Tenon Medical — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter 2026 revenue was $1.4 million, a 22% increase compared to $1.2 million in the third quarter of 2025; revenue for the nine months ended September 30, 2026, was $4.1 million, a 66% increase compared to $2.5 million in the prior year period.
• Third quarter gross profit was $1.0 million, a 23% increase compared to $0.8 million in the third quarter of 2025; gross margin was 66.3%, an increase of 0.4 percentage points from 65.9% in the third quarter of 2025.
• Operating loss for the third quarter was $3.1 million, an improvement of $0.3 million compared to $3.4 million in the third quarter of 2025; operating expenses totaled $4.0 million in the third quarter compared to $4.2 million in the prior year period.
• Net loss for the third quarter was $6.6 million ($5.39 per share), compared to a net loss of $3.3 million ($14.17 per share) in the third quarter of 2025; the increase in net loss was primarily due to $3.1 million in non-cash expense related to warrants and $0.7 million in non-cash interest expense from convertible note amortization.
• Cash and cash equivalents totaled $8.3 million as of September 30, 2026, compared to $3.8 million as of December 31, 2025.
• The company raised approximately $15.6 million in aggregate gross proceeds during the quarter, including $10.1 million from public offerings and private placements, $2.8 million from at-the-market offerings, and $2.7 million from warrant exercises.
• The company repaid in full approximately $5.12 million of senior convertible notes ahead of their September 11, 2026 maturity date, resulting in no outstanding debt as of quarter-end.

Business Segments and Product Lines:

• Commenced full commercial launch of the 3D-printed lateral screw for the SImmetry®+ SI Joint Fusion System, the first component of a next-generation lateral system, following an alpha launch that generated approximately $1.2 million in revenue from late Q4 2025 through Q3 2026.
• Completed initial alpha cases of the Quickstep™ Decorticator for the next-generation SImmetry®+ SI Joint Fusion System, targeting full market release in the first quarter of 2027.
• Revenue growth was primarily driven by an increase in the number of surgical procedures and continued adoption of the SImmetry®+ System.
• Gross margin improvement was driven by increased revenue absorbing fixed costs and improved per-procedure costs for the Catamaran® system following July 2, 2026, 510(k) clearance that reclassified certain instruments to reusable status.

Other Key Points:

• Hired Thomas Batton Jr. as Chief Revenue Officer effective October 1, 2026, to lead the commercial organization, with plans to add direct sales representatives and onboard distributor partners.
• Received eight new U.S. patents in 2026, bringing the portfolio to 38 issued U.S. patents and nine international patents, with 31 U.S. and foreign patent applications pending.
• Regained compliance with Nasdaq's minimum stockholders' equity requirement and minimum bid price requirement following a 1-for-35 reverse stock split effective August 10, 2026.
• Management stated priorities for the balance of 2026 include expanding physician training and adoption, advancing the product pipeline, and maintaining discipline on spend.