TELA Bio (TELA) investor relations material

Executive summary

• Achieved record Q4 2025 revenue of $20.9 million, up 18% year-over-year, and full-year revenue of $80.3 million, up 16%, despite major commercial restructuring and sales force expansion.

• Expanded sales force to 88 quota-carrying representatives, with 40% hired in the last six months, focusing on commercial expansion.

• Strategic focus on building a durable, predictable growth model with the largest and most effective field team in company history.

• Promoted Dr. Howard Langstein to Chief Medical Officer effective March 1, 2026, to drive clinical engagement.

• Closed a new credit facility for up to $70 million, with $60 million received at closing, strengthening the balance sheet.

Financial highlights

• Q4 2025 revenue increased 18% year-over-year to $20.9 million; full-year revenue grew 16% to $80.3 million.

• OviTex revenue grew 12% and OviTex PRS grew 20% for the year; LIQUIFIX revenue more than tripled in Q4 2025 vs. Q4 2024.

• Gross margin improved to 66% in Q4 and 68% for the year, with Q4 gross profit at $13.8 million (65.9% margin) and full-year gross profit at $54.3 million (67.7% margin).

• Net loss was $9 million in Q4 and $38.8 million for the year, with operating loss declining year-over-year.

• Ended 2025 with $50.8 million in cash and cash equivalents.

Outlook and guidance

• 2026 revenue expected to grow at least 8% over 2025, with Q1 2026 revenue guidance of approximately $18.5 million.

• Operating and net losses projected to continue declining throughout 2026.

• Management confident in path to profitability without raising additional capital.

• Guidance reflects prudence due to organizational changes and ramp-up period for new sales reps, with largest gains expected in the second half of 2026.