TELA Bio (TELA) investor relations material

Executive summary

• Q3 revenue was $19.0M, down 8% YoY; OviTex PRS weakness was partly offset by international growth.

• A $17.0M annualized cost-reduction plan and commercial realignment target renewed growth and extend cash runway into 2028, while going-concern uncertainty remains.

• Liora received FDA 510(k) clearance; four peer-reviewed publications and presentations reported favorable OviTex and OviTex PRS outcomes.

Financial highlights

• Q3 revenue was $19.0M versus $20.7M; nine-month revenue was $57.3M versus $59.4M.

• Q3 gross profit was $12.3M versus $14.0M; operating loss was $7.3M versus $7.6M, and net loss was $9.3M versus $8.6M.

• Operating expenses excluding other expenses were $17.6M, down YoY; adjusted EBITDA loss was $3.4M, improving 40% YoY and 55% QoQ.

• Nine-month operating cash use was $29.2M versus $23.3M; cash and restricted cash declined $28.2M to $22.9M.

• Cash and cash equivalents were $22.7M at September 30, 2026, versus $50.8M at December 31, 2025.

Outlook and guidance

• Management expects sequential revenue growth in Q4 and continued growth into 2027; U.S. hernia revenue is expected to increase sequentially in Q4.

• Operational changes are intended to restore double-digit growth, though the timing and pace of acceleration remain under evaluation.

• 2027 expenses are expected to be $76M-$78M; sales and marketing expenses are expected to be higher early in the year due to meetings and medical events.

• Management expects the $17.0M annual expense savings plan to extend cash runway into 2028; the current business plan indicates existing cash may not cover operations and capital needs for 12 months from report issuance.

• Cash used in operations in Q4 2026 is expected to be lower than the $29.2M used in the first nine months.