Tenon Medical (NASDAQ:TNON) reported second-quarter revenue of $1.3 million, up 127% from the prior-year period, as surgical procedure volumes increased across its Catamaran and SImmetry+ sacroiliac joint fusion platforms. The company also reported higher gross margin, expanded physician training activity and progress on product development programs.
President and Chief Executive Officer Steve Foster said the quarter represented the company’s highest revenue and gross profit reported for a second quarter. Gross profit reached $0.8 million, up 232% year over year, while gross margin improved to 64% from 43% a year earlier.
Revenue Growth and Margin Expansion
Foster attributed the growth to a higher number of Catamaran procedures and continued contributions from the SImmetry+ system, which became part of Tenon’s portfolio following the acquisition of SiVantage assets in August 2025.
Chief Financial Officer Kevin Williamson said the margin improvement was primarily driven by higher revenue and lower fixed costs during the period, which increased production-overhead absorption within cost of goods sold. The company said it expects gross margin to continue expanding as revenue rises and fixed costs are absorbed further.
Despite the growth in revenue and gross profit, operating expenses increased. Second-quarter operating expenses totaled $4.2 million, compared with $3.1 million a year earlier, while first-half operating expenses increased to $8.4 million from $7.1 million. Williamson said the increases reflected higher sales and marketing costs associated with revenue growth as well as increased research and development spending for future product additions.
Net loss for the second quarter was $4.1 million, or $12.35 per share, compared with a loss of $2.8 million, or $12.76 per share, in the same quarter of 2025. For the first half, net loss was $7.5 million, or $23.16 per share, compared with $6.4 million, or $39.91 per share, a year earlier. Williamson said the higher loss was driven in part by $0.9 million in non-cash interest expense related to amortization of the original issue discount on convertible notes.
Commercial Training and Sales Efforts
Tenon said physician and distributor training events increased 98% in the first half of 2026 compared with the second half of 2025. Foster said the company’s newly opened Tampa sales and training office contributed to increased training demand, a record case-volume month in July and a strong start to the third quarter.
The company has added a sales professional to its East Coast team and expects to add sales personnel and distributor partners during the second half of the year. Foster said physicians are increasingly evaluating Catamaran and SImmetry+ as complementary tools for inferior, posterior and lateral approaches to the same anatomy.
During the question-and-answer session, Foster said the Tampa facility has exceeded the company’s expectations for physician interest and visits. He said the training location provides physicians access to imaging, implant and navigation technologies, and management expects interest to rise as product enhancements are introduced.
Product Development and Regulatory Updates
Subsequent to the quarter’s end, Tenon announced on July 2 that it received FDA 510(k) clearance for an updated Catamaran SI Joint Fusion System. The clearance includes instrument upgrades and reclassifies certain instruments from disposable to reusable status.
Foster said the changes are expected to improve system performance, reduce per-procedure costs associated with disposable instruments and support margins beginning in the third quarter.
The company also discussed several initiatives involving the SImmetry+ platform and SiVantage technology portfolio. An enhanced SImmetry+ system with streamlined decortication is expected to become clinically active in the third quarter, with Foster later indicating the tool is expected to be available for clinical use in October.
Tenon is also nearing a 510(k) filing for an enhancement to the SImmetry+ implant construct. Foster said the company believes the feature will further differentiate the implant and address needs communicated by physician customers. He said Tenon expects to roll out enhancements to the platform over the next two to six months.
In addition, Foster said the company is finishing testing and preparing an FDA submission for a novel posterior-approach technology acquired through the SiVantage transaction. Tenon plans to provide additional details on the technology in a future quarterly update.
Capital Position and Outlook
Tenon ended the second quarter with $1.7 million in cash and cash equivalents, down from $3.8 million as of Dec. 31, 2025. On July 1, the company closed a public offering of common stock or pre-funded warrants and common stock purchase warrants that generated $4.2 million in gross proceeds.
The company said it expects to use net proceeds for partial repayment of convertible notes, commercial expansion, clinical research and general corporate purposes.
Looking ahead, Foster said Tenon’s priorities include increasing procedure volumes on both platforms, expanding physician education and training, advancing research and development programs, and preserving recent gross-margin gains as the company scales.
About Tenon Medical (NASDAQ:TNON)
Tenon Medical, Inc is a development-stage medical device company focused on the research, development and commercialization of next-generation surgical biologic adhesives and sealants. The company’s proprietary platform is designed to create tissue-compatible adhesives that can serve as alternatives or complements to traditional sutures and staples, with the goal of improving surgical efficiency, reducing postoperative complications and enhancing patient outcomes.
Tenon Medical’s product pipeline centers on protein-based polymer formulations that cross-link in situ to form a flexible, yet durable, bond with native tissue.
