TNON

Greetings, and welcome to the Tenon Medical First Quarter 2026 Financial Results and Corporate Update conference call. As a reminder, this conference 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 first quarter ended March 31, 2026, 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, Sachi, and good afternoon to everyone. I'm pleased to welcome you to today's first quarter 2026 financial results and corporate update conference call for Tenon Medical. We are off to a solid start in 2026. We delivered strong first quarter revenue and gross profit, which were the highest for any first quarter in the company's history. First quarter revenue came in at $1.4 million, nearly double the prior year period, and gross margin reached 68.5%, up from 44.5% a year ago. Two dynamics drove the quarter. More procedures across both of our platforms and a meaningful, more efficient cost base behind those revenues. On the top line, growth came from two places. A higher number of Catamaran cases and the first full quarter of meaningful SImmetry+ contribution since we acquired the SiVantage assets late last August.

Physician engagement is a leading indicator for us as well. On that front, we trained 21 physicians across both systems this past quarter. The most notable development this quarter is the expansion in gross margin. At 68.5%, we are approximately 24% points higher than a year ago. While increased revenue has contributed through improved absorption of fixed production overhead, we are also benefiting from a more streamlined commercial footprint and stronger field productivity. We expect these structural gains to persist going forward. Beyond the financials, a few items from the quarter that are worth noting. First, our two-platform offering is increasingly working the way we had hoped. Physicians are evaluating Catamaran and SImmetry+ as complementary tools in both primary and revision procedures.

These systems provide optionality in both inferior posterior and lateral approaches to the same anatomy, and we are seeing this translate into adoption at several leading centers. Specific to capital, in March, we closed a $4.3 million senior convertible note placement with a group of institutional and high-net-worth investors. That financing extends our runway and gives us the flexibility to keep investing behind commercial expansion, product launches, and our clinical programs without further distraction. Taken together, the quarter gives us a healthier balance sheet, a broader product set actually in the market, and clearer evidence that our cost work is sticking. Our intellectual property position continues to strengthen. The U.S. Patent and Trademark Office issued multiple notices of allowance during the quarter on applications expected to grant later in 2026, on top of the 10 patents that issued in 2025.

Our portfolio today stands at 29 U.S. patents and nine international patents granted with another 31 applications pending. That depth matters for a small cap medical device company. It protects what we have built around Catamaran and SImmetry+. In addition, we've dramatically accelerated our R&D project work. This includes significant incremental additions to the SImmetry+ lateral and oblique platform that will be launched in the back half of 2026. Additionally, in the spirit of providing comprehensive optionality to our physician customers, we are moving towards regulatory submission and subsequent alpha activity on the third approach to the sacro-pelvic anatomy. Lastly, our aggressive commercial activity is highlighted by the addition of an experienced senior sales professional to manage the eastern part of the lower 48.

He will join other members of our commercial team at a newly established training and education center in the Tampa, Florida area, designed intentionally to accelerate our physician and distributor education activities. Looking out over the rest of the year, our focus is very narrow. Keep growing procedure volumes on both platforms, aggressively educate our physician and distribution partners, and protect the gross margin gains we've made this quarter as we scale. We have multiple ways to win in this market, lateral and inferior posterior now, and additional innovations to come. With that, I'll turn the call over to Kevin to discuss our financials in some detail.

Thank you, Steve. I will now provide a summarized review of our financial results. A full breakdown is available in our press release that crossed the wire this afternoon. Starting with the top line, first quarter revenue was $1.4 million, an increase of approximately 90% from $0.7 million a year ago. Two factors are at work here. First, Catamaran surgical procedure volumes saw strong year-over-year growth, driven primarily by new physician adoption. Second, Q1 was the first quarter to fully reflect SImmetry+ revenue since we closed that acquisition in August of last year and alpha launched the system in Q4 2025. Further product enhancements and a full commercial launch of SImmetry+ are planned for in the back half of 2026, which we expect to support continued growth this year and into 2027 and beyond.

Gross profit was $0.9 million, or 68.5% of revenue, versus $0.3 million or 44.5% of revenue in the first quarter of last year. That is an approximately 193% increase in dollar terms and the highest for any first quarter in the company's history. On a margin basis, we picked up about 24% points year-over-year. Driver is straightforward. Higher revenue is spreading our fixed production costs over a larger base, and we expect to see continued margin expansion as revenue scales. Operating expenses came in at $4.2 million, modestly above the $4.0 million we ran in the first quarter of 2025.

