[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)

Core Insights - TELA Bio, Inc. reported a significant revenue growth of 26% year-over-year for Q2 2025, reaching $20.2 million, driven by increased unit sales and new customer acquisitions [4][9] - The company is at a pivotal point with a strong product portfolio and leadership changes aimed at optimizing sales and market access [3][9] - TELA Bio reiterated its full-year revenue guidance of $85.0 million to $88.0 million, indicating a projected growth of 23% to 27% compared to 2024 [10][9] Financial Performance - Revenue for Q2 2025 was $20.2 million, a 26% increase from $16.1 million in Q2 2024, with a sequential growth of 9% from Q1 2025 [4][9] - Gross profit was $14.1 million, representing a gross margin of 69.8%, up from 68.8% in the same quarter of the previous year [5] - Operating expenses increased to $23.2 million in Q2 2025 from $22.6 million in Q2 2024, primarily due to higher commission costs and professional fees [6] Loss and Cash Position - Loss from operations decreased to $9.1 million in Q2 2025 from $11.6 million in Q2 2024, while net loss improved to $9.9 million from $12.6 million [7] - As of June 30, 2025, cash and cash equivalents totaled $35.0 million, down from $52.7 million at the end of 2024 [7][15] Product and Market Developments - The company experienced increased demand for its OviTex® and OviTex PRS products, with year-over-year revenue growth of approximately 12% and 53%, respectively [9] - TELA Bio announced the European commercial launch of OviTex Inguinal for robotic and laparoscopic hernia repair, expanding its market presence [9]

Company Overview - TELA Bio, Inc. is a commercial-stage medical technology company focused on innovative soft-tissue reconstruction solutions that optimize clinical outcomes by preserving and restoring the patient's own anatomy [2] - The company aims to provide advanced and economically effective solutions for surgeons, leveraging the patient's natural healing response while minimizing long-term exposure to permanent synthetic materials [2] Upcoming Events - TELA Bio will participate in the Canaccord Genuity 45 Annual Growth Conference, with management scheduled to present on August 13, 2025, at 10:00 am ET [1] - Interested parties can access the live and archived webcast of the presentation at ir.telabio.com [1]

Core Viewpoint - TELA Bio, Inc. is set to report its second quarter 2025 financial results on August 11, 2025, and will host a conference call and webcast to discuss these results and provide a corporate update [1]. Group 1: Financial Reporting - The second quarter 2025 financial results will be reported on August 11, 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].

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.

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]