TELA Bio (TELA) Q4 2025 earnings summary

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 territory managers, with 40% hired in the last six months, driving early outperformance and deeper account penetration.

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

• Product innovation and portfolio expansion remain core priorities, with new launches and clinical trials underway.

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

Financial highlights

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

• Gross margin improved to 66% in Q4 and 68% for the year, driven by lower inventory expense.

• Q4 2025 gross profit was $13.8 million (65.9% margin), up from $11.2 million (63.6%) in Q4 2024; full year 2025 gross profit was $54.3 million (67.7% margin).

• Net loss was $9 million in Q4 and $38.8 million for the year, with cash and equivalents at $50.8 million at year-end.

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

Outlook and guidance

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

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

• Operating and net losses projected to decline through 2026, with productivity ramp from new sales hires expected in the second half.

• Guidance reflects prudence due to recent large-scale organizational changes and sales force ramp-up.