The step-up is primarily driven by higher sales and marketing expenses, reflecting increased commercial activity related to higher revenue as well as supporting the SImmetry+ rollout, while partially offset by lower stock-based comp versus a year ago. When normalizing stock-based comp expense year-over-year within R&D, development-related expenses increased in the first quarter versus Q1 2025, driven by project-related activities tied to future product launches, primarily related to assets that were acquired in the acquisition we closed in August of last year. Net loss for the quarter narrowed to $3.5 million or $0.31 per share from $3.6 million or $1.01 per share a year ago. The per-share figure benefits from a larger share count, but on a dollar basis, the improvement is real.

Stronger revenue and gross profit more than offset higher OpEx and the interest expense from the March convertible note issuance. We ended the quarter with $4.6 million in cash and cash equivalents compared to $3.8 million as of December 31st, 2025. In March 2026, the company closed a private placement of senior convertible notes for gross proceeds of $4.3 million, which provides additional runway to fund our commercial and clinical priorities deep into the year. Overall, we believe the financial and strategic actions achieved this quarter have positioned Tenon with initiatives to drive faster growth while sustaining a streamlined and disciplined cost base. I'll now hand the call back to Steve for closing comments.

Thank you, Kevin. In summary, the first quarter of 2026 reflects early returns on the strategy we have been executing against, including approximately 90% year-over-year revenue growth, a 24% point expansion in gross margin to 68.5%, a strengthened balance sheet, and a meaningfully expanded intellectual property portfolio. These results provide a strong platform for continued execution. Building on that foundation, our priorities are clear. Drive continued procedure growth across both Catamaran and SImmetry+, expand our base of trained physicians, and maintain the disciplined cost structure now showing through in our gross margin and field productivity. With this differentiated multi-approach portfolio, a strengthened balance sheet, and a deepening intellectual property portfolio, we believe Tenon is well positioned to build on this quarter's momentum and deliver increasing value to patients, providers, and shareholders.

I thank you all for attending, and now I'd like to hand the call over to our operator to begin our question and answer session with covering analysts. Sachi?

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. The first question is from Scott Henry from AGP. Please go ahead.

Thank you and good afternoon. One of the first questions or the first question I'm going to ask with regards to seasonality. Typically, I think of surgical procedures, being down in the 1st quarter. You've got copay resets and all of that. You know, based on, you know, a typical tough 1st quarter, it seems like we should be very encouraged by the strong numbers relative to Q4. Steve, do you think, is that a fair assessment?

Thanks for the question, Scott. Absolutely fair. Look, the dynamics of, you know, primarily deductible resets are very real. Our physicians have wild and crazy Decembers in particular, which I feel bad for them sometimes the way it piles up, but there's no doubt that's a real factor in all of this. Things tend to settle in Q1. I think that's true for Tenon, just like any other medical device company, especially elective type procedures such as ours. I think that's a fair statement. I think it's very real, and we're encouraged as well by a solid, strong Q1 that gets us off and running here in 2026.

Okay. Thank you. Building off that, you know, how should we think about, you know, at least directionally 2Q relative to first quarter? Are there any launch metrics that you can give us that we can follow to try to gauge the progress of the launch?

Sure. We'll have a busy 2026. SImmetry+, which is our lateral platform that came over with the SiVantage acquisition, has been in alpha since late fall, and is now coming out of alpha into full launch. That's the screw portion of that technology. We have two additional and incremental pieces to that platform that will launch throughout 2026. 1 is involved in the preparation of the joint to create a proper defect to prepare the joint to, you know, be grafted, fixated, and eventually fused. The second component will come out a bit later in the year, which is actually an addition to the construct, which we believe will make the construct more effective. You'll see both of those things happen throughout the course of the year.

The decorticator technology will be first. The additional and incremental implant will be second. On top of that, I mentioned a new technology that we're working on that will be an additional approach to this anatomy that's preferred by many physicians in the space. That'll be towards the end of the year, but we hope to be in alpha with that technology in Q4. All of those will be catalysts for us, along with all the work that's going on just to get Catamaran and SImmetry+ in front of physicians. You know, there's data that backs these technologies. We're very encouraged by the reception of what's been done clinically with those technologies. We're growing across all of those activities. We certainly aren't waiting around for launches to target and grow.

