Tenon Medical Reports Fourth Quarter and Full Year 2024 Financial Results

Rhea-AI Summary

Tenon Medical (NASDAQ:TNON) reported its Q4 and full-year 2024 financial results, showing mixed performance. Full-year revenue reached $3.3 million, marking a 12% increase from 2023, with improved gross profit of $1.7 million and gross margin of 52%.

Q4 2024 revenue remained flat at $0.8 million compared to Q4 2023, while gross profit decreased to $353,000 from $559,000, with margins declining to 46% from 69%. The company's Catamaran SI Joint Fusion System achieved significant milestones, including positive interim results from the MAINSAIL Study and completion of over 1,000 surgical procedures.

Notable developments include the expansion of their patent portfolio to twelve U.S. and international patents, successful initial clinical procedures with the new Catamaran SE platform, and securing an additional $3M in capital in March 2025. The company plans a national commercial launch of Catamaran SE in mid-2025.

Positive

• 12% year-over-year revenue growth to $3.3M in 2024
• Gross margin improved to 52% in 2024 from 42% in 2023
• Secured additional $3M capital in March 2025
• Positive MAINSAIL Study interim results showing safety and efficacy
• Expanded patent portfolio to 12 U.S. and international patents
• Achieved milestone of over 1,000 Catamaran surgical procedures

Negative

• Q4 2024 revenue flat year-over-year at $0.8M
• Q4 gross margin declined to 46% from 69% year-over-year
• Net loss of $13.7M in 2024
• Expects to incur additional losses in the future
• Fewer surgeries performed in Q4 due to restructured sales operations and reimbursement delays

Insights

Financial Analyst

Tenon Medical delivered mixed financial results for 2024. While revenue grew 12% to $3.3 million and gross margin expanded significantly from 42% to 52%, the company continues to operate with substantial losses. The $13.7 million net loss, though improved from 2023's $15.6 million, remains concerning relative to revenue.

The fourth quarter showed some challenges with flat year-over-year revenue at $0.8 million and deteriorating gross margins (down to 46% from 69%). Management attributes this to sales restructuring and reimbursement pre-authorization delays.

The $3 million capital raise in March 2025 strengthens their $6.5 million cash position, but burn rate remains a key concern. Operating expenses of $15.5 million annually, though reduced from 2023, significantly outpace gross profit of $1.7 million.

The milestone of 1,000 procedures performed demonstrates growing clinical adoption, but revenue per procedure appears modest. The planned mid-2025 commercial launch of Catamaran SE represents a potential catalyst, particularly if the smaller profile can address both primary and revision SI joint applications, potentially expanding the addressable market.

Medical Technology Specialist

The interim MAINSAIL study results represent a significant clinical validation for Tenon's Catamaran system. The data confirms three critical outcomes: exceptional safety profile, statistically significant improvements in pain (VAS) and disability (ODI) scores, and radiographic confirmation of fusion at 12 months via CT imaging.

The patent portfolio expansion to twelve issued patents creates meaningful competitive barriers, particularly the specific patents addressing revision of other SI joint devices. This positions Tenon strategically as potentially both a primary and rescue option for failed competitor implants.

The Catamaran SE platform's reduced access and implant size addresses a key clinical need. Smaller profiles typically reduce surgical trauma and can simplify revision cases. The successful alpha cases indicate promising clinical acceptance, though the delayed full commercial launch until mid-2025 suggests possible manufacturing scale-up or regulatory pathway considerations.

The restructured training program with 23 physicians participating in Q4 workshops demonstrates a focus on building clinical champions. However, the mentioned reimbursement pre-authorization delays highlight persistent market access challenges in the SI joint fusion space that continue to constrain procedural volume growth despite the compelling clinical data.

~ Full Year 2024 Revenue of $3.3 Million, a 12% Increase Compared to Prior Year ~

~ Interim Analysis from MAINSAIL Study Reinforces Safety Profile, Effectiveness and Confirmation of Fusion ~

~ Catamaran® SI Joint Fusion Technology Protected with Robust Patent Portfolio of Twelve U.S. and International Patents ~

~ Introduced Catamaran SE Platform and Successfully Completed Initial Clinical Procedures ~

~ National Commercial Launch of Catamaran SE in Mid-2025 ~

LOS GATOS, CA / ACCESS Newswire / March 20, 2025 / Tenon Medical, Inc. (NASDAQ:TNON) ("Tenon Medical" or the "Company"), a company transforming care for patients suffering from certain Sacroiliac Joint (SIJ) disorders, today reported financial results for the fourth quarter and year ended December 31, 2024.

