TELA

Image source: The Motley Fool. Monday, Aug. 10, 2026, at 4:30 p.m. ET Chairman-Joe Capper Chief Executive Officer-Heather Getz President-Jeffrey Blizard Chief Operating Officer and Chief Financial Officer-Roberto E. Cuca Senior Vice President of Strategic Operations and Marketing-Jim Hagen Investor Relations-Louisa Smith Operator: Good afternoon, ladies and gentlemen, and welcome to the TELA Bio Second Quarter 26 Earnings Conference Call. At this time, all participants are in listen-only mode. Following the prepared remarks, there will be a question-and-answer session. Please be advised that today's conference is being recorded. I would now like to turn the conference over to Louisa Smith. Louisa Smith: Thank you, Lisa, and good afternoon, everyone. Earlier today, TELA Bio released financial results for the second quarter ended 06/30/2026. Copy of the press release is available on the company's website. Joining me on today's call are Heather, Chief Executive Officer Jeffrey Blizard, president Roberto E. Cuca, chief operating officer and chief financial officer and Jim Hagen. Senior vice president of strategic operations and marketing. Before we begin, I would like to remind you that during the conference call, the company may make projections and forward looking statements regarding future events. We encourage you to review the company's past and future filings with the SEC, including, without limitation, the company's quarterly reports on Forms 10-Q, Which identify the specific risk factors that may cause actual results or events to differ materially from those described in these forward looking statements. These factors may include, without limitation, statements regarding product development, pipeline opportunities, sales and marketing strategies, and the impact of various additional risk factors as identified in our regulatory filings. With that, I will now turn the call over to Joe Capper. Antony Koblish: Thank you, Louisa. Good afternoon, and thank you for joining TELA Bio's second quarter 26 earnings call. I will start the call with a few comments about the important leadership change announced last week naming Heather Goetz as the new Chief Executive Officer and director of TELA Bio. Then I will turn the call over to the management team for an update on the business. Heather brings a proven track record of driving operational excellence leading organizations through complex business and financial transformations, and creating long term value. We are confident that under Heather's leadership, TELA Bio will build on its strong foundation. Expand its impact for patients and surgeons, and deliver value for our shareholders and employees. On behalf of the Board, also want to extend our sincere gratitude to Antony Koblish, for his vision, leadership, and entrepreneurial spirit in founding TELA Bio and guiding the company through its early growth stage. Tony's commitment to innovation led to the development of OviTex, and helped establish TELA Bio as a leader in soft tissue reconstruction. We are deeply appreciative of his many contributions and wish him continued success in his future endeavors. I will now turn the call over to Heather. Jeffrey Blizard: Thank you, Joe. Good afternoon, everyone. Louisa Smith: Let me start by extending my gratitude, especially to our team for the warm welcome. I am honored to join TELA Bio at such an exciting time in the company's evolution. There are many things that attracted me to the organization. 1 of which is its differentiated product portfolio that spans the hernia and plastic and reconstructive surgery spaces. These products were designed with patient outcomes in mind. And they work. For example, the efficacy of the hernia products is supported by robust clinical studies as demonstrated in the BRAVO study at a 2.6% recurrence rate, OviTex has 1 of the lowest needs for repeat surgery while being used successfully in the most complex surgical tissue repair procedures. It is a privilege to be part of an organization that can improve the lives of patients and addresses a $2.8 billion market opportunity. Unfortunately, the results of the business this quarter do not reflect the quality and potential of the portfolio. We believe that this is because of several factors. The markets in which we compete are highly specialized and require substantial onboarding and training for new sales reps. As a result, the time to productivity for the new hires has taken a bit longer than anticipated. In addition, earlier in the year, some adjustments were made to the sales team's focus and incentive specifically around PRF, that initially appeared positive but that we later determined needed to be adjusted. Finally, the continued practice of anti competitive contracting and bundling in hospitals which is the core issue in our lawsuit against Becton Dickinson, continues to create barriers to OviTex adoption. While we are not without competitive and market challenges, I am energized by the opportunity to see the company through its next phase of growth by leveraging my experience in leading organizations through complex business and financial transformations. I will now turn the call over to Jeff Blizard to discuss the dynamics impacting our business in more detail about how we are addressing each of these challenges. Roberto E. Cucaw the second quarter financials and we will then open the call up for your questions. Jeff Blizard? Jeffrey Blizard: Thank you, Heather. You saw in the release, revenue for the second quarter was $19.3 million a decrease of 4 percent from the second quarter of 2025 and below our expectations. The shortfall was concentrated almost entirely in our OviTex PRS portfolio, I will now walk through what drove the miss and detail our plan that we have in place to get back on track. January, we initiated a pilot where we tested the concept of having a dedicated PRS rep calling on targeted hospitals. The hypothesis was that with focus, we could build a clinical relationship, provide superior surgical support, and create a sustainable business upon clinical outcomes with exclusive presence. After extensive analysis from our sales leadership team and feedback from the field, concluded that the pilot had unintended consequences causing confusion within the sales organization. Which subsequently contributed to the PRS decline. We acted fast, and stopped the pilot to move back to our original structure in which every TM has a full breadth of the portfolio across their entire territory. The PRS action plan we are rolling out now will have a full training program for the US field team combined with how best to resource and leverage the medical office. With these positive changes in place, and what we know about the seasonality of PRS, we expect to see recovery in the second half of the year. Stepping back to the broader U. S. Field organization, we continue to make progress on the tenure, productivity curve we have talked about over the last several quarters. We have previously discussed the importance of sales reps progressing through their early tenure as, historically, we have seen productivity build more meaningfully as reps gain experience mature in their roles. While progress is happening, but not at the pace we originally anticipated due to changes in focus and competitive challenges as referenced above. We maintain confidence that the investment we have made in this team over the past year is translating into the kind of durable, tenured field organization we need to drive consistent performance. Globally, our core hernia business continues to perform well. OviTex unit volumes grew 12 percent year over year, meaningfully ahead of our 