Tenon Medical, Inc.

Greetings and welcome to the Tenon Medical Fourth Quarter and Full Year 2025 Financial Results and Corporate Update Conference Call. As a reminder, this 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 fourth quarter and full year ended December 31, 2025. 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.

Thank you, Shamali, and good afternoon to everyone. I'm pleased to welcome you to today's fourth quarter and full year 2025 financial results and corporate update conference call for Tenon Medical. Our fourth quarter and full year 2025 results demonstrate continued momentum in executing our strategic growth initiatives within our unique structure. We achieved record full year revenue of $3.9 million, a 20% increase compared to 2024, driven by strong second half momentum, with fourth quarter revenue of $1.5 million, representing a 92% increase over the prior year period. The increase in revenue for the year was primarily driven by growth in surgical procedures across both the Catamaran and Symmetry Plus platforms in the back half of 2025, led by new physician users. To support that clinical engagement, we hosted 24 physicians in targeted training sessions for both platforms during the fourth quarter alone. Importantly, Alongside top-line expansion, we leveraged operational effectiveness initiatives to achieve a reduction in cost of sales, reflecting improved operational efficiencies, better field productivity, and greater leverage within our commercial infrastructure. We believe these gains underscore the effectiveness of our execution strategy alongside growing market awareness of our differentiated technologies. During the quarter, Tenon achieved several significant milestones that meaningfully strengthened our competitive position and laid the groundwork for continued growth in the coming year. Most notably, we received FDA 510 clearance for the next generation Symmetry Plus SI joint fusion system, expanding our portfolio to include a complementary lateral approach alongside Catamaran. This milestone enhances our ability to serve a broader range of surgeon preferences and patient anatomies. We also successfully initiated and completed early clinical cases with Symmetry Plus, marking an important step in the system's commercial rollout. These procedures performed at leading centers of excellence, validate the system's readiness for broader market adoption, and provide valuable real-world feedback as we scale development. To support these strategic enhancements, we strengthened our balance sheet through a $2.85 million at-the-market pipe financing that provides flexibility to expand our commercial organization, support our product rollout initiatives, advance clinical programs, and continue building operational infrastructure. Subsequent to quarter end, we further strengthened our financial position by closing a private placement of senior convertible notes for gross proceeds of $4.3 million. Net proceeds will fund continued commercial expansion, upcoming product launches, clinical studies, working capital, and general corporate purposes. Collectively, these accomplishments demonstrate disciplined execution across regulatory, clinical, and financial fronts. With an expanded product offering, growing clinical validation, and enhanced financial flexibility, we believe that Tenon exited the quarter and year well-positioned to accelerate adoption, deepen our market penetration, and drive sustained growth in the quarters and years ahead. We also expanded our intellectual property portfolio subsequent to quarter end, receiving notices of allowance from the U.S. Patent and Trademark Office for multiple applications expected to issue in 2026. This brings our global estate to 29 issued U.S. patents, nine international patents, and 31 pending applications, further reinforcing the defensibility of our platform around both the Catamaran and Symmetry technologies. Looking ahead, we remain firmly committed to advancing our strong market position with increased adoption across our expanding portfolio, now bolstered by the recent FDA 510 clearance of the Symmetry Plus SI joint fusion system. With this expanded product portfolio, and growing clinical validation, we are leveraging both regulatory and market momentum to drive broader commercial uptake and deepen physician engagement. Building on strong execution in Q4, we are optimizing our cost structure and scaling operations to extend our market reach more efficiently. As we continue to refine our go-to-market strategy and capitalize on multiple surgical approaches across the SI joint fusion landscape, we intend to accelerate revenue growth and deliver sustained value in the quarters ahead.