TELA Bio, Inc.

TELA Bio, Inc. reported FY2025 revenue of $80.3 million, up 16% YoY from $69.3 million in FY2024, driven by new customer additions, growing international sales, and the U.S. launch of larger-sized OviTex PRS configurations. Unit sales increased 22% for OviTex (22,063 vs. 18,121 units) and 12% for OviTex PRS (5,189 vs. 4,645 units), though offset by lower average selling prices due to product mix shifts toward smaller hernia units. Gross profit rose 17% to $54.3 million, with gross margin improving to 68% from 67%, aided by reduced excess/obsolete inventory charges as a percentage of revenue. Operating expenses held steady at $88.1 million, with sales/marketing down 2%, G&A up 7%, and R&D up 5%. Loss from operations narrowed 1% to $33.8 million. Net loss widened 3% to $38.8 million, impacted by $0.9 million loss on debt extinguishment and higher interest expense, partially offset by $1.3 million other income. Cash used in operations improved to $28.2 million from $41.6 million, bolstered by working capital changes. With $50.8 million in cash and $60.0 million debt under a new Perceptive facility maturing 2030, TELA believes resources suffice for 12+ months. Forward-looking, growth hinges on sales productivity, GPO/IDN contracts, clinical data, and product enhancements amid macroeconomic pressures like tariffs and supply constraints.

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