6 point 6 percent growth in OviTex dollar revenue. Which indicates we continue to take procedural share even as The U.S. market shift toward smaller sized units with a prevalence of robotic hernia repairs in the U.S., as Heather mentioned, we continue to battle against the competitive dynamics of bundling from our largest competitors. Which has been particularly challenging in the last 18 months. To help combat this, we have upgraded our talent within our market access and contracting team. OviTex's long term data has continuously shown recurrence rates in the low single digits, whereas other biologic and biosynthetic hernia repair materials have recurrence rates consistently 10x higher. In programs where we are allowed to compete fairly, the value proposition becomes abundantly clear to both surgeons and hospital administrators. I am encouraged that LIQUIFIX had another strong quarter. With revenue up 39 percent over the prior year period, and our international business continued to be a source of consistent growth. With revenue up 26 percent year over year as we deepen our presence in the U.K. and other key European markets. As a reminder, our European growth comes entirely from our hernia portfolio, Since OviTex PRS is still working through the regulatory process to reach the European market. Europe continues to be 1 of our more durable parts of our business and we remain focused on deepening our positioning in these markets. While we are behind where we expected to be at the end of the second quarter, commercial organization has the agility to adjust as needed and we are doing just that. We have designed the best hernia portfolio in the market, and we are taking decisive action to get the PRS business back on track. We have also upgraded leadership in our market access team, we have a maturing sales force, and we continue to demonstrate sustainable growth in Europe. Our team has stepped up. I am truly encouraged by what is ahead. I will now turn it over to Roberto to walk through the financials in more detail. Roberto E. Cuca: Thank you, Jeffrey. As Jeff described, revenue for the second quarter of 26 was $19.3 million, a decrease of approximately 4 percent compared to $20.2 million in the second quarter of 2025. This was primarily driven by a decline in our OviTex PRS unit volume and the continued shift to smaller, lower priced hernia units in our OviTex mix, partially offset by continued growth in our international business. International sales revenue of $3.8 million represents a 26 percent increase over the prior year period. Global OviTex unit volume increased 12 percent year over year, with 5.78 thousand units sold in the second quarter compared to 5.18 thousand units sold in Q2 25. OviTex revenue was $13.3 million, up 0.6% from $12.5 million in the prior year period. OviTex PRS revenue was $5.5 million compared to $7.3 million in the second quarter of 2025. Reflecting the 23 percent decline in PRS unit volume that Jeffrey discussed. Other revenue, which includes LIQUIFIX, was $500 thousand representing growth of 39 percent. Gross profit was $13.9 million in the second quarter of 26, modestly below $14.1 million from the prior year period. Gross margin was 72 percent compared to 70 percent in Q2 25. The increase was driven by the refund of previously paid tariffs and a lower charge for excess and obsolete inventory as a percentage of revenue. Total operating expense was $23.2 million in Q2 26, flat to the $23.2 million of expense in the prior year period. Sales and marketing was $16.4 million, a decrease of approximately $400 thousand from the prior year period. Lower commission expense partially offset by higher meeting and training costs. General and administrative cost was $4.1 million in line with the prior year period. Research and development was $2.7 million, an increase of approximately $500 thousand from Q2 25 driven by higher compensation and benefits and study costs. Loss from operations was $9.3 million in Q2 26 compared to $9.1 million in Q2 25. And a sequential decline of 12 percent from Q1 26. Net loss was $11.3 million in Q2 26, compared to $9.9 million in Q2 25. The increase was primarily due to higher interest expense of $2.1 million associated with our new upsized credit facility we put in place in November 2025 versus $1.2 million in the prior year period under the previous facility. We ended the quarter with $30.4 million in cash and cash equivalents. Before I turn the call back to Heather, let me touch on the remainder of the year. As a result of the lower than expected results in the first half of the year, and the longer than expected ramp time for our new sales team, we will be taking steps to meaningfully reduce the overall cost structure to bring it more in line with our top line performance and expectations. Since Heather just joined the organization, we will need time to finalize the overall plan. As such, we believe it is prudent for us to withdraw our prior full year revenue guidance. We will provide an update after the plan is finalized. I will now turn the call back to Heather for some closing remarks. Jeffrey Blizard: Thank you, Roberto. I want to reiterate my excitement for the opportunity to lead the TELA Bio team. We have a differentiated portfolio, a strong commercial foundation, and a clear commitment to improving outcomes for patients and surgeons. I am excited to partner with our talented employees, leadership team, customers, and board to build on that momentum, accelerate commercial execution, strengthen our customer relationships, and expand our impact. Together, we have a tremendous opportunity to advance the company's mission and create long term value for all of our stakeholders. Thank you to the team for your continued focus and effort. Operator, please open the line for questions. Operator: Thank you. You will hear an automated message advising your hand is raised. If you would like to remove yourself from the queue, press 1 again. We ask that you wait for your name and company to be announced before proceeding with your question. 1 moment while we compile the Q&A roster. Our first question will be coming from the line of Caitlin Roberts of Canaccord Genuity. Please go ahead. Caitlin Roberts: Hi. Thanks for taking the questions, and welcome, Heather. Just a quick 1 on the sales force. Would love more of an update there. How many team members did you end the quarter with? And you noted it is taking a little bit longer for the reps to hit breakeven versus the 6 months you noted, prior? How much longer is it taking for them? Jeffrey Blizard: Sure. Hey, Caitlin. it is Jeff Blizard. We are on pace with our hiring plan. And with the focus shifting on onboarding, training, and productivity, it is making sure that we have the right team in place. Importantly, our growth in headcount reflects our deliberate commercial expansion. Not turnover. This is an investment in us building the right team, right people, and right roles. And our newest cohort is already outperforming its predecessors in that same stage of tenure. Jim Hagen: Hey, Caitlin. it is Jim. I will add some color on your second half. Around the 6 month productivity time line. I think we are definitely seeing it longer. In the reps come up. We know tenure in our field force is the biggest driver of sustainable success. For us. So we are really looking at that 9- to 12-month ramp for reps to get up to a really strong productivity level. The positive sign is that a lot of them are getting there. Terms of maturity and tenure in role. We have added more resources to our training team, both in house and in the field. And within our medical office. So I think I am feeling