Financial Results and Business Updates

• Fourth Quarter 2024 Results:

  • Revenue of $0.8 million, in line with the fourth quarter of 2023.

  • Gross profit of $353,000, as compared to $559,000 in the fourth quarter of 2023.

  • Gross margin of 46%, as compared to 69% in the fourth quarter of 2023.

• Full Year 2024 Results:

  • Revenue of $3.3 million, a 12% increase compared to $2.9 million in 2023.

  • Gross profit of $1.7 million, a 38% increase compared to $1.2 million in 2023.

  • Gross margin of 52%, a 10 percentage point improvement from 42% in 2023.

• Published first interim analysis from MAINSAIL Study:

  • Reinforces Exceptional Safety Profile.

  • Statistically Significant Improvement in VAS (Pain) and ODI (Disability) Scores.

  • Radiographic Proof of Fusion at 12-Month CT.

• Granted issuance of three additional U.S. Patents highlighting a commitment to enhancing SI joint stabilization systems and methods, addressing the need for revision of other ineffective SI joint devices and as a patent protection mechanism.

• Hosted 23 physicians in targeted workshop activities and Catamaran focused training sessions within the Fourth Quarter.

• Successfully completed initial clinical cases (alpha) of Tenon's new Catamaran SE SI Joint Fusion System.

Subsequent Updates

• Performed over 1,000 Catamaran System surgical procedures as of March 20, 2025.

• Expanded direct sales force entering into new territories with significant SI addressable markets.

• Full commercial launch of Catamaran SE expected in mid-2025.

• Secured an additional $3M of capital on March 12, 2025 to strengthen balance sheet and fund growth initiatives.

Steve Foster, President and Chief Executive Officer of Tenon Medical, commented, "We are proud of Tenon's solid performance for the full year 2024, which demonstrated revenue growth of 12% compared to the prior year, driven by increases in revenue per surgical procedure and our reconstituted sales and marketing plans. Our restructured sales operation is beginning to deliver results by driving exposure to our newly published clinical data and the new SE platform. During the fourth quarter, we further invested in our sales and marketing initiatives and continued to collect positive responses from initial clinical experiences with the new Catamaran SE in anticipation of a full launch by mid-2025. This platform focuses on reduction in access and implant size, providing options for physicians seeking a smaller profile for primary and revision SI applications. We expect this versatility to result in market share gains and increased adoption as we ramp up our broader market introduction and commercialization.

Additionally, our prospective, multi-center Catamaran SI Joint Fusion System® MAINSAIL™ study had a preliminary interim analysis published in the early fall. The analysis highlighted impressive results in safety profile and pain / disability scores. 12-month CT scans confirmed that an authentic arthrodesis can be achieved with this innovative technology, as confirmed by independent third party radiologists. These early results confirm that Catamaran delivers on its promises.

Importantly, a key initiative during 2024 was directed at fortifying our competitive position in the industry by protecting our intellectual property portfolio. With the issuance of three US patents during the fourth quarter, the Catamaran® SI Joint Fusion System now comprises twelve issued U.S. and foreign (International) patents, and twenty-three pending U.S. and foreign patent applications. The additional patents recognize the novel Catamaran® SI joint prostheses as a solution to specifically address the need for revision of other ineffective SI joint devices and reinforces our commitment to innovation.

Looking ahead, we are highly focused on increasing sales through our revamped training and education program, participation in trade shows, and marketing efforts throughout 2025. We will maintain balanced financial discipline as we advance Tenon into our next phase of growth with upcoming catalysts, including the full enrollment of our post-market clinical trial for the Catamaran SI Joint Fusion System® and the next release of the study's interim analysis, which remains imminent," concluded Foster.

Fourth Quarter & Full Year 2024 Financial Results

Revenue was $0.8 million in the fourth quarter of 2024, in line with $0.8 million in the comparable year ago period. Revenue for the year ended December 31, 2024, was $3.3 million, an increase of 12%, compared to $2.9 million in year ended December 31, 2023. The number of procedures in the fourth quarter was impacted by our restructured sales operation process, as well as reimbursement pre-authorization delays, leading to fewer surgeries performed during the quarter. Notably, both periods experienced improved ASP driven by account mix and market access efforts.

