily through the sale of its proprietary surgical implant systems to hospitals and surgical centers. The company markets its products to orthopedic surgeons and healthcare providers who perform sacroiliac joint fusion procedures. Revenue is driven by the adoption of their technology in clinical practices, supported by marketing and educational efforts to demonstrate the efficacy and benefits of their systems. Additionally, Tenon Medical may engage in strategic partnerships or collaborations with healthcare institutions to expand their market reach and enhance product distribution, although specific partnerships are not detailed here.

Tenon Medical, Inc. Financial Statement Overview

Summary

Tenon Medical, Inc. shows strong revenue growth potential but struggles 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 and operational profitability are crucial.

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	2.95M	3.28M	2.93M	691.00K	159.80K	43.82K
Gross Profit	1.34M	1.71M	1.24M	-641.00K	105.03K	25.56K
EBITDA	-12.29M	-12.98M	-15.13M	-18.27M	-6.35M	-537.52K
Net Income	-12.66M	-13.67M	-15.58M	-18.92M	-7.05M	-585.18K
Balance Sheet
Total Assets	11.11M	9.84M	6.34M	11.09M	9.27M	390.90K
Cash, Cash Equivalents and Short-Term Investments	7.85M	6.54M	2.43M	8.57M	7.32M	245.63K
Total Debt	290.00K	428.00K	1.86M	911.00K	14.62M	574.98K
Total Liabilities	4.40M	3.87M	5.57M	4.84M	29.82M	3.10M
Stockholders Equity	6.71M	5.97M	778.00K	6.25M	-20.55M	-3.14M
Cash Flow
Free Cash Flow	-10.08M	-10.06M	-12.54M	-12.87M	-4.39M	-167.36K
Operating Cash Flow	-9.82M	-9.88M	-12.18M	-12.03M	-4.29M	-167.36K
Investing Cash Flow	-259.00K	-186.00K	6.14M	-2.88M	-4.50M	0.00
Financing Cash Flow	15.95M	14.13M	6.30M	14.11M	11.47M	254.80K

Tenon Medical, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.49
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 1.49 is above the 20-day moving average (MA) of 1.34, above the 50-day MA of 1.13, and below the 200-day MA of 1.55, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 61.33 is Neutral, neither overbought nor oversold. The STOCH value of 32.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TNON.

Tenon Medical, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TNON	53 Neutral	$12.43M	―	-335.48%	―	-12.60%	95.87%
Sector *	51 Neutral	$7.77B	-0.12	-39.78%	2.21%	22.68%	-1.42%
BMRA	49 Neutral	$7.56M	―	-72.70%	―	5.05%	26.13%
VERO	43 Neutral	$4.46M	―	-1371.21%	―	-13.90%	44.89%
SINT	42 Neutral	$9.08M	―	-195.48%	―	-40.47%	96.14%
AMIX	40 Underperform	$5.45M	―	-195.55%	―	―	65.72%
AEMD	38 Underperform	$2.94M	―	-207.29%	―	―	78.72%

Tenon Medical, Inc. Corporate Events

Tenon Medical Expands Portfolio with SiVantage Acquisition

On August 1, 2025, Tenon Medical, Inc. acquired sacroiliac joint-specific assets from SiVantage, expanding its portfolio with SImmetry and SImmetry+ technologies. This acquisition enhances Tenon’s capabilities in sacroiliac joint fusion, providing a multi-product, multi-approach solution backed by clinical data. The transaction is expected to contribute to immediate revenue growth and strengthens Tenon’s market position by integrating SiVantage’s technologies and leadership into its operations. The acquisition also includes employment agreements with SiVantage’s co-founders, further bolstering Tenon’s commercial leadership. Additionally, Tenon acquired assets from SIMPL Medical, LLC, focusing on posterior sacroiliac implant technology, with a royalty-based purchase structure contingent on future performance milestones.