really good that group will get up to the productivity levels we need by the end of the third quarter and into the fourth quarter. Caitlin Roberts: Mhmm. And just on the PRS business, I think you called out last quarter, you know, just some issues with the concentration of, the customers there. I mean, is that is that still an issue? Is that confounding with the Salesforce focus in PRS and the shifting of that? And maybe a little bit more color on what is really driving the results there. Jeffrey Blizard: Well, the pilot was the 1 that probably got the most attention in the organization. We thought in those 6 key markets, we would see a lift, and the rest of the organization would keep PRS as part of their focus in their bag. A bit of that was starting to fall off when we realized the pilot was not growing as fast as we wanted it to in that pilot, so that is why we pivoted quickly and stopped it. PRS is not a systemic issue. And Jim, maybe you can pull this up. But ultimately, we have seen in key programs, key surgeons, it is in less than 10 sites that we ultimately have to get back on board. Jim Hagen: So, again, not a systemic issue, isolated based on surgeons leaving programs, 1 who is a new mother, Some of our key users, had, the first half of this year as, been some changes in life and career patterns. So to your concentration point, Caitlin, that is still real? For us. We have smaller cohort of surgeons implanting PRS that make up larger percentage of our revenue. Disproportionately, there was a number of those surgeons who were out in the first half of the year. Of them are coming on. As Jeff said, there is been a couple of life changes for some of them. That they are out. Part of the PRS pilot, 1 of the hypotheses was with dedicated focus, we can drive depth at hospitals with more implanters to broaden the or lessen the concentration on a critical few. That has now shifted to the broader field team. it is still 1 of our efforts We know we have to diversify our enterprise base. To protect from these shocks going forward. Caitlin Roberts: Understood. Thanks for taking the questions. Jim Hagen: Thanks, Caitlin. Jeffrey Blizard: Thanks, Caitlin. Operator: Thank you. 1 moment for the next question. And our next question is coming from the line of Sam Knapp of Lake Street Capital Markets. Please go ahead. Frank Takkinen: Hi. This is Frank Takkinen from Lake Street. Thank you for taking the questions. Was hoping to start with 1 on the competitive landscape. Heard the comment a few times throughout the call, maybe helping to characterize what an account looks like where you are competing fairly, and then what are the priorities related to the barriers you need to knock down in order to have more accounts replicate, what a fair account looks like. Jeffrey Blizard: In the Southeast, as an example, we got a, got an organization a buying group, that has brought us in, and we have a fair share of our contract responsibility. And that is gone to about 13 or 15 sites with full product rollouts, getting surgeons on board. Doing patient selection conversations, and then cases to follow. And that is what great looks like. We have actually had that happen over the last 6 weeks or so. The inverse is true in a medical system out West, where we exceeded our percentage of share. allotment. And the competitor went in and threatened a price increase to the tune of 4 hundred thousand dollars, and we were asked to leave the program. So we are seeing both sides, and it felt a little bit more ramped up in the second quarter versus prior quarters. Frank Takkinen: Okay. that is helpful. And then related to the comment on cost structure in the second half of the year, where should we think about the costs coming out of the model? Louisa Smith: So, Frank, we are still working on this. I have spent some time with the team, and it is evident that there is opportunity to take some meaningful cost out. But the specifics of the plan have not been yet finalized. What we will do is protect our top line and our critical functions within the organization, that protect patient safety. Frank Takkinen: Okay. That makes sense. Thank you. Louisa Smith: I will update you as soon as we have a finalized plan. Frank Takkinen: Makes sense. Thanks. Jim Hagen: Thanks, Frank. Operator: Thank you. 1 moment for the next question. Our next question is coming from the line of Matthew O'Brien of Piper Sandler. Matthew O'Brien: Roberto, did I hear you right that the second half of the year is going to be, as far as revenue goes, better than the first half? And then for-- I know we do not wanna get into 2027 too much, but there is no reason to think you will not grow 2027 versus maybe 2025 this year being more of an adjustment year? And then I have a follow-up. Roberto E. Cuca: Okay. We are probably thinking of Jeffrey whose voice is almost as deep and resonant as mine. He was the 1 who was talking about the revenue growth in the second half of the year, so I will let him answer that. Jeffrey Blizard: So we are optimistic that PRS is going to be 1 of our growth drivers in the back half of this year given that it is back in as a large percentage of our focus with a training plan for the commercial organization and reengagement with those key users. And just, again, noting the seasonality, of PRS and when we see it hit the most is, the back half of this year. Analyst: So that is where you are hearing our optimism. Matthew O'Brien: And, Jeffrey, that is just on PRS, or is that for the whole business? Jeffrey Blizard: No. The whole business too is we are expanding on our hernia business too with focus on larger pieces. So going after complex ab wall, and ultimately, you know, what we see in our trends is our volumes growing as high as 12 percent, is keeping that now with larger pieces, which drives higher ASPs. Matthew O'Brien: Okay. Then this 1 is for Roberto. Just talk about the cash position of the company at this point, Roberto. I know there is gonna be some cost structure adjustments, but, you know, just given where you are from a cash perspective, you know, how do we think about funding the business going forward needs there? Thanks so much. Roberto E. Cuca: Sure. So as Heather mentioned, you know, we are at the beginning of the evaluation process for reducing the cost structure. As we mentioned in the prepared remarks, we have $30.4 million as of the end of second quarter. Our goal in that review of cost structure in addition to preserving our revenue growth will be to extend the cash runway as much as possible to make any sort of additional fundraising a last resort. So this is all a work in process. And as Heather mentioned, as soon as we have final results on it, we will be reporting out on it. Jeffrey Blizard: Thanks, Matthew. Operator: Thank you. 1 moment for the next question. Our next question will be coming from the line of Michael Sarcone of Jefferies. Please go ahead. Michael Sarcone: Hey. Good afternoon, and thanks for taking the questions. And, Heather, welcome aboard. I guess just some-- yeah. So just some clarification questions for me. Just around the PRS unit volume headwinds, it sounded like you cited 2 sources of pressure. 1 was the pilot program that kind of changed focus or selling focus among the organization and then some lifestyle or behavioral changes. From some of the surgeons. I guess, you know, is that right? You know, which 1 is the more important factor? And are you expecting changes to both of those headwinds? as we work our way through the second half? Or just kind of a change around the refocus of the sales force? Why do not you take that, Jeffrey? Jeffrey Blizard: Yeah. Thanks. Thanks. it is Michael Sarcone, right? Yes. that is right. Oh, hey, Michael, it is Jeff Blizard. So a couple things. 