TELA Bio (TELA) investor relations material

Executive summary

• Achieved early proof points of a redefined commercial strategy, with the largest and most effective field team in company history fully staffed to 2026 targets.

• Revenue for Q1 2026 reached $19.1 million, up 3% year-over-year, with international sales—especially in Europe—driving growth.

• Launched the OviTex LTR, a fully resorbable tissue-based hernia repair solution, with positive early feedback and pricing aligned to the existing portfolio.

• European business delivered breakout performance, with 41% revenue growth year-over-year, driven by hernia portfolio success and NHS validation.

• Board of directors refreshed with experienced medtech leaders to support the next phase of growth, with a strategic refreshment plan to be implemented after the June 2026 annual meeting.

Financial highlights

• Q1 2026 revenue was $19.1 million, up 3% year-over-year from $18.5 million in Q1 2025.

• International sales grew 41% to $3.7 million, while OviTex revenue rose to $12.6 million with 16% unit growth (5,800 units vs. 5,000 last year).

• Gross profit was $12.5 million, gross margin declined to 65.7% from 67.6% due to higher inventory charges.

• Operating expenses were flat at $23 million; operating loss was $10.5 million, unchanged year-over-year.

• Net loss increased to $12.3 million from $11.3 million, mainly due to higher interest expense from a new credit facility.

• Cash and cash equivalents stood at $39.5 million as of March 31, 2026.

Outlook and guidance

• Reiterated full-year 2026 guidance of at least 8% revenue growth over 2025, with Q2 2026 revenue expected at approximately $20 million.

• Operating loss expected to improve as revenue grows through the year, with significant productivity inflection anticipated in the second half as new hires reach six-month tenure.