TELA Bio Reports First Quarter 2025 Financial Results

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].