Tenon Medical, Inc.

Second-quarter revenue was $1.3 million, up 127% year over year from $600 thousand, and gross profit was $800 thousand, up 232% from $200 thousand. Gross margin was 64% versus 43% a year ago. For the first half, revenue was $2.7 million, up 106% from $1.3 million, and gross profit was $1.8 million at a 66.2% margin versus $600 thousand at 44.0%. Operating expenses were $4.2 million in Q2 versus $3.1 million last year, and net loss was $4.1 million, or $12.35 per share, versus $2.8 million, or $12.76 per share. Management did not provide formal quarterly or full-year revenue/EPS guidance, but said the July 1 public offering brought $4.2 million of gross proceeds and that Q3 should begin reflecting margin benefits from the Catamaran clearance and reusable instruments. They also said they expect to add sales heads and distributor partners in the back half of the year.

Steven Foster focused on commercial momentum, margin expansion, and a fuller product pipeline. He said physicians are evaluating Catamaran and SImmetry+ as complementary tools, and highlighted increased training activity, a new Tampa sales and training office, and a record case value month in July. He sounded optimistic and expansionary, saying Tenon has “multiple ways to win” and intends to keep growing procedure volume while protecting gross margin.

Kevin Williamson emphasized the hard numbers behind the quarter: $1.3 million of revenue, $800 thousand of gross profit, and a 64% gross margin, all records for a second quarter. He said the margin improvement came from higher revenue, lower costs, and better absorption of fixed production overhead, and that he expects gross margin to keep expanding as revenue rises. He also noted operating expenses of $4.2 million in Q2, net loss of $4.1 million, $1.7 million in cash at quarter end, and $4.2 million of gross proceeds from the July 1 offering to extend runway for commercial, clinical, and development priorities.

Analysts asked about the SiVantage product pipeline and the pace of physician training. Management said SImmetry+ has multiple components still rolling out, including an enhanced decortication tool expected for clinical use in October and an additional implant feature nearing launch; they also said a novel posterior approach technology is finishing testing ahead of FDA submission. On training, Foster said seasonality exists but demand for the Tampa facility has exceeded expectations, and he expects continued uptick as the platform enhancements and new technologies give physicians more reasons to visit and train.