Revenue growth has decelerated to 2.9% in 2026Q1, while structural costs for ovine-derived materials continue to cap gross margins at approximately 65.7%.
| Sales/Revenue | 80.81M | 80.28M | 69.3M | 58.45M | 41.42M | 29.46M | 18.21M | 15.45M | 8.27M | 4.25M |
| Revenue Growth % | 13.48% | 15.84% | 18.56% | 41.13% | 40.58% | 61.77% | 17.91% | 86.68% | 94.91% | - |
| Cost of Goods Sold | 26.46M | 25.93M | 22.81M | 18.34M | 14.37M | 10.65M | 6.98M | 6.17M | 5.33M | 1.71M |
| COGS % of Revenue | - | 32.31% | 32.92% | 31.38% | 34.7% | 36.15% | 38.32% | 39.97% | 64.44% | 40.35% |
| Gross Profit | 54.35M | 54.34M | 46.49M | 40.11M | 27.04M | 18.81M | 11.23M | 9.27M | 2.94M | 2.53M |
| Gross Margin % | 67.25% | 67.69% | 67.08% | 68.62% | 65.3% | 63.85% | 61.68% | 60.03% | 35.56% | 59.65% |
| Gross Profit Growth % | - | 16.89% | 15.9% | 48.32% | 43.75% | 67.46% | 21.16% | 215.16% | 16.19% | - |
| Operating Expenses | 88.16M | 88.1M | 80.6M | 84.19M | 66.05M | 48.26M | 36.51M | 28.43M | 22.88M | 19.46M |
| OpEx % of Revenue | - | 109.74% | 116.31% | 144.03% | 159.47% | 163.81% | 200.46% | 184.09% | 276.58% | 458.33% |
| Selling, General & Admin | 79.14M | 78.88M | 79.37M | 74.57M | 57.11M | 41.52M | 32.25M | 24.28M | 18.55M | 13.67M |
| SG&A % of Revenue | - | 98.26% | 114.53% | 127.57% | 137.9% | 140.93% | 177.09% | 157.21% | 224.14% | 322.03% |
| Research & Development | 9.02M | 9.22M | 8.81M | 9.62M | 8.94M | 6.74M | 4.25M | 4.15M | 4.34M | 5.79M |
| R&D % of Revenue | - | 11.49% | 12.72% | 16.46% | 21.58% | 22.89% | 23.36% | 26.87% | 52.44% | 136.3% |
| Other Operating Expenses | 0 | 0 | -7.58M | 0 | 0 | 0 | 0 | 0 | 70K | 94K |
| Operating Income | -33.81M | -33.76M | -34.12M | -44.08M | -39.01M | -29.45M | -25.27M | -19.16M | -17.78M | -16.92M |
| Operating Margin % | -41.84% | -42.05% | -49.23% | -75.4% | -94.18% | -99.96% | -138.77% | -124.06% | -214.91% | -398.68% |
| Operating Income Growth % | - | 1.06% | 22.6% | -12.99% | -32.45% | -16.52% | -31.9% | -7.76% | -5.07% | - |
| EBITDA | -33.29M | -33.76M | -33.1M | -43.27M | -37.82M | -28.92M | -24.75M | -18.58M | -16.53M | -16.16M |
| EBITDA Margin % | -41.19% | -42.05% | -47.77% | -74.02% | -91.31% | -98.14% | -135.89% | -120.29% | -199.83% | -380.75% |
| EBITDA Growth % | 14.01% | -1.97% | 23.49% | -14.4% | -30.79% | -16.83% | -33.21% | -12.37% | -2.3% | - |
| D&A (Non-Cash Add-back) | 518K | 0 | 1.01M | 808K | 1.19M | 535K | 525K | 582K | 1.25M | 761K |
| EBIT | -33.28M | -33.76M | -32.7M | -41.44M | -40.24M | -29.68M | -25.23M | -18.82M | -19.29M | -16.78M |
| Net Interest Income | -1.97M | -5.25M | -5.29M | -5.22M | -4.05M | -3.6M | -3.56M | -3.61M | -1.8M | -4.56M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.97M | 5.25M | 5.29M | 5.22M | 4.05M | 3.6M | 3.56M | 3.61M | 1.8M | 4.56M |
| Other Income/Expense | -5.79M | -4.85M | -3.87M | -2.59M | -5.29M | -3.83M | -3.52M | -3.26M | -3.31M | -4.41M |
| Pretax Income | -39.6M | -38.6M | -37.98M | -46.66M | -44.3M | -33.28M | -28.79M | -22.43M | -21.09M | -21.33M |
| Pretax Margin % | -49% | -48.09% | -54.81% | -79.83% | -106.95% | -112.94% | -158.1% | -145.18% | -254.92% | -502.57% |
| Income Tax | 238K | 230K | -144K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | -0.6% | -0.6% | 0.38% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | -39.84M | -38.83M | -37.84M | -46.66M | -44.3M | -33.28M | -28.79M | -22.43M | -21.09M | -21.33M |
| Net Margin % | -49.3% | -48.37% | -54.6% | -79.83% | -106.95% | -112.94% | -158.1% | -145.18% | -254.92% | -502.57% |
| Net Income Growth % | 8.3% | -2.62% | 18.91% | -5.35% | -33.12% | -15.57% | -28.4% | -6.32% | 1.13% | - |
| Net Income (Continuing) | -39.84M | -38.83M | -37.84M | -46.66M | -44.3M | -33.28M | -28.79M | -22.43M | -21.09M | -21.33M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.70 | -0.83 | -1.33 | -2.04 | -2.73 | -2.30 | -2.23 | -2.26 | -3.25 | -3.29 |
| EPS Growth % | 43.97% | 37.59% | 34.8% | 25.27% | -18.7% | -3.14% | 1.33% | 30.46% | 1.22% | - |
| EPS (Basic) | - | -0.83 | -1.33 | -2.04 | -2.73 | -2.30 | -2.23 | -2.26 | -3.25 | -3.29 |
