TELA Bio (NASDAQ: TELA) lifts 2025 sales 16% but posts $38.8M loss
Rhea-AI Filing Summary
TELA Bio reported strong revenue growth but continued losses for the fourth quarter and full year 2025. Fourth quarter revenue reached $20.9 million, up 18% from 2024, with gross margin of 65.9% and a reduced operating loss of $6.6 million. Full-year revenue was $80.3 million, a 16% increase, and gross margin improved to 67.7%, while the net loss widened slightly to $38.8 million. Cash and cash equivalents were $50.8 million at December 31, 2025, against long-term debt of $55.7 million. Management highlighted its largest quarterly revenue to date, 88 revenue-generating representatives, and expressed confidence in achieving at least 8% revenue growth in 2026 while progressing toward profitability without raising additional capital.
Positive
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Negative
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Insights
Revenue growth is solid with improving margins, but losses and leverage remain meaningful.
TELA Bio is growing its top line quickly, with revenue up $20.9M in Q4 2025 and $80.3M for the year, representing 18% and 16% growth. Gross margins near the high‑60s show a scalable, higher-value product mix.
Operating expenses were effectively flat year over year at $88.1M, so higher revenue translated into a slightly smaller operating loss of $33.8M. However, net loss still reached $38.8M and stockholders’ equity fell to $6.3M, while long-term debt rose to $55.7M.
Management points to 88 revenue-generating reps and targets at least 8% revenue growth in 2026 without raising additional capital. The sustainability of this plan will depend on maintaining mid-teens growth, preserving gross margins, and managing interest expense on the increased debt load as reflected in these results.
UNITED STATES
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| Item 2.02 | Results of Operations and Financial Condition. |
On March 24, 2026, TELA Bio, Inc. (the “Company”) issued a press release announcing its financial results for the fourth quarter of 2025 and the fiscal year ended December 31, 2025. A copy of this press release is furnished as Exhibit 99.1 hereto.
The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as expressly set forth by specific reference in such filing.
| Item 7.01 | Regulation FD Disclosure. |
On March 24, 2026, the Company updated information reflected in a corporate slide deck, which representatives of the Company will use in various meetings with investors from time to time. A copy of the presentation is attached hereto as Exhibit 99.2, and incorporated herein by reference.
The information furnished pursuant to Item 7.01, including Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference in any filing under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such filing.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
The following exhibits are being furnished herewith:
| Exhibit No. | Document | |
| 99.1 | Press Release of TELA Bio, Inc., dated March 24, 2026. | |
| 99.2 | Corporate Slide Deck, dated March 24, 2026. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| TELA BIO, INC. | ||
| By: | /s/ Antony Koblish | |
| Name: | Antony Koblish | |
| Title: | Chief Executive Officer and Director | |
Date: March 24, 2026
Exhibit 99.1
TELA Bio Reports Fourth Quarter and Full Year 2025 Financial Results
MALVERN, PA, March 24, 2026 -- 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, an 18% and 16% 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 $20.9 million and 18% growth over Q4 2024 while holding operating expenses essentially flat for the year, demonstrating the operating leverage we expect to continue to see in the years ahead," said Antony Koblish, Co-Founder and Chief Executive Officer of TELA Bio. "Over the last six months we strengthened our leadership and upgraded the commercial field organization. Today, the team we have assembled is the best we have ever had, with 88 revenue-generating reps in place to drive greater penetration into key markets throughout the U.S. Based on the current ramp of tenured reps in the field, we are confident in the team’s ability to deliver at least 8% revenue growth in 2026, and keep us on a path to profitability without the need to raise additional capital.”
Fourth Quarter 2025 Financial Results
Revenue was $20.9 million in the fourth quarter of 2025, an increase of 18% compared to the same period in 2024. The increase was driven by the addition of new customers, the U.S. launch of the larger-sized new OviTex PRS product configuration and an increase in international sales. This growth was partially offset by a shift in hernia product mix toward smaller-sized units, which weighed on average selling prices.
Gross profit was $13.8 million in the fourth quarter of 2025, or 65.9% of revenue, compared to $11.2 million, or 63.6% of revenue, in the same period in 2024. The increase in gross margin was primarily due to a lower expense recognized for excess and obsolete inventory adjustments as a percentage of revenue.