Certainly those, new technologies coming down the pipe will be catalysts as we get to, those alpha starts and then eventually into a full launch.

Okay, great. Final question. I'll give Kevin a chance to chime in. OpEx in first quarter, is that a good baseline going forward? Perhaps it grows a little bit as sales increase. Is that how we should think about that OpEx in first quarter, or is there any noise in that that we should factor in? Thank you.

Good afternoon, Scott. Thanks for the questions. Absolutely. I think it is a good baseline here for the year. We expect to continue to leverage the P&L and improve profitability throughout the year. Growing revenue, expanding margin faster than we're growing OpEx, specifically around the fixed cost. As far as looking at the fixed cost, absolutely a good baseline there. There'll be some investments we make throughout the year. You will see some increase in OpEx, but it'll be at a lower clip than revenue. I think we've been pretty efficient to this point to mix in some strong investments here into Q1 to lay the foundation here for the rest of the year without expanding our fixed costs.

You'll continue to see that throughout the year.

Okay, great. Thank you for taking the questions.

Thanks, Scott.

The next question is from Anthony Vendetti from Maxim Group. Please go ahead.

Yes, thanks. On the new system, the new indication that you expect to have the alpha release in the fourth quarter of 2026, can you talk about a little bit about, from a scientific standpoint, how that is gonna be complementary or differs from the two products that you have now? If you alpha release it in fourth quarter 2026, are you looking to commercialize it, first quarter 2027, second quarter 2027? Do you have that sort of timeline framed out?

Yes. Thanks, Anthony. So two things. One is, we are committed to certain principles when we address various components of the sacro-pelvic anatomy. The core principle is we are a fusion-focused, arthrodesis-focused organization. While we'll explore and introduce new approaches, new instrumentation, new technology to the space, we will stick with our core principles of proper joint preparation, grafting, and fixation. We believe in that deeply. We believe it's frankly something missing in the space, and we'll be consistent with that with all of our launches. I'll go that far with the new technology. If we're going to alpha, which are just early, physician advisory usage to make sure we have every detail taken care of and as much refinement as can possibly be completed with the instrumentation and all aspects of the system.

Then, yes, as you described, right, in Q1 of 2027, we'll be moving into full boat launch for that technology.

Okay, great. In terms of training physicians, sort of how has that evolved for Tenon Medical this year? Can you talk about the plans to accelerate that training or the training programs that you have in place, to get more of these physicians up to speed and aware of your technology?

Well, for us, it's evolved dramatically because we're not a single approach, single technology company any longer, right? We're using a variety of different training tools, training models, things of that nature, whether a physician wants to focus on an inferior posterior approach to the anatomy, a lateral or oblique approach to the anatomy or other. That's perhaps number one on the evolved question. I hope it's indicative of how enthusiastic we are that we're investing in this training facility in Tampa that'll be a fully equipped training facility. It really allows us the opportunity to bring people in, whether they are interested physicians or distribution partners that need, you know, some cadence and some repetitive work on the instrumentation sequencing, the technology themselves, et cetera. We're very enthusiastic.

You know, our demand has got to the point where it makes sense for us to make that investment, and we really look forward to having it online, which it is now, and making things happen here going forward.

Okay, great. Is there anything that you're doing specifically to try to increase conversion rates where you're just like, okay, you know, they've been trained or they know the product. You know, how do you go about making sure that or not that you can ensure it, but that you can convert physicians from trying the product or demoing it to in, you know, making it part of their ongoing practice?

Sure. Yeah. Our mission is relatively simple. It's done in a complex environment, right? The first thing we have to do is be compelling with the physician. If you can't sit down and convince them, "Hey, this is worth your time to take a look at, to spend some time with," et cetera, and that's usually a combination of, you know, everything that you've done with the technology itself, the clinical research you've done, et cetera, things that compel them to take time out of a very busy schedule to take a look. That's it, clearly. When they get interested, the second sort of level of complexity kicks in, where you have to go through approval and access processes at these facilities, right? They have thcommittees and things of that nature.

This is the area to your question, you know, Anthony, where we are making some investments. We have to get better at, more efficient at getting through those processes and making sure we're leveraging everything that we have. The SiVantage acquisition gave us some access that we didn't have previously, you know, previous to the transaction. Putting all of that together and making sure that we give ourselves as many opportunities to open the door to access to the physicians to use in those facilities, that's a big challenge for us organizationally, something we're spending a lot of time, energy, and effort on.

