Tenon Medical, Inc. (TNON) AI Stock Analysis

• Market Cap: $10.59M
• Dividend Yield: N/A
• Average Volume (3M): 189.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• 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: 0.34
• Enterprise Value/Revenue: 1.12
• Enterprise Value/Gross Profit: 2.13
• Enterprise Value/Ebitda: -0.29
• 1Y Price Target: $2.75
• Price Target Upside: 175.00% 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: $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

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: 1.00
• 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 is below the 20-day moving average (MA) of 1.02, below the 50-day MA of 1.10, and below the 200-day MA of 1.16, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 38.58 is Neutral, neither overbought nor oversold. The STOCH value of 25.56 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
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TNON	49 Neutral	$10.59M	-0.35	-197.26%	―	-2.47%	91.23%
LFWD	47 Neutral	$11.51M	-0.23	-127.95%	―	-2.02%	-32.93%
SSKN	46 Neutral	$7.67M	-0.49	-207.19%	―	-5.19%	-0.81%
HSCS	46 Neutral	$10.07M	-0.44	-220.42%	―	-41.03%	35.71%
PAVM	45 Neutral	$8.64M	-0.48	20.03%	―	-99.28%	-46.16%
NVNO	43 Neutral	$6.79M	-0.30	-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.

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.

The most recent analyst rating on (TNON) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Tenon Medical, Inc. stock, see the TNON Stock Forecast page.