TELA Bio (TELA) investor relations material

Executive summary

• Q1 2026 revenue increased 3% year-over-year to $19.1 million, driven by international sales, especially in Europe, and higher OviTex unit volume, partially offset by U.S. price mix headwinds.

• Net loss widened to $12.3 million from $11.3 million, mainly due to higher interest expense and administrative costs.

• Gross margin declined to 66% from 68% due to higher inventory charges.

• U.S. commercial team is fully staffed, with the OviTex LTR product launched nationally and positive early feedback.

• Board refresh with experienced medtech leaders and a strategic refreshment plan to be implemented after the June 2026 annual meeting.

Financial highlights

• Revenue: $19.1 million, up 3% year-over-year; gross profit: $12.5 million, flat year-over-year.

• Gross margin: 66% (down from 68%); operating expenses: $23.0 million, flat year-over-year.

• Operating loss: $10.5 million, unchanged year-over-year.

• Net loss: $12.3 million (vs. $11.3 million prior year); net loss per share: $(0.21) vs. $(0.25) in Q1 2025.

• Cash and cash equivalents: $39.5 million as of March 31, 2026.

Outlook and guidance

• Full-year 2026 revenue expected to grow at least 8% over 2025, with Q2 2026 revenue projected at approximately $20 million.

• Operating loss expected to improve as revenue grows, with significant productivity inflection anticipated in the second half as new hires reach six-month tenure.

• Management expects continued operating losses as investments in sales, marketing, and R&D persist; cash resources expected to fund operations for at least 12 months.