Operating expenses were $20.4 million in the fourth quarter of 2025, compared to $19.6 million in the same period in 2024. The increase was due to higher compensation costs, primarily from commissions on an increased revenue base and severance costs, increased study and development costs and higher professional fees which offset lower travel and consulting expenses.
Loss from operations was $6.6 million in the fourth quarter of 2025, compared to a loss from operations of $8.4 million in the same period in 2024.
Net loss was $9.0 million in the fourth quarter of 2025, compared to a net loss of $9.2 million in the same period in 2024.
Full Year 2025 Financial Results
Revenue was $80.3 million for the full year 2025, an increase of $11.0 million, or 16%, compared to the same period in 2024. The increase was primarily driven by the addition of new customers, growing international sales and the U.S. launch of the larger-sized new OviTex PRS product configuration. This growth was partially offset by a shift in hernia product mix toward smaller-sized units, which weighed on average selling prices.
Gross profit was $54.3 million in the full year 2025, or 67.7% of revenue, compared to $46.5 million, or 67.1% of revenue, in 2024. The improvement in gross margin reflects more favorable inventory-related costs as a percentage of revenue compared to the prior year.
Operating expenses were $88.1 million in the full year 2025, compared to $88.2 million in 2024. The decrease was due to lower compensation and travel-related costs across the organization, partially offset by higher commissions on an increased revenue base and higher study and professional fees.
Loss from operations was $33.8 million in the full year 2025, compared to a loss from operations of $34.1 million in the full year 2024.
Net loss was $38.8 million in the full year 2025, compared to a net loss of $37.8 million in 2024.
Cash and cash equivalents on December 31, 2025 totaled $50.8 million.
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 $287 and $275 | 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; $0.001 par value: 10,000,000 shares authorized; no shares issued and outstanding | — | — | ||||||
| Common stock; $0.001 par value: 200,000,000 shares authorized; 44,538,264 and 39,395,712 shares issued and outstanding at December 31, 2025 and 2024, respectively | 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 | ) | ||||
Exhibit 99.2
INVESTOR PRESENTATION March 2026
This presentation contains forward - looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 . All statements other than statements of historical facts contained in this document, including but not limited to statements regarding possible or assu med future results of operations, business strategies, development plans, regulatory activities, market opportunity competitive position, potential growth oppo rtu nities, and the effects of competition, are forward - looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause the actual results, performance or achievements of TELA Bio, Inc. (the “Company”) to be materially different from any future res ults, performance or achievements expressed or implied by the forward - looking statements. In some cases, you can identify forward - looking statements by terms such as “may,” “will,” “should,” “expect,” “plan,” “aim,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “e sti mate,” “predict,” “potential” or “continue” or the negative of these terms or other similar expressions. The forward - looking statements in this presentation are only predictio ns. The Company has based these forward - looking statements largely on its current expectations and projections about future events and financial trends th at it believes may affect the Company’s business, financial condition, and results of operations. These forward - looking statements speak only as of the date o f this presentation and are subject to a number of risks, uncertainties and assumptions, some of which cannot be predicted or quantified and some of whic h a re beyond the Company’s control, including, among others: the impact to our business from macroeconomic conditions, including recessionary concerns, ban king instability, increasing market interest rates, monetary policy changes, changes in trade policies, including tariffs and trade protection measures, a nd 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 an d hospital staffing shortages, supply chain disruptions to critical surgical and hospital supplies, pricing pressures or any other applicable adverse health car e economic factors; our ability to achieve or sustain profitability; our ability to gain market acceptance for