TELA Bio (NASDAQ:TELA) Announces Earnings Results

TELA Bio (NASDAQ:TELA) issued its quarterly earnings results on Tuesday. The company reported ($0.13) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.16) by $0.03, FiscalAI reports. TELA Bio had a negative return on equity of 1,320.81% and a negative net margin of 51.53%. The firm had revenue of $18.96 million during the quarter, compared to the consensus estimate of $20.00 million.

Here are the key takeaways from TELA Bio’s conference call:

• Third-quarter revenue fell 8% year over year to $19 million, mainly because of a $2 million decline in OviTex PRS; U.S. hernia revenue was slightly lower year over year.
• OviTex PRS revenue declined 20% year over year and 6% sequentially. Management attributed the weakness to sales-team changes and the loss of several surgeon accounts, and said rebuilding adoption will take time.
• Commercial results showed some improvement: U.S. hernia volume grew both year over year and sequentially, LIQUIFIX posted a quarterly sales record, and European revenue increased 18% year over year. Management expects sequential growth in Q4 and says it expects growth to continue into 2027, while acknowledging the recovery path is still being assessed.
• The company says its cost reductions are substantially complete, representing $17 million in annualized savings. Adjusted EBITDA loss improved 40% year over year to $3.4 million, and management expects 2027 expenses of roughly $76 million to $78 million.
• TELA Bio ended the quarter with $22.7 million in cash, and its lender suspended minimum-revenue covenant testing for two quarters. The waiver applies only to that covenant; the company said it continues to manage its other obligations.

TELA Bio Price Performance

Shares of TELA stock traded down $0.06 on Tuesday, reaching $0.80. 122,557 shares of the company were exchanged, compared to its average volume of 180,263. The company has a market cap of $36.11 million, a price-to-earnings ratio of -1.04 and a beta of 1.46. The company has a 50-day moving average of $1.03 and a 200-day moving average of $0.85. TELA Bio has a one year low of $0.50 and a one year high of $1.50.

Analyst Ratings Changes

A number of equities research analysts have weighed in on TELA shares. Weiss Ratings upgraded TELA Bio from a “sell (e+)” rating to a “sell (d-)” rating in a report on Monday, October 26th. Craig Hallum initiated coverage on TELA Bio in a research note on Friday, September 25th. They issued a “buy” rating and a $2.00 price target on the stock. Wall Street Zen upgraded TELA Bio to a “sell” rating in a report on Saturday, October 31st. Finally, UBS Group set a $2.00 price target on TELA Bio in a report on Friday, September 25th. Four research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $2.14.

Insider Activity at TELA Bio

In other news, Director Joseph Capper bought 25,000 shares of the firm’s stock in a transaction that occurred on Thursday, September 17th. The stock was acquired at an average cost of $1.22 per share, with a total value of $30,500.00. Following the transaction, the director directly owned 179,827 shares of the company’s stock, valued at approximately $219,388.94. This represents a 16.15% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In the last three months, insiders bought 115,000 shares of company stock valued at $119,500. Company insiders own 1.10% of the company’s stock.

TELA Bio Company Profile

TELA Bio, Inc. is a medical technology company that develops and commercializes advanced tissue-reinforcement products for soft-tissue repair and reconstruction. The company’s products are designed to support the repair of damaged or weakened tissue while preserving a more natural tissue response. TELA Bio’s principal product platform is OviTex Reinforced Tissue Matrix, which combines biologic tissue with polymer reinforcement in a proprietary, textile-like design. OviTex products are used in procedures involving hernia and abdominal wall repair, as well as other soft-tissue reconstruction applications.