Tenon Medical beats Q4 estimates as shares hit 52-week low
Preliminary results show 90% year-over-year growth but stock plunges amid broader market weakness
Tenon Medical reported preliminary fourth-quarter revenue that exceeded analyst expectations by 29.3%, yet the medical device company's shares have fallen to a 52-week low of $0.67 amid a broader market downturn.
The Los Gatos, California-based company anticipates fourth-quarter 2025 revenue between $1.45 million and $1.48 million, representing approximately 90% year-over-year growth, according to a company announcement. The preliminary top-line performance compares favorably to the $1.1 million consensus estimate among analysts surveyed.
For the full year 2025, Tenon Medical projects revenue between $3.91 million and $3.94 million, marking roughly 20% annual growth. The company plans to release its audited financial results and host a conference call on March 19, 2026.
Despite the strong operational performance, Tenon Medical's stock has declined 30% since January 1, 2026, and has now fallen for seven consecutive trading days. Shares closed at $0.67 on Thursday, well below both the 50-day moving average of $1.20 and the 200-day moving average of $1.24, market data shows. The stock's 52-week high stands at $3.75.
The disconnect between fundamental performance and stock price reflects broader pressures on small-cap healthcare stocks, according to analysts. Tenon Medical's market capitalization has contracted to approximately $10.2 million, even as revenue growth accelerates.
Tenon Medical's growth has been driven by strong commercial execution and product portfolio expansion, including the recent FDA clearance and commercialization of the SImmetry+ SI Joint Fusion System. The company also acquired sacroiliac joint-specific assets from SiVantage, enhancing its position in the sacro-pelvic disorder market.
The company focuses on three commercial opportunities for its Catamaran SI Joint Fusion System: primary SI joint procedures, revision procedures of failed SI joint implants, and augmenting spinal fusion. These applications target a significant market opportunity in minimally invasive treatments for chronic lower back pain.
Management has characterized 2026 as a potential "milestone year" for the company, suggesting continued revenue growth and commercial expansion. One analyst maintains a "Strong Buy" rating on Tenon Medical shares with a $3.00 price target, implying substantial upside from current levels, analyst data indicates.
However, the consensus rating among analysts remains "Hold" due to the stock's recent volatility and small-cap status. The company's negative operating margin of -5.07% and negative earnings per share reflect the ongoing investments required to build its commercial footprint in the competitive orthopedic device market.
Tenon Medical's beta of 1.284 indicates higher volatility than the broader market, which may be contributing to the stock's recent sharp decline despite positive business developments. The company has approximately 8.6 million shares outstanding, with institutional ownership at just 2.96%, suggesting limited analyst coverage and potential liquidity constraints.
Investors will focus on the March 19 earnings call for more details on procedural volume trends, physician adoption rates, and management's outlook for 2026. The preliminary results suggest momentum in the second half of 2025, but the market will be watching for evidence of sustainable growth drivers that could support a stock price recovery from its current 52-week low.