Tenon Medical (TNON) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 grew 90% year-over-year to $1.4 million, driven by increased procedure volumes and adoption of Catamaran and SImmetry+ platforms, with SImmetry+ contributing its first full quarter since acquisition.

• Gross profit rose 193% to $0.9 million, with gross margin expanding to 68.5% from 44.5% in Q1 2025.

• Net loss narrowed to $3.5 million ($0.31 per share) from $3.6 million ($1.01 per share) a year ago.

• Expanded intellectual property portfolio to 29 U.S. and 9 international patents, with multiple new allowances expected in 2026.

• Opened a new training and education center in Tampa and expanded sales leadership to support commercial expansion.

Financial highlights

• Revenue: $1.4 million in Q1 2026 vs. $0.7 million in Q1 2025.

• Gross margin: 68.5% in Q1 2026, up from 44.5% in Q1 2025.

• Operating expenses increased to $4.2 million, mainly due to higher sales and marketing costs.

• Cash and cash equivalents were $4.6 million at quarter-end, up from $3.8 million at year-end 2025.

• Net cash used in operating activities was $3.0 million, up 19% from the prior year.

Outlook and guidance

• Expect continued revenue and margin growth as SImmetry+ enhancements and launches roll out through 2026.

• Gross margin anticipated to remain in the high 60s and expand further as revenue scales, targeting 70%+ in 2027.

• Operating expenses expected to grow at a slower rate than revenue, leveraging fixed costs for improved profitability.

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

• Existing cash is insufficient to fund operations for the next 12 months; additional capital will be sought via equity, debt, or collaborations.