Tenon Medical (NASDAQ:TNON) reported fourth-quarter and full-year 2025 results that management said reflected strengthening commercial momentum, improving gross margins, and progress expanding its sacroiliac joint fusion product portfolio.
Revenue growth accelerated in the second half of 2025
CEO Steve Foster said the company delivered record full-year revenue of $3.9 million, up 20% from 2024, supported by what he described as “strong second-half momentum.” Fourth-quarter revenue totaled $1.5 million, a 92% increase from the prior-year quarter.
Gross margin improved as fixed costs were absorbed
Williamson said gross profit in the fourth quarter was $1.0 million, representing a 69% gross margin, compared with $0.4 million and a 46% gross margin in the year-ago quarter. For the full year, gross profit was $2.4 million, or 60% of revenue, compared with $1.7 million, or 52%, in the prior year.
Management attributed the margin expansion to higher revenue levels and “further absorption of fixed costs within our cost of goods sold.” Williamson added that the company expects gross margin to continue improving with additional revenue growth. Foster also pointed to operational initiatives that contributed to lower cost of sales, citing improved operational efficiencies, better field productivity, and greater leverage in the commercial infrastructure.
Expenses were largely stable for the year; Q4 seen as a baseline
Operating expenses were $3.9 million in the fourth quarter, compared with $3.5 million in the prior-year quarter. For the full year, operating expenses were $15.2 million, down from $15.5 million in 2024.
Williamson said the quarterly increase reflected higher variable sales and marketing expenses tied to increased revenue. The year-over-year decline, he said, was driven by reduced general and administrative costs, partially offset by higher sales and marketing investment to support commercial expansion.
In response to an analyst question about expense levels heading into 2026, Williamson said the fourth-quarter operating expense level “becomes a better baseline” for 2026. He cited integration and deal-related costs that elevated expenses in the third quarter and “falling out in Q4,” alongside higher variable selling costs tied to revenue.
Net loss narrowed; cash balance updated and financing completed after year-end
Tenon reported a fourth-quarter net loss of $2.8 million, or $0.29 per share, compared with a net loss of $3.1 million, or $0.98 per share, in the year-ago quarter. For the full year, net loss was $12.6 million, or $1.70 per share, compared with $13.7 million, or $11.26 per share, in 2024.
Williamson said the improvement in both periods was largely due to increased revenue and lower general and administrative expense, which improved operating leverage.
The company ended the quarter with $3.8 million in cash and cash equivalents, down from $6.5 million as of December 31, 2024. Williamson noted Tenon had no outstanding debt as of quarter end.
Foster said Tenon strengthened its balance sheet during the quarter with a $2.85 million at-the-market PIPE financing, which he said provides flexibility to expand the commercial organization, support product rollout initiatives, advance clinical programs, and build operational infrastructure. After quarter end, the company closed a private placement of senior convertible notes for gross proceeds of $4.3 million. Williamson said the financing provides additional runway to fund commercial and clinical priorities “deep into 2026,” and Foster said proceeds will support commercial expansion, upcoming product launches, clinical studies, working capital, and general corporate purposes.
Product portfolio expanded with FDA clearance and early clinical cases
Foster said Tenon received FDA 510(k) clearance for the “next generation” SImmetry+ SI joint fusion system, which expands its portfolio to include a complementary lateral approach alongside Catamaran. He said the company initiated and completed early clinical cases with SImmetry+, describing the work as an important step in the commercial rollout and a source of real-world feedback as the company scales.
During the Q&A session, Foster said the shift from a “single product organization” to a “multi-solution provider,” following the SiVantage transaction, is opening doors with physicians by enabling Tenon to offer multiple surgical approaches that can be matched to patient needs and physician preferences. Discussing SImmetry+, he highlighted physician feedback on the implant and its instrumentation, describing the implant as 3D printed and the tool set as efficient and refined.
Foster also described SImmetry+ as a phased launch, noting the initial release included the SImmetry+ screw and that additional capabilities are expected to come through 2026. He said the company plans for SImmetry+ to include joint decortication, preparation, grafting, and fixation, while adding that the company would provide more detail closer to FDA submissions for future additions.
Looking ahead, management did not provide formal guidance, but both Foster and Williamson pointed to continued momentum from the back half of 2025 and a focus on commercial expansion and execution in 2026. Williamson added that the SImmetry+ launch began in mid-fourth quarter and would be commercialized throughout 2026, alongside other planned product launches.
Foster also said the company expanded its intellectual property portfolio after year end, receiving notices of allowance for multiple applications expected to issue in 2026. He said Tenon’s global IP estate includes 29 issued U.S. patents, nine international patents, and 31 pending applications.
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.