1 is simplifying the message in our Salesforce playbook. So that our team stays focused on really 2 to 3 key initiatives a quarter. that is evident. it is there is so many challenges in the role. We have to constantly simplify it so that they stay focused on the things that drive the business. Secondarily, within PRS, specifically, since we noted it is not systemic and it is on key programs, there is 2 things I would like to add. 1 is 1 of our key contributors with PRS in the year of 25 left us in January. And he just came back in July. This was 1 of our top performers, and our business already in that market is starting to take off with his presence alone. And what I would like to note too without using surgeons' names given that there is been some competitive challenges with product that is published with high recurrence rates, we are starting to see surgeons that are well published, regarded, and, they are on podiums and also in speaking bureaus. For a competitor are starting to contact us about using our product. So in the future, we hope to share those names and discuss their positive outcomes. But the good news is we are starting to see a shift in some of those loyal allegiant programs and doctors, to look at our product now as another solution. Michael Sarcone: Okay. Thanks, Jeffrey. that is helpful. And then on the hernia side, you guys had mentioned a focus on some larger pieces that come with higher ASPs. Just trying to understand the messaging there. Do we expect that the shift toward robotic hernias and smaller pieces is still going to kind of outweigh and be a price mix headwind for the foreseeable future. Or is the message that we could start to see some of these larger pieces more than offset that and see, I guess, a stabilization or growth in price. Jim Hagen: Hey, Michael. it is Jim. So both things are true, the market itself and procedurally, you are seeing more cases move robotically. As we launched IHR into our portfolio in 2024, And we have improved our LPR products within our portfolio, you do see those as the fastest unit growth within our hernia portfolio because we are capturing more of those procedures. what is also true, and we referenced our data points throughout the call, the OviTex hernia portfolio has the best matchup for the most complex patient that is out there. Those are naturally performed open procedures. You are not really gonna do those robotically. We have a right to win in that patient population, and we are going to put the foot on the gas there in the second half. I think naturally, we are starting to see some slowdown in the price or to the kind of the revenue and unit growth gap. We should start to see that start to normalize. 2027. But we can alleviate some of that ASP degradation by getting back to really what is core to us, which is treating the most complex patient out there with OviTex. Michael Sarcone: Great. that is really helpful. Thanks a lot. Jim Hagen: Thanks, Michael. Operator: Thank you. 1 more moment for the next question. Our next question is coming from the line of David Turkaly of JMP Citizens. Please go ahead. David: Hey. Good evening. This could be for Heather or Joe, but, the bundling commentary given that the recurrence rates are 10x higher for some of the competitors. I guess I would just like to know, like, how do you combat that if it is that much better? And I know there is a lawsuit involved, but I guess could you just walk us through how you think you can slow that down or stop that? Given that you have what appears to be a better product. Louisa Smith: Yeah. I was gonna say I will let Jeffrey take that 1. Jeffrey Blizard: Hey, David. it is Jeffrey. A couple of things. 1 is, a lot of times, surgeons get to that decision, on their own. Right? So as much as we have put the product in a lot of physicians' hands using cases, and the peer to peer network is growing. They are going to these major conferences, reading data, seeing recently published publications, and realizing that a lot of time recurrence is not necessarily their patient. And what I mean by that is, when a surgeon uses a product and has an outcome and maybe it is not favorable, they tend not to always see that patient back. So that recurrence is usually in the hands of another surgeon. As you probably would, you know, seek, a procedure if you did not have a great case to begin with. So what we are trying to do ultimately is get the word out. We are at all the key forums. We are headed to the American Hernia Society at the end of this month, which is a big 1 for us, to be present. With some of these surgeons and share our data, share our wins over the past year. And then ultimately continue to grow with this device and those key procedures. As Jim said, we have the right to win, and that is, you know, some of the product that is out there that has high has high recurrence rates. Is where those patients are not necessarily thriving with their outcomes. So we are doing it the right way. You know, ultimately, letting these surgeons arrive at that decision without necessarily, pointing the data out to them. Analyst: it is their well versed in it. Louisa Smith: And just to say it, I mean, I think in these more complex cases where physicians may have had poor outcomes before, they are more likely to go to bat for the OviTex product with the hospital where some of these competitive dynamics exist. So that is part of how we get in there and get through these contracting, challenges we have. Jeffrey Blizard: You want to answer this? I will put a funnel, but I want to-- maybe we referenced the call. Jim Hagen: We have-- we are upgrading talent Within part of a key part of our team that owns our contract and strategy. Especially in hernia. We do see the pendulum swing in terms of decision making authority moving more toward the administration. Having a relationship there and having team members who understand what they value Being able to tell an economic value story derived from our clinical outcomes is critical to us. So we believe we have the people on the team now who know how to do that better. that is part of that top down we have to attack this. And as Heather and Jeffrey alluded to, you still need presence in building clinical champions from the bottom up. So all of that competitive pressure that is out there, which is, again, the basis of our lawsuit that is there, is the friction that we reference the time to productivity for our reps. Some of the friction that is in our reps' way to getting to productivity. Because from the bottom up, they have to create all of those networks and relationships across the hospital system just to be able to advocate for the clinical and economic value of Overtex But we are aware of some of those structural barriers. We are making the moves internally. In the market we compete in now and how it is structured, we are not going to give up. We are just going to put different effort to it and overcome that friction. David: Thank you for that. Jeffrey Blizard: Thanks, David. Operator: Thank you. And there are no more questions in the queue. I would like to turn the call back over to Heather for closing remarks. Please go ahead. Louisa Smith: Hey. Thank you. I want to again acknowledge and thank the entire TELA Bio team for the warm welcome and express my excitement to work alongside you as we position the company for sustainable growth. We are taking decisive action to extend our cash runway by better aligning our cost structure with our top line while preserving high value customers and critical capabilities to protect revenue and ensure patient safety. I look forward to updating you on our progress in the future. Thank you for joining the call. Operator: This concludes today's program. Thank you so much for joining. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed the Q2 revenue decline primarily to a failed pilot program in the OviTex PRS portfolio that caused internal confusion and unintended sales organization friction. The company is facing significant headwinds from anti-competitive bundling and contracting practices by large competitors, which has slowed the adoption of OviTex in hospital systems. Sales rep productivity is taking longer than the historical 6-month average, with management now projecting a 9- to 12-month ramp-up period due to market specialization and training requirements. The core hernia business remains a growth driver with 12 percent unit volume growth, though revenue growth is lagging at 6.6 percent due to a market shift toward smaller, lower-priced robotic units. International markets, particularly the U.K. and Europe, continue to provide durable growth, increasing 26 percent year-over-year despite OviTex PRS still awaiting regulatory approval in those regions. Management emphasized that OviTex maintains a superior clinical value proposition with recurrence rates in the low single digits, compared to competitors with rates they claim are 10x higher. The company has withdrawn its full-year revenue guidance to allow new leadership time to finalize a plan to reduce the overall cost structure in line with current performance. Management expects a recovery in the PRS business during the second half of the year, citing historical seasonality and the re-engagement of key high-volume surgeons. Strategic focus is shifting toward 'complex abdominal wall' procedures to drive higher average selling prices and offset the revenue dilution from smaller robotic units. The company intends to leverage its upsized credit facility and cost-reduction initiatives to extend its cash runway, aiming to make additional fundraising a last resort. Future growth assumptions rely on the successful transition back to a generalist sales model where every territory manager carries the full product portfolio. Heather Goetz has been appointed as the new CEO, succeeding founder Antony Koblish to lead the company through a financial and operational transformation. A lawsuit against Becton Dickinson remains a central factor in the company's strategy to combat what it describes as exclusionary contracting practices. Gross margin improved to 72 percent, aided by a non-recurring refund of previously paid tariffs and lower inventory obsolescence charges. The PRS business suffers from high customer concentration, where life events or career changes of a few key surgeons can disproportionately impact quarterly revenue. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed that the ramp-up to full productivity is now expected to take 9 to 12 months rather than the previous 6-month estimate. The newest cohort of sales reps is reportedly outperforming previous groups at the same stage of tenure despite the longer overall timeline. Management described 'fair' accounts as those where buying groups allow full product rollouts based on clinical outcomes, contrasted with 'unfair' accounts where competitors threaten price increases to exclude TELA Bio. To combat this, the company has upgraded its market access and contracting leadership to better communicate the economic value of lower recurrence rates to hospital administrators. The company is evaluating 'meaningful' cost reductions but will prioritize protecting top-line growth and patient safety functions. Management aims to extend the current $30.4 million cash balance as much as possible to avoid near-term dilutive financing.

This article first appeared on GuruFocus. Revenue: $19.3 million in Q2 2026, a decrease of 4% from $20.2 million in Q2 2025. OviTex Revenue: $13.3 million, up 6.6% from $12.5 million in the prior year period. OviTex PRS Revenue: $5.5 million, down from $7.3 million in Q2 2025, reflecting a 23% decline in unit volume. International Revenue: $3.8 million, a 26% increase year-over-year. Other Revenue (including LIQUIFIX): $0.5 million, representing growth of 39%. Global OviTex Unit Volume: Increased 12% year-over-year to 5,776 units sold, compared to 5,178 units in Q2 2025. Gross Profit: $13.9 million in Q2 2026, modestly below $14.1 million in the prior year period. Gross Margin: 72% in Q2 2026, up from 70% in Q2 2025. Total Operating Expense: $23.2 million in Q2 2026, flat compared to the prior year period. Sales & Marketing Expense: $16.4 million, a decrease of approximately $400,000 from the prior year period. General & Administrative Expense: $4.1 million, in line with the prior year period. Research & Development Expense: $2.7 million, an increase of approximately $0.5 million from Q2 2025. Loss from Operations: $9.3 million in Q2 2026, compared to $9.1 million in Q2 2025. Net Loss: $11.3 million in Q2 2026, compared to $9.9 million in Q2 2025. Cash and Cash Equivalents: $30.4 million at the end of the quarter. Warning! GuruFocus has detected 4 Warning Signs with TELA. Is TELA fairly valued? Test your thesis with our free DCF calculator. Release Date: August 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Global OviTex unit volumes grew 12% year-over-year, indicating procedural share gains despite revenue headwinds. International business delivered strong growth, with revenue up 26% year-over-year, driven by hernia portfolio expansion in Europe. LIQUIFIX revenue increased 39% year-over-year, contributing to portfolio diversification. Gross margin improved to 72% from 70% in Q2 2025, aided by tariff refunds and lower inventory charges. The company is taking decisive action to reduce cost structure and extend cash runway, with a focus on preserving revenue and critical capabilities. Total revenue decreased 4% year-over-year to $19.3 million, missing expectations due to a 23% decline in OviTex PRS unit volume. The PRS pilot program caused confusion and unintended consequences, contributing to the PRS decline and requiring a pivot back to the original structure. New sales representatives are taking longer to become productive, with ramp times extending to 9-12 months, slower than anticipated. Anti-competitive contracting and bundling by competitors, particularly Becton Dickinson, continue to create adoption barriers, with instances of threatened price increases. The company withdrew its full-year revenue guidance due to lower-than-expected first-half results and the need to finalize a cost reduction plan. Q: Can you provide more detail on the sales force update, including headcount and the timeline for new reps to reach productivity?A: Jeff Blizard (President) confirmed the company is on pace with its hiring plan, emphasizing that headcount growth reflects deliberate commercial expansion, not turnover. Jim Hagen (SVP, Strategic Commercial Operations and Marketing) added that the ramp time for new reps has extended to a 9- to 12-month period to reach strong productivity levels, longer than the previously anticipated six months. He noted that the newest cohort is already outperforming predecessors at the same tenure stage, and additional training resources have been added to support this ramp. Q: What is driving the decline in the OviTex PRS business, and is customer concentration still an issue?A: Jeff Blizard (President) explained that the PRS decline was primarily due to a pilot program testing dedicated PRS reps, which caused confusion within the sales organization and was subsequently stopped. He clarified that the issue is