AI-extracted from the 10-Q filed 2026-08-11 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
TELA Bio's Q2 revenue declined 4% YoY to $19.3M as OviTex PRS sales fell 23% in units, offset partially by 12% OviTex volume growth, while net loss widened 13% to $11.3M due to higher interest expense from new $60M debt facility.
Biggest Revenue Drivers
OviTex$13.3M+6% YoY
Volume increased 12% in units to 5,776 despite price mix headwinds from smaller sized units.
OviTex PRS$5.5M-26% YoY
Unit sales declined 23% to 1,050 units, primary driver of overall revenue decline.
Biggest Revenue Drivers
Total revenue: $19.3M-4% YoY
OviTex$13.3M+6% YoY
Volume increased 12% in units to 5,776 despite price mix headwinds from smaller sized units.
OviTex PRS$5.5M-26% YoY
Unit sales declined 23% to 1,050 units, primary driver of overall revenue decline.
Other$0.5M+39% YoY
Includes LIQUIFIX distribution and other product offerings.
Largest Expense Items
Sales and marketing$16.4M-2% YoY
Lower compensation from headcount reductions offset by higher meeting and training costs.
Research and development$2.7M+24% YoY
Higher compensation from additional headcount and increased study costs.
General and administrative$4.1M-2% YoY
Lower compensation from headcount reduction partially offset by higher professional fees.
Interest expense$2.1M+75% YoY
Increase due to larger borrowing base and higher interest rate under new Perceptive credit facility at 7.85% margin.
Margins: Gross margin improved to 72% from 70% YoY, primarily due to lower excess inventory charges as a percentage of revenue and a $0.6M tariff refund. However, operating losses persisted as revenue decline offset margin gains, with operating loss of $9.3M versus $9.1M in prior year.
Watch Items from the Filing
Going concern risk: Company has substantial doubt about ability to continue as going concern. Forecasts indicate probable noncompliance with minimum revenue covenant under Perceptive Credit Agreement within 12 months despite $30.4M cash; default could trigger acceleration of full $60M debt.
OviTex PRS revenue decline: Unit sales fell 23% YoY in Q2 to 1,050 units, representing primary revenue headwind; product lineup represents 28% of total revenue.
Tariff exposure: Company pays 12.5% U.S. tariff on products manufactured in New Zealand; Aroa agreement requires equal cost sharing, creating price and demand risk.
Interest expense surge: Interest expense increased 75% YoY to $2.1M in Q2 due to $60M Perceptive facility at variable rate; represents significant drag on path to profitability.
Cash burn accelerating: Operating cash burn of $20.6M for six months ended June 30, 2026 versus $17.6M in prior year period; cash declined from $50.8M to $30.4M in six months.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Rocchio Betty JoReporting ownerGrant or award · Jun 9, 2026
Koblish AntonyChief Executive OfficerShares withheld for tax or exercise price · Feb 24, 2026
Smeykal MeganChief Accounting OfficerShares withheld for tax or exercise price · Feb 23, 2026
Cuca RobertoCOO and CFOShares withheld for tax or exercise price · Feb 23, 2026
About TELA Bio, Inc. (TELA): stock profile, AI score and financials
TELA Bio, Inc. (TELA) stock profile, AI quality score, and SEC EDGAR financial data, a Healthcare sector company. 13F Pro's AI-powered ranking engine scores TELA at 24.3/100 on a composite quality score built from its SEC filings, placing it at rank #2,665 of 2,925 stocks — the bottom half of the AI-ranked universe. Areas of concern include balance sheet strength (2.5) and institutional flow (7.0), which score below median versus the broader universe. Shareholder dilution risk is elevated at 25.0/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), TELA Bio, Inc. reports quarterly revenue of $19.3M, net income of $-11.3M, an operating margin of -48.1%. Top institutional holders of TELA by reported 13-F value include Essex Woodlands Management, Nantahala Capital Management, Stonepine Capital Management, based on the most recent SEC filings. TELA trades on the Nasdaq exchange and files with the SEC under CIK 1561921. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate TELA daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for TELA Bio, Inc. directly from SEC EDGAR.