Gross profit in the fourth quarter of 2024 was $0.4 million, or 46% of revenues, compared to $0.6 million, or 69% of revenues in the comparable year ago quarter. For the year ended December 31, 2024, gross profit was $1.7 million, or 52% of revenues, compared to a gross profit of $1.2 million, or 42% of revenue, for the year ended December 31, 2023. Gross margin percentage varied from period to period driven by the absorption of production overhead costs into our standard cost and operating leverage created by lower relative fixed costs.

Operating expenses totaled $3.5 million for the fourth quarter of 2024, as compared to expenses of $3.7 million in the fourth quarter of 2023. For the year ended December 31, 2024, operating expenses totaled $15.5 million compared to $17.0 million in the prior year period. Operating expenses decreased due to the restructuring of sales operations that reduced sales and marketing expenses and a decline in research and development driven by a shift to sustaining activities within the Catamaran portfolio, offset by an increase in general and administrative expenses. Continued investment in growth will include sales force expansion, market access programs and reimbursement and coverage initiatives. As a result, increases in sales and marketing expenses are expected in future quarters.

Net loss was $3.1 million for the fourth quarter of 2024, as compared to a loss of $3.1 million in the same period of 2023. For the year ended December 31, 2024, net loss was $13.7 million compared to $15.6 million in the previous year period. The Company expects to incur additional losses in the future.

As of December 31, 2024, cash and cash equivalents totaled $6.5 million, as compared to $2.4 million as of December 31, 2023. As of December 31, 2024, the Company had no outstanding debt. Additionally, Tenon received gross proceeds of $3.0 million from the capital raised in March 2025.

Fourth Quarter Earnings Conference Call

Management will host a conference call at 4:30 p.m. ET (1:30 p.m. PT) today, Thursday, March 20, 2025, to discuss Tenon's fourth quarter and full year 2024 financial results, provide a corporate update, and conclude with Q&A with the Company's covering analyst. To participate, please use the following information:

Date:	Thursday, March 20, 2025
Time:	4:30 p.m. Eastern time
Dial-in:	1-877-407-0792
International Dial-in:	1-201-689-8263
Webcast:	TNON Conference Call

Please dial in at least 10 minutes before the start of the call to ensure timely participation.

An audio playback of the call will be available through April 3, 2025 by dialing 1-844-512-2921 (USA) or 1-412-317-6671 (International). The access code will be 13751490. In addition, a webcast replay will be available on Tenon's Investor Relations website at http://ir.tenonmed.com.

About Tenon Medical, Inc.

Tenon Medical, Inc., a medical device company formed in 2012, has developed The Catamaran SI Joint Fusion System that offers a novel, less invasive approach to the SI joint using a single, robust titanium implant. The system features the Catamaran™ Fixation Device which passes through both the axial and sagittal planes of the ilium and sacrum, stabilizing and transfixing the SI Joint along its longitudinal axis. The angle and trajectory of the Catamaran surgical approach is also designed to provide a pathway away from critical neural and vascular structures and into the strongest cortical bone. Since the national launch of the Catamaran SI Joint Fusion System in October 2022 Tenon is focused on two commercial opportunities with its System in the SI Joint market which includes: 1) Primary SI Joint procedures, and 2) Revision procedures of failed SI Joint implants. For more information, please visit www.tenonmed.com.

The Tenon Medical logo shown above, and Catamaran®, PiSIF®, CAT PiSIF®, ETAD®, Posterior Inferior Sacroiliac Fusion®, CAT SIJ Fusion System®, Catamaran SIJ Fusion System®, Catamaran Inferior Posterior Fusion System®, Catamaran Transfixation Fusion System®, and Catamaran Transfixation Fusion Device® are registered trademarks of Tenon Medical, Inc. MAINSAIL^TM is also a trademark of Tenon Medical, Inc.

Safe Harbor

This press release contains "forward-looking statements," which are statements related to events, results, activities or developments that Tenon expects, believes or anticipates will or may occur in the future. Forward-looking often contain words such as "intends," "estimates," "anticipates," "hopes," "projects," "plans," "expects," "seek," "believes," "see," "should," "will," "would," "target," and similar expressions and the negative versions thereof. Such statements are based on Tenon's experience and perception of current conditions, trends, expected future developments and other factors it believes are appropriate under the circumstances, and speak only as of the date made. Forward-looking statements are inherently uncertain and actual results may differ materially from assumptions, estimates or expectations reflected or contained in the forward-looking statements as a result of various factors. For details on the uncertainties that may cause our actual results to be materially different than those expressed in our forward-looking statements, please review our Annual Report on Form 10-K for the year ended December 31, 2023 on file with the Securities and Exchange Commission at www.sec.gov, particularly the information contained in the section entitled "Risk Factors". We expect to file our Annual Report on Form 10-K for the year ended December 31, 2024 with the Securities and Exchange Commission no later than March 31, 2025. We undertake no obligation to publicly update or revise any forward-looking statements to reflect new information or future events or otherwise unless required by law.