our products and to accurately forecast and meet cus tomer demand; our ability to compete successfully; that data from earlier studies related to our products and interim data from ongoing studies may not be re plicated in later studies or indicative of future data; that data obtained from clinical studies using our product may not be indicative of outcomes in ot her surgical settings; our ability to enhance our product offerings; product development and manufacturing problems; capacity constraints or delays in production o f o ur products; maintenance of coverage and adequate reimbursement for procedures using our products; and product defects or failures. These and other ri sks and uncertainties are described more fully in the "Risk Factors" section and elsewhere in the Company's filings with the U.S. Securities and Exchan ge Commission (the “SEC”) and available at www.sec.gov . You should not rely on these forward - looking statements as predictions of future events. The events and circumstances reflecte d in the Company’s forward - looking statements may not be achieved or occur, and actual results could differ materially from those pro jected in the forward - looking statements. Moreover, the Company operates in a dynamic industry and economy. New risk factors and uncertainties may emerge f rom time to time, and it is not possible for management to predict all risk factors and uncertainties that the Company may face. Except as required by ap pli cable law, we do not plan to publicly update or revise any forward - looking statements contained herein, whether as a result of any new information, future ev ents, changed circumstances or otherwise. 2 Forward Looking Statements
We provide innovative soft - tissue reconstruction solutions that optimize clinical outcomes by prioritizing the Preservation and Restoration of the patient’s own anatomy. 3 Our Mission
TELA Bio, Inc. Advanced reinforced tissue matrix portfolio supported by compelling clinical evidence $2.6B US market opportunity 1 – still in early stages of growth Driving commercial adoption with targeted direct - sales approach Recent product launches in growing markets: robotic hernia surgery, plastic and reconstructive surgery Broad intellectual property portfolio Established DRG - based reimbursement pathway for hernia repair and robust GPO access Highly accomplished executive team with proven track record Redefining soft tissue preservation and restoration with a differentiated category of tissue reinforcement materials and supportive products 4 1. Management estimate. $2.6B total includes $1.8B hernia & abdominal wall reconstruction, $0.8B plastic reconstructive surgery.
Product Adoption Since Launch ~90,000 OviTex Reinforced Tissue Matrix (RTM) Implantations Globally 5 70+ Published or Presented Works ( OviTex + OviTex PRS) 5,000+ Hospitals Covered by GPO Access ~20,000 OviTex PRS Implantations (U.S.) 1,500 + Patients in Peer - Reviewed Publications
6
Complex, Moderate Ventral / Abdominal Wall Reconstruction Simple Ventral Hernia Repair Inguinal Hernia Repair Hiatal Hernia Repair ~105,000 ~395,000 ~645,000 ~42,000 $630 M $590 M $ 54 0 M $42 M 1. Sources: Millennium Research Group Reports, IMS Health Data; iData Research MedSKU . 2. Management estimate. Market size based on volume and weighted average selling price for OviTex . Annual Procedures 1 $1.8B 2 Robotic / Minimally Invasive Surgery (MIS) Opportunity within the Hernia Market Robotic / MIS compatible procedures total over 1M annually and have a potential market opportunity of up to $1.2B 2 7 ~$1.8 Billion Annual Opportunity US Hernia Surgery Market
OviTex Core 4 - layer device No smooth sides OviTex Core is designed to reinforce primary hernia repairs where the device will not come into contact with viscera . OviTex 1S 6 - layer device 1 smooth side OviTex 1S incorporates a smooth side that is designed to minimize tissue attachment and to reinforce primary hernia repairs where the device may come into contact with viscera (e.g. intraperitoneal). OviTex 2S 8 - layer device 2 smooth sides OviTex 2S incorporates eight layers of tissue for added strength. The two smooth sides make it suitable for intraperitoneal placement. OviTex Low Profile 4 - layer device 1 smooth side OviTex LPR is designed specifically for use in minimally invasive procedures. The design also incorporates a smooth side making it suitable for intraperitoneal placement. One Comprehensive Portfolio OviTex Inguinal 4 - layer and 3 - layer device No smooth sides OviTex IHR is designed specifically for use in inguinal hernia repair procedures. The design also incorporates an anatomical and rectangular shape to suit surgeon preference.
