0001104659-26-034507
SEC filingTELA 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.
TELA Bio delivered FY2025 revenue of $80.3M, a 16% YoY increase from $69.3M, fueled by 22% higher OviTex unit volume (22,063 units) and 12% OviTex PRS growth (5,189 units), plus new customer wins and international expansion. Gross profit climbed 17% to $54.3M (68% margin vs. 67%), benefiting from lower excess/obsolete charges. Total operating expenses stable at $88.1M: sales/marketing dipped 2% to $63.2M on reduced severance/consulting; G&A rose 7% to $15.7M; R&D up 5% to $9.2M. Loss from operations improved 1% to $33.8M. Net loss edged up 3% to $38.8M due to $0.9M debt extinguishment loss, though no repeat of 2024's $7.6M NIVIS gain. Cash from ops used $28.2M (vs. $41.6M), with $50.8M cash end-period post-financings/debt swap.
Growth stemmed from U.S. customer expansion, EMEA sales, and March 2025 larger OviTex PRS launch. Hernia ASPs declined on smaller-unit mix; OviTex dominated (est. 64% of revenue per doc). No geographic/segment $ breakdown; intl. ~15%. Macro headwinds like cybersecurity/hospital strains tempered volumes, but unit gains offset ASP pressure.
Gross margin +100bps to 68% via inventory efficiencies. OpEx discipline held total flat despite R&D/study investments. No op margin (negative). Interest expense stable ~$5.2M; tax expense $0.2M. Path to profitability via sales leverage, GPO wins, clinical pubs (e.g., BRAVO 2.6% recurrence).
Ops cash burn narrowed to $28.2M (non-cash $9.3M, WC +$1.5M). Investing +$0.8M (NIVIS proceeds). Financing +$25.8M (debt $60M, equity $11.8M, less repayments $42.4M). Total assets $81.4M (cash $50.8M, AR $10.3M, inv $11.0M); debt $55.7M; equity $6.3M. Liquidity >12 months per mgmt.
Cash suffices 12+ months; focus sales org (150 US staff), GPO/IDN contracts, R&D (resorbables, breast PMA). Risks: macros (tariffs 10% NZ, cyber/hospital strains), competition, supply. Guidance: revenue growth via units/contracts; no numeric FY2026 targets disclosed.