| Diluted Shares Outstanding | 57.26M | 46.95M | 28.53M | 22.87M | 16.27M | 14.47M | 12.93M | 11.41M | 6.49M | 6.49M |
| Basic Shares Outstanding | 57.26M | 46.95M | 28.53M | 22.87M | 16.27M | 14.47M | 12.93M | 11.41M | 6.49M | 6.49M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Liquidity and cash runway
As reported in recent financial filings, TELA's year-over-year revenue growth has decelerated significantly, reaching a modest 2.9% in 2026Q1 compared to the double-digit expansion observed in previous periods, which suggests that the company's market penetration strategy is encountering substantial friction within the competitive hernia repair landscape.
The sharp decline in growth rates indicates that the initial adoption phase for the OviTex portfolio may be plateauing. Investors should monitor whether this deceleration reflects a saturation of the current surgeon base or broader challenges in securing necessary hospital procurement contracts.
Based on the provided income statement data, TELA maintains gross margins hovering around 65-67%, a level that appears structurally capped by the specialized processing costs associated with ovine-derived materials rather than the economies of scale typically seen in pure synthetic medical device manufacturing.
The inability to consistently expand gross margins despite revenue growth suggests that the cost of goods sold remains highly sensitive to biological sourcing requirements. This profile limits the company's ability to absorb operating expenses and highlights a potential long-term ceiling on profitability.
According to the company's quarterly income statements, TELA continues to exhibit a deeply negative operating margin, with SG&A expenses frequently exceeding gross profit, which indicates that the firm has yet to achieve the necessary scale to leverage its heavy investment in a direct sales force.
The persistent gap between revenue generation and operating costs suggests that the current commercial model is highly inefficient. Without a significant shift in sales force productivity or a reduction in overhead, the company may struggle to reach a sustainable operating break-even point.
Analysis of the reported figures reveals that SG&A remains the primary driver of the company's net losses, consistently consuming the vast majority of gross profit and leaving little room for R&D investment or the accumulation of a meaningful cash buffer for future operations.
The heavy reliance on a direct sales force appears to be a double-edged sword, providing control over the clinical narrative while simultaneously creating a rigid cost structure. This expense discipline warrants further investigation to determine if the current spending levels are yielding sufficient long-term market share gains.
Based on the recent trend of negative net margins and a burn rate that threatens the $50.8M cash position, the current strategy of aggressive market share pursuit appears increasingly unsustainable without a potential liquidity event or significant dilution for existing shareholders in the near term.
Short-sellers would likely focus on the disconnect between the company's growth trajectory and its cash consumption. The lack of a clear path to profitability suggests that the current valuation may be overly optimistic regarding the company's ability to survive without additional external financing.
Quick answers to the most common questions about buying TELA stock.
For fiscal year 2025, TELA Bio, Inc. (TELA) reported total revenue of $80.3M. This represents a 1791.0% increase compared to $4.2M in 2017.
TELA Bio, Inc. (TELA) reported a net loss of $38.8M for the fiscal year ending 2025.
TELA Bio, Inc. (TELA) reported an operating income of $-33.8M, resulting in an operating profit margin of -42.0%. This margin reflects the operational efficiency of the business before interest and taxes.
TELA Bio, Inc. (TELA) generated $54.3M in gross profit for the year, representing a gross profit margin of 67.7%. This demonstrates the company's core pricing power and production efficiency.