TELA Bio Q1 revenue growth beats estimates, loss widens

Overview

• US soft-tissue reconstruction firm's Q1 revenue rose 3% yr/yr, beating analyst expectations

• Net loss widened to $12.3 mln from $11.3 mln a year earlier

• Company reiterated full-year 2026 revenue growth guidance of at least 8%

Outlook

• TELA Bio projects full-year 2026 revenue growth of at least 8% over 2025

• Company expects second quarter 2026 revenue to be about $20.0 mln

• TELA Bio says U.S. commercial organization is fully staffed and European expansion continues

Result Drivers

• INTERNATIONAL SALES - Co said Q1 revenue growth was primarily driven by growing international sales, with European revenue up 41% yr/yr

• PRODUCT MIX HEADWINDS - U.S. revenue growth was partially offset by a shift toward smaller-sized units, which the co said affected product mix

• INVENTORY CHARGES - Gross margin declined due to a higher charge for excess and obsolete inventory as a percentage of revenue

Company press release: ID:nGNX4910bz

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"

• Wall Street's median 12-month price target for TELA Bio Inc is $2.00, about 106.2% above its May 11 closing price of $0.97

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