TELA Bio (TELA) FY Conference August 13, 2025 10:00 AM ET Speaker0Good morning and thank you for joining us at this year's Canaccord Genuity Growth Conference. My name is Caitlin Cronin and I'm one of the medical device analysts here at Canaccord Genuity. With us today is TeleBio, a public company focused on novel soft tissue solutions for hernia repair and reconstructive plastic surgery. With me today is Tony Koblish, President and CEO, as well as Roberto Cucas, CFO, COO. And before we begin, I want to rem ...

Financial Data and Key Metrics Changes - Revenue for Q2 2025 increased by 26% year over year to $20.2 million, with OviTex revenue growing by 12% and OviTex PRS revenue growing by 53% [28] - Gross margin improved to 69.8% from 68.8% in the prior year, primarily due to lower charges for excess and obsolete inventory [28] - Net loss decreased to $9.9 million from $12.6 million in the prior year [30] Business Line Data and Key Metrics Changes - OviTex unit sales grew by 17% for the quarter, while PRS unit sales grew by 40% [28] - OviTex IHR revenue grew by 322% compared to 2024 and 29% sequentially over Q1 sales [9] - Liquefix revenue saw year-over-year growth of 121% this quarter [8] Market Data and Key Metrics Changes - European sales grew by 25% over Q2 last year, driven by 29% unit growth [10] - Contracts secured with three major national GPOs to improve market access for Liquefix [8] Company Strategy and Development Direction - The company aims to transition from a niche player in complex abdominal wall reconstruction to a broad portfolio provider in hernia repair [60] - A focus on building patient and outcome-centric partnerships with healthcare providers is emphasized [16] - The company is launching educational initiatives targeting teaching hospitals to engage the next generation of surgeons [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory of the company and the impact of recent organizational changes on sales performance [33] - The company reiterated its full-year 2025 revenue guidance, anticipating revenue in the range of $85 million to $88 million, representing growth of 23% to 27% over 2024 [30] Other Important Information - The company plans to share a patient case each quarter to highlight the real-world performance of the OviTex platform [31] - Recent publications and presentations have underscored the clinical utility of OviTex products [14] Q&A Session Summary Question: Update on Salesforce headcount and expectations for 2025 - The company has 69 territory managers and 25 account specialists, with plans to reach 76 territory managers [37][39] Question: Update on guidance and revenue cadence - The revenue cadence is expected to follow historical patterns, with a heavier second half compared to the first half [41][42] Question: Details on spending and patient-centric culture - The company is revising travel and expense policies and focusing on recruiting the right hires to enhance patient-centric culture [46][49] Question: Performance of reinforced tissue matrix contracts - Approximately 25 contracts are in place, with positive reception and a focus on patient-centric approaches to transcend existing pricing structures [51][52] Question: Confidence in reiterating sales guidance - Confidence stems from historical performance and the productivity of the sales team, with expectations for increased activity in Q4 [70][72]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ____ Commission File Number: 001-39130 TELA Bio, Inc. (Exact name of registrant as specified in its charter) Delaware (State or other ...

