TELA Bio (TELA) AI Stock Analysis

• Market Cap: $60.61M
• Dividend Yield: N/A
• Average Volume (3M): 90.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: 16.34%
• EPS Growth: 34.86%
• Country: US
• Employees: 209
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.22
• Shares Outstanding: 39,616,440
• 10 Day Avg. Volume: 68,447
• 30 Day Avg. Volume: 90,440
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: 1.26
• Enterprise Value/Gross Profit: 1.87
• Enterprise Value/Ebitda: -2.73
• 1Y Price Target: $6.50
• Price Target Upside: 400.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 39 Underperform
• Price Target: $1.00 ▼(-23.08% Downside)

TELA Bio's overall stock score is primarily impacted by its financial performance and technical analysis. Despite revenue growth, the company faces significant profitability challenges, reflected in its negative P/E ratio and cash flow issues. The technical indicators suggest a bearish trend, further weighing down the score. The earnings call highlighted positive revenue growth, but this was not enough to offset the financial and technical challenges.

Positive Factors

Revenue Growth

TELA Bio's consistent revenue growth, with a 26% YoY increase, indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Product Portfolio Expansion

The significant sales growth in the OviTex PRS portfolio suggests successful product adoption and potential for further market penetration, enhancing competitive positioning.

European Market Expansion

Successful expansion in Europe with 25% sales growth reflects TELA Bio's ability to capture international markets, diversifying revenue streams and reducing geographic risk.

Negative Factors

Profitability Challenges

Despite revenue growth, ongoing net losses highlight challenges in achieving profitability, which may impact long-term financial sustainability and investor confidence.

Negative Cash Flow

Negative operating cash flow indicates cash outflows from operations, posing risks to liquidity and limiting the company's ability to invest in growth opportunities.

High Sales and Marketing Expenses

Slightly increasing sales and marketing expenses may pressure margins and profitability, requiring efficient cost management to sustain long-term growth.

TELA Bio Business Overview & Revenue Model

Company Description

TELA Bio, Inc. is a medical technology company focused on providing innovative solutions for soft tissue reconstruction. The company operates primarily in the surgical and medical device sectors, specializing in bio-integrative implants designed for hernia repair and other soft tissue applications. TELA's core products include a range of surgical meshes that are engineered to promote healing and reduce complications associated with traditional materials.

How the Company Makes Money

TELA Bio generates revenue primarily through the sale of its surgical mesh products and related medical devices to hospitals, surgical centers, and healthcare providers. The company's revenue model is based on direct sales and distribution agreements, which enable them to reach a broad customer base. TELA may also generate income through partnerships with healthcare organizations and participation in clinical studies that validate the effectiveness of its products, potentially leading to expanded market adoption. Additionally, reimbursement strategies and agreements with payers can significantly influence the company’s revenue, as they ensure that healthcare providers are compensated for using TELA's innovative solutions.

TELA Bio Financial Statement Overview

Summary

TELA Bio shows revenue growth but struggles with profitability, as indicated by negative net profit and EBIT margins. The balance sheet reflects improved debt levels, but negative cash flows and returns on equity highlight ongoing financial challenges.

Income Statement

TELA Bio's income statement shows a consistent revenue growth trend, with a 5.77% increase in the TTM period. However, the company is struggling with profitability, as indicated by negative net profit and EBIT margins. The gross profit margin is relatively healthy at 67.3%, but the negative net profit margin of -54.1% highlights ongoing challenges in managing costs and achieving profitability.

Balance Sheet

The balance sheet reflects a significant reduction in debt levels, with a debt-to-equity ratio improving from 2.79 in 2022 to 0.36 in the TTM period. However, the company still faces challenges with negative return on equity (-329.5%), indicating inefficiencies in generating returns from shareholders' equity. The equity ratio stands at 13.6%, suggesting a moderate reliance on equity financing.

Cash Flow

Cash flow analysis reveals a negative operating cash flow, indicating cash outflows from operations. The free cash flow growth rate is negative, reflecting ongoing cash management challenges. Despite these issues, the free cash flow to net income ratio is slightly above 1, suggesting that the company is managing to convert its net income into free cash flow, albeit with negative figures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	75.32M	69.30M	58.45M	41.42M	29.46M	18.21M
Gross Profit	50.70M	46.49M	40.11M	27.04M	18.81M	11.23M
EBITDA	-34.73M	-31.68M	-40.63M	-39.06M	-29.14M	-24.70M
Net Income	-40.77M	-37.84M	-46.66M	-44.34M	-33.28M	-28.79M
Balance Sheet
Total Assets	67.54M	86.57M	78.05M	67.86M	62.54M	86.46M
Cash, Cash Equivalents and Short-Term Investments	34.98M	52.67M	46.73M	42.02M	43.93M	74.39M
Total Debt	41.90M	41.67M	41.08M	40.26M	31.49M	30.83M
Total Liabilities	58.35M	58.11M	59.17M	53.55M	42.45M	37.43M
Stockholders Equity	9.18M	28.46M	18.88M	14.30M	20.10M	49.03M
Cash Flow
Free Cash Flow	-34.68M	-42.58M	-41.47M	-42.62M	-31.06M	-24.62M
Operating Cash Flow	-34.14M	-41.59M	-40.86M	-40.75M	-30.43M	-24.46M
Investing Cash Flow	30.00K	4.45M	-599.00K	-1.87M	-627.00K	9.12M
Financing Cash Flow	42.89M	43.06M	46.27M	40.85M	585.00K	44.41M