9 1. Hernia and Abdominal Surgeries Survey (Oct 2020). A group of 71 surgeons were surveyed regarding use of mesh in various he rni a repair surgeries. 2. Figures derived from Company - sponsored online poll of approximately 1,100 potential patients for hernia procedures. 3. See Medtronic plc Form 10 - Q, filed with the SEC on Aug. 27, 2024; Atrium Medical Corp. C - Qur Mesh Products Liability Litigation (Case No: 16 - md - 2753 LM); In RE: Ethicon Physiomesh Flexible Composite Hernia Mesh Products Liability Litigation (Case No: 1:17 - md - 02782 - RWS). 4. Reuters, “Becton Dickinson agrees to settle about 38,000 hernia mesh suits” (retrieved from https:// www.reuters.com /legal/litigation/becton - dickinson - agrees - settle - about - 38000 - hernia - mesh - suits - 2024 - 10 - 03/); Getinge Press Release, dated Decemb er 8, 2021; Johnson & Johnson Form 10 - K, filed with the SEC on February 16, 2024 regarding settlement of Ehticon Physiomesh Flexible Composite Mesh claims). 5. U.S. Food and Drug Administration. (n.d.). FDA's activities: Urogynecologic surgical mesh implants. U.S. Department of Health and Human Services. Retrieved from https:// www.fda.gov /news - events/press - announcements/fda - takes - action - protect - womens - health - orders - manufacturers - surgical - mesh - intended - transvaginal O f surgeons agree that use of permanent synthetic mesh puts patients at long - term risk of complications 1 59 % Hernia patients want proactive control in their care 2 3 of 4 Product liability lawsuits relating to permanent synthetic hernia repair (as of November 2024) 3 Not inclusive of ~40,000 or more cases settled or dismissed within the past three years 4 ~ 15,000 FDA issued multiple 522 orders to manufacturers requiring pre - market approval prior to sale and distribution of transvaginal mesh for pelvic organ prolapse repair 5 2019 Steps surgeons must take in the U.K. as part of the Royal College of Surgeons guidance for Patient Consent Supported Decision Making following the 2015 Montgomery Ruling 6 10 Need for Alternative to Permanent Synthetic Mesh
803 patients, 1 mo – 5 yr F/U Pending: 1000+ patients 337 patients, 1 mo – 3 yr F/U Pending: 1000+ patients 25 patients, 14 mo F/U Pending: 415+ patients 186 patients, 1 – 14 mo F/U Pending: 100+ patients 65+ OviTex published or presented works with long term follow - up exceeding 8 years , including :
*Overall complications including surgical site occurrences (SSOs) and surgical site infections (SSIs) a – OviTex patients were more complicated with a significantly higher mVHWG distribution and CDC wound classification compared to polypropylene patients. b – OviTex patients experienced significantly less complications than patients receiving the other three biologics. c – OviTex and Strattice patients had a statistically lower recurrence rate than patients receiving the other two biologics. Source: Refer to “Clinical References” in this presentation. Sivaraj et al. 2 Parker et al. 3 37 Surgimend 17 Permacol 51 Strattice 36 OviTex 50 Polypropylene 50 OviTex Total enrolled patients 37.5 months (median) 58.4 months (median) 34.6 months (median) 28.6 months (median) 12 months 12 months Length of follow - up 40% grade 1 51% grade 2 9% grade 3 18% grade 1 71% grade 2 12% grade 3 17% grade 1 79% grade 2 4% grade 3 33% grade 1 58% grade 2 8% grade 3 94% grade 2 6% grade 3 32% grade 2 68% grade 3 a mVHWG 91% class I - II 94% class I - II 86% class I - II 89% class I - II 94% CDC class I 70% CDC class II+ a CDC wound class 43.2%* 52.9%* 47.1%* 16.7%* 22%* 36%* Incidence of SSO 5.4% 11.8% 12.5% 2.8% b - - Incidence of SSI 24.3% 29.4% 13.7% c 2.8% c 12% 6% Recurrence rate 11 Comparisons to synthetic mesh and leading first generation biologics Favorable Results of OviTex in Ventral Hernia Repair
