TELA Bio Q2 revenue falls on lower OviTex PRS volumes, withdraws outlook

TELA Bio

10/08/2026 21:25

Overview
US medical technology firm's Q2 revenue fell 4% yr/yr, missing analyst expectations
Company withdrew full-year 2026 guidance amid ongoing business assessment by new CEO
Gross margin improved to 72% due to tariff refund and lower inventory charges

Outlook
TELA Bio has withdrawn full-year 2026 revenue guidance and will provide an update later
Company says it will focus on improving PRS performance and accelerating hernia market share gains
TELA Bio plans to take action to extend cash runway and align costs with revenue

Result Drivers
OVITEX PRS DECLINE - Co said Q2 revenue was primarily hurt by lower OviTex PRS unit volumes
PRICE AND MIX HEADWINDS - Co cited ongoing price and mix pressures in hernia procedures as a drag on revenue
COMPETITIVE BUNDLING - Co said competitive bundling by larger rivals continued to affect performance

Company press release: ID:nGNXy2VGV

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$19.29 mln
$20.008 mln (5 Analysts)
Q2 Net Loss
 
$11.26 mln
 
Q2 Gross Profit
 
$13.94 mln
 
Q2 Income From Operations
 
-$9.28 mln
 
Q2 Loss Per Basic Share
 
$0.20
 
Q2 Operating Expenses
 
$23.23 mln
 

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 129.9% above its August 7 closing price of $0.87

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)