Tenon Medical, Inc. (TNON) AI Stock Analysis

• Market Cap: $9.36M
• Dividend Yield: N/A
• Average Volume (3M): 75.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.48
• 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: 79,118
• 30 Day Avg. Volume: 75,798
• 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: 0.35
• Enterprise Value/Revenue: 1.02
• Enterprise Value/Gross Profit: 1.95
• Enterprise Value/Ebitda: -0.27
• 1Y Price Target: $2.75
• Price Target Upside: 175.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.98
• Revenue Forecast (FY): $6.57M

• Rating: 49 Neutral
• Price Target: $0.95 ▼(-5.20% Downside)

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

Improving revenue and gross margin

Sustained top-line growth with meaningful margin expansion indicates improving product-market fit and better unit economics. Higher gross margins reduce the revenue threshold to cover fixed costs, improving the company’s path to sustainable profitability as commercial scale increases.

Low leverage and positive equity

A materially reduced leverage profile provides financial flexibility versus prior years, lowering interest burden and bankruptcy risk. That balance sheet capacity supports continued commercial investment, M&A integration, and the ability to absorb short-term losses while pursuing growth.

Regulatory clearance and strong clinical data

FDA clearance and robust clinical outcomes are durable competitive advantages in spinal implants: they enable broader hospital adoption, reimbursement discussions, and surgeon trust. Strong clinical evidence supports differentiated positioning and sustainable market share gains over time.

Negative Factors

Persistent negative cash flow

Ongoing large operating and free cash flow deficits materially reduce runway and force management to prioritize financing over internal investment. Persistent cash burn increases refinancing risk and can constrain commercial expansion unless margins or revenue growth accelerate significantly.

Very weak profitability and margins

Extremely negative net margins reflect a cost structure far above current revenue levels. If sustained, poor returns will erode equity, limit reinvestment capacity, and hinder strategic flexibility; achieving sustainable profitability requires meaningful expense control or much faster sales scaling.

Reliance on external financing and dilution risk

Frequent equity financings and recent PIPE highlight dependence on external capital to fund operations. This structural reliance increases dilution risk, can pressure investor returns, and signals the business is not yet self-funding, which may limit long-term shareholder value without cash-flow improvement.

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 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

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.

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.

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.

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: 1.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 is above the 20-day moving average (MA) of 0.94, below the 50-day MA of 1.03, and below the 200-day MA of 1.13, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 22.64 is Positive, neither overbought nor oversold. The STOCH value of 8.46 is Positive, 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
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TNON	49 Neutral	$9.36M	-0.27	-197.26%	―	-2.47%	91.23%
PAVM	49 Neutral	$9.94M	-0.56	20.03%	―	-99.28%	-46.17%
LFWD	48 Neutral	$10.71M	-0.19	-127.95%	―	-2.02%	-32.93%
SSKN	46 Neutral	$7.54M	-0.45	-207.19%	―	-5.19%	-0.81%
HSCS	46 Neutral	$10.17M	-0.46	-220.42%	―	-41.03%	35.71%
NVNO	42 Neutral	$7.28M	-0.26	-57.19%	―	―	18.94%

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.

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.