Tenon Medical (NASDAQ:TNON) reported first-quarter financial results on Tuesday. The transcript from the company’s first-quarter earnings call has been provided below.
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Access the full call at https://viavid.webcasts.com/starthere.jsp?ei=1758888&tp_key=3b28f5eba5
Summary
Tenon Medical reported a strong start to 2026 with first-quarter revenue of $1.4 million, nearly doubling from the previous year, and a record gross margin of 68.5%, up from 44.5%.
The increase in revenue was driven by a higher number of procedures across both platforms, Catamaran and Symmetry Plus, and improved cost efficiency.
The company closed a $4.3 million senior convertible note placement, enhancing financial flexibility for continued investment in commercial expansion and product launches.
Tenon Medical expanded its intellectual property portfolio significantly, with 29 US patents and 9 international patents granted, and 31 applications pending.
Future plans include the launch of new additions to the Symmetry Plus platform and a third approach to the sacral pelvic anatomy, with expectations for continued revenue growth and margin expansion.
Operational highlights include the addition of an experienced sales professional and the establishment of a new training education center in Tampa, Florida.
Management emphasized maintaining growth in procedure volumes, physician education, and protecting margin gains as key priorities for 2026.
Full Transcript
OPERATOR
Greetings and welcome to The Tenon Medical first quarter 2026 financial results and Corporate Update Conference Call. As a reminder, this conference call is being recorded. Your hosts today are Steve Foster, President and Chief Executive Officer, and Kevin Williamson, Chief Financial Officer. Mr. Foster and Mr. Williamson will present results of operations for the first quarter ended March 31, 2026 and provide a corporate update. A press release detailing these results was released today and is available on the Investor Relations section of our company’s website, www.tenonmed.com. before we begin the formal presentation, I would like to remind everyone that statements made on the call and webcast may include predictions, estimates and other information that might be considered forward looking. While these forward looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward looking statements which reflect our opinions only as of the date of this presentation. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward looking statements in light of new information or future events. For a more complete discussion of these factors and other risks, you should review our quarterly and annual reports on file with the securities and Exchange Commission at www.sec.gov. at this time, I’ll turn the call over to Tenon Medical’s Chief Executive Officer, Steve Foster. Please go ahead sir.
Steve Foster (President and Chief Executive Officer)
Thank you Operator and good afternoon to everyone. I’m pleased to welcome you to today’s first quarter 2026 financial results and Corporate Update Conference Call for Tenon Medical. Update Conference Call for Tenon Medical. We are off to a solid start. In 2026 we delivered strong first quarter revenue and gross profit which were the highest for any first quarter in the company’s history. First quarter revenue came in at 1.4 million, nearly double the prior year period, and Gross margin reached 68.5%, up from 44.5% a year ago. Two dynamics drove the quarter more procedures across both of our platforms and a meaningful, more efficient cost base behind those revenues. On the top line, growth came from two places, a higher number of catamaran cases and the first full quarter of meaningful symmetry plus contribution since we acquired the CY Vantage assets late last August, Physician engagement is a leading indicator for us as well, and on that front we trained 21 physicians across both systems this past quarter. The most notable development this quarter is the expansion in gross margin at 68.5%, we are approximately 24 percentage points higher than a year ago. While increased revenue has contributed through improved absorption of fixed production overhead, we are also benefiting from a more streamlined commercial footprint and stronger field productivity. We expect these structural gains to persist going forward. Beyond the financials A few items from the quarter that are worth noting. First, our two platform offering is increasingly working the way we had hoped. Physicians are evaluating Kedwin and Symmetry plus as complementary tools in both primary and revision procedures. These systems provide optionality in both inferior posterior and lateral approaches to the same anatomy, and we are seeing that this translates into adoption at several leading centers specific to capital. In March, we closed a $4.3 million senior convertible note placement with a group of institutional and high net worth investors. That financing extends our Runway gives us the flexibility to keep investing behind commercial expansion, product launches and our clinical programs without further distraction. Taken together, the quarter gives us a healthier balance sheet, broader products set actually in the market, and clearer evidence that our cost work is sticking. Our intellectual property position continues to strengthen. The US Patent and Trademark Office issued multiple notices of allowance during the quarter on applications expected to Grant later in 2026. On top of the 10 patents that issued in 2025, our portfolio today stands at 29 US patents and nine international patents granted, with another 31 applications pending. That depth matters for a small cap medical device company. It protects what we have built around catamaran and Symmetry plus. In addition, we have dramatically accelerated our R and D project work. This includes significant incremental additions to the Symmetry plus lateral and oblique platform that will be launched in the back half of 2026. Additionally, in the spirit of providing comprehensive optionality to our physician customers, we are moving towards regulatory submission and subsequent alpha activity of a third approach to the sacral pelvic anatomy. Lastly, our aggressive commercial activity is highlighted by the addition of an experienced senior sales professional to manage the eastern part of the lower 48. He will join other members of our commercial team at a newly established training education center in the Tampa, Florida area designed intentionally to accelerate our physician and distributor education activities. Looking out over the rest of the year, our focus is very narrow, keep growing procedure volumes on both platforms, aggressively educate our physician and distribution partners, and protect the gross margin gains we’ve made this quarter. As we scale, we have multiple ways to win in this market. Lateral and inferior posterior now and additional innovations to come with that. I’ll turn the call over to Kevin to discuss our financials in some detail.
Kevin Williamson (Chief Financial Officer)
Thank you Steve. I will now provide a summarized review of our financial results. A full breakdown is available in our press release that crossed the wire this afternoon. Starting with the top line, first quarter revenue was 1.4 million, an increase of approximately 90% from 0.7 …
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