Workflow
Tenon Medical (TNON) Q2 2025 Earnings Transcript

Financial Performance - Revenue for fiscal Q2 2025 was $564,000, down from $901,000 in Q2 2024, attributed to lower procedure volumes and a shift in commercial initiatives [20][21] - Gross margin decreased to 43% in Q2 2025 from 52% in Q2 2024, due to reduced procedure volumes and consistent production costs [3][22] - Operating expenses were $3.1 million in Q2 2025, a 29% decrease from $4.3 million in Q2 2024, driven by reductions in G&A, R&D, and sales and marketing costs [3][23] - Net loss for Q2 2025 was $2.8 million, or $0.36 per share, compared to a net loss of $3.8 million, or $0.816 per share, in Q2 2024 [4][24] - Cash and cash equivalents increased to $7.8 million as of June 30, 2025, up from $6.5 million at the end of 2024, with no outstanding debt [4][25] Strategic Developments - The company completed the acquisition of CyVantage post-quarter, enhancing its product portfolio and commercial capabilities [5][10] - The Catamaran SE implant is on track for full commercial launch, supported by positive early feedback and FDA clearance for use as an adjunct to thoracolumbar fixation [6][15] - Initial alpha surgeries for the Symmetry Plus system are expected to begin in Q4 2025, aimed at enhancing outcomes in SI joint fusion procedures [6][16] Clinical and Market Engagement - Sixteen physician workshops were conducted to support adoption of new solutions and accelerate the learning curve for physicians [7][18] - The company is focused on clinical validation, with the second interim analysis from the main sale post-market study expected to provide additional evidence regarding clinical endpoints [7][17] - The CyVantage acquisition is anticipated to provide immediate revenue and enhance the company's commercial infrastructure, enabling cross-selling opportunities [9][10][41] Future Outlook - The integration of CyVantage is expected to unlock new pathways for market access and strengthen the commercial organization [14][19] - The company is optimistic about recovering revenue levels with the upcoming launches and increased physician engagement [36][38] - The focus remains on delivering solutions that promote biologic fusion and structural stability for patients with sacropelvic disorders [26]