MALVERN, PA — TELA Bio, Inc. (NASDAQ: TELA) withdrew its full-year 2026 revenue guidance after second-quarter sales fell 4% and its net loss widened, with newly appointed Chief Executive Officer Heather Getz planning cost actions to extend the medical technology company’s $30.4 million cash position while reassessing its strategy.
Revenue declined to $19.3 million in the quarter ended June 30 from $20.2 million a year earlier, primarily because of lower OviTex PRS volumes and unfavorable pricing and product mix. International growth partially offset the decline.
TELA Bio posted a $11.3 million net loss, widening from $9.9 million in the year-earlier period. Its operating loss increased to $9.3 million from $9.1 million.
Getz, who became CEO and a director Aug. 4, said the company’s financial performance hasn’t matched the performance management attributes to its product portfolio. She identified weakness in OviTex PRS and pricing and mix pressure in hernia procedures as key problems.
“Given the confluence of these dynamics, we are withdrawing our full year 2026 revenue guidance as I fully assess the business and strategic direction,” Getz stated.
The withdrawal removes the company’s previous revenue expectations as management evaluates commercial performance and its cost structure. TELA Bio did not provide a timetable for issuing updated guidance.
Getz also signaled potential spending reductions as the company seeks to preserve liquidity.
“We will take decisive action to extend our cash runway and better align our cost structure with our top line,” she stated.
TELA Bio ended June with $30.4 million of cash and cash equivalents.
Gross profit slipped to $13.9 million from $14.1 million, but gross margin increased to 72% from 70%. The company attributed the margin improvement primarily to a tariff refund and a smaller charge for excess and obsolete inventory relative to revenue.
Operating expenses remained at $23.2 million. Higher meeting, training and professional-services costs were offset by lower compensation and benefits resulting from reduced headcount, along with lower commissions and study expenses.
Performance across TELA Bio’s product lines was mixed. OviTex unit volumes in hernia procedures increased 12% from a year earlier, which the company cited as evidence of market-share gains, while LiquiFix revenue rose 39%.
International revenue increased 26%, with growth across several European markets.
Those gains weren’t sufficient to overcome the decline in OviTex PRS volumes and pricing and procedure-mix pressures. Getz said the company has returned to a sales structure intended to increase cross-selling among its field teams.
Management is also confronting competitive pressure from larger rivals that bundle products, according to Getz. TELA Bio has made personnel changes within its market access and contracting operation in response.
The company is focusing on improving PRS performance, expanding its position in hernia procedures and raising productivity among newer territory managers during the second half of 2026.
TELA Bio develops soft-tissue reconstruction products, including OviTex reinforced tissue matrices and LiquiFix surgical fixation technology.
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