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) TELA Bio reported strong Q2 2025 results with 26% revenue growth, appointed a new President, expanded European presence, and reiterated full-year guidance Q2 2025 Key Metrics and FY 2025 Guidance | Metric | Q2 2025 Result ($ million) | YoY Growth (%) | FY 2025 Guidance ($ million) | | :--- | :--- | :--- | :--- | | Revenue | $20.2 | 26 | $85.0 - $88.0 | | OviTex Revenue Growth | ~12 | - | - | | OviTex PRS Revenue Growth | ~53 | - | - | - Appointed Jeffrey Blizard as President, effective June 2025, to strengthen commercial leadership and drive sales execution[6](index=6&type=chunk) - Announced the European commercial launch of OviTex Inguinal for robotic and laparoscopic inguinal hernia repair, expanding the company's European footprint[6](index=6&type=chunk) - Management expressed excitement about transformative opportunities, citing an innovative product portfolio, compelling clinical data, and a refined sales approach under new leadership[4](index=4&type=chunk) [Second Quarter 2025 Financial Performance](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Performance) TELA Bio's Q2 2025 revenue grew 26% to $20.2 million, with improved gross margin and significantly reduced operating and net losses, demonstrating enhanced efficiency [Revenue Analysis](index=1&type=section&id=Revenue%20Analysis) Q2 2025 revenue increased 26% year-over-year to $20.2 million, driven by new customers, international expansion, and a new OviTex PRS configuration, partially offset by product mix shifts Q2 Revenue Performance | Metric | Q2 2025 ($ million) | Q2 2024 ($ million) | YoY Growth (%) | | :--- | :--- | :--- | :--- | | Total Revenue | $20.2 | $16.1 | 26 | - Primary growth drivers included an increase in unit sales from new customers, growing international sales, and the U.S. launch of a new OviTex PRS configuration[5](index=5&type=chunk) - Growth was partially offset by a decrease in average selling prices for hernia products due to a product mix shift towards smaller, robotically compatible units[5](index=5&type=chunk) [Profitability Analysis](index=2&type=section&id=Profitability%20Analysis) Gross profit increased to $14.1 million with a 69.8% margin, primarily due to lower inventory charges, leading to reduced operating and net losses of $9.1 million and $9.9 million respectively Q2 2025 vs Q2 2024 Profitability (in millions) | Metric | Q2 2025 ($ million) | Q2 2024 ($ million) | | :--- | :--- | :--- | | Gross Profit | $14.1 | $11.1 | | Gross Margin | 69.8% | 68.8% | | Operating Expenses | $23.2 | $22.6 | | Loss from Operations | $(9.1) | $(11.6) | | Net Loss | $(9.9) | $(12.6) | - The increase in gross margin was primarily due to a lower charge for excess and obsolete inventory as a percentage of revenue[7](index=7&type=chunk) - Operating expenses increased due to higher commission costs and professional fees, partially offset by lower compensation from a reduced headcount[8](index=8&type=chunk) [Financial Position](index=2&type=section&id=Financial%20Position) As of June 30, 2025, TELA Bio maintained a cash and cash equivalents balance of $35.0 million - Cash and cash equivalents totaled **$35.0 million** on June 30, 2025[10](index=10&type=chunk) [Full Year 2025 Financial Guidance](index=2&type=section&id=Full%20Year%202025%20Financial%20Guidance) TELA Bio reiterated its full-year 2025 revenue guidance, projecting $85.0 million to $88.0 million, representing 23% to 27% year-over-year growth Full Year 2025 Revenue Guidance | Metric | Guidance Range ($ million) | YoY Growth (%) | | :--- | :--- | :--- | | Revenue | $85.0 - $88.0 | 23 - 27 | [Financial Statements](index=4&type=section&id=Financial%20Statements) This section presents the unaudited consolidated financial statements for Q2 2025, including Balance Sheets and Statements of Operations, detailing the company's financial status and performance [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were $67.5 million, liabilities $58.4 million, cash $35.0 million, and stockholders' equity $9.2 million, reflecting changes from year-end 2024 Key Balance Sheet Items (in thousands) | Account | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $34,977 | $52,670 | | Total assets | $67,537 | $86,570 | | Total liabilities | $58,353 | $58,112 | | Total stockholders' equity | $9,184 | $28,458 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 revenue reached $20.2 million with a net loss of $9.9 million, or ($0.22) per share, an improvement from the prior year, and six-month revenue totaled $38.7 million with a $21.2 million net loss Q2 Statement of Operations Highlights (in thousands, except per share data) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | | :--- | :--- | :--- | | Revenue | $20,197 | $16,091 | | Gross Profit | $14,105 | $11,073 | | Loss from Operations | $(9,081) | $(11,570) | | Net Loss | $(9,923) | $(12,600) | | Net Loss per Share | $(0.22) | $(0.51) | Six Months Ended June 30 Highlights (in thousands) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | Revenue | $38,717 | $32,694 | | Net Loss | $(21,187) | $(18,261) | [Supplementary Information](index=2&type=section&id=Supplementary%20Information) This section provides details on the upcoming investor conference call, a corporate overview of TELA Bio, and standard legal disclaimers regarding forward-looking statements [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) TELA Bio will host a conference call on August 11, 2025, at 4:30 p.m. Eastern Time to discuss its second quarter financial results, requiring online registration - A conference call to discuss Q2 financial results is scheduled for 4:30 p.m. Eastern Time on Monday, August 11, 2025[12](index=12&type=chunk) [About TELA Bio, Inc.](index=2&type=section&id=About%20TELA%20Bio%2C%20Inc.) TELA Bio is a commercial-stage medical technology company focused on innovative and economically effective soft-tissue reconstruction solutions - TELA Bio (NASDAQ: TELA) is a commercial-stage medical technology company specializing in innovative soft-tissue reconstruction solutions[13](index=13&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section cautions on forward-looking statements, including 2025 revenue guidance, highlighting risks such as macroeconomic conditions, market acceptance, and competition that could affect actual results - The press release contains forward-looking statements, including revenue guidance for 2025, which are subject to risks and uncertainties[14](index=14&type=chunk) - Key risks include macroeconomic conditions, demand for products, ability to achieve profitability, market acceptance, competition, and product development challenges[14](index=14&type=chunk)

