Greetings and welcome to the Tenon Medical Third Quarter 2026 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 third quarter ended September 30th, 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.tenunmed.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 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, Joe, and good afternoon, everyone. I'm pleased to welcome you to today's third quarter 2026 financial results and corporate update conference call for Tenon Medical. Third quarter revenue was $1.4 million, an increase of 22% over the third quarter of last year and 12% sequentially from the second quarter. Gross profit was $1 million, an increase of 23% over the prior year period. Gross margin was 66.3%, an improvement of 0.4% compared to the 65.9% a year ago. We delivered this growth while reducing operating expenses compared to both the third quarter of 2025 and the second quarter of this year, improving our loss from operations in the period compared to both prior periods. Looking at the first nine months as a whole, revenue was $4.1 million, an increase of 66% from the $2.5 million in the first nine months of 2025. Gross profit was $2.7 million, more than double the $1.3 million in the prior year period, at a gross margin of 66.2% compared with 54.4%. Growth on the top line came from continued adoption of our catamaran and symmetry platforms. It completed more cases with more physician users in the quarter compared to the third quarter of 2025 and Q2 of this year. Position and distributor training remains a leading indicator for us, with 36 combined training activities completed within the quarter. The improvement in gross margin was primarily driven by two factors, higher revenue, which continues to absorb fixed costs, and the benefit of lower cost of sales within our catamaran platform, driven by the 510 clearance we announced in early Q3, which reclassified certain instrumentation to reusable status. We believe both factors will continue to have positive impact on our gross margins as we continue to grow. Beyond the financials, a few items from the quarter are worth noting. First, on the commercial side, our investments are focused on the commercial aspect of our business. As such, we've introduced a new commercial leader to the organization. Mr. Thomas Batten Jr. joined Tenon as Chief Revenue Officer effective October 1, 2026. Tom brings significant experience in building commercial teams and corporate roles as well as an independent distributor with particular expertise in the sacral pelvic space. We plan to continue adding to our commercial organization under Tom through the hiring of direct sales representatives and onboarding of independent distributor partners as we move forward. This move also allows us to deploy other team members to focus on the important product launches we are planning for through the first half of 2027. On September 30th, we announced a full commercial launch of our new titanium 3D printed lateral screw for the Symmetry Plus SI joint fusion system, following a successful limited launch, alpha launch, that generated approximately $1.2 million in revenue from late Q4 2025 through Q3 2026. The new screw is the first component of our next-generation lateral SI joint fusion system. Our two-platform offering continues to progress the way we had planned, with physicians evaluating catamaran and symmetry plus as complementary tools, offering inferior, posterior, and lateral approaches to the same anatomy. Second, as it relates to our product pipeline, we are progressing on the launches we outlined last quarter. Subsequent quarter end on October 28th, we announced the completion of the initial alpha cases of our new Quick-Step Decorticator, which is designed to streamline SI joint decortication and simplify the Symmetry Plus surgical workflow. We are targeting full market release of Quick-Step in the first quarter of 2027. We also anticipate an early December 2026 submission for a highly differentiated enhancement to the Symmetry Plus implant We believe the Symmetry Plus platform will deliver differentiated benefits in lateral and oblique procedures with integrated decortication and grafting combined with threaded implant technology and anti-rotation capabilities. Third, specific to intellectual property, on October 15th, we announced that the U.S. Patent and Trademark Office issued eight new patents to the company so far in 2026. bringing our portfolio to 38 issued U.S. patents and nine international patents with 31 U.S. and foreign patent applications pending. These patents include both system and method claims covering the catamaran system, and we believe they strengthen our position as an innovator in the sacral pelvic fusion market. Fourth, as it relates to capital, we significantly strengthen our balance sheet during the quarter. We raised approximately $15.6 million in aggregate gross proceeds through multiple transactions in the quarter. Through the prepayments made in August and September, we repaid our convertible notes in full ahead of the September 11th maturity and regained compliance with NASDAQ stockholder equity requirements. as well as its minimum bid price requirements following our one for 35 split, reverse split in the year. We ended the quarter with 3.8 million in cash and cash equivalents. Looking out over the balance of the year, our priorities remain consistent, expanding physician training and adoption across both platforms, advancing our product pipeline and maintaining discipline on our spend. With our convertible notes now behind us, our attention is fully on growth. We believe we have multiple ways to win in this market and are excited about what's to come. 