The company reported third‑quarter revenue of $20.7 million, a 9% increase from $19.0 million in Q3 2024, but still below the consensus estimate of roughly $21.8 million. Net loss per share was $0.19, slightly worse than the consensus estimate of $0.16, indicating a miss on earnings even as the loss narrowed from $10.4 million in Q3 2024 to $8.6 million in the current quarter.
Revenue fell short of expectations largely because average selling prices for the company’s hernia products declined as the mix shifted toward smaller‑size units, a trend that has compressed margins. Competitive headwinds in the soft‑tissue reconstruction market also limited the ability to maintain pricing power, offsetting the growth in volume driven by new customer acquisition and international sales.
Gross margin for the quarter was 67.5%, a slight decline from 67.8% in the same period last year, reflecting the impact of lower ASPs. Despite the margin compression, the company’s cost‑control program has reduced operating expenses, allowing the net loss to shrink by more than $1.8 million year over year. The company’s cash burn remains high, with a negative EBITDA of $36.2 million, underscoring the need for additional capital.
Management revised its full‑year 2025 revenue guidance to a minimum of 16% growth over 2024, down from the earlier 23–27% range. The company also provided preliminary 2026 guidance of at least 15% year‑over‑year growth, reflecting a more cautious outlook amid pricing pressure and a shift in product mix. The guidance downgrade signals management’s concern about near‑term demand dynamics while still expressing confidence in long‑term market opportunities.
The company completed a $13 million underwritten registered direct offering of common stock and pre‑funded warrants at a price of $1.11 per share. Proceeds will support sales and marketing, research and development, and working capital needs. In addition, TELA Bio closed a $70 million credit facility with Perceptive Advisors, drawing $60 million, which strengthens its liquidity position.
CEO Antony Koblish highlighted “continued growth and meaningful progress,” citing a strengthened leadership team and strategic changes to its commercial organization. CFO Roberto Cuca noted the company’s improved balance sheet, emphasizing the refinancing of its debt facility and the equity raise as key steps to sustain its growth trajectory.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.