TELA · TELA Bio, Inc.

TELA Bio's Q1 2026 results demonstrate steady execution on its commercial strategy, with revenue reaching $19.1 million, a 3% increase from Q1 2025, primarily fueled by 41% growth in Europe amid U.K. momentum and early expansions, despite U.S. product mix headwinds from smaller units driving 13% unit growth. Gross margin contracted to 65.7% from 67.6% due to elevated excess and obsolete inventory charges as a percentage of revenue, while operating expenses held flat at $23.0 million, reflecting offset between higher meeting/training costs, professional fees, and lower commissions, compensation, and study expenses. This resulted in a stable operating loss of $10.5 million and a net loss widening slightly to $12.3 million from $11.3 million, driven by higher interest expense. CEO Anthony Koblish highlighted the fully staffed U.S. commercial organization at planned 2026 levels, with new territory managers ramping ahead of prior cohorts, and the April 1 full U.S. launch of OviTex LTR, a fully resorbable tissue-based hernia repair solution broadening the portfolio. The company also announced a strategic board refreshment effective post-2026 Annual Meeting on June 9. Management reiterated full-year 2026 revenue guidance of at least 8% growth over 2025 and provided Q2 revenue outlook of approximately $20.0 million, signaling confidence in predictable growth. Cash position stood at $39.5 million as of quarter-end, down from $50.8 million year-end, supporting ongoing operations amid a stockholders' deficit.