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. Starting with the top line, third quarter revenue was $1.4 million. up 22% from $1.2 million a year ago and up 12% sequentially from the second quarter of this year. Revenue for the nine months ended September 30, 2026 was $4.1 million, an increase of 66% compared to $2.5 million in the nine months ended September 30, 2025. The increase in the quarter was driven by the continued adoption of our catamaran and symmetry systems. Within the quarter, we saw increased procedures and physician users compared to both the third quarter of 2025 and the second quarter of this year. We expect to continue to build on our momentum through recent and upcoming Salesforce expansion, increased physician and distributor engagement and future product launches. Gross profit was 1 million or 66.3% of revenue in the third quarter compared to 0.8 million or 65.9% of revenue a year ago. a 23% increase in dollar terms. On a margin basis, we were up about 0.4 percentage points year over year. For the nine months, gross profit was 2.7 million or 66.2% of revenue compared to 1.3 million or 54.4% of revenue, a 102% increase in dollars and roughly 11.8 percentage points of margin improvement. The increase in gross margin in the quarter and year-to-date periods was primarily driven by increased revenue, further absorbing fixed costs within our cost of goods sold, while the third quarter also saw benefit from improved catamaran per procedure costs, driven by a 510 clearance the company announced receiving on July 2nd, which reclasses certain instruments to reusable status. Moving forward, we believe our gross margin will continue to expand as revenue increases and further absorbs fixed costs. Operating expenses totaled $4 million in the third quarter compared to $4.2 million in the third quarter of 2025. For the nine months, operating expenses totaled $12.4 million compared to $11.3 million in the prior year period. The decrease in the quarter was primarily due to lower G&A expenses, primarily reflecting lower professional service fees, partially offset by higher sales and marketing expenses which were associated with increased revenue and higher R&D expenses as we continue to work towards future product additions. Loss from operations for the third quarter improved by $0.3 million to $3.1 million from $3.4 million in the prior year period. For the nine months, loss from operations improved by $0.2 million to 9.7 million from 9.9 million in the prior period. Net loss was 6.6 million or $5.39 per share in the third quarter compared to a net loss of 3.3 million or $14.17 per share in the third quarter of 2025. For the nine months, net loss was 14.2 million or $22.48 per share compared to a net loss of 9.7 million or $51.72 per share in the same year ago period. As a reminder, all per share figures reflect the one for 35 reverse stock split we affected on August 10th, 2026. The increase in net loss was primarily attributable to non-cash items below the operating line, including 3.1 million of expense related to warrants issued as inducement consideration in connection with our September warrant inducement transaction and 0.7 million of non-cash interest expense from the amortization of debt discount on our convertible notes, which we repaid in full during the quarter. We ended the quarter with 8.3 million in cash and cash equivalents compared to 3.8 million as of December 31st, 2025. During the quarter, we raised approximately 15.6 million in aggregate gross proceeds and repaid in full our senior convertible notes which had an aggregate principal amount of approximately $5.16 million ahead of their September 11, 2026 maturity date. This left us with no outstanding debt as of quarter end. Additionally, subsequent to quarter end, we increased our ATM capacity to approximately $7.1 million of availability which we expect to support our capital needs in the future. Overall, we believe the financial and strategic actions taken during the third quarter Most importantly, retiring our convertible notes and strengthening our cash position have improved our ability to drive continued growth while sustaining a streamlined and disciplined cost base as we fund our commercial, clinical, and development priorities. I'll now hand the call back to Steve for closing comments. Thank you, Kevin.

To conclude, Pennon is delivering top-line growth with a strengthened balance sheet and a disciplined cost structure that we believe will support efficiencies as we expand our offering. Our R&D investments are now converting into launches, with the full commercial launch of our 3D-printed Symmetry Plus lateral screw and QuickStep targeted for full market release in the first quarter of 2027. and additional launches that we are planning over the coming quarters. We believe our focus on commercial expansion and execution positions Tenon to build on this momentum and deliver meaningful value to patients, providers and our shareholders. I thank all of you for attending and now I'd like to hand the call back over to our operator to begin our question and answer session with covering analysts. Joe?

Thank you, sir. Ladies and gentlemen, if you would like to ask a question, please press star one on your telephone keypad, and 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. Thank you. There are no further questions at this time, and I'll turn the call back over to Steve Foster for closing remarks.

Thank you, Joe. 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. We'll be more than happy to assist. Thank you.

Thank you. This concludes today's conference. You may disconnect your lines at this time and we thank you for your participation.