TELA Bio Reports Second Quarter 2025 Financial Results
Rhea-AI Summary
TELA Bio (NASDAQ:TELA) reported strong Q2 2025 financial results with revenue of $20.2 million, representing 26% year-over-year growth and 9% sequential growth. The company's OviTex and OviTex PRS products saw significant demand increases, with year-over-year revenue growth of 12% and 53% respectively.
The company appointed Jeffrey Blizard as President to strengthen commercial leadership and announced the European launch of OviTex Inguinal for robotic procedures. Despite a gross profit of $14.1 million (69.8% margin), TELA Bio recorded a net loss of $9.9 million, an improvement from the $12.6 million loss in Q2 2024.
TELA Bio reiterated its full-year 2025 revenue guidance of $85.0-88.0 million, projecting 23-27% growth. The company ended Q2 with $35.0 million in cash and cash equivalents.
Positive
- Revenue grew 26% year-over-year to $20.2 million
- OviTex PRS revenue increased 53% year-over-year
- Gross margin improved to 69.8% from 68.8% year-over-year
- Net loss decreased to $9.9 million from $12.6 million in Q2 2024
- European market expansion with OviTex Inguinal launch
Negative
- Operating expenses increased to $23.2 million from $22.6 million year-over-year
- Decrease in average selling prices for hernia products due to product mix
- Continuing operational losses of $9.1 million in Q2 2025
- Cash position of $35.0 million may require additional funding given current loss rate
Insights
TELA Bio shows strong 26% revenue growth with improving margins, though still operating at a loss while investing in commercial expansion.
TELA Bio delivered
Gross margin improved to
The company's
Key strategic developments include Jeff Blizard's appointment as President to strengthen commercial execution, European expansion with OviTex Inguinal for robotic and laparoscopic procedures, and pricing dynamics reflecting a shift toward smaller-sized units for minimally invasive applications. While average selling prices decreased, this appears to be a strategic move to gain market share in high-volume robotic procedures, which could drive sustainable long-term growth.
MALVERN, Pa., Aug. 11, 2025 (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 second quarter ended June 30, 2025.
Recent Highlights
- Delivered revenue of
$20.2 million in the second quarter 2025, representing growth of26% over the prior year period and sequential growth of9% over the first quarter of 2025; - Increased demand for OviTex® and OviTex PRS Reinforced Tissue Matrix products during the second quarter, resulting in year-over-year revenue increase for each product of approximately
12% and53% , respectively; - Appointed Jeffrey Blizard as President, effective June 2025, to strengthen commercial leadership and drive consistent performance in sales execution as the Company enters its next phase of growth;
- Announced European commercial launch of OviTex Inguinal for robotic and laparoscopic inguinal hernia repair, marking a continued expansion of the Company’s European footprint; and
- Reiterated full year 2025 revenue guidance of
$85.0 million to$88.0 million , representing23% to27% year-over-year growth.
“We are at a pivotal inflection point for TELA, having built an exceptional foundation with an innovative product portfolio, compelling clinical data, and a refined approach to our sales force in the field,” said Antony Koblish, Co-Founder and Chief Executive Officer of TELA Bio. “With the addition of Jeff Blizard, we have brought world-class leadership to our commercial team, with a track record of driving significant revenue growth. Under Jeff’s leadership, we are optimizing our existing talent through enhanced territory management and strategic resource allocation, while investing in medical education and market access capabilities that empower surgeons and patients and create an ecosystem to foster sustainable growth. Our entire team is energized by the transformative opportunities ahead, and I remain incredibly excited about the future of this organization."
Second Quarter 2025 Financial Results
Revenue was
Gross profit was
Operating expenses were
Loss from operations was
Net loss was
Cash and cash equivalents on June 30, 2025, totaled
2025 Financial Guidance Reiterated
- Full year 2025 revenue is projected to range from
$85.0 million to$88.0 million , representing growth of23% to27% over full year 2024.
