Core Insights - TELA Bio, Inc. has launched OviTex Inguinal Reinforced Tissue Matrix in Europe, specifically designed for laparoscopic and robotic-assisted inguinal hernia repair [1][6] - The product follows a successful U.S. launch in 2024, achieving over $1 million in sales in its first year [2] - OviTex Inguinal offers two configurations in Europe, enhancing compatibility with laparoscopic and robotic procedures [3] Product Details - OviTex Inguinal is part of the OviTex portfolio, utilizing layers of ovine rumen interwoven with polymer for added strength while minimizing permanent polymer footprint [4] - The product has over 8 years of clinical experience with more than 69,000 implantations and over 40 published works demonstrating its clinical efficacy [4] - A study showed a low 1.2% recurrence rate in patients undergoing robotic inguinal hernia repair using the ReBAR technique, with an average follow-up of 1.5 years [5] Market Opportunity - The expansion of robotic-assisted procedures in Europe presents significant opportunities for naturally derived devices like OviTex Inguinal [6] - The product aligns with the European market's emphasis on shared decision-making between surgeons and patients, making it a compelling option for clinical performance and patient expectations [6] Company Overview - TELA Bio, Inc. focuses on innovative technologies that optimize clinical outcomes by preserving and restoring the patient's anatomy [8] - The company aims to provide advanced, economically effective soft-tissue reconstruction solutions while minimizing long-term exposure to synthetic materials [8] Indications for Use - OviTex Reinforced Tissue Matrix is intended for surgical mesh applications to reinforce and repair soft tissue weaknesses, including inguinal hernias [9]

Core Viewpoint - TELA Bio, Inc. has appointed Jeffrey Blizard as President to enhance its leadership team and drive the next phase of growth in the medical technology sector, particularly in soft-tissue reconstruction solutions [1][2]. Leadership Changes - Jeffrey Blizard, previously on TELA Bio's Board of Directors, brings extensive industry experience and a successful track record from his role as Global Head of Surgical Sales at Abiomed, contributing to significant growth in that division [1][2]. - The CEO of TELA Bio, Antony Koblish, emphasized that Blizard's leadership will enhance the company's competitive edge and commercial performance in a dynamic market [2]. Company Overview - TELA Bio, Inc. is focused on innovative technologies for soft-tissue reconstruction, aiming to optimize clinical outcomes by preserving and restoring the patient's anatomy [3]. - The company is committed to providing advanced, economically effective solutions that leverage the patient's natural healing response while minimizing reliance on permanent synthetic materials [3].

Company Overview - TELA Bio, Inc. is a commercial-stage medical technology company focused on innovative soft-tissue reconstruction solutions [2] - The company aims to optimize clinical outcomes by preserving and restoring the patient's own anatomy [2] - TELA Bio provides advanced, economically effective solutions that leverage the patient's natural healing response while minimizing long-term exposure to permanent synthetic materials [2] Upcoming Events - TELA Bio will participate in the 2025 Jefferies Global Healthcare Conference [1] - The management is scheduled to present at 11:05 am ET on June 5, 2025 [1] - Interested parties can access the live and archived webcast at ir.telabio.com [1]

Group 1: Earnings Performance - TELA Bio reported a quarterly loss of $0.25 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.21, representing an earnings surprise of -19.05% [1] - The company posted revenues of $18.52 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 6.13%, compared to revenues of $16.6 million a year ago [2] - Over the last four quarters, TELA Bio has not surpassed consensus EPS estimates and has topped consensus revenue estimates only once [2] Group 2: Stock Performance and Outlook - TELA Bio shares have declined approximately 68.5% since the beginning of the year, contrasting with the S&P 500's decline of -4.3% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.17 on revenues of $20.2 million, and for the current fiscal year, it is -$0.63 on revenues of $85.2 million [7] - The estimate revisions trend for TELA Bio is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The Medical - Biomedical and Genetics industry, to which TELA Bio belongs, is currently in the top 33% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact TELA Bio's stock performance [5]