MALVERN, Pa., Aug. 11, 2025 (GLOBE NEWSWIRE) -- TELA Bio, Inc. ("TELA Bio"), a commercial-stage medical technology company focused on providing innovative soft-tissue reconstruction solutions, today reported financial results for the second quarter ended June 30, 2025. Recent Highlights Delivered revenue of $20.2 million in the second quarter 2025, representing growth of 26% over the prior year period and sequential growth of 9% over the first quarter of 2025;Increased demand for OviTex® and OviTex PRS Rein ...

MALVERN, Pa., July 23, 2025 (GLOBE NEWSWIRE) -- TELA Bio, Inc. (NASDAQ: TELA), a commercial-stage medical technology company focused on providing innovative soft-tissue reconstruction solutions, today announced that the Company will participate in the Canaccord Genuity 45th Annual Growth Conference. TELA’s management is scheduled to present at the Canaccord Genuity 45th Annual Growth Conference at 10:00 am ET on August 13th, 2025. Interested parties can access the live and archived webcast at ir.telabio.com ...

MALVERN, Pa., July 21, 2025 (GLOBE NEWSWIRE) -- TELA Bio, Inc. ("TELA Bio") (NASDAQ: TELA), a commercial-stage medical technology company focused on providing innovative soft-tissue reconstruction solutions, today announced that the Company will report second quarter 2025 financial results on Monday, August 11, 2025. TELA Bio’s management will host a conference call and webcast at 4:30 p.m. ET that day to discuss the financial results and provide a corporate update. Second Quarter Earnings Conference Call a ...

Core Points - TELA Bio, Inc. announced the approval of an inducement grant of stock options and restricted stock units to Jim Hagen, the Senior Vice President of Strategic Commercial Operations, as part of his employment compensation [1][2] - The stock options have an exercise price of $1.42 per share, with a ten-year term and a vesting schedule over four years [2] - TELA Bio focuses on innovative soft-tissue reconstruction solutions that prioritize the preservation and restoration of the patient's own anatomy [3] Summary by Category Inducement Grant Details - The Compensation Committee approved an option to purchase 75,000 shares and restricted stock units covering 30,000 shares for Jim Hagen [1] - The stock options will vest 25% on the first anniversary of the grant date, with the remaining 75% vesting in equal monthly installments over the following 36 months [2] - The restricted stock units will vest in equal annual installments over four years [2] Company Overview - TELA Bio is a commercial-stage medical technology company [3] - The company aims to provide advanced, economically effective soft-tissue reconstruction solutions that leverage the patient's natural healing response [3] - TELA Bio minimizes long-term exposure to permanent synthetic materials in its solutions [3]

