TELA Bio Reports First Quarter 2026 Financial Results
TELA Bio (NASDAQ: TELA) reported first quarter 2026 revenue of $19.1 million, up 3% year over year with 13% unit growth.
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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.
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
Details
News Market Reaction – TELA
On May 13, the first trading day after this news, TELA closed 5.88% below the previous close.
Data tracked by StockTitan Argus for the May 13 session.
Key Figures
- Q1 2026 revenue
- $19.1M
- First quarter 2026 revenue, up vs Q1 2025
- Revenue growth YoY
- 3%
- Q1 2026 vs Q1 2025
- European revenue growth
- 41%
- Q1 2026 vs prior-year period
- Unit growth
- 13%
- Q1 2026 vs Q1 2025
- Gross profit
- $12.5M (65.7%)
- Q1 2026 gross profit and margin
- Operating expenses
- $23.0M
- Q1 2026 operating expenses, flat vs 2025
- Net loss
- $12.3M
- Q1 2026 net loss vs $11.3M in Q1 2025
- Cash balance
- $39.5M
- Cash and cash equivalents at March 31, 2026
Previous Earnings Reports
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Reported Q4 and 2025 revenue growth with improved gross margin and reiterated 2026 outlook.
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Q3 2025 revenue and margin expansion, narrowed operating and net losses, and upsized credit facility.
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Strong Q2 revenue growth, product demand gains, European launch and reiterated high-growth 2025 guidance.
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Q1 revenue growth, stable expenses, reiterated 2025 guidance and healthy cash balance.
-
Delivered 2024 revenue growth and new product traction while guiding to strong 2025 revenue expansion.
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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 | ) | ||
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