Executive Summary

Tenon Medical reported revenue of $0.071M in Q1 2022, up 373% year over year, driven by an 80% increase in procedures and higher revenue per procedure under an amended national distribution agreement . Gross margin fell to -283% (gross loss of $0.204M) as the company scaled operations; net loss was $2.353M (diluted EPS of -$2.38) as Tenon built infrastructure for commercialization .
Subsequent to quarter-end, Tenon closed a $16M IPO and listed on Nasdaq (TNON), providing growth capital for hiring, product development, and sales/clinician training initiatives . The offering priced at $5.00 per share, with 3,200,000 shares sold, and included customary underwriter warrants .
Commercial readiness advanced: initial cases completed and 9 physician workshop events hosted by March 31, 2022, with clinician feedback characterized as “remarkably positive” for the CATAMARAN SIJ Fusion System .
No formal financial guidance or Wall Street consensus estimates were available; S&P Global estimate retrieval was unsuccessful at this time (S&P Global data unavailable). Stock reaction catalysts near term center on commercialization ramp and reimbursement traction, supported by fresh IPO capital .

What Went Well and What Went Wrong

What Went Well

Rapid YoY growth: revenue rose 373% to $0.071M, supported by an 80% increase in CATAMARAN procedures and higher revenue per procedure under the amended national distribution agreement .
Commercial milestones: “finalizing our commercial ready product, the CATAMARAN SIJ Fusion System and the completion of our first successful cases,” with 9 physician workshops generating “remarkably positive feedback” per CEO Steve Foster .
Strategic positioning: Chairman Rich Ferrari emphasized Tenon’s focus on SI‑Joint dysfunction (15–30% of lower back pain) and belief in unique positioning to drive adoption and shareholder value .

What Went Wrong

Margin compression: gross margin fell from 27% to -283% YoY due to higher operations overhead and spending, yielding a gross loss of $0.204M .
Elevated OpEx and losses: operating loss expanded to $2.079M and net loss to $2.353M, as Tenon built infrastructure to support future growth and transitioned to an operating company .
Limited scale: revenue base remains small ($0.071M) at early commercialization; management noted expectation to incur additional losses in the future .

Financial Results

Consolidated P&L and EPS (YoY comparison)

Metric	Q1 2021	Q1 2022
Revenue ($USD Millions)	$0.015	$0.071
Gross (Loss) Profit ($USD Millions)	$0.004	-$0.204
Gross Margin (%)	27%	-283%
Operating Loss ($USD Millions)	-$0.189	-$2.079
Net Loss ($USD Millions)	-$0.201	-$2.353
Diluted EPS ($USD)	-$0.24	-$2.38
Weighted Avg Diluted Shares (000s)	830	990

KPIs and Balance Sheet Highlights

KPI / Balance	Q1 2021	Q1 2022
Procedures Growth YoY (%)	—	80%
Physician Workshops (Cum)	—	9
Cash & Cash Equivalents ($USD Millions)	$2.917	$4.677
Inventory ($USD Millions)	$0.188	$0.602
Total Assets ($USD Millions)	$9.272	$7.145
Total Liabilities ($USD Millions)	$16.185	$16.241

Notes: “Procedures Growth YoY” reflects commentary; workshops cumulative as of March 31, 2022 . Balance sheet values are as of December 31, 2021 and March 31, 2022 respectively .

Guidance Changes

No formal quantitative guidance was provided in the Q1 2022 8‑K/press release. Management indicated the IPO proceeds plus existing cash would fund personnel, product development, sales/marketing, clinician training, and clinical marketing activities .