Investor Contact

Shannon Devine / Rory Rumore
MZ North America
203-741-8811
tenon@mzgroup.us

Tenon Medical, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands, except share data)

		December 31,				December 31,
		2024				2023
Assets
Current assets:
Cash and cash equivalents		$	6,535			$	2,428
Accounts receivable, net			863				518
Inventory, net			606				554
Prepaid expenses and other current assets			206				389
Total current assets			8,210				3,889
Fixed assets, net			752				961
Deposits			51				51
Operating lease right-of-use asset			399				646
Deferred offering costs			431				798
TOTAL ASSETS		$	9,843			$	6,345
Liabilities and Stockholders' EQUITY
Current liabilities:
Accounts payable		$	369			$	433
Accrued expenses			910				808
Current portion of accrued commissions			303				470
Current portion of operating lease liability			287				256
Convertible notes payable and accrued interest, net of debt discount of $0 and $77 at December 31, 2024 and 2023, respectively			-				1,173
Total current liabilities			1,869				3,140
Accrued commissions, net of current portion			1,862				1,999
Operating lease liability, net of current portion			141				428
Total liabilities			3,872				5,567
Stockholders' equity:
Series A convertible preferred stock, $0.001 par value; 4,500,000 shares authorized at December 31, 2024 and 2023; 256,968 and 0 shares issued and outstanding at December 31, 2024 and 2023, respectively			3,300				-
Series B convertible preferred stock, $0.001 par value; 491,222 shares authorized at December 31, 2024 and 2023; 86,454 and 0 shares issued and outstanding at December 31, 2024 and 2023, respectively			452				-
Common stock, $0.001 par value; 130,000,000 shares authorized at December 31, 2024 and 2023; 3,138,804 and 325,039 shares issued and outstanding at December 31, 2024 and 2023, respectively			3				-
Additional paid-in capital			70,962				55,897
Accumulated deficit			(68,746	)			(55,073	)
Accumulated other comprehensive loss			-				(46	)
Total stockholders' equity			5,971				778
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	9,843			$	6,345

Tenon Medical, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited)
(In thousands, except per share data)

		Years Ended December 31,
		2024				2023
Revenue		$	3,277			$	2,928
Cost of sales			1,566				1,687
Gross Profit			1,711				1,241
Operating Expenses
Research and development			2,603				3,163
Sales and marketing			5,109				6,778
General and administrative			7,765				7,027
Total Operating Expenses			15,477				16,968
Loss from Operations			(13,766	)			(15,727	)
Other Income (Expense)
Gain on investments			183				167
Interest expense			(34	)			(21	)
Other expense, net			(56	)			-
Total Other Income (Expense), net			93				146
Net Loss		$	(13,673	)		$	(15,581	)
Net Loss Per Share of Common Stock
Basic and diluted		$	(11.26	)		$	(68.64	)
Weighted-Average Shares of Common Stock Outstanding
Basic and diluted			1,214				227
Consolidated Statements of Comprehensive Loss:
Net loss		$	(13,673	)		$	(15,581	)
Unrealized loss on investments			-				16
Foreign currency translation adjustment			46				38
Total Comprehensive Loss		$	(13,627	)		$	(15,527	)

SOURCE: Tenon Medical, Inc.

View the original press release on ACCESS Newswire

FAQ

What was Tenon Medical's (TNON) revenue growth in 2024?

Tenon Medical reported full-year 2024 revenue of $3.3 million, representing a 12% increase compared to $2.9 million in 2023.

How did TNON's Q4 2024 gross margin compare to the previous year?

Q4 2024 gross margin declined to 46% compared to 69% in Q4 2023.

When is Tenon Medical (TNON) planning to launch the Catamaran SE commercially?

Tenon Medical plans to launch the Catamaran SE platform nationally in mid-2025.

What were the key findings from TNON's MAINSAIL Study interim analysis?

The interim analysis showed exceptional safety profile, statistically significant improvement in pain and disability scores, and radiographic proof of fusion at 12-month CT.

How many patents does Tenon Medical (TNON) currently hold for its technology?

Tenon Medical holds twelve issued U.S. and international patents, with twenty-three pending patent applications.