Okay. Lastly for Kevin, you know, gross margin was very strong at 68.5%. You know, high 60s, is that, is that a good gross margin to look at for the rest of 2026? I, I believe, and certainly Kevin chime in and tell me if I'm wrong here, but I believe, you know, at a, at a larger revenue base in 2027 and beyond, the expectation is for that gross margin to be 70% plus, correct?

Correct. Yeah, thanks, Anthony. We spoke to that before. As we continue to scale revenue, we will continue to absorb some of those fixed costs. They're not very large fixed costs, but as we get our revenue base up, we'll absorb them, and margin will continue to expand, you know, really up towards and up to the ceiling of what our true product margin is, as you absorb those kind of, you know, logistics-based costs in there. Yes, we expect, you know, high 60s is a good place to be. We expect to increase from here. I think we're gonna be very happy with where our margin gets to here over the coming quarters and into 2027.

Excellent. Okay, great. Thanks so much. Appreciate all the color. I'll hop back in the queue.

This concludes the question and answer session. I'd like to turn the floor back over to Steve Foster for closing comments.

Thank you, Sachi. I'd like to thank each of you for joining our earnings conference call today. Look forward to continuing to update you on our ongoing progress and growth. If we were unable to answer any of your questions, please reach out to our IR firm, MZ Group, who will be more than happy to assist. With that, I wish everyone a good day.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

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 SImmetry+ platforms in the back half of 2025, led by new physician users. To support that clinical engagement, we hosted 24 physicians and 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 lay the groundwork for continued growth in the coming year. Most notably, we received FDA 510(k) clearance for the next-generation SImmetry+ 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 SImmetry+, 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, 9 international patents and 31 pending applications, further reinforcing the defensibility of our platform around both the Catamaran and SImmetry 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(k) clearance of the SImmetry+ 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. With that, I'll turn the call over to Kevin to discuss our financials.

Thank you, Steve. I will now provide a summarized review of our financial results. A full breakdown is available in our press release that crossed the wire this afternoon. Revenue for the fourth quarter of 2025 was $1.5 million, an increase of 92% compared to $0.8 million in the fourth quarter of 2024. Revenue for the 12 months ended December 31, 2025, was $3.9 million, an increase of 20% from $3.3 million during the prior year period. The increase in the fourth quarter was primarily due to growth in surgical procedure volume across both the Catamaran and SImmetry+ platforms, driven primarily by new physician adoption. The increase in revenue for the year was driven by sales growth and momentum we saw in the back half of the year, which we expect to continue throughout 2026. Gross profit was $1 million or 69% of revenue in the fourth quarter of 2025 compared to $0.4 million or 46% of revenue in the prior year quarter, an increase of 188% and a 23 percentage point improvement in gross margin. For the 12 months ended December 31, 2025, gross profit was $2.4 million or 60% of revenue, compared to $1.7 million or 52% of revenue for the previous year's period, a 38% increase and an 8 percentage point improvement in gross margin. The gross margin improvement for the quarter and full year was primarily driven by higher revenue and the further absorption of fixed costs within our cost of goods sold. We expect gross margin to continue to improve with further revenue growth. Operating expenses totaled $3.9 million for the fourth quarter of 2025, up from $3.5 million in the prior year quarter. For the 12-months ended December 31, 2025, operating expenses totaled $15.2 million compared to $15.5 million in the prior year period. The increase in the fourth quarter was primarily due to higher variable expenses within sales and marketing, driven by increased revenue in the period, while the decrease in the year ended December 31, 2025, was due to reduced general and administrative expenses, partially offset by increased sales and marketing investments to support increased sales and continued commercial expansion. Net loss for the fourth quarter was $2.8 million or $0.29 per share compared to a net loss of $3.1 million or $0.98 per share in the fourth quarter of 2024. For the 12 months ended December 31, 2025, net loss was $12.6 million or $1.70 per share compared to $13.7 million or $11.26 per share in the same year ago period. The year-over-year improvement in both periods, was largely driven by increased revenue as well as reduced general and administrative expenses, which together improved operating leverage across the business. We ended the quarter with $3.8 million in cash and cash equivalents compared to $6.5 million as of December 31, 2024. The company had no outstanding debt as of quarter end. Subsequent to quarter end, we closed a $4.3 million private placement of senior convertible notes, which provides additional runway to fund our commercial and clinical priorities deep into 2026. Overall, we believe the financial and strategic actions implemented both this quarter and throughout the year have positioned Tenon to drive continued growth in 2026 while sustaining a streamlined and disciplined cost base. I'll now hand the call back to Steve for closing comments.