Conference Call
TELA Bio will host a conference call at 4:30 p.m. Eastern Time on Monday, August 11, 2025 to discuss its second 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 2025. 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; 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; 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) | ||||||||
| June 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 34,977 | $ | 52,670 | ||||
| Accounts receivable, net of allowances of | 11,236 | 10,098 | ||||||
| Inventory | 11,371 | 12,781 | ||||||
| Prepaid expenses and other current assets | 3,161 | 2,522 | ||||||
| Total current assets | 60,745 | 78,071 | ||||||
| Property and equipment, net | 2,167 | 2,341 | ||||||
| Intangible assets, net | 1,549 | 1,739 | ||||||
| Right-of-use assets | 1,616 | 1,738 | ||||||
| Other long-term assets | 1,131 | 2,276 | ||||||
| Deferred tax asset, net | 64 | 140 | ||||||
| Restricted cash | 265 | 265 | ||||||
| Total assets | $ | 67,537 | $ | 86,570 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,741 | $ | 2,147 | ||||
| Accrued expenses and other current liabilities | 13,987 | 13,451 | ||||||
| Current portion of long- term debt | 3,333 | — | ||||||
| Total current liabilities | 19,061 | 15,598 | ||||||
| Long‑term debt | 38,051 | 41,124 | ||||||
| Other long‑term liabilities | 1,241 | 1,390 | ||||||
| Total liabilities | 58,353 | 58,112 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock; | — | — | ||||||
| Common stock; | 40 | 39 | ||||||
| Additional paid-in capital | 388,968 | 387,059 | ||||||
| Accumulated other comprehensive income | 93 | 90 | ||||||
| Accumulated deficit | (379,917 | ) | (358,730 | ) | ||||
| Total stockholders’ equity | 9,184 | 28,458 | ||||||
| Total liabilities and stockholders’ equity | $ | 67,537 | $ | 86,570 | ||||
| TELA Bio, Inc. | ||||||||||||||||
| Consolidated Statements of Operations and Comprehensive Loss | ||||||||||||||||
| (In thousands, except share and per share amounts) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue | $ | 20,197 | $ | 16,091 | $ | 38,717 | $ | 32,694 | ||||||||
| Cost of revenue (excluding amortization of intangible assets) | 5,997 | 4,923 | 11,910 | 10,095 | ||||||||||||
| Amortization of intangible assets | 95 | 95 | 190 | 190 | ||||||||||||
| Gross profit | 14,105 | 11,073 | 26,617 | 22,409 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 16,857 | 16,699 | 33,465 | 34,219 | ||||||||||||
| General and administrative | 4,126 | 3,621 | 7,962 | 7,450 | ||||||||||||
| Research and development | 2,203 | 2,323 | 4,743 | 4,716 | ||||||||||||
| Total operating expenses | 23,186 | 22,643 | 46,170 | 46,385 | ||||||||||||
| Other operating income: | ||||||||||||||||
| Gain on sale of product line | — | — | — | 7,580 | ||||||||||||
| Loss from operations | (9,081 | ) | (11,570 | ) | (19,553 | ) | (16,396 | ) | ||||||||
| Other (expense) income: | ||||||||||||||||
| Interest expense | (1,188 | ) | (1,331 | ) | (2,407 | ) | (2,663 | ) | ||||||||
| Other income | 379 | 301 | 858 | 798 | ||||||||||||
| Total other expense, net | (809 | ) | (1,030 | ) | (1,549 | ) | (1,865 | ) | ||||||||
| Loss before income tax expense | (9,890 | ) | (12,600 | ) | (21,102 | ) | (18,261 | ) | ||||||||
| Income tax expense | (33 | ) | — | (85 | ) | — | ||||||||||
| Net loss | $ | (9,923 | ) | $ | (12,600 | ) | $ | (21,187 | ) | $ | (18,261 | ) | ||||
| Net loss per common share, basic and diluted | $ | (0.22 | ) | $ | (0.51 | ) | $ | (0.47 | ) | $ | (0.74 | ) | ||||
| Weighted average common shares outstanding, basic and diluted | 45,365,325 | 24,663,234 | 45,316,444 | 24,621,310 | ||||||||||||
| Comprehensive loss: | ||||||||||||||||
| Net loss | $ | (9,923 | ) | $ | (12,600 | ) | $ | (21,187 | ) | $ | (18,261 | ) | ||||
| Foreign currency translation adjustment | 2 | 1 | 3 | 7 | ||||||||||||
| Comprehensive loss | $ | (9,921 | ) | $ | (12,599 | ) | $ | (21,184 | ) | $ | (18,254 | ) | ||||
FAQ
What was TELA Bio's revenue growth in Q2 2025?
What is TELA Bio's revenue guidance for full-year 2025?
Who is TELA Bio's new President and when was he appointed?
What was TELA Bio's gross margin in Q2 2025?
How much cash does TELA Bio have as of Q2 2025?
What were the growth rates for TELA Bio's key products in Q2 2025?
