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…
Earnings analysis · 10-Q
TELA earnings analysis
Filed August 11, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.2
- Gross margin
- 72.0%
What stood out
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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.
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.