not systemic but isolated to fewer than 10 key sites, impacted by factors such as surgeons leaving programs or taking personal leave. Jim Hagen (SVP) confirmed that customer concentration remains a challenge, with a small cohort of surgeons contributing a large percentage of PRS revenue, and noted that diversifying the implant base is a key focus going forward. Q: Can you characterize the competitive landscape, specifically what a "fair" account looks like versus the barriers you face?A: Jeff Blizard (President) described a positive example in the Southeast where a buying group allowed fair competition, resulting in full product rollouts across 13 to 15 sites. Conversely, he cited a medical system out West where a competitor threatened a $400,000 price increase after TELA exceeded its share allotment, leading to TELA being asked to leave the program. He noted that these anti-competitive practices, which are the basis of the lawsuit against Becton Dickinson, have intensified in Q2. Q: Where should we expect cost reductions to come from in the second half of the year?A: Heather Getz (CEO) stated that the cost reduction plan is still being finalized, but the company will prioritize protecting top-line revenue and critical functions related to patient safety. She indicated that there is clear opportunity to take meaningful costs out of the organization and will provide an update once the plan is complete. Q: Do you expect second-half revenue to be better than the first half, and will the company grow in 2027?A: Jeff Blizard (President) expressed optimism that PRS will be a growth driver in the back half of the year, citing the refocus on the product, a new training plan, and re-engagement with key users. He also noted that the broader business is expected to improve, with a focus on larger hernia pieces that drive higher ASPs. The company expects overall revenue growth in the second half, though specific guidance was withdrawn pending the cost structure review. Q: Can you discuss the company's cash position and how it plans to fund operations going forward?A: Roberto Cuca (CFO) reported $30.4 million in cash at the end of Q2. He stated that the goal of the cost structure review is to extend the cash runway as much as possible, making any additional fundraising a last resort. The company is evaluating all options to align costs with top-line performance. Q: Which factor is more important in the PRS headwinds: the pilot program or surgeon lifestyle changes, and how will these be addressed?A: Jeff Blizard (President) noted that simplifying the sales force playbook to focus on two to three key initiatives per quarter is critical. He highlighted that a top-performing PRS contributor who left in January has returned in July, and his presence is already driving business growth in that market. Additionally, he mentioned that surgeons who have experienced poor outcomes with competitor products are beginning to reach out to TELA, signaling a potential shift in market sentiment. Q: Will the shift toward robotic hernia repairs and smaller units continue to be a price-mix headwind, or can larger pieces offset this?A: Jim Hagen (SVP) explained that while the market is moving toward robotic procedures and smaller units, TELA is focusing on the most complex patient population, which typically requires open procedures and larger pieces. He noted that the gap between unit growth and revenue growth is starting to normalize, and by emphasizing complex abdominal wall reconstruction, the company can alleviate some ASP degradation. He expects this trend to stabilize into 2027. Q: How do you combat bundling and anti-competitive practices given that your product has superior clinical outcomes?A: Jeff Blizard (President) emphasized that surgeons often make decisions independently based on data and peer networks, and TELA is increasing its presence at key conferences like the American Hernia Society. Heather Getz (CEO) added that physicians who have had poor outcomes with other products are more likely to advocate for OviTex with hospital administration. Jim Hagen (SVP) noted that TELA is upgrading talent in its market access and contracting team to better navigate administrative decision-making and tell the economic value story derived from clinical outcomes. Q: What is the outlook for the international business and LIQUIFIX?A: Jeff Blizard (President) reported that LIQUIFIX revenue grew 39% year-over-year, and international revenue increased 26%, driven by growth in the UK and other key European markets. He noted that European growth comes entirely from the hernia portfolio, as OviTex PRS is still in the regulatory process for Europe. The company remains focused on deepening its positioning in these durable markets. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

MALVERN, Pa., Aug. 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 second quarter ended June 30, 2026. Recent Highlights Announced appointment of Heather Getz as Chief Executive Officer and Director, effective August 4, 2026; Delivered international revenue growth of 26% over the prior year period, with continued momentum in several European markets; Achieved additional market share gain with OviTex unit volume growth of 12% over the prior year period; Grew LiquiFix revenue by 39% over the prior-year period; and Delivered $19.3 million revenue in the second quarter of 2026, representing a decline of 4% from the prior year period, primarily the result of a decline in OviTex PRS unit volumes. "I am honored to join TELA Bio at such an exciting time in the Company's evolution. One reason I joined TELA is the superiority of our differentiated product portfolio. OviTex long-term data has continuously shown recurrence rates in the low single-digits, whereas other hernia repair materials have recurrence rates consistently 10 times higher than that. "Unfortunately, the financial performance of the business does not reflect the superiority of the portfolio. Our second quarter revenue was negatively impacted by a decline in OviTex PRS volumes and continued price and mix headwinds in hernia procedures. In response, we have returned to a sales structure designed to reinforce cross-selling among our field teams, and with a clear focus on returning to growth in the second half the year,” said Heather Getz, newly appointed Chief Executive Officer of TELA Bio. “We also continue to battle against the competitive dynamics of bundling from our largest competitors and to combat this, we have upgraded talent within our Market Access and Contracting team. We are encouraged by several indicators of progress across the business. Hernia unit volumes grew 12% year over year, demonstrating continued procedural market share gains, while ASP and procedure mix begin to stabilize. International revenue also continued to grow, and our field organization is progressing toward the productivity levels we expected as newer territory managers gain experience." Ms. Getz continued, “Given the confluence of these dynamics, we are withdrawing our full year 2026 revenue guidance as I fully assess the business and strategic direction. What is clear to me is that as we move through the second half of the year, we must improve PRS performance, accelerate our market share gains in hernia, and translate the increasing productivity of our commercial organization into sustainable top-line growth. At the same time, we will take decisive action to extend our cash runway and better align our cost structure with our top line. We are focused on disciplined execution and creating long-term value for all our stakeholders.” Second Quarter 2026 Financial Results Revenue was $19.3 million in