Tenon Medical (NASDAQ:TNON) reported what executives described as the strongest first-quarter revenue and gross profit in the company’s history, driven by higher procedure volumes and the contribution of its recently acquired SImmetry+ platform.
On the company’s first quarter 2026 earnings call, President and Chief Executive Officer Steven Foster said Tenon “delivered strong first quarter revenue and gross profit,” with revenue nearly doubling from the prior-year period and gross margin expanding sharply. Foster said the quarter benefited from growth in Catamaran cases, the first full quarter of meaningful SImmetry+ revenue following the acquisition of SiVantage assets in August 2025, and a more efficient cost structure.
Revenue Nearly Doubles as SImmetry+ Adds to Growth
Chief Financial Officer Kevin Williamson said first-quarter revenue was $1.4 million, up approximately 90% from $0.7 million in the same period a year earlier. He attributed the increase to strong year-over-year growth in Catamaran surgical procedure volumes, primarily from new physician adoption, and the first full quarter that reflected SImmetry+ revenue after its alpha launch in the fourth quarter of 2025.
Foster said the company trained 21 physicians across Catamaran and SImmetry+ during the quarter, calling physician engagement a leading indicator for the business. He said the company’s two-platform offering is increasingly being evaluated by physicians as complementary for primary and revision procedures.
“These systems provide optionality in both inferior posterior and lateral approaches to the same anatomy, and we are seeing this translate into adoption at several leading centers,” Foster said.
Williamson said further enhancements to SImmetry+ and a full commercial launch are planned for the back half of 2026, which the company expects to support continued growth into 2027 and beyond.
Gross Margin Expands to 68.5%
Gross profit rose to $0.9 million, or 68.5% of revenue, compared with $0.3 million, or 44.5% of revenue, in the first quarter of 2025. Williamson said gross profit increased approximately 193% in dollar terms, while gross margin improved by about 24 percentage points year over year.
Management attributed the improvement to higher revenue spreading fixed production costs over a larger base, along with a more streamlined commercial footprint and stronger field productivity. Foster said the company expects the structural gains to persist as it scales.
During the question-and-answer portion of the call, Williamson said high-60% gross margin is a reasonable level to consider for the rest of 2026 and that margins are expected to increase as revenue scales. In response to a question from Maxim Group analyst Anthony Vendetti, Williamson said the company expects margins to move toward the ceiling of its product margin as it absorbs logistics-related and other fixed costs.
Operating Expenses Rise Modestly; Net Loss Narrows
Operating expenses were $4.2 million, up modestly from $4.0 million in the first quarter of 2025. Williamson said the increase was primarily due to higher sales and marketing expenses tied to increased commercial activity and support for the SImmetry+ rollout, partially offset by lower stock-based compensation compared with the prior year.
He added that, when normalizing for stock-based compensation within research and development, development-related expenses increased year over year due to project activity tied to future product launches, primarily related to assets acquired in August 2025.
Net loss narrowed to $3.5 million, or $0.31 per share, from $3.6 million, or $1.01 per share, in the year-ago quarter. Williamson noted that the per-share result benefited from a larger share count, but said the improvement in dollar terms was driven by stronger revenue and gross profit, which more than offset higher operating expenses and interest expense from a March convertible note issuance.
Tenon ended the quarter with $4.6 million in cash and cash equivalents, compared with $3.8 million at the end of 2025. The company closed a private placement of senior convertible notes in March for gross proceeds of $4.3 million. Foster said the financing extends the company’s runway and provides flexibility to continue investing in commercial expansion, product launches and clinical programs.
Product Pipeline and Training Efforts Remain in Focus
Foster said Tenon is accelerating research and development work, including additions to the SImmetry+ lateral and oblique platform that are expected to launch in the back half of 2026. In response to a question from Alliance Global Partners analyst Scott Henry, Foster said the SImmetry+ screw technology is moving from alpha into full launch, with two additional components expected during 2026.
The first additional component is a decorticator technology intended to help prepare the joint for grafting, fixation and fusion. The second, expected later in the year, is an incremental implant addition that Foster said the company believes will make the construct more effective.
Foster also said Tenon is working toward regulatory submission and alpha activity for a third approach to sacro-pelvic anatomy, with an alpha launch targeted for the fourth quarter of 2026. In response to Vendetti, Foster said the company would aim to move that technology into a full launch in the first quarter of 2027 if the alpha process proceeds as expected.
Training was another emphasis on the call. Foster said Tenon has established a training and education center in the Tampa, Florida, area to accelerate physician and distributor education. He said the company’s training needs have evolved as it has moved beyond a single-approach, single-technology offering.
Foster said Tenon is also investing in improving its ability to move through hospital and facility approval processes, including committees and access procedures, after physicians express interest in the company’s technologies.
Patent Portfolio Expands
Foster said Tenon’s intellectual property position continues to strengthen, with the U.S. Patent and Trademark Office issuing multiple notices of allowance during the quarter on applications expected to grant later in 2026. He said this follows 10 patents issued in 2025.
The company’s patent portfolio currently includes 29 granted U.S. patents and nine granted international patents, with another 31 applications pending, according to Foster. He said the portfolio helps protect the company’s Catamaran and SImmetry+ technologies.
Looking ahead, Foster said the company’s priorities are to grow procedure volumes across both platforms, expand its base of trained physicians, and maintain the cost discipline reflected in its gross margin and field productivity. Williamson said first-quarter operating expenses provide a reasonable baseline for the year, although the company expects some additional investments as revenue grows.
“We expect to continue to leverage the P&L and improve profitability throughout the year,” Williamson said.
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.