Financial Data and Key Metrics Changes - Revenue for the first quarter of 2025 was $18,500,000, representing a 12% increase year-over-year and a 5% sequential growth from the fourth quarter of 2024 [4] - Gross margin decreased to 67.6% from 68.3% in the prior year, primarily due to excess and obsolete inventory adjustments [13] - Net loss for the first quarter was $11,300,000 compared to $5,700,000 in the prior year, largely affected by the previous year's sale of the Nivas product line [15] Business Line Data and Key Metrics Changes - Revenue from OviTex grew 15% year-over-year, while OviTex PRS revenue grew 2% [12] - OviTex unit sales increased by 29% for the quarter, while PRS unit sales declined slightly by 3% [12] - The company reached over 69,000 OviTex hernia implantations since inception, with OviTex IHR and Liquefix each generating over $1,000,000 in sales since their launch in 2024 [9] Market Data and Key Metrics Changes - The European business saw a 17% growth over the first quarter of 2024, indicating strong international demand [5] - The hernia market is shifting away from plastic mesh towards more natural repair products, which positions the company favorably [8] Company Strategy and Development Direction - The company is focused on expanding its commercial organization, with plans to increase the number of territory managers and account specialists [6] - The introduction of larger sizes of OviTex PRS products aims to simplify complex procedures and improve operational efficiency for surgeons [9] - The company is committed to bringing new and complementary products to market, enhancing its product portfolio [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve its 2025 revenue guidance of $85,000,000 to $88,000,000, representing growth of 23% to 27% over 2024 [5][16] - The management highlighted the importance of stability and strength in the sales force, emphasizing a long-term growth strategy rather than short-term gains [25][26] Other Important Information - The company is currently facing a 10% tariff on products shipped from New Zealand, which is expected to negatively impact gross margin by 50 to 100 basis points [11] - The company is working to mitigate tariff impacts by adjusting shipping strategies [11] Q&A Session Summary Question: What are the key factors for continuing sequential growth through the end of the year? - Management noted that historical revenue patterns indicate a larger step up from Q1 to Q2, with continued traction from sales representatives driving growth [21][22] Question: Any changes in competitive hiring dynamics? - Management indicated that the hiring environment has stabilized, with a strong sales force and high morale contributing to retention [27][28] Question: Clarification on tariff impact on gross margin? - Management explained that the tariff impact will gradually affect gross margin starting in Q2, with a projected negative effect of 50 to 100 basis points [38][39] Question: How is the bundling situation with GPOs playing out? - Management emphasized the need to increase the number of surgeons using their products in facilities to justify their market position [45][46] Question: Updated expectations on growth rates for PRS and OviTex? - Management expects continued good growth from both products, with PRS anticipated to grow faster due to its higher average selling price [51][54]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $18.5 million, representing a 12% increase year-over-year and a 5% increase sequentially from Q4 2024 [4][12] - Gross margin decreased to 67.6% from 68.3% in the prior year, primarily due to excess and obsolete inventory adjustments [13] - Net loss for Q1 2025 was $11.3 million compared to $5.7 million in the prior year, largely affected by the previous year's gain from the sale of the Nivas product line [14] Business Line Data and Key Metrics Changes - Revenue from OviTex grew 15% year-over-year, while OviTex PRS revenue grew 2% [12] - Unit sales of OviTex increased by 29% for the quarter, while PRS unit sales declined slightly by 3% [12] - The company has seen strong demand for both OviTex and OviTex PRS, with revenue for each growing approximately 152% [4] Market Data and Key Metrics Changes - The European business experienced a 17% growth over Q1 2024, indicating a strong international opportunity [5] - The hernia market is shifting away from plastic mesh towards more natural repair products, which positions the company favorably [7][29] Company Strategy and Development Direction - The company is reaffirming its 2025 revenue expectation of $85 million to $88 million, representing growth of 23% to 27% over 2024 [5][15] - The new territory manager and account specialist structure is yielding positive results and is expected to enhance sales effectiveness [6] - The company is committed to bringing new and complementary products to market, including larger sizes of OviTex PRS [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the commercial organization and its ability to drive growth, emphasizing the importance of stability and strength in the sales force [24] - The company is positioned well for continued growth, particularly as the industry moves away from plastic mesh [17] - Management acknowledged the impact of tariffs on gross margin but expects only a modest effect [11][38] Other Important Information - The company has trained 25 new sales team members year-to-date, which is expected to contribute positively to sales [6] - The company is actively working to mitigate the impact of tariffs by adjusting shipping strategies [11] Q&A Session Summary Question: Revenue cadence through the back half of the year - Management noted that historical revenue patterns suggest a larger increase from Q1 to Q2, a smaller increase from Q2 to Q3, and a larger increase from Q3 to Q4 [21][22] Question: Competitive hiring dynamics - Management indicated that the competitive hiring environment has stabilized, with a focus on maintaining morale and a strong sales force [26] Question: Clarification on tariff impact on gross margin - Management explained that the tariff impact would gradually affect gross margin starting in Q2 and continuing into Q3 [37][38] Question: Bundling situation at GPOs - Management emphasized the importance of increasing the number of surgeons using their products in each facility to justify their market position [44][46] Question: Updated expectations on growth rates for PRS and OviTex - Management expects continued good growth from both products, with PRS anticipated to grow faster due to its higher average selling price [50][51]

