Tenon Medical Inc. Common Stock (TNON)

FairStock Score: 41/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I look for durable businesses with healthy finances and a margin of safety. Tenon fails most of my tests. It sells the Catamaran SI-Joint Fusion System for lower back pain, and revenue is moving in the right direction: in fiscal 2025, the year ended 2025-12-31, revenue was $3.9 million, up from $3.3 million in fiscal 2024, the year ended 2024-12-31, and $2.9 million in fiscal 2023, the year ended 2023-12-31. The latest quarter, fiscal Q2 2026, the quarter ended 2026-06-30, showed $1.3 million of revenue versus $564,000 in fiscal Q2 2025, the quarter ended 2025-06-30. But the company lost $4.0 million in that quarter. Its net losses were $15.6 million, $13.7 million, and $12.6 million in fiscal 2023, fiscal 2024, and fiscal 2025, respectively. That is not a business earning its cost of capital. FairStock reports a Piotroski F-Score of 2/9 and an Altman Z-Score of -13.48, both signaling severe financial weakness. Debt to equity is 2.57. Trailing free cash flow is negative $12.1 million, a -133.6% FCF yield on a $9.0 million market cap at the 2026-10-13 close of $2.89. Valuation offers no margin of safety: FairStock's P/B is 3.98, and its P/E is -0.07. The company has a differentiated device and rising sales, but no durable moat is evident. I would need to see much lower cash burn and a stronger balance sheet before considering the shares a bargain. Until then, this is speculation, not investment.

In plain English: Tenon Medical makes a surgical implant system called Catamaran for severe lower back pain caused by the sacroiliac joint. It is a tiny company that is growing sales but still losing a lot of money and burning cash. At the recent $2.89 close on 2026-10-13, the stock looks expensive compared with the company's sales and accounting value, and the business looks financially weak.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer