Tenon Medical, Inc. Q2 FY2025 earnings call

• Strategic acquisition of SiVantage completed, with integration to take place over 60-90 days, enhancing commercial organization and market access.
• Catamaran platform advanced with real-world adoption in complex spine procedures, Catamaran SE on track for commercial launch, and Symmetry Plus system preparing for initial alpha surgeries in Q4.
• Clinical validation ongoing via MAINSAIL post-market study, with second interim analysis expected this quarter.
• Hosted 16 physician workshops in Q2 to support adoption strategy.
• Reduced operating expenses by 29% year-over-year, ending Q2 with $7.8 million in cash and no debt.

Revenue for the second quarter of 2025 was $564,000 compared to $901,000 in the same period last year. For the 6 months ended June 30, 2025, revenue was $1.3 million compared to $1.6 million in the 6 months ended June 30, 2024. Gross profit in Q2 2025 was $245,000 (43% of revenue) vs. $470,000 (52%) in the prior year quarter. For the 6 months ended June 30, 2025, gross profit was $568,000 (44% of revenue) vs. $940,000 (58%) in the prior year period. Operating expenses in Q2 2025 totaled $3.1 million, down from $4.3 million in the prior year period. For the 6 months ended June 30, 2025, operating expenses were $7.1 million vs. $8.3 million in the prior year period. Net loss in Q2 2025 was $2.8 million vs. $3.8 million in the prior year quarter. For the 6 months ended June 30, 2025, net loss was $6.4 million vs. $7.4 million in the prior year period.

• Symmetry Plus system expected to begin initial alpha surgeries in Q4 2025.
• Anticipate recovery in revenue post-SiVantage acquisition, leveraging hospital agreements and distributor synergies.
• Confidence in bouncing back in revenue with cross-selling opportunities from combined portfolios.

Q: Excited about the SiVantage acquisition, how does it help achieve scale and commercialization?

A: Steve Foster states it gives a pathway to scale, combines access work, provides multiple approaches to anatomy, and brings strong teams. Kevin Williamson adds about audited financials for SiVantage to be filed by mid-October.

Q: About the acquisition, what incremental physician and hospital network was acquired, and cross-selling?

A: Steven Foster mentions overlap at physician, hospital, and facility levels, with sales training and cross-selling already beginning. Nicholas Sherwood asks about reimbursement for Symmetry products, and Steven Foster responds on similar CPT codes and data support.

Q: Color on Symmetry Plus launch?

A: Steven Foster says alpha surgeries expected in October, with full launch in early next year depending on feedback from alpha phase