Tenon Medical's Q3 2025: Contradictions Emerge on Catamaran Revenue, SiVantage-Tenon Integration, G&A Costs, and Product Revenue Expectations

Date of Call: November 13, 2025

Financials Results

• Revenue: $1.2M in Q3 2025, up 32.3% YOY (Q3 2024 $0.9M); 9M 2025 revenue $2.5M, flat vs 9M 2024 $2.5M
• EPS: $0.40 loss per share in Q3 2025 (net loss $3.3M) compared to $3.63 loss per share in Q3 2024 (net loss $3.2M); 9M net loss $9.7M vs $10.6M prior-year
• Gross Margin: 66% in Q3 2025 vs 47% in Q3 2024; 9M gross margin 54% in both 2025 and 2024

Guidance:

• Expect Catamaran procedural volumes to grow sequentially in Q4 2025.
• 
  alpha launch to begin in coming weeks (60–90 day pilot before broader rollout).
• One additional month of SiVantage contribution anticipated in Q4 driving incremental revenue.
• Gross margin expected to improve as revenue increases and fixed overhead is absorbed.
• Commercial expansion via hybrid model (distributors and 1099s) and new hires to accelerate adoption.
• Cash bolstered by $2.85M PIPE; no debt at quarter end to fund growth initiatives.

Business Commentary:

* Revenue Growth and Product Expansion: - Tenon Medical reported record revenue of $1.2 million for Q3, up 32% year-on-year. - The growth was driven by unprecedented Catamaran procedure volumes and the integration of the SiVantage portfolio, indicating the success of the company's strategic growth initiatives and acquisition strategy.

• Clinical Milestones and Product Launches:
• The company achieved several clinical milestones, including the full commercial launch of the Catamaran SE SI joint fusion system, which expands its implant portfolio and strengthens its competitive position.

• The successful transition from alpha testing to full launch reflects Tenon's commitment to innovation and execution speed.

• Operational Integration and Financial Performance:

• Tenon's gross profit was $0.8 million or 66% of revenue in Q3, improving from 47% in the prior year quarter.

• This improvement was due to higher revenue absorbing fixed overhead costs in the cost of goods sold as a result of the strategic acquisition and integration of SiVantage's assets.

• Regulatory Approvals and Product Diversification:

• Tenon received FDA 510(k) clearance for its SImmetry+ SI joint fusion system, expanding its product portfolio and offering two distinct minimally invasive surgical approaches.
• This clearance strengthens Tenon's competitive position and allows physicians to tailor treatments to individual patient anatomy and pathology, supporting long-term growth.
  

  Sentiment Analysis:

  Overall Tone: Positive

  • Management highlighted "record revenue of $1.2 million, a 32% increase" and said the SiVantage acquisition "has been immediately accretive to revenue." CFO noted gross margin improved to 66% vs 47% prior-year and expects margins to continue improving as revenue scales. Management emphasized successful product launches, clinical publications showing strong outcomes, and a $2.85M PIPE to fund growth.

Q&A:

• Question from Scott Henry (Alliance Global Partners, Research Division): Could you comment on of the product revenues, how much was the kind of base SiVantage revenues of the $1.2 million?
  Response: About $1.1M of the $1.2M was Catamaran revenue; the remainder was a small, two-month contribution from legacy SiVantage products.

• Question from Scott Henry (Alliance Global Partners, Research Division): Would you expect Catamaran to grow sequentially from third quarter '25 to fourth quarter '25?
  Response: Yes — management expects Catamaran procedures to continue growing sequentially into Q4, plus an extra month of SiVantage activity and initial SImmetry+ alpha contribution.

• Question from Scott Henry (Alliance Global Partners, Research Division): When we think about the SImmetry+ alpha launch, should I think of that as a pilot launch at first or a full-scale launch?
  Response: SImmetry+ will begin as a small, focused alpha pilot (roughly 60–90 days) to gather feedback and make refinements before broader commercial expansion.

• Question from Scott Henry (Alliance Global Partners, Research Division): Is third-quarter G&A reflective of what we'll start to see on a quarterly basis, should we think about $2.1M–$2.2M per quarter?
  Response: Q3 included some one-time integration costs; going forward G&A is expected to be slightly below Q3 but materially higher than historical quarters—closer to the Q3 level than prior periods.

