Financial Data and Key Metrics Changes - Revenue for Q3 2025 was reported at $20.7 million, reflecting a 9% growth year-over-year, driven by stronger adoption and new accounts [4][14] - Gross margin remained stable at 68% for both Q3 2025 and Q3 2024, with gross profit increasing to $14 million from $12.9 million [14] - Net loss decreased to $8.6 million in Q3 2025 from $10.4 million in the prior year [16] Business Line Data and Key Metrics Changes - Revenue from OviTex grew by 6%, while OviTex PRS revenue increased by 12% compared to the prior year [14] - OviTex unit sales grew by 22% in Q3, while PRS unit sales saw a 3% increase [14] Market Data and Key Metrics Changes - International sales grew by 9%, with notable traction in the U.K. and early progress from the OviTex IHR launch in Europe [4] - The company expanded its market presence in the U.S. by adding 835 hospitals to its portfolio [9] Company Strategy and Development Direction - The company is focused on expanding its commercial footprint, improving operational discipline, and strengthening its patient-centric culture [4] - Investments in the sales organization are expected to enhance commercial performance moving forward [5] - The company aims to become a market leader in hernia and plastic reconstructive surgery through enhanced medical education and market access strategies [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving at least 16% revenue growth for the full year 2025 compared to 2024 [16] - For 2026, the company anticipates at least 15% revenue growth from 2025, with a focus on hiring and operational efficiency [17] Other Important Information - The company announced a refinancing and upsizing of its debt facility from $40 million to $60 million, along with a $13 million equity offering, adding approximately $26 million in net cash [18] - The company has surpassed 100,000 implantations of OviTex and OviTex PRS globally, indicating strong market impact [7] Q&A Session Summary Question: Rationale for debt refinancing and equity raise - Management feels comfortable with the cash runway, stating the refinancing was proactive to avoid future amortization issues and to secure additional capital [25] Question: Guidance for 2025 and 2026 growth expectations - The company provided a conservative growth estimate for 2025, factoring in hiring and operational adjustments, with a goal of at least 15% growth for 2026 [26][27] Question: Details on Salesforce hiring - The company aims to increase its Salesforce to over 90 territory managers by Q1 2026, with a focus on hiring high-caliber talent [31][34] Question: Break-even profile - Management continues to target a break-even point in the high $20 million range per quarter, emphasizing operational efficiency [36] Question: Q4 growth expectations - The company expects at least 16% year-over-year growth in Q4, with potential upside from recent hiring and organizational improvements [46]

Core Insights - TELA Bio, Inc. reported a 9% increase in revenue for Q3 2025, reaching $20.7 million compared to Q3 2024, driven by new customers and international sales [3][9] - The company aims for at least 16% revenue growth for the full year 2025 compared to 2024 [7][9] - TELA Bio has strengthened its capital position with a new credit facility of up to $70 million from Perceptive Advisors [8][9] Financial Highlights - Gross profit for Q3 2025 was $14.0 million, representing 67.5% of revenue, slightly down from 67.8% in Q3 2024 [4] - Operating expenses decreased to $21.5 million in Q3 2025 from $22.2 million in Q3 2024, attributed to lower compensation and benefits [5] - The loss from operations improved to $7.6 million in Q3 2025 from $9.4 million in Q3 2024, while the net loss decreased to $8.6 million from $10.4 million [6] Strategic Developments - The leadership team has been strengthened, and strategic changes have been made to enhance the commercial organization [2][3] - The company is focusing on building a patient-centric, performance-driven culture to support growth [3] - TELA Bio has expanded its Board with new appointments to enhance capabilities [9]

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]

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]

INVESTOR PRESENTATION March 2025 Forward Looking Statements This presentation contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this document, including but not limited to statements regarding possible or assumed future results of operations, business strategies, development plans, regulatory activities, market opportunity competitive position, potential growth opportunities, a ...