Tenon Medical continues to burn cash, reporting ten consecutive quarters of negative free cash flow with quarterly deficits consistently exceeding $2.2 million.
| Cash from Operations | -11.22M | -10.74M | -9.88M | -12.18M | -12.03M | -4.29M | -167.36K | -235.2K |
| Operating CF Margin % | - | -272.44% | -301.43% | -416.09% | -1740.23% | -2682.5% | -381.93% | -438.48% |
| Operating CF Growth % | -53.99% | -8.78% | 18.92% | -1.31% | -180.17% | -2464.49% | 28.84% | - |
| Net Income | -12.38M | -12.56M | -13.67M | -15.58M | -18.92M | -7.08M | -705.37K | -509.58K |
| Depreciation & Amortization | 576K | 530K | 655K | 426K | 289K | 114K | 0 | 0 |
| Stock-Based Compensation | 1.15M | 1.69M | 3.85M | 4.14M | 2.9M | 377K | 16.65K | 30.57K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 248K | 16K | 41K | 0 | 1.98M | 1.85M | 167.78K | -24.76K |
| Working Capital Changes | -780K | -426K | -746K | -1.17M | 1.72M | 452K | 353.57K | 268.56K |
| Change in Receivables | -1.11M | -851K | -386K | -290K | -152K | -61K | 39.36K | -53.39K |
| Change in Inventory | -150K | -387K | -52K | -139K | -227K | -145K | 18.26K | -61.55K |
| Change in Payables | 160K | 486K | -64K | -117K | 72K | 444K | 141.28K | 271.34K |
| Cash from Investing | -1.08M | -1.02M | -186K | 6.14M | -2.88M | -4.5M | 0 | 64.49K |
| Capital Expenditures | -329K | -273K | -186K | -361K | -847K | -102K | 0 | 0 |
| CapEx % of Revenue | 7.13% | 6.92% | 5.68% | 12.33% | 122.58% | 63.75% | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -750K | -750K | 0 | 0 | 0 | 0 | 0 | 64.49K |
| Cash from Financing | 6.6M | 8.99M | 14.13M | 6.3M | 14.11M | 11.47M | 254.8K | 321.31K |
| Debt Issued (Net) | 4.3M | 0 | 0 | 1.25M | 0 | 11.83M | 306.62K | 321.31K |
| Equity Issued (Net) | 1.92M | 8.99M | 9.76M | 5.3M | 14.14M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 375K | 0 | 4.36M | -251K | -25K | -358K | -51.82K | 0 |
| Net Change in Cash | -5.7M | -2.78M | 4.11M | 299K | -788K | 2.67M | 93.67K | 151.97K |
| Free Cash Flow | -11.55M | -11.02M | -10.06M | -12.54M | -12.87M | -4.39M | -167.36K | -235.2K |
| FCF Margin % | -250.24% | -279.36% | -307.11% | -428.42% | -1862.81% | -2746.25% | -381.93% | -438.48% |
| FCF Growth % | -14.48% | -9.48% | 19.77% | 2.55% | -192.94% | -2525.43% | 28.84% | - |
| FCF per Share | -1.03 | -1.49 | -8.29 | -55.26 | -127.45 | -389.26 | -16.13 | -22.67 |
| FCF Conversion (FCF/Net Income) | 0.93x | 0.86x | 0.72x | 0.78x | 0.64x | 0.61x | 0.29x | 0.46x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 1K | 66 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 1K | 2.03K | 0 |
Imminent capital exhaustion risk
According to quarterly cash flow statements, Tenon Medical consistently reports operating cash flow deficits that track closely with net losses, with an OCF/NI ratio averaging roughly 0.80, suggesting that non-cash expenses like stock-based compensation are insufficient to bridge the gap between accounting losses and actual cash outflows.
The persistent gap between net income and operating cash flow indicates that the company's losses are primarily driven by cash-intensive operating activities rather than non-cash accounting charges. Investors should monitor this relationship, as the inability to generate positive operating cash flow despite significant stock-based compensation suggests that the underlying business model remains fundamentally cash-negative.
As reported in financial filings, Tenon Medical has maintained a negative free cash flow trajectory for ten consecutive quarters, with quarterly cash burn consistently exceeding $2.2 million, highlighting a structural inability to fund operations through internal revenue generation despite the company's ongoing commercialization efforts.
The consistent negative free cash flow margin suggests that the company is effectively subsidizing its growth through external financing rather than operational efficiency. This trajectory warrants further investigation into the company's ability to reach a self-sustaining scale before its limited cash reserves are fully exhausted.
Based on reported figures, working capital changes have been highly erratic, including a significant $749,000 outflow in 2024Q4, which suggests that the company's cash position is highly sensitive to inventory management and the timing of collections from hospital customers in its niche orthopedic market.
The volatility in working capital suggests that the company may be struggling to manage its inventory levels or collect receivables efficiently as it attempts to scale. Such fluctuations in cash usage may indicate potential inefficiencies in the supply chain or challenges in managing the credit terms of its hospital-based customer base.
Analysis of recent financial statements reveals that stock-based compensation, which reached as high as $1.0 million in 2024Q2, serves as a significant non-cash add-back that masks the severity of the company's underlying cash burn, effectively diluting shareholders to fund ongoing operational expenses.
While stock-based compensation is a standard accounting adjustment, its magnitude relative to the company's total cash burn suggests that management is relying heavily on equity-based incentives to preserve cash. This practice warrants further investigation, as it may indicate that the company's cash-based compensation structure is unsustainable without continuous, dilutive capital raises.
Quick answers to the most common questions about buying TNON stock.
Tenon Medical, Inc. (TNON) generated $-10.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Tenon Medical, Inc. (TNON) reported negative free cash flow of $11.0M in 2025, indicating capital requirements exceeded cash from operations.
Tenon Medical, Inc. (TNON) spent $0.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.