TELA Bio, Inc.

Second-quarter 2026 revenue was $19.3 million, down approximately 4% from $20.2 million in Q2 2025. Gross profit was $13.9 million versus $14.1 million a year ago, and gross margin improved to 72% from 70%. Operating expense was $23.2 million, flat year over year; loss from operations was $9.3 million versus $9.1 million, and net loss was $11.3 million versus $9.9 million. International sales revenue was $3.8 million, up 26% year over year; global OviTex unit volume increased 12% to 5.78 thousand units from 5.18 thousand, while OviTex revenue was $13.3 million, up 0.6%. OviTex PRS revenue was $5.5 million versus $7.3 million last year, and LIQUIFIX revenue was $500 thousand, up 39%. The company ended the quarter with $30.4 million in cash and cash equivalents. Management withdrew prior full-year revenue guidance and said it will provide an update after its cost-reduction plan is finalized.

Heather Goetz struck an upbeat but urgent tone, saying she is excited to lead the company but that the quarter did not reflect the quality of the portfolio. She pointed to three main issues: longer-than-expected sales rep ramp time, earlier PRS sales-focus/incentive changes that needed adjustment, and anti-competitive contracting and bundling that are limiting OviTex adoption. She emphasized the company’s differentiated hernia and plastic/reconstructive portfolio, the $2.8 billion market opportunity, and her intent to drive operational and financial transformation.

Roberto E. Cuca focused on the financial shortfall and the actions being taken. He reiterated that revenue was $19.3 million, gross margin was 72%, operating expenses were flat at $23.2 million, operating loss was $9.3 million, and net loss was $11.3 million, with higher interest expense of $2.1 million tied to the upsized credit facility compared with $1.2 million last year. He said the company finished with $30.4 million in cash and cash equivalents, is reviewing the cost structure to bring it in line with top-line performance, and wants to extend cash runway as much as possible so external fundraising is a last resort.

Analysts focused on the sales-force ramp, the PRS decline, competitive bundling, and cash needs. Management said the rep ramp is taking 9 to 12 months rather than 6 months, but that the newest cohort is already outperforming earlier cohorts and that additional training resources have been added. On PRS, they said the issue is not systemic; it was hurt by a pilot that caused confusion and by concentration in a small number of surgeons/sites, several of whom were temporarily out. They also described fair accounts versus accounts where competitors used contracting pressure, including an example of a competitor threatening a $400,000 price increase, and said they are upgrading market access talent to fight back.