TELA Bio Reports Third Quarter 2026 Financial Results
Current debt totaled $56.299 million at September 30, 2026, compared with cash and cash equivalents of $22.664 million.
Sentiment and the balance of points
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Rhea-AI Summary
TELA Bio (TELA) reported third-quarter 2026 revenue of $19.0 million, down from the same period a year earlier. Revenue fell 8%, primarily because of lower OviTex PRS volumes, partly offset by international sales growth of 18%. Gross profit declined to $12.308 million from $13.969 million. Net loss widened to $9.302 million from $8.603 million, while loss per share narrowed to $0.16 from $0.19.
Operating loss narrowed to $7.290 million, improving 21% sequentially. Adjusted EBITDA loss, a non-GAAP operating measure, improved 55% sequentially to $3.443 million. TELA Bio implemented a cost reduction initiative that it expects to reduce annual operating expenses by $17.0 million and extend cash runway into 2028. Cash totaled $22.664 million at September 30, 2026. The company also regained Nasdaq minimum bid price compliance and received 510(k) clearance for Liora Monofilament Scaffold.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.Implemented cost initiative targets $17.0 million in annual operating expense reductions and cash runway into 2028.
- Moderate pointThird-quarter operating loss narrowed to $7.290 million from $7.554 million year over year, improving 21% sequentially.
- Moderate pointThird-quarter adjusted EBITDA loss narrowed to $3.443 million from $5.689 million year over year, improving 55% sequentially.
- Moderate pointThird-quarter adjusted net loss narrowed to $7.318 million, or $0.13 per share, from $8.442 million, or $0.18.
- Moderate pointNasdaq minimum bid price compliance was regained for continued listing on the Nasdaq Global Market.
7 minor points
- Minor pointThird-quarter international revenue increased 18% year over year.
- Minor pointThird-quarter operating expenses decreased to $19.598 million from $21.523 million a year earlier.
- Minor pointThird-quarter adjusted gross margin increased to 71% from 70% a year earlier.
- Minor pointLiora Monofilament Scaffold received 510(k) clearance for soft tissue reinforcement.
- Minor pointNine-month operating loss narrowed to $27.099 million from $27.107 million a year earlier.
- Minor pointNine-month adjusted EBITDA loss narrowed to $20.026 million from $21.023 million a year earlier.
- Minor pointNine-month operating expenses decreased to $65.870 million from $67.693 million a year earlier.
Negative
- Moderate pointThird-quarter revenue fell 8% to $19.0 million year over year, primarily reflecting lower OviTex PRS volumes.
- Moderate pointThird-quarter net loss widened to $9.302 million from $8.603 million; per-share loss narrowed to $0.16 from $0.19.
- Moderate pointThird-quarter gross profit fell to $12.308 million from $13.969 million; gross margin declined to 65% from 68%.
- Moderate pointCash and cash equivalents declined to $22.664 million at September 30, 2026, from $50.845 million at year-end 2025.
- Moderate pointCurrent debt totaled $56.299 million at September 30, 2026, versus $55.653 million classified long-term at year-end 2025.
- Moderate pointStockholders’ equity moved to a $24.576 million deficit from positive $6.313 million at year-end 2025.
- Moderate pointThird-quarter interest expense increased to $2.099 million from $1.201 million a year earlier.
- Moderate pointThird-quarter cost reduction charges included $1.7 million severance and $0.3 million in related legal expenses.
7 minor points
- Minor pointThird-quarter expired-product write-offs increased to $1.0 million from $0.5 million a year earlier.
- Minor pointNine-month revenue declined to $57.309 million from $59.406 million a year earlier.
- Minor pointNine-month gross profit declined to $38.771 million from $40.586 million a year earlier.
- Minor pointNine-month net loss widened to $32.837 million from $29.790 million; per-share loss narrowed to $0.57 from $0.66.
- Minor pointNine-month adjusted net loss widened to $30.317 million from $29.387 million; per-share loss narrowed to $0.53 from $0.65.
- Minor pointNine-month adjusted gross margin declined to 71% from 72% a year earlier.
- Minor pointNine-month interest expense increased to $6.228 million from $3.608 million a year earlier.
News Explained
The balance sheet showed current debt above cash, and a larger outstanding share base meant unchanged holdings represented less of the company.