Summary of TELA Bio Conference Call Company Overview - **Company**: TELA Bio - **Industry**: Medical Supplies and Devices - **Focus**: Soft tissue restoration and preservation, specifically in hernia repair and plastic/reconstructive surgery [4][5] Key Markets and Products - **Hernia Repair Market**: Estimated at over $1.5 billion, with 80% of current implants made from polypropylene, which is facing scrutiny due to complications [6][9] - **Plastic and Reconstructive Surgery Market**: Estimated at around $1 billion, with a shift away from cadaver skin towards engineered composite solutions [9] - **Product Lines**: - Hernia-based product line compatible with robotic surgery - Engineered composite solutions for breast reconstruction [4][5] Competitive Landscape - **Market Position**: TELA Bio holds approximately 10-12% market share in complex ventral procedures and 3-4% in the overall hernia market [17] - **Competitive Advantage**: Unique reinforced tissue matrix with patent protection, offering superior clinical results and lower complication rates compared to traditional polypropylene meshes [6][8][10] - **Market Evolution**: Increasing interest in alternatives to polypropylene and cadaver skin, with TELA Bio positioned to capture market share as these materials decline in use [18][19] Economic Perspective - **Pricing Strategy**: TELA Bio's hernia portfolio is priced 30-40% lower than first-generation biologics and 20-25% lower than temporary plastic materials, while still being a premium option over permanent plastics [13][14] - **Cost Savings**: The company emphasizes significant cost savings for hospital systems, which enhances its value proposition [23] Sales and Market Growth - **Sales Growth**: From 2020, TELA Bio has seen substantial growth, targeting $85 million to $88 million in sales for the current year [16] - **Product Acceptance**: Positive reception of inguinal hernia products, with expectations of increased market penetration as awareness grows [25][28] - **Sales Strategy**: The introduction of Liquefix as a fixation device has broadened TELA Bio's portfolio, enhancing its perception as a comprehensive hernia solutions provider [31] Financial Outlook - **Cash Runway**: Current cash reserves are expected to be sufficient to reach profitability, with a target revenue of $27.5 million to cover operating expenses [68][69] - **Operating Expenses**: Expected to remain flat with revenue growth, allowing for operational leverage as sales increase [71][72] Clinical Data and Product Performance - **Clinical Studies**: TELA Bio has gathered substantial clinical data supporting the efficacy of its products, which is expected to drive growth in the plastic and reconstructive surgery market [51][52] - **Competitive Landscape in PRS**: The market is shifting away from cadaver skin products, with TELA Bio's offerings gaining traction due to their cost-effectiveness and clinical performance [57] Supply Chain and Tariffs - **Manufacturing Location**: Products are manufactured in New Zealand, with a 10% import tax impacting gross margins minimally [48][49] - **Mitigation Strategies**: Plans to ship directly to Europe to avoid tariffs, which currently account for a small portion of total gross margin impact [49] Conclusion - TELA Bio is strategically positioned in the evolving medical supplies market, focusing on innovative solutions for hernia repair and plastic surgery. The company is leveraging its unique product offerings, competitive pricing, and strong clinical data to capture market share and drive growth.

Based on market research, inguinal hernia repair is the most common type of hernia repairMALVERN, Pa., June 03, 2025 (GLOBE NEWSWIRE) -- TELA Bio, Inc. (NASDAQ: TELA), a commercial-stage medical technology company focused on providing innovative soft-tissue reconstruction solutions, today announced the European launch of OviTex Inguinal Reinforced Tissue Matrix, the only reinforced tissue matrix specifically engineered for laparoscopic and robotic-assisted inguinal hernia repair. This milestone follows the ...