* Kaplan - Meier survival estimate **No head - to - head clinical studies have been conducted. Due to differences in patient population, surgeons, surgical technique, and other variables, no direct comparisons of results can be made. For a comparative discussion of these studies, please see G. DeNoto , E.P. Ceppa , S.J. Pacella, M. Sawyer, G. Slayden , M. Takata, G. Tuma, J. Yunis, 24 - Month results of the BRAVO study: A prospective, multi - center study evaluating the clinical outcomes of a ventral hernia cohort treated with OviTex ® 1S permanent reinforced tissue matrix, Ann Medicine Surg 2022, 83, 104745 . Hope et al. (ATLAS) 13 Roth et al. 12 Harris et al. (PRICE) 11 DeNoto et al. (BRAVO) 4 120 Phasix ST 121 Phasix 83 Ventralight ST or Bard Soft Mesh 82 Strattice 92 OviTex Total enrolled patients 24 months 36 months 26 months 24 months Length of follow - up - - - 78% grade 2 - 3 mVHWG 100% class I 100% class I 93% class l - ll 90% class l - ll 95% class I - II CDC wound class Laparoscopic (55.8%) Robotic (44.2%) Open Open Open Open (65%) Laparoscopic (13%) Robotic (22%) Surgical technique 0.8% (includes SSI) - 22% (excludes SSI) 21% (excludes SSI) 38% (includes SSI) Incidence of SSO 0% 9% * 34% 39% 20.7% Incidence of SSI 31.7% * (overall) 18.6% * (defects < 7cm 2 ) 17.9% * 22% (overall) 28% (class I wounds) 40% (overall) 34% (class I wounds) 2.6% * Recurrence rate Source: Refer to “Clinical References” in this presentation. 12 OviTex performance contextualized alongside contemporaneous publications for leading competitive products Positive 24 - month BRAVO Results In Ventral Hernia
TELA Bio positioned to grow from a market shift towards resorbable and more “natural repair” solutions as an alternative to traditional Permanent Synthetics or Biologics Hernia Market Evolution 2027 2021 2018 2013 Permanent Synthetic Biologic Sales Market Share <1% Robotic Procedures ( Px ) 7% Robotic Px 12% Robotic Px 202 3 1 4 % Robotic Px Resorbable Synthetics Reinforced Tissue Matrix 21% Robotic Px Resorbable Synthetics and Reinforced Tissue Matrix strengths: 13 Sources for Sales Market Share (%): 2009 - 2013 = IMS Hospital Supply Index; 2018 - 2023 = iData Research MedSKU Sources for Total U.S. Market Size: 2021 - 202 7 = DRG Hernia Repair Devices Report – 2021; 2013 - 2018 = Management Estimate. Sources for % Robotic Procedures: 2018 - 2027 = DRG Hernia Repair Devices Report – 2021; 2013 = Management Estimate. Clinical Evidence Robot Compatibility Cost - effectiveness Patient Choice & Shared Decision - making
14 Multiple Layers of Ovine Rumen Three Polymer Options
15 ~$800 Million Annual Opportunity US Plastic & Reconstructive Surgery Market $700M 2 1. OviTex PRS is for implantation to reinforce soft tissue where weakness exists in patients requiring soft tissue repair or reinforcem en t in plastic and reconstructive surgery. The device is supplied sterile and is intended for one - time use. OviTex PRS has not been tested in breast surgical procedures. 2. Management estimate. Source: iData Research MedSKU , Q1 2024. Market size based on sales of current biologics. + $100M 2 Cosmetic Plastic & Reconstructive Surgery Surgeons use products to reinforce soft tissue during various reconstructive surgeries 1 , including: Head and neck surgery Chest wall reconstruction Pelvic reconstruction Extremities reconstruction Breast reconstruction Market dominated by human acellular dermal matrices (HADMs): Prone to high degree of stretch Expensive, putting pressure on hospital systems Can experience supply shortages, particularly when large pieces of material are required