TELA Bio reported third-quarter 2026 results on
Key Figures
- Revenue
- $19.0 million
- Q3 2026; down 8% from Q3 2025
- International revenue growth
- 18%
- Q3 2026 versus the prior-year period
- Gross margin
- 64.9%
- Q3 2026, compared with 67.5% in Q3 2025
- Operating expenses
- $17.6 million
- Q3 2026; down 17.5% from Q3 2025
- Adjusted EBITDA loss
- $3.4 million
- Q3 2026, compared with $5.7 million in Q3 2025
- GAAP net loss
- $9.3 million
- Q3 2026, compared with $8.6 million in Q3 2025
- Annual operating expense reduction
- $17.0 million
- Strategic cost reduction initiative; company said it extends cash runway into 2028
- Cash and cash equivalents
- $22.7 million
- As of September 30, 2026
Previous Earnings Reports
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Revenue fell year over year and net loss widened; reported reaction was negative.
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Revenue grew year over year and operating and net losses narrowed; reported reaction was negative.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
510(k) clearance regulatory
adjusted ebitda financial
non-gaap financial measures financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Reduced sequential operating loss by
MALVERN, Pa., Nov. 10, 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 third quarter ended September 30, 2026.
Recent Highlights
- Delivered
$19.0 million revenue in the third quarter of 2026; - Increased international revenue by
18% over the prior year period; - Loss from operations decreased by
$2.0 million or21% sequentially while Adjusted EBITDA loss decreased by$4.3 million or55% sequentially; - Announced and implemented a strategic cost reduction initiative to reduce annual operating expenses by
$17.0 million and extend cash runway into 2028; - Regained compliance with Nasdaq minimum bid price requirement for continued listing on the Nasdaq Global Market;
- Received 510(k) clearance for Liora Monofilament Scaffold for soft tissue reinforcement; and
- Four peer-reviewed clinical results demonstrating favorable outcomes for OviTex and OviTex PRS.
“My first quarter as CEO was focused on putting a plan in place to return TELA Bio to growth. I joined because I believe OviTex is best-in-class technology and that we are well positioned to win in an evolving soft tissue repair and reconstruction market,” said Heather Getz, Chief Executive Officer of TELA Bio. “Our cost reduction initiative allows us to thoughtfully reallocate resources, supports a return to topline growth, and extends our cash runway. In the third quarter alone, we reduced our adjusted EBITDA loss by
Third Quarter 2026 Financial Results
Revenue was
Gross profit was
Total operating expenses excluding other expenses was
Loss from operations was
On a GAAP basis, net loss was
On an adjusted basis, net loss for the third quarter of 2026 was
Cash and cash equivalents on September 30, 2026 were
Conference Call
TELA Bio will host a conference call at 4:30 p.m. Eastern Time on Tuesday, November 10, 2026 to discuss its third 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
________________
1 The Company believes that providing non-GAAP financial measures offers a meaningful representation of our performance, as we exclude expenses that are not necessary to support our ongoing business. We also make adjustments to facilitate year-over-year comparisons. Please refer to our “Reconciliation of GAAP to Non-GAAP Financial Measures” in this release for additional information.
| TELA Bio, Inc. | ||||||||
| Consolidated Balance Sheets | ||||||||
| (In thousands, except share and per share amounts) | ||||||||
| (Unaudited) | ||||||||
| September 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 22,664 | $ | 50,845 | ||||
| Accounts receivable, net of allowances of | 9,273 | 10,347 | ||||||
| Inventory | 11,609 | 11,016 | ||||||
| Prepaid expenses and other current assets | 1,054 | 3,373 | ||||||
| Total current assets | 44,600 | 75,581 | ||||||
| Property and equipment, net | 1,881 | 2,226 | ||||||
| Intangible assets, net | 1,074 | 1,359 | ||||||
| Right-of-use assets | 1,314 | 1,502 | ||||||
| Other long-term assets | 425 | 500 | ||||||
| Restricted cash | 200 | 250 | ||||||
| Total assets | $ | 49,494 | $ | 81,418 | ||||
| Liabilities and stockholders’ (deficit) equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,394 | $ | 2,309 | ||||
| Accrued expenses and other current liabilities | 14,164 | 15,666 | ||||||
| Current debt | 56,299 | — | ||||||
| Total current liabilities | 72,857 | 17,975 | ||||||
| Long‑term debt | — | 55,653 | ||||||
| Other long‑term liabilities | 1,213 | 1,477 | ||||||
| Total liabilities | 74,070 | 75,105 | ||||||
| Stockholders’ (deficit) equity: | ||||||||
| Preferred stock; | — | — | ||||||
| Common stock; | 45 | 44 | ||||||
| Additional paid-in capital | 405,694 | 403,739 | ||||||
| Accumulated other comprehensive income | 83 | 91 | ||||||
| Accumulated deficit | (430,398 | ) | (397,561 | ) | ||||
| Total stockholders’ (deficit) equity | (24,576 | ) | 6,313 | |||||
| Total liabilities and stockholders’ (deficit) equity | $ | 49,494 | $ | 81,418 | ||||
See accompanying notes to unaudited interim consolidated financial statements.