• Question from Thomas McGovern (Maxim Group): How is the SiVantage integration progressing? Is it fully done and what milestones remain as you move into Q4?
  Response: Integration is largely complete operationally—assets, inventory and quality-system integration done—with remaining tactical items; on-time SImmetry+ alpha launch is cited as evidence of successful integration.

• Question from Thomas McGovern (Maxim Group): Can you quantify the scope of commercial headcount additions and explain whether salespeople will be specialized or cross-trained across products?
  Response: Tenon is implementing a hybrid commercial model—onboarding distributors and 1099s managed by direct sales leadership; new hires from SiVantage strengthen the team and field reps will be trained across the full product portfolio.

• Question from Thomas McGovern (Maxim Group): How are you balancing clinical data generation/payer coverage efforts with commercial ramp and headcount additions?
  Response: Payer-coverage work (data-driven) and commercial ramp are being run in parallel by separate, dedicated teams, with both treated as equally important priorities.

Contradiction Point 1

Catamaran Revenue Growth Expectations

It involves differing expectations for the growth of Catamaran revenue, which is a critical component of the company's financial performance.

Do you expect Catamaran to grow sequentially from Q3 '25 to Q4 '25? - [Scott Henry](Alliance Global Partners, Research Division)

2025Q3: Yes, we do. Data supporting Catamaran's performance continues to grow, and we expect the number of surgical procedures to increase. Extra month of SiVantage activity in Q4 and SImmetry+ alpha launch are promising growth drivers. - [Steven Foster](CEO)

How should we assess Catamaran’s sequential revenue trends in Q3 and Q4? - [Scott Robert Henry](Alliance Global Partners, Research Division)

2025Q2: We expect Catamaran revenue to recover quickly now that the merger is closed. We are excited about the revenue pickup from Symmetry products and Symmetry Plus launch in Q4. - [Steven M. Foster](CEO) and [Kevin Williamson](CFO)

Contradiction Point 2

Integration of SiVantage and Tenon Teams

It involves differing statements about the integration of the SiVantage and Tenon teams, which is crucial for the success of the merger and the company's overall performance.

What's the update on SiVantage integration? - [Thomas McGovern](Maxim Group)

2025Q3: Integration is nearly complete, with hearts and minds won. SiVantage team and Tenon team are performing as one. SImmetry+ alpha launch on track, indicating smooth integration. - [Steven Foster](CEO)

What steps are required to finalize the merger, and are shareholder votes needed? - [Scott Robert Henry](Alliance Global Partners, Research Division)

2025Q2: The merger is closed and approved. We are awaiting the filing of audited financials for SiVantage for 2024 and its review period for 2025, which needs to be completed within 75 days post-close. - [Kevin Williamson](CFO)

Contradiction Point 3

General and Administrative Expenses (G&A)

It involves differing expectations for G&A expenses, which are important for understanding the company's operational efficiency and financial health.

Should G&A expenses be expected to be $2.1 million to $2.2 million quarterly? - [Scott Henry](Alliance Global Partners, Research Division)

2025Q3: Around that number. Some onetime integration costs, but also increased expenses going forward due to SiVantage acquisition. Closer to Q3 number but slightly lower. - [Kevin Williamson](CFO)

What is the long-term run rate for G&A expenses, and how much of that is one-time integration expenses versus structurally higher costs? - [Nicholas Sherwood](Maxim Group LLC, Research Division)

2025Q2: Our G&A expenses for the quarter were $2.1 million, an increase of $0.5 million from the prior year. Our G&A expenses include various expenses such as salaries, benefits, and legal and accounting costs. - [Kevin Williamson](CFO)

Contradiction Point 4

Product Revenue Expectations and SiVantage Integration

It involves expectations for product revenues and the integration of the SiVantage acquisition, which are crucial for the company's growth and financial performance.

What was the SiVantage base revenue component in the $1.2 million? - [Scott Henry](Alliance Global Partners, Research Division)

2025Q3: We're early, with just 2 months of SiVantage product contribution. Primary driver was record Catamaran procedures at $1.1 million. Base SImmetry technology, not SImmetry+, was the rest of the revenue. SImmetry+ alpha launch will start soon, adding to revenues going forward. - [Steven Foster](CEO)

What is your outlook for revenue trajectory this year? Do you expect sequential growth in each quarter? How should we model 2Q revenue growth? - [Scott Henry](Alliance Global Partners)

2025Q1: We anticipate incremental growth quarter-over-quarter due to anticipated coding clarifications and continued onboarding of commercial resources. - [Steve Foster](President & CEO)