TELA Bio Reports Q2 2026 Revenue Decline to $19.3 Million, Net Loss Increases

TELA Bio, Inc. reported its financial results for the second quarter of 2026, revealing a revenue of $19.3 million, a decrease of 4% from $20.2 million in the same period last year. For the first half of 2026, the company generated $38.4 million in revenue, down slightly from $38.7 million in the first half of 2025. The decline in revenue was primarily attributed to a decrease in sales of the OviTex PRS product line and price mix challenges in the U.S. market, although international sales showed growth. The company reported a net loss of $11.3 million for the second quarter, compared to a loss of $9.9 million in the prior year, and a total net loss of $23.5 million for the first half of 2026, up from $21.2 million in the same period of 2025.

In terms of operational metrics, TELA Bio sold 5,776 units of OviTex in the second quarter of 2026, a 12% increase from 5,178 units sold in the same quarter of 2025. However, sales of OviTex PRS decreased by 23%, with 1,050 units sold compared to 1,362 units in the previous year. The company’s gross profit for the second quarter was $13.9 million, resulting in a gross margin of 72%, an increase from 70% in the prior year, primarily due to a lower charge for excess and obsolete inventory and a refund of tariffs.

TELA Bio's total operating expenses remained relatively stable at $23.2 million for the second quarter of 2026, compared to $23.2 million in the same quarter of 2025. Research and development expenses increased by 24% to $2.7 million, reflecting higher compensation costs and increased study expenses. The company’s interest expense rose significantly to $2.1 million, up 75% from the previous year, due to increased borrowing and interest rates associated with its credit facility.

As of June 30, 2026, TELA Bio had cash and cash equivalents of $30.4 million, down from $50.8 million at the end of 2025. The company’s accumulated deficit reached $421.1 million, reflecting ongoing operational losses since its inception. TELA Bio is currently focused on expanding its product offerings and market presence, including the recent launch of new OviTex configurations and a distribution agreement for LIQUIFIX Hernia Mesh Fixation Devices. The company anticipates continued investment in sales and marketing initiatives to support growth, while also exploring additional financing options to meet its liquidity needs.

Looking ahead, TELA Bio expects to incur further losses as it continues to invest in its growth strategies. The company is actively pursuing various actions to enhance revenue, including potential amendments to its credit agreement and strategic partnerships. However, management has expressed concerns about the potential impact of macroeconomic conditions, including inflation and supply chain disruptions, on its operations and financial performance.