TELA Bio Reports First Quarter 2026 Financial Results
Rhea-AI Summary
TELA Bio (NASDAQ: TELA) reported first quarter 2026 revenue of $19.1 million, up 3% year over year with 13% unit growth. European revenue grew 41%.
Gross margin was 65.7%, net loss was $12.3 million, cash was $39.5 million. Guidance calls for at least 8% 2026 revenue growth and about $20.0 million Q2 revenue.
AI-generated analysis. Not financial advice.
Positive
- Q1 2026 revenue $19.1M, up 3% year over year
- Q1 unit volume growth of 13% versus prior-year period
- European revenue growth of 41% year over year
- Operating expenses flat at $23.0M versus Q1 2025
- 2026 revenue growth guided to at least 8% over 2025
- Q2 2026 revenue expected at approximately $20.0M
- Cash and cash equivalents of $39.5M at March 31, 2026
- Full U.S. commercial launch of OviTex LTR initiated April 1
Negative
- Gross margin declined from 67.6% to 65.7% year over year
- Higher excess and obsolete inventory charges pressured gross margin
- Q1 2026 net loss increased to $12.3M from $11.3M
- Loss from operations remained high at $10.5M
- U.S. product mix headwinds from rapid growth of smaller-sized units
News Market Reaction – TELA
On the day this news was published, TELA declined 5.88%, reflecting a notable negative market reaction. Argus tracked a peak move of +12.9% during that session. Argus tracked a trough of -10.7% from its starting point during tracking. Our momentum scanner triggered 10 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $3M from the company's valuation, bringing the market cap to $51.03M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
TELA fell 4.89% while close peers were mixed: ELUT, LUNG, and APYX were up, ICCM and XTNT were slightly down or flat. Momentum scanner flags only XTNT (up) and WOK (down), reinforcing a stock-specific reaction.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 24 | Q4/FY25 earnings | Positive | -9.3% | Reported Q4 and 2025 revenue growth with improved gross margin and reiterated 2026 outlook. |
| Nov 13 | Q3 2025 earnings | Positive | -10.0% | Q3 2025 revenue and margin expansion, narrowed operating and net losses, and upsized credit facility. |
| Aug 11 | Q2 2025 earnings | Positive | -14.0% | Strong Q2 revenue growth, product demand gains, European launch and reiterated high-growth 2025 guidance. |
| May 08 | Q1 2025 earnings | Positive | +9.0% | Q1 revenue growth, stable expenses, reiterated 2025 guidance and healthy cash balance. |
| Mar 20 | Q4/FY24 earnings | Positive | -37.2% | Delivered 2024 revenue growth and new product traction while guiding to strong 2025 revenue expansion. |
Earnings releases have often been followed by negative price reactions, even when reporting revenue growth and reaffirmed guidance.
Across recent earnings releases, TELA reported consistent revenue growth: Q4 2024 revenue of $17.6M, full-year 2024 of $69.3M, and full-year 2025 of $80.3M, with improving gross margins but persistent net losses. Guidance has repeatedly targeted double-digit annual growth, including 2025 guidance of $85.0–88.0M and at least 8% growth for 2026. Despite these fundamentals, the stock frequently traded lower after earnings, highlighting a pattern of skeptical market reactions that forms the backdrop for today’s Q1 2026 results.
Historical Comparison
In the past year, TELA’s 5 earnings releases averaged a -12.29% move. Today’s -4.89% reaction to Q1 2026 results is milder than prior earnings-driven declines.
Earnings updates show a steady progression: revenue rising from $69.3M in 2024 to $80.3M in 2025, with recurring guidance for at least 8% annual growth and ongoing investment in OviTex and OviTex PRS.
Regulatory & Risk Context
An effective S-3 filed on Dec 12, 2025 registers up to 2,000,000 common shares for resale by Perceptive Credit Holdings V, LP via warrant exercise. TELA would not receive proceeds from resale itself but could receive cash upon warrant exercise. The filing notes that potential future resales, or expectations of such sales, could exert downward pressure on the stock price.
Market Pulse Summary
The stock moved -5.9% in the session following this news. A negative reaction despite reiterated guidance fits a pattern where earnings have averaged a -12.29% move. The quarter showed modest 3% revenue growth, stable operating expenses, but a slightly larger net loss of $12.3M. Ongoing registered resale capacity for up to 2,000,000 shares and prior Nasdaq minimum-bid issues could also contribute to caution around the story.