the second quarter of 2026, a decrease of 4% compared to $20.2 million in the second quarter of 2025. The decrease was primarily driven by a decline in OviTex PRS volumes and price mix headwinds, partially offset by growing international sales. Gross profit was $13.9 million, or 72% of revenue, in the second quarter of 2026, compared to $14.1 million, or 70% of revenue, in the same period in 2025. The increase in gross margin was primarily due to a tariff refund and a lower charge for excess and obsolete inventory as a percentage of revenue. Operating expenses were $23.2 million in both the second quarter of 2026 and 2025. There was a de minimis increase due to higher meeting and training costs and increased professional fees partially offset by lower compensation and benefits from lower headcount, lower commission expense, and lower study costs. Loss from operations was $9.3 million in the second quarter of 2026, compared to $9.1 million in the same period in 2025. Net loss was $11.3 million in the second quarter of 2026, compared to a net loss of $9.9 million in the same period in 2025. Cash and cash equivalents on June 30, 2026 were $30.4 million. 2026 Financial Guidance The Company has withdrawn full-year guidance and will provide an update in the future. Conference Call TELA Bio will host a conference call at 4:30 p.m. Eastern Time on Monday, August 10, 2026 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 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 ContactLouisa [email protected]

Puma Biotech (PBYI) came out with quarterly earnings of $0.19 per share, beating the Zacks Consensus Estimate of $0.1 per share. This compares to earnings of $0.15 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +90.00%. A quarter ago, it was expected that this biopharmaceutical company would post a loss of $0.13 per share when it actually produced a loss of $0.04, delivering a surprise of +69.23%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Puma Biotech, which belongs to the Zacks Medical - Biomedical and Genetics industry, posted revenues of $56.5 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 6.27%. This compares to year-ago revenues of $52.4 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Puma Biotech shares have added about 34.3% since the beginning of the year versus the S&P 500's gain of 12.8%. While Puma Biotech has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Puma Biotech was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.16 on $53.12 million in revenues for the coming quarter and $0.48 on $224.53 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Biomedical and Genetics is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, TELA Bio, Inc. (TELA), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 10. This company is expected to post quarterly loss of $0.17 per share in its upcoming report, which represents a year-over-year change of +22.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. TELA Bio, Inc.'s revenues are expected to be $20 million, down 1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Puma Biotechnology, Inc. (PBYI) : Free Stock Analysis Report TELA Bio, Inc. (TELA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

MALVERN, Pa., July 20, 2026 (GLOBE NEWSWIRE) -- TELA Bio, Inc. ("TELA Bio") (NASDAQ: TELA), a commercial-stage medical technology company focused on providing innovative soft-tissue reconstruction solutions, today announced that the Company will report second quarter 2026 financial results on Monday, August 10, 2026. TELA Bio’s management will host a conference call and webcast at 4:30 p.m. ET that day to discuss the financial results and provide a corporate update. Second Quarter Earnings Conference Call and Webcast DetailsInvestors 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 live webcast and replay can be accessed via the Events & Presentations page of the investor section of TELA'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 StatementsThis 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. 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. 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 ContactLouisa [email protected]

TELA Bio, Inc. (NASDAQ:TELA) shareholders are probably feeling a little disappointed, since its shares fell 10.0% to US$0.99 in the week after its latest first-quarter results. The statutory results were not great - while revenues of US$19m were in line with expectations,TELA Bio lost US$0.21 a share in the process. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Taking into account the latest results, the consensus forecast from TELA Bio's five analysts is for revenues of US$86.7m in 2026. This reflects a satisfactory 7.3% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 27% to US$0.65. Before this earnings announcement, the analysts had been modelling revenues of US$86.8m and losses of US$0.69 per share in 2026. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers were unchanged. See our latest analysis for TELA Bio The consensus price target fell 35% to US$2.25despite the forecast for smaller losses next year. It looks like the ongoing lack of profitability is starting to weigh on valuations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on TELA Bio, with the most bullish analyst valuing it at US$3.25 and the most bearish at US$1.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business. These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the TELA Bio's past performance and to peers in the same industry. We would highlight that TELA Bio's revenue growth is expected to slow, with the forecast 9.8% annualised growth rate until the end of 2026 being well below the historical 24% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.0% annually. Factoring in the forecast slowdown in growth, it looks like TELA Bio is forecast to grow at about the same rate as the wider industry. The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business. Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for TELA Bio going out to 2028, and you can see them free on our platform here. We don't want to rain on the parade too much, but we did also find 4 warning signs for TELA Bio (2 are a bit concerning!) that you need to be mindful of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

This article first appeared on GuruFocus. Release Date: May 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. TELA Bio Inc (NASDAQ:TELA) achieved a 41% revenue growth in its European business, driven by its hernia portfolio. The company successfully launched the Ovatex Long-Term Resorbable Reinforcement Portfolio (Ovatex LTR) in the U.S., receiving positive feedback from the field. TELA Bio Inc (NASDAQ:TELA) has fully staffed its U.S. commercial team, achieving hiring targets and preparing for increased productivity. The company reported a 16% year-over-year unit growth rate for Ovatex, indicating market share gains. TELA Bio Inc (NASDAQ:TELA) has a new board of directors with deep industry experience, expected to guide the company through its next phase of growth. TELA Bio Inc (NASDAQ:TELA) reported a modest decline in gross margin from 68% to 66% due to higher charges for excess and obsolete inventory. The company experienced a decline in PRS utilization due to the absence of several high-volume implanters. Net loss increased to $12.3 million in Q1 2026 from $11.3 million in Q1 2025, primarily due to higher interest expenses. Operating expenses remained flat at $23 million, indicating no reduction in costs despite revenue growth. The company faces challenges in the U.S. market due to complex pricing and bundling dynamics compared to the more