MALVERN, PA — TELA Bio, Inc. (Nasdaq: TELA) reported modest first-quarter revenue growth as accelerating European sales helped offset slower product mix trends in the United States.
Revenue rose 3% to $19.1 million during the quarter ended March 31, while unit growth increased 13% from a year earlier, according to the company.
TELA Bio attributed the gap between unit growth and revenue growth primarily to rising sales of smaller-sized products in the U.S. market.
European revenue increased 41% year over year, supported by continued expansion in the United Kingdom and entry into additional European markets.
Chief Executive Officer Anthony Koblish said the company has completed staffing for its U.S. commercial organization and is focusing on execution and product rollout through the remainder of the year.
“Our commercial organization is fully built to plan, with no further hiring required to achieve our 2026 targets,” Koblish stated. “The team is in place, the infrastructure is set, and we are positioned well to deliver predictable growth through the remainder of 2026.”
The company also launched OviTex LTR in the United States on April 1, expanding its portfolio of tissue-based hernia repair products.
Gross profit remained flat at $12.5 million, while gross margin declined to 65.7% from 67.6% a year earlier. TELA Bio attributed the margin compression primarily to higher charges related to excess and obsolete inventory.
Operating expenses remained unchanged at $23.0 million during the quarter.
Net loss widened to $12.3 million from $11.3 million a year earlier, while loss from operations held steady at $10.5 million.
Cash and cash equivalents totaled $39.5 million as of March 31.
TELA Bio reiterated its expectation for at least 8% full-year revenue growth in 2026 and projected second-quarter revenue of approximately $20.0 million.
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