AI-generated analysis. Not financial advice.
MALVERN, Pa., May 12, 2026 (GLOBE NEWSWIRE) -- TELA Bio, Inc. (“TELA Bio”), a commercial-stage medical technology company focused on providing innovative soft-tissue reconstruction solutions, today reported financial results for the first quarter ended March 31, 2026.
Recent Highlights
- Announced strategic board refreshment plan to be effective at the conclusion of the 2026 Annual Meeting on June 9, 2026;
- Noted the U.S. commercial organization is fully staffed at planned 2026 levels;
- Delivered revenue of
$19.1 million in the first quarter of 2026, representing growth of3% over the prior year period; - Accelerated European revenue growth to
41% over the prior year period, with continued momentum in the U.K. and early expansion into additional European markets; - Announced the U.S. commercial launch of OviTex LTR, providing a specialized, unique, and fully resorbable, tissue-based hernia repair solution; and
- Reiterated full year 2026 revenue guidance of at least
8% growth over full year 2025.
“First quarter results reflect the commercial foundation we built in 2025 translating into execution,” said Anthony Koblish, Co-Founder and Chief Executive Officer of TELA Bio. “Our commercial organization is fully built to plan, with no further hiring required to achieve our 2026 targets. The newest cohort of territory managers is ramping as expected, and their early productivity indicators outpace any prior class of field reps. In Europe, our team is gaining traction in new markets, with new accounts secured and first patients treated across multiple geographies. On April 1st, we initiated the full U.S. commercial launch of OviTex LTR, one of the only fully resorbable, tissue-based hernia repair solutions on the market, which further broadens the OviTex portfolio to address the full spectrum of surgeon and patient needs. The team is in place, the infrastructure is set, and we are positioned well to deliver predictable growth through the remainder of 2026.”
First Quarter 2026 Financial Results
Revenue was
Gross profit was
Operating expenses were
Loss from operations was
Net loss was
Cash and cash equivalents on March 31, 2026 totaled
2026 Financial Guidance Reiterated
- Full year 2026 revenue growth is projected to be at least
8% over full year 2025; and - Second quarter 2026 revenue is expected to be approximately
$20.0 million .
Conference Call
TELA Bio will host a conference call at 4:30 p.m. Eastern Time on Tuesday, May 12, 2026 to discuss its first quarter financial results. Investors interested in listening to the conference call should register online. Participants are required to register a day in advance or at minimum 15 minutes before the start of the call. A replay of the webcast can be accessed via the Events & Presentations page of the investor section of TELA Bio's website.
About TELA Bio, Inc.
TELA Bio, Inc. (NASDAQ: TELA) is a commercial-stage medical technology company focused on providing innovative technologies that optimize clinical outcomes by prioritizing the preservation and restoration of the patient's own anatomy. The Company is committed to providing surgeons with advanced, economically effective soft-tissue reconstruction solutions that leverage the patient's natural healing response while minimizing long-term exposure to permanent synthetic materials. For more information, visit www.telabio.com.
Caution Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Words such as “may,” “might,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “predict,” “forecast,” “project,” “plan,” “intend” or similar expressions, or statements regarding intent, belief, or current expectations are forward-looking statements and reflect the current beliefs of TELA Bio's management. Such forward-looking statements include statements relating to our expected revenue and revenue growth for the full year 2026 and reduction in operating expenses throughout the full year 2026 compared to prior periods and our expectations regarding new product launch and expectations on market penetration and profitability. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors that could cause actual results and events to differ materially and adversely from those indicated by such forward-looking statements including, among others: the impact to our business from macroeconomic conditions, including recessionary concerns, banking instability, increasing market interest rates, monetary policy changes, changes in trade policies, including tariffs and trade protection measures, and inflationary pressures, potentially impacting our ability to market our products, including the launch of new products; demand for our products related to changes in volumes or frequency of surgical procedures, including due to outbreak of illness or disease, cybersecurity events impacting hospital operations, potential hospital closures, labor and hospital staffing shortages, supply chain disruptions to critical surgical and hospital supplies, pricing pressures or any other applicable adverse healthcare economic factors; our ability to achieve or sustain profitability; our ability to gain market acceptance for our products and to accurately forecast and meet customer demand; our ability to compete successfully; that data from earlier studies related to our products and interim data from ongoing studies may not be replicated in later studies or indicative of future data; that data obtained from clinical studies using our product may not be indicative of outcomes in other surgical settings; our ability to enhance our product offerings, including successful launch of new products; our ability to maintain expanded market access; product development and manufacturing problems; capacity constraints or delays in production of our products; maintenance of coverage and adequate reimbursement for procedures using our products; and product defects or failures. These risks and uncertainties are described more fully in the “Risk Factors” section and elsewhere in our filings with the Securities and Exchange Commission and available at www.sec.gov, including in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Any forward-looking statements that we make in this announcement speak only as of the date of this press release, and TELA Bio assumes no obligation to update forward-looking statements whether as a result of new information, future events or otherwise after the date of this press release, except as required under applicable law.
