TELA Bio Reports Q2 Earnings with Revenue Decline Amid Operational Challenges
TELA Bio (NASDAQ: TELA) reported second-quarter revenue of $19.3 million, a 4% decline year-over-year due to reduced OviTex PRS unit volumes and price-mix headwinds in hernia procedures. International sales rose by 26%, driven by growth in the UK and Europe. The company also noted an improvement in gross margin to 72%, attributed to tariff refunds and lower inventory charges. Despite a slight increase in OviTex revenue, TELA posted a net loss of $11.3 million for Q2 compared to $9.9 million in the same period last year. The company cited challenges including slower-than-expected sales rep productivity ramp-up (now nine to 12 months instead of six) and competitive bundling practices affecting OviTex adoption. TELA also withdrew its full-year guidance following a leadership change with Heather Getz appointed as CEO.
Tickers: $TELA
Topics: cash reserves gross margin net loss revenue