TELA Bio (TELA) investor relations material

Executive summary

• Q2 2026 revenue was $19.3 million, down 4% year-over-year, mainly due to lower OviTex PRS volumes and price/mix headwinds, partially offset by international growth.

• Net loss for Q2 2026 was $11.3 million, up from $9.9 million in Q2 2025, driven by lower PRS sales and higher interest expense.

• Gross margin improved to 72% from 70% year-over-year, aided by tariff refunds and lower inventory charges.

• International revenue grew 26% year-over-year, with strong momentum in European markets.

• Leadership transition with Heather Getz appointed as CEO, bringing experience in operational and financial transformation.

Financial highlights

• Q2 2026 revenue: $19.3 million (down 4% year-over-year); six-month revenue: $38.4 million (down 1%).

• Gross profit was $13.9 million (72% margin), slightly below prior year but with improved margin.

• Operating expenses were flat at $23.2 million; net loss increased to $11.3 million from $9.9 million, driven by higher interest expense.

• Cash and cash equivalents at June 30, 2026: $30.4 million; working capital: $36.3 million.

• Outstanding debt: $60.0 million under the Perceptive Credit Agreement, maturing November 2030.

Outlook and guidance

• Full-year 2026 revenue guidance has been withdrawn pending further assessment by the new CEO and cost structure review.

• Expecting recovery in PRS and overall business in the second half of 2026, supported by new training and commercial focus.

• Cost reduction initiatives underway to align expenses with revenue and extend cash runway.

• Management expects continued operating losses in the near term as investments in sales, marketing, and R&D persist.

• Current forecasts indicate probable non-compliance with minimum revenue covenants under the credit agreement within the next twelve months, raising substantial doubt about the ability to continue as a going concern.