| TELA Bio, Inc. | ||||||||||||||||
| Consolidated Statements of Operations and Comprehensive Loss | ||||||||||||||||
| (In thousands, except share and per share amounts) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenue | $ | 18,959 | $ | 20,689 | $ | 57,309 | $ | 59,406 | ||||||||
| Cost of revenue (excluding amortization of intangible assets and write-off of expired product) | 5,586 | 6,124 | 16,552 | 16,623 | ||||||||||||
| Non cash cost or revenue (amortization of intangible assets and write-off of expired product) | 1,065 | 596 | 1,986 | 2,197 | ||||||||||||
| Gross profit | 12,308 | 13,969 | 38,771 | 40,586 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 13,008 | 15,066 | 45,460 | 48,289 | ||||||||||||
| General and administrative | 3,003 | 3,948 | 11,221 | 11,910 | ||||||||||||
| Research and development | 1,603 | 2,348 | 6,669 | 7,091 | ||||||||||||
| Other | 1,984 | 161 | 2,520 | 403 | ||||||||||||
| Total operating expenses | 19,598 | 21,523 | 65,870 | 67,693 | ||||||||||||
| Loss from operations | (7,290 | ) | (7,554 | ) | (27,099 | ) | (27,107 | ) | ||||||||
| Other (expense) income: | ||||||||||||||||
| Interest expense | (2,099 | ) | (1,201 | ) | (6,228 | ) | (3,608 | ) | ||||||||
| Other income | 190 | 152 | 713 | 1,010 | ||||||||||||
| Total other expense, net | (1,909 | ) | (1,049 | ) | (5,515 | ) | (2,598 | ) | ||||||||
| Loss before income tax expense | (9,199 | ) | (8,603 | ) | (32,614 | ) | (29,705 | ) | ||||||||
| Income tax expense | (103 | ) | — | (223 | ) | (85 | ) | |||||||||
| Net loss | $ | (9,302 | ) | $ | (8,603 | ) | $ | (32,837 | ) | $ | (29,790 | ) | ||||
| Net loss per common share, basic and diluted | $ | (0.16 | ) | $ | (0.19 | ) | $ | (0.57 | ) | $ | (0.66 | ) | ||||
| Weighted average common shares outstanding, basic and diluted | 57,689,149 | 45,421,795 | 57,456,519 | 45,351,947 | ||||||||||||
| Comprehensive loss: | ||||||||||||||||
| Net loss | $ | (9,302 | ) | $ | (8,603 | ) | $ | (32,837 | ) | $ | (29,790 | ) | ||||
| Foreign currency translation adjustment | (1 | ) | (2 | ) | (8 | ) | 1 | |||||||||
| Comprehensive loss | $ | (9,303 | ) | $ | (8,605 | ) | $ | (32,845 | ) | $ | (29,789 | ) | ||||
See accompanying notes to unaudited interim consolidated financial statements.
Statement Regarding Use of Non-GAAP Financial Measures
In this press release, the Company’s financial results are provided in accordance with accounting principles generally accepted in the United States (GAAP) and using certain non-GAAP financial measures, including adjusted net loss and adjusted net loss per common share, adjusted EBITDA, and adjusted gross margin. Management believes that presentation of operating results using these non-GAAP financial measures provides useful supplemental information to investors and facilitates the analysis of the Company’s core operating results and comparison of operating results across reporting periods, while excluding certain expenses that may not be indicative of the Company’s recurring core business operating results. In addition, management believes these non-GAAP financial measures are useful to investors both because they (1) allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) are used by the Company’s institutional investors and the analyst community to help them analyze the health of TELA’s business. Management also uses non-GAAP financial measures to establish budgets and to manage the Company’s business. A reconciliation of the GAAP financial results to non-GAAP financial results is included in the schedules below and a description of the adjustments made to the GAAP financial measures is included at the end of the schedules.
