TELA Bio Reports Fourth Quarter and Full Year 2025 Financial Results
Rhea-AI Summary
TELA Bio (NASDAQ:TELA) reported Q4 2025 revenue of $20.9M (+18% YoY) and full-year 2025 revenue of $80.3M (+16% YoY). Q4 gross margin improved to 65.9%. Full-year net loss was $38.8M and cash totaled $50.8M. The company closed a $70.0M credit facility (initial $60.0M). Management projects at least 8% revenue growth in 2026 and Q1 2026 revenue of ~$18.5M.
Highlights include expanded commercial field coverage (≈88–89 reps) and promotion of Howard Langstein to Chief Medical Officer.
Positive
- Q4 revenue +18% YoY to $20.9M
- Full-year revenue +16% YoY to $80.3M
- Q4 gross margin improved 230 bps to 65.9%
- Closed up to $70.0M credit facility (initial $60.0M)
- Guidance: at least 8% revenue growth for 2026
Negative
- Full-year net loss of $38.8M in 2025
- Shift to smaller hernia product mix pressured average selling prices
News Market Reaction – TELA
On the day this news was published, TELA declined 9.35%, reflecting a notable negative market reaction. Argus tracked a trough of -28.4% from its starting point during tracking. Our momentum scanner triggered 14 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $4M from the company's valuation, bringing the market cap to $39.41M at that time. Trading volume was very high at 3.1x the daily average, suggesting heavy selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
TELA gained 6.66% while momentum peers VNRX, WOK, XTNT each moved down (median about -0.9%), and broader peers showed mixed moves (APYX +9.94%, ICCM +5.02%, XTNT -4.54%). This points to a stock-specific reaction.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 13 | Q3 2025 earnings | Positive | -10.0% | Reported Q3 2025 growth, improved losses, revised 2025 guidance to at least +16%. |
| Aug 11 | Q2 2025 earnings | Positive | -14.0% | Strong Q2 2025 revenue growth, OviTex demand, reiterated 2025 revenue guidance. |
| May 08 | Q1 2025 earnings | Positive | +9.0% | Q1 2025 revenue growth, new OviTex PRS sizes, flat operating expense outlook. |
| Mar 20 | Q4 2024 earnings | Positive | -37.2% | Reported Q4 and 2024 growth with new product traction and 2025 guidance. |
| Nov 07 | Q3 2024 earnings | Positive | +2.8% | Q3 2024 revenue up 26% YoY and capital raise via public offering. |
TELA’s earnings releases have often been followed by negative price reactions, with an average move of -9.85%, despite generally positive growth metrics.
Over the last five earnings reports from Nov 2024 through Nov 2025, TELA Bio consistently posted revenue growth (Q3 2024 at $19.0M, Q4 2024 at $17.6M, Q1–Q3 2025 rising from $18.5M to $20.7M) while working to narrow losses and maintain high gross margins in the mid-to-high 60% range. Guidance was repeatedly set for strong double-digit growth and later revised to at least +16%. Despite these fundamentals, three of five earnings days saw notable share price declines.
Historical Comparison
In the past year, TELA released 5 earnings updates with an average move of -9.85%, often selling off despite revenue growth and stable gross margins.
Earnings have shown steady revenue increases from $17.6M in Q4 2024 to the $18.5M–$20.7M range across 2025 quarters, with guidance evolving from $85.0–$88.0M toward at least +16% growth and now full-year 2025 revenue of $80.3M, alongside ongoing efforts to narrow operating and net losses.
Regulatory & Risk Context
An effective S-3 shelf filed on Dec 12, 2025 registers up to 2,000,000 common shares for resale by Perceptive Credit Holdings V, LP upon warrant exercise. TELA would not receive proceeds from resales but could receive cash from warrant exercises, intended for general corporate purposes. Potential future sales of these shares could exert downward pressure on the stock.
Market Pulse Summary
The stock moved -9.3% in the session following this news. A negative reaction despite revenue growth would fit TELA’s pattern of earnings-related drawdowns, which averaged -9.85% across the last five reports. The 2025 net loss of $38.8M and guidance for at least 8% 2026 revenue growth may be viewed as conservative versus prior aspirations. Investors also face overhang from registered resale shares tied to the warrant and the recent Nasdaq minimum bid price deficiency notice.
Key Terms
credit facility financial
net revenue financial
AI-generated analysis. Not financial advice.
MALVERN, Pa., March 24, 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 fourth quarter and full year ended December 31, 2025.
Recent Highlights
- Delivered revenue of
$20.9 million in the fourth quarter and$80.3 million for the full year 2025, an18% and16% increase, respectively, from the corresponding periods of 2024; - Expanded the sales force to 88 quota-carrying representatives as of today under the leadership of commercial management added at midyear;
- Announcing promotion of Howard Langstein, MD, FACS to Chief Medical Officer, effective March 1, 2026; and
- Closed on a credit facility for up to
$70.0 million from Perceptive Advisors (“Perceptive”). The Perceptive credit facility consists of an initial loan of$60.0 million received at closing and an additional$10.0 million that can be drawn at our option by April 30, 2027, upon satisfaction of certain conditions, including, but not limited to, the achievement of net revenue thresholds.