Thank you, Kevin. In summary, we believe that the fourth quarter and full year of 2025 served as a pivotal inflection point for our company, delivering meaningful progress across our key priorities, including record top line performance, the commercial debut of SImmetry+ and the advancement of important regulatory and clinical programs. These achievements created a strong platform for continued execution. Building on that foundation, we have entered the current quarter with increased traction across our commercial channels and tighter operational discipline through optimizing our expense base and driving efficiencies throughout the organization. With expanding engagement from physicians and continued progress across our pipeline, we believe this strengthening momentum supports sustainable growth and long-term value creation for patients, providers and shareholders alike. I thank you all for attending. And now I'd like to hand the call over to our operator to begin our question-and-answer session with covering analysts. Shamali?

[Operator Instructions] Our first question comes from the line of Scott Henry with Alliance Global Partners.

Really strong results for the fourth quarter. So just had a couple of questions on that. First, on the expense line, the operating expenses were down sequentially even with the addition of the other business. How representative do you think the Q4 rate is for 2026? Sometimes there's timing or seasonality issues, but just trying to get a sense of that $3.9 million in Q4 '25. Should we think about that as a baseline going forward? Or are there some unique situations that come into play?

Yes. Thank you, Scott, for the question. This is Kevin. Happy to answer that. So I think we talked about this a little bit last quarter as well. And I think, yes, this becomes a better baseline in Q4 moving forward into '26 for an expense line, total operating expense. And I think you're seeing two things there. Some higher integration and deal-related costs that were in Q3 that increased that operating line, those falling out in Q4, but then seeing a little bit higher variable expense around higher revenue to offset some of that, ultimately landing you though at a better run rate here in Q4 and moving forward. So it's a good metric to use to look at the business moving into '26.

Okay. Great. And then on the revenue side, $1.5 million in the quarter, annualizing at $6 million. I guess two questions. How do you think about 2026 relative to that $6 million run rate? And specifically first quarter, which only has about 11 days left, how do we think about that sequentially from fourth quarter?

Scott, this is Steve Foster. I'll comment just quickly. While we don't give future projections at this point, given our early stage, we're really excited about two things. One, the adoption momentum out there. We set records in all aspects, every metric of our business with incremental users with total surgeries done, our SImmetry+ alpha, these early surgeries to make sure the technology was meeting physician expectations, exceeded all expectations. The adoption rate was really high, a lot of enthusiasm about that product as well. And then lastly, I'll point to a very, very engaged and active pipeline. The transaction we did with SiVantage last year not only loaded what we're capable of selling at that moment, but perhaps more importantly, loaded technologies into our development pipeline, and those things are moving through quite efficiently. And we really do think once these things start hitting in 2026, they can have a meaningful impact on what we're able to achieve in 2026. So lots of excitement within the organization and confidence that we can meet and exceed expectations in '26.

Sorry, Scott. I'll go ahead and add a couple of points there, maybe to think about -- yes, as you look at revenue throughout the year in '26. So as you recall, we launched SImmetry+ in Q4, and that was right in the middle of Q4, November time frame. So a successful alpha there. We'll be commercializing SImmetry+ throughout the year here in '26. As Steve mentioned, some products in the pipeline that we plan to launch here in '26 will also be catalysts as well. So when you look at the momentum we built in the back half of the year, and you saw the incremental increase there between Q3 and Q4, we feel good about that momentum continuing. And then you bake-in the initiatives we have throughout the year. I think when you look at the year in general, you're typically going to see a higher Q4 as revenue increases, especially as those initiatives bake throughout the year. So likely on that track, but we feel good about taking that $6 million run rate that we're now on, as you mentioned, Scott, into Q1 here and then driving revenue through the catalyst throughout the year.

Okay. Great. And just the final question, just kind of qualitatively, when you look out to 2026, what do you see as your key driver for this revenue growth? Because you have a lot of things going on. You have SImmetry+, we've got the Catamaran SE launch, you've got SiVantage. Is there anything that kind of jumps out as leading the way in your opinion?

