TELA earnings analysis
What we found in TELA's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
TELA Bio reported second-quarter revenue of $19.291 million and diluted EPS of $(0.20); revenue declined approximately 4% year over year, while gross margin improved to 72.0%. The company withdrew full-year 2026 revenue guidance, and management disclosed that current forecasts indicate probable future noncompliance with its minimum revenue covenant. With $30.4 million of cash and substantial doubt about its ability to continue as a going concern over the next 12 months, liquidity and financing risks dominate the filing.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- EPS improved sequentially
- Second-quarter revenue was $19.291 million, approximately 4% below $20 million in 2025 Q2, but above $19 million in 2026 Q1. Diluted EPS was $(0.20), compared with $(0.22) in 2025 Q2 and $(0.21) in 2026 Q1.
- Gross margin expanded
- Gross margin increased to 72.0% from 70.3% in 2025 Q2 and 65.7% in 2026 Q1, a 1.7-point year-over-year and 6.3-point sequential improvement.
- Cash controls and liquidity position
- The company held $30.4 million of cash and cash equivalents as of June 30, 2026 and maintained a redundant bank account following the 2023 Silicon Valley Bank events to mitigate liquidity risk.
- Current covenant compliance
- Management reported that the company was in compliance with its credit covenants as of June 30, 2026, despite current forecasts indicating probable noncompliance with the minimum revenue threshold in certain future quarterly periods.
- Actions underway to address risk
- Management is pursuing a waiver or amendment to the minimum revenue covenant, strategic initiatives to increase revenue, and expense-reduction measures.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Going-concern and covenant risk
- The company stated that its current forecasts indicate it is probable it will not achieve the minimum revenue threshold under the Perceptive Credit Agreement in certain future quarterly periods within the 12 months after June 30, 2026. A default could accelerate repayment of all outstanding principal and accrued interest, and the company does not expect sufficient liquidity to repay those obligations if accelerated.
- Liquidity runway remains constrained
- The company had cash and cash equivalents of $30.4 million as of June 30, 2026, but stated that substantial doubt exists about its ability to continue as a going concern for the 12 months from the period ended June 30, 2026.
- Floating-rate debt exposure
- The Perceptive Credit Agreement carries a floating interest rate of 7.85% plus the greater of one-month Term SOFR or 4.25%. Management estimated that a 1% increase in interest rates would have increased interest expense by $0.3 million for the six months ended June 30, 2026.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.2
- Gross margin
- 72.0%
What they said about what is next.
The company withdrew full-year 2026 revenue guidance and stated it will provide an update in the future; no quantitative revenue or EPS outlook was provided in the 10-Q.
The filing reads worse than the one before it.
What came before.
- 10-Q · May 13, 2026
- TELA Bio reported Q1 2026 revenues of $19.1 million, a 3% increase from $18.5 million in Q1 2025, with EPS at -$0.17, slightly better than the consensus estimate of -$0.18. Despite growing international sales, price mix…
- 10-K · March 25, 2026
- TELA Bio reported full-year 2025 revenue of $80.3M, up 16% from $69.3M in 2024, driven by unit growth (22,063 OviTex units vs. 18,121 in 2024). Gross margin improved to 68% and management expanded funding (a $60.0M…
- 10-Q · November 14, 2025
- TELA reported Q3 revenue of $20.689M, up versus Q3 2024 revenue of $18.957M (+$1.732M, +9.1%), with gross profit of $13.969M (67.5% gross margin) and an operating loss of $7.554M (‑36.5% operating margin). GAAP diluted…
- 10-Q · August 11, 2025
- TELA reported Q2 revenue of $20.197 million, up $4.106 million (25.5%) versus Q2 2024 ($16.091 million) with gross profit of $14.105 million and gross margin improving to ~70.3% year-over-year. Operating loss narrowed…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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