Investor Contact
Louisa Smith
ir@telabio.com
| TELA Bio, Inc. Consolidated Balance Sheets (In thousands, except share and per share amounts) (Unaudited) | ||||||||
| March 31, | December 31, | |||||||
| 2026 | 2025 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 39,541 | $ | 50,845 | ||||
| Accounts receivable, net of allowances of | 9,715 | 10,347 | ||||||
| Inventory | 12,213 | 11,016 | ||||||
| Prepaid expenses and other current assets | 2,833 | 3,373 | ||||||
| Total current assets | 64,302 | 75,581 | ||||||
| Property and equipment, net | 2,157 | 2,226 | ||||||
| Intangible assets, net | 1,264 | 1,359 | ||||||
| Right-of-use assets | 1,442 | 1,502 | ||||||
| Other long-term assets | 476 | 500 | ||||||
| Restricted cash | 250 | 250 | ||||||
| Total assets | $ | 69,891 | $ | 81,418 | ||||
| Liabilities and stockholders’ (deficit) equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 3,894 | $ | 2,309 | ||||
| Accrued expenses and other current liabilities | 13,939 | 15,666 | ||||||
| Total current liabilities | 17,833 | 17,975 | ||||||
| Long‑term debt | 55,866 | 55,653 | ||||||
| Other long‑term liabilities | 1,393 | 1,477 | ||||||
| Total liabilities | 75,092 | 75,105 | ||||||
| Stockholders’ (deficit) equity: | ||||||||
| Preferred stock; | — | — | ||||||
| Common stock; | 45 | 44 | ||||||
| Additional paid-in capital | 404,503 | 403,739 | ||||||
| Accumulated other comprehensive income | 85 | 91 | ||||||
| Accumulated deficit | (409,834 | ) | (397,561 | ) | ||||
| Total stockholders’ (deficit) equity | (5,201 | ) | 6,313 | |||||
| Total liabilities and stockholders’ (deficit) equity | $ | 69,891 | $ | 81,418 | ||||
| TELA Bio, Inc. Consolidated Statements of Operations and Comprehensive Loss (In thousands, except share and per share amounts) (Unaudited) | ||||||||
| Three months ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Revenue | $ | 19,059 | $ | 18,520 | ||||
| Cost of revenue (excluding amortization of intangible assets) | 6,444 | 5,913 | ||||||
| Amortization of intangible assets | 95 | 95 | ||||||
| Gross profit | 12,520 | 12,512 | ||||||
| Operating expenses: | ||||||||
| Sales and marketing | 16,537 | 16,608 | ||||||
| General and administrative | 4,166 | 3,836 | ||||||
| Research and development | 2,343 | 2,540 | ||||||
| Total operating expenses | 23,046 | 22,984 | ||||||
| Loss from operations | (10,526 | ) | (10,472 | ) | ||||
| Other (expense) income: | ||||||||
| Interest expense | (2,053 | ) | (1,219 | ) | ||||
| Other income | 366 | 479 | ||||||
| Total other expense, net | (1,687 | ) | (740 | ) | ||||
| Loss before income tax expense | (12,213 | ) | (11,212 | ) | ||||
| Income tax expense | (60 | ) | (52 | ) | ||||
| Net loss | $ | (12,273 | ) | $ | (11,264 | ) | ||
| Net loss per common share, basic and diluted | $ | (0.21 | ) | $ | (0.25 | ) | ||
| Weighted average common shares outstanding, basic and diluted | 57,256,518 | 45,267,020 | ||||||
| Comprehensive loss: | ||||||||
| Net loss | $ | (12,273 | ) | $ | (11,264 | ) | ||
| Foreign currency translation adjustment | (6 | ) | 1 | |||||
| Comprehensive loss | $ | (12,279 | ) | $ | (11,263 | ) | ||
