TELA Bio 2025 Q2 Earnings Net Loss Narrows Amid Revenue Growth

TELA Bio (TELA) reported its fiscal 2025 Q2 earnings on August 11, 2025. The company posted a record-breaking quarter with revenue exceeding $20 million, driven by strong global sales and new market access.

TELA Bio’s Q2 2025 revenue came in at $20.20 million, representing a 25.5% year-over-year increase from $16.09 million in Q2 2024. OviTex, the company’s core product line, accounted for the majority of the revenue, generating $12.49 million, while OviTex PRS contributed $7.33 million. Other segments added $377,000 to the total. The OviTex product family saw robust performance across the U.S. and Europe, with OviTex PRS selling 16,000 units in the U.S. alone.

The company’s net loss narrowed significantly in Q2 2025 to $9.92 million, a reduction of 21.2% compared to $12.60 million in the same period of 2024. On a per-share basis, the loss decreased to $0.22 from $0.51, marking a 56.9% improvement. Despite this progress, TELA Bio has reported losses for seven consecutive years in this fiscal quarter, underscoring ongoing financial challenges.

Post-earnings trading activity showed mixed performance. TELA Bio’s stock rose 8.14% during the latest trading day, gained 0.54% for the week, but declined 10.14% month-to-date. A backtest of the strategy to buy TELA shares 30 days after the earnings release following three years of sequential revenue growth yielded poor results, with a -71.41% total return and a -128.95% excess return. The strategy exhibited a -37.61% compound annual growth rate and a Sharpe ratio of -0.56, indicating a high-risk profile with significant drawdowns.

CEO Antony Koblish highlighted Q2 2025 as a pivotal period, driven by strong unit sales and strategic expansions, including three new GPO contracts for LIQUIFIX, which fueled 121% year-over-year growth. The company’s European market grew 25% year-over-year, supported by the NHS framework agreement. OviTex IHR achieved 322% revenue growth compared to Q2 2024. Koblish also noted the addition of Jeff Blizzard as President, whose MedTech experience will bolster commercial and international strategies.

TELA Bio reiterated its full-year 2025 revenue guidance of $85 million to $88 million, representing 23% to 27% growth over 2024. The company expects stronger performance in the second half of the year, driven by Q4’s natural acceleration due to consumer spending and physician productivity. Operating expenses are projected to remain relatively flat, with continued optimization of the sales force and territory management expected to drive sustainable growth.

Additional News
In related business developments, TELA Bio has not announced any M&A activity or significant changes at the C-level in the three weeks following the earnings release. The company also has not declared any dividend or buyback initiatives. Notable news includes the expansion of the European market through the NHS framework agreement, which has contributed to a 25% year-over-year growth in that region. Additionally, the company’s LIQUIFIX product secured three major GPO contracts, further expanding its access and market penetration. TELA Bio continues to focus on clinical advancements and publications to reinforce the efficacy of its OviTex product line, aligning with its patient-centric mission.