TELA Bio, Inc. reported fourth‑quarter 2025 revenue of $20.9 million, up 18% from $20.8 million in Q4 2024. Gross profit rose to $13.8 million, or 65.9% of revenue, reflecting a favorable product mix and lower inventory adjustments. Operating expenses increased to $20.4 million, driven mainly by higher compensation and professional fees, resulting in an operating loss of $6.6 million and a net loss of $9.0 million for the quarter.
The company’s full‑year 2025 results show revenue of $80.3 million, a 16% increase over $69.3 million in 2024. Gross profit reached $54.3 million, or 67.7% of revenue, indicating continued margin expansion. Operating expenses for the year were $88.1 million, essentially flat year‑over‑year, and the company posted a net loss of $38.8 million.
TELA’s earnings per share for Q4 2025 was $‑0.17, beating the consensus estimate of $‑0.18 by $0.01. The beat was largely due to disciplined cost control and the expansion of higher‑margin product sales, which offset the impact of a shift toward smaller‑sized hernia products that exerted downward pressure on average selling prices.
Revenue missed the consensus estimate of $21.0 million by $0.1 million, a 0.5% shortfall. The miss was attributed to a modest decline in pricing power from the shift to smaller‑sized units and the competitive pressure in the hernia market, which limited the company’s ability to fully capture the expected growth from new customer acquisitions and international sales.
Management reiterated its 2026 outlook, guiding for at least 8% revenue growth, a significant reduction from the previously implied 15% target. The company said the conservative guidance reflects the ongoing commercial rebuild and the ramp‑up of a new sales force, which is expected to take time to reach full productivity. "Based on the current ramp of tenured reps in the field, we are confident in the team's ability to deliver at least 8% revenue growth in 2026, and keep us on a path to profitability without the need to raise additional capital," CEO Antony Koblish said.
The market reacted negatively, with the stock falling 8.27% in regular trading. The decline was driven primarily by the revenue miss and the lower guidance, which outweighed the EPS beat. Investors expressed concern that the company’s net losses continue to widen and that the sales force rebuild may delay the return to profitability.
CEO Antony Koblish highlighted the company’s record quarterly revenue and the operating leverage it expects to sustain. "We closed 2025 with our strongest quarterly revenue on record, delivering $20.9 million and 18% growth over Q4 2024 while holding operating expenses essentially flat for the year, demonstrating the operating leverage we expect to continue to see in the years ahead," he said.
The company also secured a new $70 million credit facility from Perceptive Advisors, providing additional financial flexibility as it continues to invest in sales and product development. The U.S. launch of larger OviTex PRS configurations and continued adoption of OviTex and LIQUIFIX products remain key growth drivers, while the shift away from permanent synthetic mesh in the hernia market presents a headwind that the company is managing through product mix optimization.
The overall picture shows a company that is growing revenue and improving margins, but still operating at a net loss and facing a cautious outlook for 2026. The guidance cut signals management’s focus on stabilizing the sales organization and achieving profitability before pursuing aggressive growth targets again.
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