Tenon Medical (TNON) investor relations material

Executive summary

• Q2 2026 revenue reached $1.3 million, up 127% year-over-year, driven by increased procedure volumes and expanded product offerings, including SImmetry+ System sales.

• Gross profit rose 232% to $0.8 million, with gross margin improving to 64% from 43% in Q2 2025.

• Net loss widened to $4.1 million, or $12.35 per share, compared to $2.8 million, or $12.76 per share, in Q2 2025, mainly due to higher operating expenses and non-cash interest expense.

• Achieved record monthly surgical case volume in July 2026, supported by a 98% increase in training events in 1H 2026.

• Operating loss for the first half was $6.6 million, essentially flat year-over-year despite significant revenue and gross profit growth.

Financial highlights

• Six-month revenue totaled $2.7 million, up 106% from the prior year period, with gross profit of $1.8 million (66% margin).

• Operating expenses for Q2 2026 were $4.2 million, up from $3.1 million in Q2 2025, reflecting higher sales and R&D costs.

• Cash and cash equivalents at June 30, 2026: $1.7 million.

• Accumulated deficit as of June 30, 2026: $88.8 million.

• Net loss for six months: $7.5 million or $23.16/share (vs. $6.4 million or $39.91/share YoY).

Outlook and guidance

• Focus remains on growing procedure volumes, expanding physician training, accelerating R&D, and maintaining gross margin improvements.

• Multiple product launches and enhancements expected in the next six to nine months.

• Management expects continued operating losses and negative cash flows as commercialization and development efforts continue.

• Existing cash and July 2026 offering proceeds are not sufficient to fund operations for the next 12 months; additional capital will be required.

• Anticipates continued gross margin expansion as revenue increases and fixed costs are further absorbed.