Tenon Medical Reports Revenue Decline and Increased Net Losses in Q2 2025

Tenon Medical, Inc. reported its financial results for the second quarter of 2025, revealing a decline in revenue and an increase in net losses compared to the same period in 2024. The company generated $564,000 in revenue for the three months ended June 30, 2025, a decrease of 37% from $901,000 in the same quarter of the previous year. For the first half of 2025, revenue totaled $1.29 million, down 20% from $1.62 million in the first half of 2024. The decline in revenue was attributed primarily to a decrease in the number of surgical procedures utilizing the Catamaran System, despite a stable number of implants used per procedure.

The company's net loss for the second quarter of 2025 was $2.77 million, compared to a loss of $3.83 million in the same quarter of 2024. For the six months ended June 30, 2025, the net loss was $6.39 million, down from $7.40 million in the prior year. The reduction in losses was supported by a decrease in total operating expenses, which fell to $3.10 million in the second quarter from $4.34 million in the same period last year. This decrease was driven by lower research and development, sales and marketing, and general and administrative expenses.

In terms of operational developments, Tenon Medical has focused on expanding its market presence and product offerings. The company recently completed two significant acquisitions: the SImmetry Acquisition and the SIMPL Acquisition, both finalized on August 1, 2025. These acquisitions are expected to enhance Tenon's product portfolio in sacroiliac joint fixation and fusion procedures. The company also reported an increase in its employee headcount, reflecting its commitment to building a robust sales and marketing infrastructure to support the Catamaran System.

As of June 30, 2025, Tenon Medical had cash and cash equivalents of $7.85 million, an increase from $6.54 million at the end of 2024. However, the company expressed concerns regarding its liquidity, indicating that its existing cash reserves may not be sufficient to meet operational needs for the next twelve months. Management plans to raise additional capital through public or private equity offerings, debt financing, or collaborations to support ongoing operations and product development.

Looking ahead, Tenon Medical remains focused on increasing the adoption of the Catamaran System while navigating the challenges of a competitive medical device market. The company anticipates that the recent acquisitions will provide new growth opportunities and enhance its market position. However, it also acknowledges the uncertainties surrounding future revenues and the need for additional funding to sustain its operations and growth initiatives.