Tenon Medical, Inc. Q3 FY2025 earnings call

• Record revenue of $1,200,000 achieved with 32% year-over-year growth, driven by high cadmium procedure volumes and SciVantage portfolio integration.
• Successful integration of the SciVantage acquisition, with key members of the CyVantage leadership team joining to accelerate commercial execution.
• Full commercial launch of the Catamaran SE SI joint fusion system, which features a reduced profile and proprietary instrument set, with over a thousand devices implanted and strong clinical performance.
• Second peer-reviewed publication from the main sales study validated the safety, efficacy, and durability of the Catamaran system, showing significant improvements in pain and disability scores.
• FDA 510(k) clearance of the Symmetry Plus SI joint fusion system, introducing advancements like 3D printed titanium implants and a simplified bone graft delivery system.

Tenon Medical achieved record revenue of $1,200,000 in the third quarter of 2025, representing a 32% increase compared to the same period last year. Gross profit was $800,000, which is 66% of revenue. The revenue growth was fueled by unprecedented cadmium procedure volumes and the integration of the SciVantage portfolio. The Catamaran SE, SI joint fusion system contributed to the top-line growth, with over a thousand devices implanted to date and strong clinical performance across various indications. The Symmetry portfolio also played a role in driving revenue, with the FDA 510(k) clearance of the Symmetry Plus SI joint fusion system being a key milestone.

• Expect gross margin to continue improving as revenue increases and fixed overhead costs are further absorbed.
• Subsequent to quarter end, raised $2,850,000 in cash through a pipe financing to fund future growth initiatives.
• Focus on expanding the product portfolio, deepening physician engagement, and building a robust foundation for sustained growth, with momentum building across commercial and clinical initiatives.

• Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Risks include market adoption challenges, regulatory changes, and potential delays in payer coverage and clinical evidence building.

Q: Could you comment on the product revenues, how much was the kind of base CyVantage revenues of the $1,200,000?

A: Primarily, the primary driver of revenue was record catamaran procedures, with a little over a million in catamaran revenue and the rest from early Symmetry activity. The full fourth quarter will include extra CyVantage activity and the alpha launch of Symmetry Plus will be a growth driver.

Q: When we think about the Symmetry Plus Alpha launch, how should I think about that?

A: It's a pilot launch with a select group of physicians for sixty to ninety days to get feedback, ensure everything is working as expected, and make refinements before expanding to a broader audience.

Q: Do you think the third quarter G&A is reflective of what we'll start to see on a quarterly basis?

A: There were some one-time integration expenses in Q3, but going forward, it will be closer to that number than previous quarters with some increased expenses.

Q: Could you update on the CyVantage integration process?

A: The integration is going well with the team coming together nicely. The main focus was integrating assets, inventories, know-how into the quality system and commercial team, and launching Symmetry Plus on time while integrating the customer and physician base.

Q: Could you quantify the scope of commercial sales professional additions and talk about marketing strategy?

A: There are commercial additions with experienced professionals joining, and a hybrid commercial structure with independent distributors and ten ninety-nine resources. Salespeople will be trained on all Tenon products to present a tool bag of solutions for different surgical approaches, rallying around authentic fusion principles.