TELA Bio Q1 Revenue Rises 3% to $19.1M, Europe Sales Up 41%
TELA Bio reported first-quarter revenue of $19.1 million, up 3% year-on-year, driven by 13% unit growth and 41% European sales expansion; gross margin declined to 65.7% from 67.6% due to higher inventory charges. It launched OviTex LTR in the U.S. and reiterated at least 8% full-year revenue growth guidance.
1. First Quarter Financial Results
TELA Bio reported Q1 revenue of $19.1 million, up 3% year-on-year, driven by 13% unit growth and a 41% increase in European sales. Gross profit reached $12.5 million, or 65.7% of revenue, down from 67.6% due to higher excess and obsolete inventory charges; net loss widened to $12.3 million from $11.3 million and cash and equivalents stood at $39.5 million.
2. Commercial Highlights and Product Launch
The U.S. commercial organization is fully staffed at planned 2026 levels, with a new cohort of territory managers ramping faster than prior classes. European revenue accelerated 41%, driven by new accounts and early patient treatments across multiple markets, while the full U.S. launch of OviTex LTR on April 1 adds a fully resorbable, tissue-based hernia repair option to the portfolio.
3. Financial Guidance and Outlook
TELA Bio reaffirmed its full-year 2026 revenue growth target of at least 8% over 2025 and projects second-quarter revenue of approximately $20.0 million. Operating expenses remained flat at $23.0 million, reflecting balanced investment in commercial expansion and professional fees.
4. Board Refresh and Governance Action
A strategic board refreshment plan will become effective at the conclusion of the 2026 Annual Meeting on June 9, supporting governance alignment with the company’s commercial and product development objectives.