0001213900-26-035707
SEC filingTenon Medical, Inc. reported FY 2025 revenue of $3.9 million, a 20% increase from $3.3 million in FY 2024, driven by higher surgical procedure volume and the addition of revenue from the SImmetry + System acquired in August 2025. The company generated a gross profit of $2.4 million (60% gross margin), up 38% from $1.7 million (52% gross margin) in the prior year. However, Tenon incurred a net loss of $12.6 million, slightly improved from a $13.7 million loss in FY 2024, as operating expenses remained high at $15.2 million. The company ended the year with $3.8 million in cash and cash equivalents and an accumulated deficit of $81.3 million. Management expressed substantial doubt about the company's ability to continue as a going concern for the next twelve months without additional capital, noting that existing cash will be insufficient to fund operations.
Tenon Medical reported FY 2025 revenue of $3.9 million, representing a 20% increase from $3.3 million in FY 2024. This growth was primarily driven by an increase in the number of surgical procedures and the addition of revenue from the SImmetry + System, which was acquired in August 2025. The company generated gross profit of $2.4 million with a 60% gross margin, improving from $1.7 million and 52% gross margin in the prior year. However, Tenon continued to operate at a significant loss, reporting a net loss of $12.6 million compared to $13.7 million in FY 2024. Operating expenses totaled $15.2 million, consuming 384% of revenue. The company ended the year with $3.8 million in cash and cash equivalents and an accumulated deficit of $81.3 million.
The company's revenue is derived from sales of its two SI Joint fusion systems: The Catamaran System and The SImmetry + System. Revenue fluctuates based on procedure volume, discounts, rebates, and the number of implants used per patient. The 20% year-over-year revenue increase was attributed to higher surgical procedure volume and the contribution from the recently acquired SImmetry + System. Tenon sells its products to hospitals and medical facilities, with revenue recognized upon completion of the surgical procedure. The company estimates the potential U.S. market for surgical intervention of SI Joint dysfunction to be 270,000 procedures annually, representing approximately $2.1 billion in potential annual market opportunity.
Gross margin improved significantly to 60% in FY 2025 from 52% in the prior year. This improvement resulted from the absorption of production overhead costs into standard costs and operating leverage created by lower relative fixed costs and increased revenue volume. Cost of goods sold increased only 1% to $1.6 million despite the 20% revenue growth. Operating expenses totaled $15.2 million, with sales and marketing expenses of $6.0 million (18% increase), general and administrative expenses of $7.0 million (10% decrease), and research and development expenses of $2.1 million (17% decrease). The company's loss from operations was $12.8 million, representing a 324% operating margin loss.
Net cash used in operating activities was $10.7 million in FY 2025, primarily driven by the $12.6 million net loss, partially offset by non-cash adjustments including $1.7 million in stock-based compensation. Cash used in investing activities was $1.0 million, consisting of $750,000 for the SiVantage asset acquisition and $273,000 for property and equipment purchases. Cash provided by financing activities was $9.0 million from various equity issuances and warrant exercises. The company ended the year with $3.8 million in cash and cash equivalents, $10.8 million in total assets, $5.7 million in total liabilities, and $5.0 million in stockholders' equity. Accounts receivable increased by $851,000 during the year to $1.7 million.
Management expressed substantial doubt about the company's ability to continue as a going concern for the next twelve months, noting that existing cash and cash equivalents will not be sufficient to fund operating expenses and working capital requirements. The company plans to raise additional capital through public or private equity offerings, debt financings, and collaborations. Tenon faces challenges including uncertainty of future revenues, regulatory developments affecting existing products, and potential changes in business strategy. The company received a Nasdaq notice in February 2026 regarding non-compliance with the minimum bid price requirement and must regain compliance by August 24, 2026, to avoid potential delisting.