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 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. Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) (Exact name of registrant as specified in its charter) Delaware (State or othe ...

Exhibit 99.1 TELA Bio Reports First Quarter 2025 Financial Results MALVERN, PA, May 8, 2025 -- 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 first quarter ended March 31, 2025. Recent Highlights "We are pleased with the strong performance in the first quarter of 2025 following the realignment and optimization of our sales organization," said Antony Koblish, President an ...

Core Viewpoint - TELA Bio, Inc. reported strong financial performance in Q1 2025, driven by increased sales and market penetration, while aiming for continued revenue growth and profitability throughout the year [3][10]. Financial Performance - Revenue for Q1 2025 was $18.5 million, a 12% increase compared to Q1 2024, attributed to higher unit sales of hernia products and growing international sales [4][10]. - Gross profit was $12.5 million, representing 67.6% of revenue, slightly down from 68.3% in Q1 2024, primarily due to higher inventory adjustments [5]. - Operating expenses decreased to $22.9 million from $23.7 million in the same period last year, due to lower compensation costs, although offset by higher commissions and development costs [6]. - Loss from operations was $10.5 million, compared to a loss of $4.8 million in Q1 2024, with the previous year benefiting from a $7.6 million asset sale gain [7]. - Net loss for Q1 2025 was $11.3 million, compared to a net loss of $5.7 million in Q1 2024 [7]. Cash Position - As of March 31, 2025, cash and cash equivalents totaled $42.8 million, down from $52.7 million at the end of 2024 [8][16]. Future Guidance - The company reiterated its full-year 2025 revenue guidance of $85.0 million to $88.0 million, indicating a year-over-year growth of 23% to 27% [10][11]. - Operating expenses for 2025 are expected to remain flat compared to 2024 [11]. Product Developments - Increased demand for OviTex and OviTex PRS products contributed to revenue growth, with year-over-year increases of approximately 15% and 2%, respectively [10]. - The company launched a larger-sized OviTex PRS for plastic and reconstructive surgery, which may simplify complex procedures [10]. Company Overview - TELA Bio, Inc. focuses on innovative soft-tissue reconstruction solutions, aiming to optimize clinical outcomes while minimizing long-term exposure to synthetic materials [13].

Core Viewpoint - TELA Bio, Inc. is set to report its first quarter 2025 financial results on May 8, 2025, and will host a conference call and webcast to discuss these results and provide a corporate update [1]. Group 1: Financial Reporting - The first quarter 2025 financial results will be reported on May 8, 2025 [1]. - A conference call and webcast will take place at 4:30 p.m. ET on the same day to discuss the financial results [1]. Group 2: Company Overview - TELA Bio, Inc. is a commercial-stage medical technology company focused on innovative soft-tissue reconstruction solutions [3]. - The company aims to optimize clinical outcomes by preserving and restoring the patient's own anatomy while minimizing long-term exposure to synthetic materials [3].