Tenon Medical (TNON) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 revenue of $1.4 million, nearly doubling year-over-year, with gross margin rising to 68.5% from 44.5% last year.

• Growth driven by increased procedure volumes and adoption of Catamaran and SImmetry+ platforms, with SImmetry+ contributing its first full quarter since acquisition.

• 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 31 applications pending.

• Opened a new training and education center in Tampa and expanded sales leadership in the Eastern region.

Financial highlights

• Revenue rose 90% year-over-year to $1.4 million, with gross profit up 193% to $0.9 million and gross margin at 68.5%.

• Operating expenses increased to $4.2 million from $4.0 million year-over-year, mainly due to higher sales and marketing costs.

• Net loss per share improved to $0.31 from $1.01 year-over-year.

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

• Weighted average shares outstanding increased to 11.3 million from 3.6 million year-over-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.

• Multiple product launches and alpha releases planned for 2026, with a new technology moving to full launch in Q1 2027.

• Focus remains on driving procedure growth, expanding trained surgeon base, and maintaining disciplined cost structure.