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q2 onward	None	None	Maintained (no guidance)
Gross Margin	FY/Q2 onward	None	None	Maintained (no guidance)
OpEx	FY/Q2 onward	None	None (investing for growth)	Maintained (no guidance)
EPS	FY/Q2 onward	None	None	Maintained (no guidance)
Cash Runway	FY/Q2 onward	None	Funded by $16M IPO + cash	New qualitative update

Earnings Call Themes & Trends

No Q1 2022 earnings call transcript was found for Tenon Medical; we searched earnings-call-transcript and other-transcript documents (none available) [ListDocuments: earnings-call-transcript returned 0]. We instead track narrative from the Q1 press release and S‑1/A.

Topic	Previous Mentions (Q-2, Q-1)	Current Period (Q1 2022)	Trend
Commercialization readiness	—	Product finalized; initial cases completed; 9 workshops; positive clinician feedback	Improving
Reimbursement context	Medicare/Private payor backdrop in S‑1/A risk factors	Early commercialization; distribution agreement supports pricing per procedure	Neutral/Pending
Distribution strategy	National distribution agreement terms in S‑1/A (SpineSource; 60% of net sales)	Higher revenue per procedure following amended & restated agreement	Positive economics per procedure
Operating investments	—	Scaling operations and infrastructure; OpEx up; margins compressed	Near-term pressure
Capitalization	—	Subsequent $16M IPO; Nasdaq listing	Strengthened

Management Commentary

“Tenon Medical kicked off 2022 achieving a tremendous milestone with our transition to a public company…finalizing our commercial ready product, the CATAMARAN SIJ Fusion System and the completion of our first successful cases…we have hosted a total of 9 physician workshop events…positive feedback…” — Steve Foster, CEO & President .
“We formed Tenon in 2012 to develop the CATAMARAN SIJ Fusion System…Studies indicate that 15 to 30% of all lower back pain is associated with the SI‑Joint. We believe Tenon is uniquely positioned to grow the adoption…while driving significant value creation…” — Rich Ferrari, Founder & Chairman .
Use of proceeds and operating plans: IPO proceeds plus cash will fund hiring, product development, sales/marketing including clinician training and clinical marketing .

Q&A Highlights

No Q1 2022 earnings call transcript was available; we searched for earnings-call-transcript and other-transcript documents and found none [ListDocuments: earnings-call-transcript returned 0]. No Q&A themes to report.

Estimates Context

We attempted to retrieve Q1 2022 consensus EPS and revenue via S&P Global; request failed due to system limit, and estimates were unavailable for comparison at this time. As a result, there is no beat/miss assessment against Wall Street consensus (S&P Global data unavailable).

Key Takeaways for Investors

Early commercialization traction with strong clinician engagement (9 workshops) and initial cases; watch quarterly procedure counts and workshop cadence as leading indicators of adoption .
Revenue base is still small ($0.071M) but growing rapidly YoY; margin pressure reflects scale-up costs—monitor gross margin trajectory as volumes rise .
Distribution economics matter: SpineSource agreement (60% of net sales to distributor) supports revenue per procedure but constrains gross margin until scale and cost structure normalize .
Capital runway improved post-IPO ($16M) and Nasdaq listing; focus on deployment toward clinician training, clinical marketing, and product refinement .
Reimbursement variability and payor documentation requirements remain key risks to adoption; track policy changes and published clinical outcomes per S‑1/A risk factors .
Near-term trading likely sensitive to commercialization news flow (site activations, surgeon onboarding) and any updates on reimbursement/coverage; absence of guidance means progress must be inferred from operational KPIs .
Without consensus estimates, framing results is about execution vs. milestones; next quarters should emphasize procedure growth, revenue scaling, and improving unit economics .

Research Notes:

Documents read in full: Q1 2022 8‑K press release and exhibits ; IPO/pricing 8‑K exhibits et al.
Prior two quarters’ earnings materials not found; we searched 8‑K 2.02 and press releases Oct 1, 2021–Mar 31, 2022, with no results [SearchDocuments returned 0].
Earnings call transcript not found; we searched earnings-call-transcript and other-transcript types (none available) [ListDocuments returned 0].

Tenon Medical, Inc. (TNON)·Q1 2022 Earnings Summary