Specifically designed for plastic and reconstructive surgery OviTex PRS An innovative reinforced tissue matrix designed to improve outcomes by facilitating fluid management and controlling degree and direction of stretch Product Features: Layers composed of biologic building block retain biologically significant macromolecules for tissue regeneration 1,2 Diamond embroidery pattern and stents allow for directional flexibility; sawtooth embroidery pattern and slits allow for bi - directional stretch while providing stretch resistance Distinct permeability elements in various configurations – e.g., micropores, macropores, and stents/slits – designed to facilitate fluid management OviTex PRS compared to market leading human ADM 3 Exhibited earlier host cell proliferation, collagen deposition and neovascularization Demonstrated tissue remodeling into mature, functional and organized collagen 1. Certain configurations available in two or three layers, see product catalog more information. 2. Lun S, Irvine S.M., John son K.D., Fisher N.J., Floden E. W., Negron L., Dempsey S.G. , McLaughlin R.J., Vasudevamurthy M. , Ward B.R., May B.C., A functional extracellular matrix biomaterial derived from ovine forestomach, Biomaterials 31(16) (2010) 4517 - 29. 3. ADM: Acellular Dermal Matrix. Overbeck N, Beierschmitt A, May BC, Qi S, Koch J. In - Vivo Evaluation of a Reinforced Ovine Biologic for Plastic and Reconstructive Procedures in a Non - human Primate Model of Soft Tissue Repair. Eplasty . 2022 Sep 14;22:e43. PMID: 36160663; PMCID: PMC9490877. Animal testing results may not be indicative of clinical performance. 16 Available in 2 - layer resorbable (polyglycolic acid) polymer, 3 - layer permanent (polypropylene) polymer, or 3 - layer resorbable (polylactic - co - glycolic acid) polymer reinforcing the same biologic material
17 Leading - edge atraumatic hernia mesh fixation devices Designed to minimize complications for patient safety and comfort
LIQUIFIX FIX8 & LIQUIFIX Precision Atraumatic liquid fixation devices Reduce the need for penetrating mechanical fixation for inguinal and femoral hernia repair Provide precise, controlled adhesive application Addresses an unmet need in the market, less damage to tissue Designed to minimize the risk of mechanical tissue trauma 2 Strong and secure mesh fixation 2 Pre - assembled device Adhesives polymerize in ~10 seconds Provides versatile liquid anchors at multiple angles 1 . LIQUIFIX FIX8 is intended for use in laparoscopic surgical repair of groin (femoral and inguinal) hernias, achieved through the fixation of prosthetic polypropylene or polyester mesh to the abdominal wall and the approximation of the peritoneum; LIQUIFIX Precision is intended for use in open surgical repair of groin (inguinal and femoral) hernias, achieved through the fixation of prosthetic polypropylene or polyester mesh to the abdominal wall. 2. Data on file: Advanced Medical Solutions 18 LIQUIFIX FIX8 1 is a complementary product addressing both open and laparoscopic hernia repair in the groin.
Driving Revenue Growth Sales Force Size Rep Productivity Product Portfolio GPO Access Clinical Experience X X X X = SALES $ 2021 40 - 45 Reps / 5 TB Ltd.* 2022 61 Reps / 6 TB Ltd.* 2023 86 Reps / 9 TB Ltd.* 2024 63 Territory Managers + 8 Account Specialists / 10 TB Ltd.* 2025 72 Territory Managers + 20 Account Specialists / 14 TB Ltd.* 2026 (Target) 94 Territory Managers + 17 TB Ltd.* Playbook90 training (new reps) & ongoing, intensive product training Avg. 6 mos. to breakeven Cadaver labs & other surgeon education & training programs Medical affairs support Industry & society meetings R&D and BD + + 5,000+ Hospitals covered by GPO access BRAVO 24 - month data: 2.6% recurrence 70+ published or presented works for OviTex + OviTex PRS 1,500+ patients in peer - reviewed publications ~90,000 OviTex RTM implantations globally ~20,000 OviTex PRS implantations 19 *TB Ltd. = European Sales Force INGUINAL LOW PROFILEJH1
19 20 +40% +38% +46% +39% +45% +39% +35% +46% +39% +11% +26% +4% +12% +26% +9% +18% 60% 65% 70% 75% 80% $0 $5 $10 $15 $20 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 Gross Margin Revenue ($M) Quarterly Revenue and Gross Margin Revenue Gross Margin $41.4M, +41% $58.5M, +41% $69.3M, +19% $80.3M, +16%
21 Delivering Revenue Growth and Strong Margin with Continuing Improvement Potential $21M Quarterly revenue of $20.9M, growing 18% over corresponding period of 2024 $50.8M Cash and Cash Equivalents at December 31, 2025 66% Gross Margin Q4 2025 Performance
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