TELA Bio (NASDAQ:TELA) reported modest first-quarter revenue growth and reiterated its full-year outlook as management said a reset of the company’s commercial organization is beginning to show early signs of progress.
On the company’s first-quarter 2026 earnings call, Chief Executive Officer Tony Koblish said the quarter provided “early proof points” that TELA Bio’s revised commercial strategy is working. He said the company now has “the largest, most effective field team” in its history and has completed the hiring needed to execute its 2026 operating plan.
First-Quarter Revenue Rises 3%
Chief Operating Officer and Chief Financial Officer Roberto Cuca said revenue for the first quarter ended March 31, 2026, was $19.1 million, up approximately 3% from $18.5 million in the first quarter of 2025. Growth was driven primarily by the company’s international business, where sales rose 41% year over year to $3.7 million.
OviTex revenue was $12.6 million, compared with $12.1 million in the prior-year period. Cuca said OviTex unit volume increased 16% year over year, with 5,800 units sold compared with 5,000 units in the first quarter of 2025. Dollar growth was partially offset by product mix, as a greater share of smaller-sized units compressed average selling price.
OviTex PRS revenue was $5.9 million, down slightly from $6.0 million a year earlier. Other revenue, which includes LIQUIFIX, totaled $600,000.
Gross profit was $12.5 million, in line with the prior-year period. Gross margin declined to 66% from 68%, which Cuca attributed to a higher charge for excess and obsolete inventory as a percentage of revenue. Operating expenses were essentially flat at $23 million. Loss from operations was $10.5 million, also flat year over year.
Net loss widened to $12.3 million from $11.3 million in the prior-year quarter, primarily because of higher interest expense tied to the company’s Perceptive credit facility, which replaced its prior MidCap facility in November 2025. TELA Bio ended the quarter with $39.5 million in cash and cash equivalents.
Company Reiterates 2026 Guidance
Cuca said TELA Bio is reiterating its full-year 2026 outlook for at least 8% revenue growth over 2025 and expects second-quarter 2026 revenue of approximately $20.0 million.
Management acknowledged that the expected revenue ramp is weighted toward the second half of the year. In response to analyst questions, executives said confidence in the outlook is based on several factors, including a fully staffed U.S. sales force, new greenfield territories, European growth, the launch of OviTex LTR and growing clinical evidence supporting OviTex.
President Jeff Blizard said the company used the first quarter to roll out a new strategy, expand territories and implement a revised compensation plan. He said many new sales representatives are approaching the six-month tenure point, when the company typically sees territory managers reach break-even productivity and begin to generate stronger revenue momentum.
Jim Hagen, senior vice president of strategic commercial operations and marketing, said new hires have shown stronger early metrics than prior cohorts in areas such as testing, ramp time and productivity during their first 30, 60 and 90 days in role.
OviTex LTR Launch Adds Fully Resorbable Hernia Option
Koblish highlighted the April 1 full U.S. commercial launch of the OviTex long-term resorbable reinforcement portfolio, known as OviTex LTR. He described it as one of the only fully resorbable tissue-based hernia repair solutions on the market.
According to Koblish, the product is intended to provide strength during early healing while avoiding the long-term presence of permanent synthetic material. He said the product has been priced comparably with the rest of TELA Bio’s hernia portfolio and that early field feedback has been “overwhelmingly positive.”
Blizard said the addition of a long-term resorbable option across the hernia portfolio gives the company a broader offering for open, laparoscopic and robotic repairs. He also noted that OviTex IHR and OviTex LPR are the fastest-growing subsegments within the portfolio, reflecting a U.S. market shift toward less invasive and robotic procedures.
LIQUIFIX also contributed to commercial momentum, Blizard said, growing more than 50% year over year. He described the product as a non-penetrating fixation solution that gives sales representatives another way to engage surgeons who may not yet be familiar with OviTex.
Europe Outperforms as U.S. Strategy Shifts
Management emphasized Europe as a bright spot, with first-quarter revenue growth of 41%. Koblish said the growth is driven entirely by the company’s hernia portfolio, as OviTex PRS remains in the regulatory process for Europe.
The company cited strong performance in the U.K., where it said it continues to win new accounts and gain clinical and administrative buy-in. Koblish also pointed to a value-based procurement evaluation by the NHS Supply Chain that selected OviTex for use in complex abdominal wall procedures.
He said the NHS analysis found OviTex has the potential to reduce revisional operations for hernia recurrence, lower postoperative complications, improve patient well-being and generate cost savings compared with other biologic mesh options.
During the Q&A session, Koblish contrasted the European market with the U.S., saying European purchasing often involves centralized evaluations of clinical and economic value, while the U.S. market involves more complex contracting, bundling and rebate dynamics. He said TELA Bio’s more focused U.S. commercial strategy is intended to work through those barriers by emphasizing smaller regions, more depth and tighter account alignment.
PRS Concentration Risk and Board Changes
Blizard said OviTex PRS utilization declined in the quarter because several high-volume implanters were not performing surgeries for personal or professional reasons. He said that volatility reinforced the company’s decision to focus on expanding its implanter base within target accounts and reducing dependence on individual surgeons.
Koblish said the company must “overcome the rule of small number of implanters and high ASP” in PRS by developing more users per site.
The company also discussed board changes announced in late April. Koblish said four long-serving directors — Doug Evans, Kurt Azarbarzin, Vince Burgess and Freddy O’Brien — will step down following the annual shareholder meeting on June 9. Joe Capper is expected to join the board and serve as chairman, along with new directors Guy Nohra, Guido Neels and Paul Thomas. William Plovanic and Betty Jo Rocchio will stand for re-election.
Koblish said the incoming directors bring experience in implant-based medical devices, biologics and biomaterials that aligns with TELA Bio’s next phase of growth.
“We exit Q1 with a strong foundation from which we can deliver against our commitments in 2026,” Koblish said.
About TELA Bio (NASDAQ:TELA)
TELA Bio, Inc (NASDAQ: TELA) is a commercial‐stage medical technology company headquartered in Malvern, Pennsylvania. The company is focused on developing, manufacturing and commercializing regenerative medicine and advanced soft tissue repair solutions. By integrating proprietary biomaterials and processing technologies, TELA Bio aims to offer products that support the body’s natural healing processes in wound closure, hernia repair, reconstructive surgery and other surgical specialties.
The company’s product portfolio includes acellular dermal matrices, hemostatic agents and tissue scaffold systems.