straightforward European market. Warning! GuruFocus has detected 4 Warning Signs with TELA. Is TELA fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more color on your guidance philosophy for Q2, given your new commercial strategy emphasizing density? Was it disruptive in Q1, and do you expect this to impact Q2? A: We used Q1 to roll out a new strategy, expand territories, and revise the compensation plan. Despite these changes, we achieved growth. Our team stayed focused on patient outcomes and prepared for the LTR product launch. We are now at a critical onboarding timeframe, expecting a return on investment and feeling positive about the second half of the year. (Jeff Blizzard, President) Q: How does the competitive environment in Europe differ from the U.S., and how is it helping European momentum? A: Europe operates under a socialized medicine structure with tender offers based on economic and clinical value propositions, making it straightforward compared to the complex U.S. market. In Europe, if you have the right product, data, and price, it's a wide-open market. Our restructured commercial strategy aims to break through U.S. market barriers by focusing on smaller regions and territories. (Tony Koblish, CEO) Q: Did the productivity of the new hire cohort continue to step up in Q1, and how does this affect the time to break even relative to the six to nine-month benchmark? A: The new hire cohort showed faster testing scores and higher productivity in Q1. We are at our staffing levels for 2026, and we believe the six-month inflection point is real. We expect a strong back half of the year as these new hires reach their productivity peak. (Jim Hagan, SVP of Strategic Operations and Marketing) Q: Can you provide an update on factors related to the 8% growth rate, such as contract execution timing, new rep maturation, and territory splits? A: We are confident in the 8% growth due to our fully staffed U.S. sales team, 19 new greenfield territories, strong EU performance, the Ovatex LTR launch, and published evidence on competitive products. These elements give us confidence in achieving our growth targets. (Jeff Blizzard, President) Q: How can the new board members influence TELA over the next several years with their experience? A: The new board members bring extensive experience in implant-based medical devices, biologics, and biomaterials. Their expertise aligns perfectly with our needs as we enter the next phase of growth. This alignment will guide us through strategic transformations and help us leverage our market-leading products. (Tony Koblish, CEO) For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Completed a comprehensive U.S. commercial reset, reaching full staffing levels of over 90 territory managers to address previous execution challenges. Shifted sales strategy toward 'account density' to mitigate concentration risk, specifically addressing Q1 volume declines in PRS caused by the absence of a few high-volume surgeons. Launched OviTex LTR, a fully resorbable tissue-based solution, to capture demand from surgeons seeking to avoid permanent synthetic materials while maintaining structural strength. Attributed 41% European revenue growth to a value-based procurement model that favors TELA's clinical data and cost-saving potential over complex U.S. bundling tactics. Leveraged new clinical meta-analysis showing significantly lower recurrence rates for OviTex compared to competing resorbable products that showed recurrence exceeding 20%. Reconstituted the Board of Directors with industry veterans specializing in scaling medtech companies to accelerate the transition toward sustained profitability. Reiterated full-year 2026 revenue growth guidance of at least 8%, with Q2 revenue projected at approximately $20.0 million. Anticipates a significant productivity inflection in the second half of 2026 as 40% of the sales force surpasses the critical 6-month tenure mark. Expects unit growth to continue outstripping revenue growth in the near term due to a product mix shift toward smaller-sized units for robotic and minimally invasive procedures. Assumes operating losses will improve markedly as revenue scales against a now-stabilized operating expense base following the completion of the hiring build-out. Projects that 19 new 'greenfield' territories will begin contributing meaningfully to volume as new hires move past initial training and procurement cycles. Announced a major Board transition with four long-serving directors stepping down to be replaced by executives with deep experience in strategic transformations. Reported a modest gross margin decline to 66% due to higher charges for excess and obsolete inventory as a percentage of revenue. Noted a $0.9 million year-over-year increase in interest expense following the implementation of a larger credit facility with Perceptive in late 2025. Identified 'personal and professional reasons' for the temporary absence of key high-volume surgeons as a primary headwind for the PRS business in Q1. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management acknowledged that implementing a new strategy, revised compensation, and territory expansion in a single quarter was a significant internal undertaking. Confirmed that while Q1 was a transition period, the 6-to-9-month onboarding timeline for new reps supports a back-half revenue acceleration. Explained that Europe's socialized systems offer a more transparent 'value proposition' assessment compared to the opaque bundling and rebate strategies used by large U.S. competitors. Stated that success in the U.K. serves as a model for how TELA can win in the U.S. by focusing on clinical efficacy and total cost of care. Reported that the most recent hiring class is testing higher and ramping faster in their first 90 days than any previous cohort in company history. Noted that new hires spend the first three months in intensive training and geography mapping before they are expected to generate revenue momentum. Management is incentivizing the sales force to train multiple surgeons within the same practice to reduce dependence on single high-volume 'implanters'. The strategy shift aims to create a more durable foundation where individual surgeon absences do not disproportionately impact quarterly results.

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 of 3% 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 $19.1 million in the first quarter of 2026, an increase of 3% compared to the same period in 2025 with unit growth of 13% compared to the same period in 2025. The increase was primarily driven by growing international sales, partially offset by product mix headwinds in the U.S. related to the rapid growth of smaller-sized units. Gross profit was $12.5 million in the first quarter of 2026, or 65.7% of revenue, compared to $12.5 million, or 67.6% of revenue, in the same period in 2025. The decrease in gross margin was primarily due to a higher charge for excess and obsolete inventory as a percentage of revenue. Operating expenses were $23.0 million in both the first quarter of 2026 and 2025. There was a de minimis increase due to higher meeting and training costs and increased professional fees partially offset by lower compensation and benefits primarily from lower commission expense, and lower study costs. Loss from operations was $10.5 million in both the first quarter of 2026 and 2025. Net loss was $12.3 million in the first quarter of 2026, compared to a net loss of $11.3 million in the same period in 2025. Cash and cash equivalents on March 31, 2026 totaled $39.5 million. 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 ContactLouisa [email protected]