[Management View]
Tenon Medical reported $564,000 in revenue for fiscal Q2 2025, down from $901,000 in fiscal Q2 2024. The gross margin decreased to 43% from 52% YoY. Operating expenses were reduced by 29% to $3.1 million. The company completed the acquisition of CyVantage, enhancing its product portfolio and commercial capabilities. The Catamaran SE implant is set for a full commercial launch, and the Symmetry Plus system will begin alpha surgeries in Q4.

[Outlook]
Tenon Medical expects to see increased revenue from the CyVantage acquisition and the upcoming launches of Catamaran SE and Symmetry Plus. The company is focused on expanding its market access and clinical validation to drive top-line growth.

[Financial Performance]
- Revenue: $564,000 in Q2 2025, down from $901,000 in Q2 2024
- Gross Margin: 43% in Q2 2025, down from 52% in Q2 2024
- Operating Expenses: $3.1 million in Q2 2025, down from $4.3 million in Q2 2024
- Net Loss: $2.8 million in Q2 2025, down from $3.8 million in Q2 2024
- Cash Balance: $7.8 million as of June 30, 2025, up from $6.5 million as of Dec. 31, 2024

[Q&A Highlights]
Question 1: Do you want to achieve scale to leverage the cost and the whole business model? Do you think this could help bring you scale, make the company more viable in the big picture?
Answer: The acquisition of CyVantage provides a pathway to scale, enhancing access to hospital systems and contract groups. It diversifies Tenon's product offerings, allowing for multiple approaches to sacropelvic issues. The acquisition also brings experienced personnel, which will enhance commercial capabilities.

Question 2: Can you talk to the combined revenue, combined OpEx, gross margin picture?
Answer: Audited financials for CyVantage will be filed within seventy-five days post-close. The acquisition is expected to provide immediate revenue pickup, with significant contributions from the Symmetry product line and the upcoming Symmetry Plus launch.

Question 3: Is there anything that needs to be done to complete this merger? Are there any votes or is this final?
Answer: The merger is closed and approved. The only remaining item is the filing of audited 2024 financials and a sub-review period for 2025 for CyVantage.

Question 4: How should we think about Catamaran revenues sequentially in the third quarter and fourth quarter?
Answer: Q2 was impacted by the focus on the CyVantage acquisition, but the company expects a quick recovery in Catamaran revenues. The combined rollout in Q4 is expected to drive significant growth.

Question 5: What is the incremental physician and hospital network acquired through the acquisition? Have you begun cross-selling to these partners?
Answer: There is overlap between the physician and hospital networks of Tenon and CyVantage. Cross-selling and training have already begun, with immediate integration of the sales process.

Question 6: What is the reimbursement landscape for the Symmetry product and Symmetry Plus product?
Answer: The CyVantage technology participates with existing SI joint CPT codes, similar to Catamaran. The company is well-positioned with data to support coverage of these technologies.

Question 7: What kind of color can you give us on the Symmetry Plus launch?
Answer: Alpha surgeries for Symmetry Plus are expected to begin in October, with a full-scale launch anticipated in early next year. The technology offers a lateral approach with compelling features for physicians.

[Sentiment Analysis]
Analysts were generally positive and optimistic about the strategic acquisition and upcoming product launches. Management displayed confidence in their growth strategy and the potential for increased market access and revenue.

[Quarterly Comparison]
| Metric | Q2 2025 | Q2 2024 |
|-----------------------|-----------------|-----------------|
| Revenue | $564,000 | $901,000 |
| Gross Margin | 43% | 52% |
| Operating Expenses | $3.1 million | $4.3 million |
| Net Loss | $2.8 million | $3.8 million |
| Cash Balance | $7.8 million | $6.5 million |

[Risks and Concerns]
- Lower procedure volumes impacting revenue and gross margin
- Integration risks associated with the CyVantage acquisition
- Dependence on successful product launches and market adoption

[Final Takeaway]
Tenon Medical's Q2 2025 results reflect a strategic pivot with the acquisition of CyVantage, aimed at enhancing its product portfolio and commercial capabilities. Despite a decline in revenue and gross margin, the company is poised for growth with the upcoming launches of Catamaran SE and Symmetry Plus. The integration of CyVantage is expected to provide immediate revenue benefits and expand market access, positioning Tenon for a strong finish to the year and beyond.