Yes, I'll take it real quick and then Kevin jump in if you'd like. Yes, what jumps to me is, look, we now have built a multiproduct portfolio that can address a ton of variables, whether it's approach to the anatomy variables, whether it's patient variables, et cetera. And physicians are seeing now that, that tool bag that they have that Tenon Medical provides is not only diverse, but it's backed by data. It's something they can count on. And so now that we've built that foundation, it really is for us about commercial expansion and execution in 2026. So what are you going to feed into that? You mentioned them, Scott, with Catamaran SE with SImmetry+, et cetera. But we also have other launches of new product, which we'll talk about here very shortly as they sort of come into view and as we prepare for FDA submissions and what have you, that we also think are going to continue to be very compelling for our physician customers. They're looking for solutions for the patients. We want to be there for them for every aspect of the sacropelvic challenges that they deal with. So that's how I would comment. Kevin, do you have anything to add there?

No, well said, Steve.

Our next question comes from the line of Anthony Vendetti with Maxim Group.

Yes. Steve, I was wondering if you could just talk a little bit about the launch of SImmetry+. And then maybe just what the physicians are saying now that you have a broader portfolio? Is that helping you gain access to more prospective physicians or medical centers? So maybe we'll start with that.

Yes, Anthony, thank you. It does. So when we were a single product organization, Catamaran got attention, people were excited about it, and there was a lot of good stuff going on. But no matter how you cut it, you're still a single solution provider. The SiVantage transaction now makes us a multi-solution provider. Okay, what's multiple solutions mean? Well, for the physicians, it's, okay, what does this patient really need? And how do I want to approach this anatomy. There are inferior-posterior approaches, lateral approaches, oblique approaches, et cetera. And it's usually driven by what the patient needs and sometimes it's driven by the physician's preference and what they prefer, how they were trained, things of that nature, right? And so now you can sit down with the physician and deliver multiple options for them. It's more of a full bag of options rather than a one-dimensional option for them. And that is -- that it is opening doors for us. You mentioned SImmetry+. SImmetry+ is a lateral and oblique technology. The reaction to the implant itself has been extremely positive. It's a 3D-printed technology. And I think perhaps more importantly, is the instrument set, the tools that they use to put the implant in have been recognized as highly refined, very efficient and something that the physicians really like. Last thing I'll say real fast is SImmetry+ is an interesting one, right? It's a phased launch. And when I say that, the first thing that came out was the SImmetry+ screw. We have additions to the way we can do that construct coming down the pipe throughout 2026 that we're very excited about. Again, we'll talk more in detail about it when we get closer to FDA submissions. But suffice to say that SImmetry+ will include the ability to decorticate the joint appropriately, prep it, graft it and fixate it with the technology. So we're really encouraged by the initial reaction to SImmetry+ and the screw itself, and there's a lot more to come.

Okay. Great. And then maybe just the last couple of questions here is on -- for a lot of these physicians, some of these products are new. How do you balance that, the training with the selling? And then do you feel like this really gives you the portfolio you need? Or is there something else that you're looking at that would really round it out in terms of making it a more compelling offering?

No, it's a great question. So really two buckets of activity, that are probably pretty typical to medical device companies, right? One, you're trying to make your existing technology sticky. You want people to stick with it, stay excited about it, et cetera. And that's a lot of refinement and making sure that technology and that system is delivering at a high level. And then, of course, that second bucket is what you're talking about, which is, hey, look, what's next? What else, right? And I alluded a little bit to it earlier. We'll have some technology to talk about here, again, that's getting very close to submission to FDA that we really are extraordinarily excited about. Provides, again, even more flexibility and optionality to the physician who's treating these various maladies in the sacro-pelvic region. And it's interesting because -- and we talked a little bit about this before, Anthony, there are primary cases here, there are revision cases where something has already been tried and for whatever reason, it didn't work out very well. And then there's this entire bucket of an adjunct to a complex multilevel spine procedure that is just now sort of emerging within what we're capable of doing. And so we'll be hitting all three of those spaces really hard with our existing and our newly developed technology. And yes, just a lot of enthusiasm for 2026 going forward.

Thank you. And we have reached the end of the question-and-answer session. Therefore, I'll now turn the call back over to Steve Foster for closing remarks.

Great. Thank you, Shamali. I'd like to thank each of you for joining our earnings conference call today and look forward to continuing to update you on our ongoing progress and growth. If we were unable to answer any of your questions, please reach out to our IR firm, MZ Group, who will be more than happy to assist. And with that, I wish everyone a good evening.

Thank you. And this concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.