"We closed 2025 with our strongest quarterly revenue on record, delivering
Fourth Quarter 2025 Financial Results
Revenue was
Gross profit was
Operating expenses were
Loss from operations was
Net loss was
Full Year 2025 Financial Results
Revenue was
Gross profit was
Operating expenses were
Loss from operations was
Net loss was
Cash and cash equivalents on December 31, 2025 totaled
2026 Financial Guidance
- Full year 2026 revenue growth of at least
8% over full year 2025 - First quarter 2026 revenue of approximately
$18.5 million
Conference Call
TELA Bio will host a conference call at 4:30 p.m. Eastern Time on Tuesday, March 24, 2026 to discuss its fourth quarter and full year 2025 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 first quarter and the full year 2026 and expectations regarding operational efficiency and expectations regarding 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, changes in 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; 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 maintain and benefit from our enhanced operations and expanded market access; our ability to enhance our product offerings; 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
| Consolidated Balance Sheets (In thousands, except share and per share amounts) (Unaudited) | ||||||||
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 50,845 | $ | 52,670 | ||||
| Accounts receivable, net of allowances of | 10,347 | 10,098 | ||||||
| Inventory | 11,016 | 12,781 | ||||||
| Prepaid expenses and other current assets | 3,373 | 2,522 | ||||||
| Total current assets | 75,581 | 78,071 | ||||||
| Property and equipment, net | 2,226 | 2,341 | ||||||
| Intangible assets, net | 1,359 | 1,739 | ||||||
| Right-of-use assets | 1,502 | 1,738 | ||||||
| Other long-term assets | 500 | 2,276 | ||||||
| Deferred tax asset, net | — | 140 | ||||||
| Restricted cash | 250 | 265 | ||||||
| Total assets | $ | 81,418 | $ | 86,570 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,309 | $ | 2,147 | ||||
| Accrued expenses and other current liabilities | 15,666 | 13,451 | ||||||
| Total current liabilities | 17,975 | 15,598 | ||||||
| Long-term debt | 55,653 | 41,124 | ||||||
| Other long-term liabilities | 1,477 | 1,390 | ||||||
| Total liabilities | 75,105 | 58,112 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock; | — | — | ||||||
| Common stock; | 44 | 39 | ||||||
| Additional paid-in capital | 403,739 | 387,059 | ||||||
| Accumulated other comprehensive income | 91 | 90 | ||||||
| Accumulated deficit | (397,561 | ) | (358,730 | ) | ||||
| Total stockholders’ equity | 6,313 | 28,458 | ||||||
| Total liabilities and stockholders’ equity | $ | 81,418 | $ | 86,570 | ||||
| TELA Bio, Inc. Statements of Operations and Comprehensive Loss (In thousands, except share and per share amounts) (Unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue | $ | 20,869 | $ | 17,649 | $ | 80,275 | $ | 69,300 | ||||||||
| Cost of revenue (excluding amortization of intangible assets) | 7,019 | 6,333 | 25,554 | 22,432 | ||||||||||||
| Amortization of intangible assets | 95 | 95 | 380 | 380 | ||||||||||||
| Gross profit | 13,755 | 11,221 | 54,341 | 46,488 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 14,490 | 13,957 | 63,182 | 64,648 | ||||||||||||
| General and administrative | 3,784 | 3,589 | 15,694 | 14,722 | ||||||||||||
| Research and development | 2,129 | 2,029 | 9,220 | 8,813 | ||||||||||||
| Total operating expenses | 20,403 | 19,575 | 88,096 | 88,183 | ||||||||||||
| Other operating income: | ||||||||||||||||
| Gain on sale of product line | — | — | — | 7,580 | ||||||||||||
| Loss from operations | (6,648 | ) | (8,354 | ) | (33,755 | ) | (34,115 | ) | ||||||||
| Other (expense) income: | ||||||||||||||||
| Interest expense | (1,637 | ) | (1,283 | ) | (5,245 | ) | (5,290 | ) | ||||||||
| Loss on extinguishment of debt | (888 | ) | — | (888 | ) | — | ||||||||||
| Other income | 277 | 285 | 1,287 | 1,420 | ||||||||||||
| Total other expense | (2,248 | ) | (998 | ) | (4,846 | ) | (3,870 | ) | ||||||||
| Loss before income tax benefit | (8,896 | ) | (9,352 | ) | (38,601 | ) | (37,985 | ) | ||||||||
| Income tax (expense) benefit | (145 | ) | 144 | (230 | ) | 144 | ||||||||||
| Net loss | $ | (9,041 | ) | $ | (9,208 | ) | $ | (38,831 | ) | $ | (37,841 | ) | ||||
| Net loss per common share, basic and diluted | $ | (0.17 | ) | $ | (0.23 | ) | $ | (0.83 | ) | $ | (1.33 | ) | ||||
| Weighted average common shares outstanding, basic and diluted | 51,683,846 | 40,074,672 | 46,947,932 | 28,526,441 | ||||||||||||
| Comprehensive loss: | ||||||||||||||||
| Net loss | $ | (9,041 | ) | $ | (9,208 | ) | $ | (38,831 | ) | $ | (37,841 | ) | ||||
| Foreign currency translation adjustment | — | (59 | ) | 1 | (1 | ) | ||||||||||
| Comprehensive loss | $ | (9,041 | ) | $ | (9,267 | ) | $ | (38,830 | ) | $ | (37,842 | ) | ||||
FAQ
What were TELA Bio (TELA) Q4 2025 revenue and growth?
How much revenue did TELA Bio (TELA) report for full-year 2025?
What are the terms of TELA Bio's (TELA) new credit facility announced March 24, 2026?
What 2026 revenue guidance did TELA Bio (TELA) provide and what is Q1 2026 revenue guidance?
How did TELA Bio's (TELA) gross margin change in Q4 2025?
What commercial changes did TELA Bio (TELA) report to support growth in 2026?