The Company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. Non-GAAP financial results are reported in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Further, non-GAAP financial measures, even if similarly titled, may not be calculated in the same manner by all companies, and therefore should not be compared.
| TELA Bio, Inc. | ||||||||||||||||
| Reconciliations of GAAP to Non-GAAP financial Measures | ||||||||||||||||
| (In thousands, except share and per share amounts) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Adjusted Net Loss and Adjusted Net Loss per common share | ||||||||||||||||
| Three months ended September 30, 2026 | Three months ended September 30, 2025 | |||||||||||||||
| Net loss | Net loss per common share | Net loss | Net loss per common share | |||||||||||||
| GAAP | $ | (9,302 | ) | $ | (0.16 | ) | $ | (8,603 | ) | $ | (0.19 | ) | ||||
| Non-GAAP adjustments: | ||||||||||||||||
| Other (A) | 1,984 | 0.03 | 161 | 0.01 | ||||||||||||
| Non-GAAP Adjusted | $ | (7,318 | ) | $ | (0.13 | ) | $ | (8,442 | ) | $ | (0.18 | ) | ||||
| Nine months ended September 30, 2026 | Nine months ended September 30, 2025 | |||||||||||||||
| Net loss | Net loss per common share | Net loss | Net loss per common share | |||||||||||||
| GAAP | $ | (32,837 | ) | $ | (0.57 | ) | $ | (29,790 | ) | $ | (0.66 | ) | ||||
| Non-GAAP adjustments: | ||||||||||||||||
| Other (B) | 2,520 | 0.04 | 403 | 0.01 | ||||||||||||
| Non-GAAP Adjusted | $ | (30,317 | ) | $ | (0.53 | ) | $ | (29,387 | ) | $ | (0.65 | ) | ||||
| (A) | In the three months ended September 30, 2026, we recognized |
| (B) | In the nine months ended September 30, 2026, we recognized |
Adjusted EBITDA
| Three months ended September 30, | Nine months ended September 30, | Three Months ended June 30. | ||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | ||||||||||||||||
| Loss from operations | $ | (7,290 | ) | $ | (7,554 | ) | $ | (27,099 | ) | $ | (27,107 | ) | $ | (9,283 | ) | |||||
| Non cash cost of revenue (amortization and write-off of expired product) (A) | 1,065 | 596 | 1,986 | 2,197 | 342 | |||||||||||||||
| Other (B) | 1,984 | 161 | 2,520 | 403 | 464 | |||||||||||||||
| Stock-based compensation expense | 626 | 955 | 2,055 | 2,984 | 613 | |||||||||||||||
| Depreciation | 172 | 153 | 512 | 500 | 171 | |||||||||||||||
| Adjusted EBITDA | $ | (3,443 | ) | $ | (5,689 | ) | $ | (20,026 | ) | $ | (21,023 | ) | $ | (7,693 | ) | |||||
| (A) | In the three and nine months ended September 30, 2026, we recognized amortization charges of |
| (B) | In the three and nine months ended September 30, 2026, we recognized severance expense of |
Adjusted gross margin
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||
| Gross margin | 65 | % | 68 | % | 68 | % | 68 | % | |||||
| Non cash cost of revenue (amortization and write-off of expired product) (A) | 6 | 2 | 3 | 4 | |||||||||
| Adjusted gross margin | 71 | % | 70 | % | 71 | % | 72 | % | |||||
| (A) | In the three and nine months ended September 30, 2026, we recognized amortization charges of |
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were TELA Bio’s third-quarter 2026 financial results?
TELA Bio reported $19.0 million in revenue and a net loss of $9.302 million, or $0.16 per share. Revenue decreased 8% year over year. Operating loss narrowed to $7.290 million from $7.554 million in the third quarter of 2025.
How much does TELA Bio expect to save through its cost reduction initiative?
TELA Bio expects its implemented initiative to reduce annual operating expenses by $17.0 million and extend cash runway into 2028. Third-quarter expenses associated with the initiative included $1.7 million in severance and $0.3 million in related legal expenses.