TNON

• Financial Performance

  • Q2 2026 revenue hit a record $1.3 million, up 127% year-over-year; H1 2026 revenue was $2.7 million, up 106% year-over-year.
  • Q2 2026 gross profit was $0.8 million (64% margin), up 232% year-over-year; H1 2026 gross profit was $1.8 million (66% margin), up 210% year-over-year, with margin expansion driven by improved fixed overhead absorption, a streamlined commercial footprint, and higher field productivity.
  • H1 2026 operating loss was $6.6 million, nearly unchanged year-over-year despite doubled revenue and tripled gross profit dollars. Q2 2026 net loss was $4.1 million, with the year-over-year increase driven by $0.9 million in new non-cash interest expense from convertible note original issue discount amortization.
  • The company ended Q2 with $1.7 million in cash and cash equivalents, and closed a $4.2 million gross public offering post-quarter to extend operational runway.

• Commercial Operations

  • Both platforms grew surgical case volume, with Catamaran and Symmetry Plus positioned as complementary tools for different approaches to the same anatomy.
  • A new Tampa sales and training office opened, driving a meaningful uptick in physician and distributor training activity (up 98% H1 2026 vs H2 2025), and supporting a record July case volume and strong Q3 start. A new senior East Coast sales lead was hired, with additional sales headcount and distributor partners planned for H2 2026.

• Regulatory and R&D Updates

  • Post-quarter, the company received FDA 510(k) clearance for the updated Catamaran SI joint fusion system, including instrument upgrades and reclassification of some instruments from disposable to reusable, which will reduce per-procedure costs and improve margins starting in Q3.
  • Multiple new product launches are nearing completion: an enhanced Symmetry Plus system with streamlined decortication will enter clinical use in Q3; an enhanced Symmetry Plus implant is in late development and approaching 510(k) submission; a novel third product platform addressing a large unmet need is in active development, to complement the two existing platforms.

• Capital Structure

  • Post-quarter, the company closed a public offering of common stock, pre-funded warrants, and common stock purchase warrants for $4.2 million in aggregate gross proceeds. Net proceeds will be used for partial convertible note repayment, commercial expansion, clinical research, and general corporate purposes.

Management did not issue specific numerical revenue or profit guidance for full year 2026, but provided the following forward-looking statements:

• Gross margins are expected to continue expanding as revenue grows and fixed production overhead is further absorbed.
• Continued top-line and case volume growth is expected across both existing platforms, supported by commercial expansion, increased training, and new product launches.
• Multiple new product enhancements and launches are expected over the next 2-9 months, which will expand the company's innovative product portfolio.
• Management confirmed the company has sufficient capital runway to execute on its commercial expansion, clinical research, and product development priorities following the post-quarter public offering.

Tenon Medical reports revenue from two core product segments: the Catamaran SI joint fusion system and the Symmetry Plus platform (acquired via the SciVantage asset purchase in August 2025). Total Q2 2026 revenue was $1.3 million, with Catamaran contributing the majority of revenue from increased surgical case volume, and Symmetry Plus contributing meaningful additional revenue following the acquisition. No explicit absolute or percentage segment revenue breakdown was provided in the call transcript. Total H1 2026 revenue across both segments was $2.7 million, up 106% year-over-year, with case volume growth recorded for both platforms.

Management noted that all forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from expectations. No specific operational risks, business challenges, or operational failures were discussed explicitly on the call. Investors are directed to review the company's quarterly and annual SEC filings for a full discussion of risk factors.

Q: An analyst asks for an update on the development and regulatory status of products from the acquired SciVantage (SI bandage) pipeline. / A: The acquired portfolio has three main components; one was already commercial at the time of acquisition. An enhanced decortication tool for Symmetry Plus will launch for clinical use in October 2026, and a novel enhanced Symmetry Plus implant construct is also in the pipeline. A novel posterior approach technology from the SciVantage portfolio is finishing testing and preparing for FDA submission. The full portfolio is progressing as expected, with more details to share in a future quarterly call, and the enhanced Symmetry Plus platform will roll out completely over the next 2-6 months to serve physicians preferring lateral and oblique procedures.

Q: An analyst asks if Tenon has planned special training pushes for the back-to-school/end of year period, given potential summer seasonality slowing physician training. / A: There is some mild seasonality in physician training, but the new Tampa training center has generated higher-than-expected demand from physicians wanting to view the company's full suite of implant, imaging, and navigation technologies. The new facility drove the 98% H1 2026 training growth, and the uptick in training activity is expected to continue, as upcoming Symmetry Plus product enhancements will give physicians even more reason to attend training events at the center.