TELA Bio Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TELA, the sentiment is Negative. The current price of 1.3 is below the 20-day moving average (MA) of 1.46, below the 50-day MA of 1.55, and below the 200-day MA of 1.75, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 25.42 is Positive, neither overbought nor oversold. The STOCH value of 19.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TELA.

TELA Bio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRTS	―	$52.44M	―	-1.62%	―	3.30%	-112.70%
NMTC	―	$39.60M	-5.01	-95.39%	―	145.48%	67.36%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
LUNG	―	$66.82M	-1.15	-66.88%	―	18.24%	4.81%
CTSO	―	$49.90M	-4.36	-68.84%	―	-7.81%	65.39%
ICCM	―	$48.77M	―	-230.80%	―	-16.46%	4.14%
TELA	―	$60.61M	―	-676.41%	―	16.34%	34.86%

TELA Bio Corporate Events

Tela Bio’s OviTex PRS Study: A New Frontier in Breast Reconstruction

Study Overview: Tela Bio, Inc. is conducting a study titled Research on the Effectiveness and Safety of Treatment With OviTex® PRS – a Breast Reconstruction Evaluation. The primary goal of this study is to assess the safety and effectiveness of the OviTex PRS device in patients undergoing implant-based breast reconstruction. This research is significant as it aims to provide insights into a potentially improved method for breast reconstruction, which could enhance patient outcomes and satisfaction.

Tela Bio’s OviTex Study: A Potential Game-Changer in Hernia Repair

Study Overview: Tela Bio, Inc. is conducting a clinical study titled A Prospective Study Evaluating the Clinical Outcomes of Ventral or Inguinal Hernias Treated Robotically With OviTex® Reinforced Tissue Matrix. The study aims to assess post-operative complications and hernia recurrence in patients treated with OviTex, involving up to 160 participants across 20 sites. This research is significant as it seeks to improve surgical outcomes for hernia patients.

Tela Bio’s OviTex Study: A Potential Game-Changer for Hiatal Hernia Treatment

Study Overview: Tela Bio, Inc. is conducting a study titled A Prospective Study Evaluating Clinical Hiatal Hernia Outcomes Using OviTex® Reinforced Tissue Matrix. The study aims to assess the recurrence rate of hiatal hernias and post-operative complications when using OviTex Core Resorbable or OviTex 1S Resorbable. This research is significant as it seeks to improve surgical outcomes for patients with hiatal hernias, a common condition that can lead to severe complications if not effectively managed.

Tela Bio’s OviTex PRS Study: A Potential Game-Changer in Breast Reconstruction

Study Overview: Tela Bio, Inc. is conducting a study titled ‘A Retrospective Assessment of OviTex PRS (OviTex) Permanent and Resorbable Devices in Subjects Who Have Previously Undergone a Breast Reconstruction.’ The study aims to evaluate the safety profile of OviTex PRS devices used in breast reconstruction surgeries, focusing on both permanent and resorbable device types. This research is significant as it seeks to provide insights into the safety and effectiveness of these devices, potentially influencing surgical practices and patient outcomes.

TELA Bio Appoints Dr. Betty Jo Rocchio to Board

On October 4, 2025, TELA Bio, Inc. announced the resignation of Lisa Colleran from its Board of Directors, where she also served on the Nominating and Corporate Governance Committee and the Audit Committee. Her resignation was not due to any disagreements with the company’s operations or policies. Subsequently, on October 7, 2025, the company appointed Dr. Betty Jo Rocchio to the Board, effective October 9, 2025. Dr. Rocchio, who has an extensive background in nursing leadership, will serve as a Class I director until the 2026 Annual Meeting of Stockholders. Her appointment is aligned with TELA Bio’s non-employee director compensation policy, which includes an initial equity award and an annual base retainer.

The most recent analyst rating on (TELA) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on TELA Bio stock, see the TELA Stock Forecast page.

TELA Bio’s Earnings Call Highlights Robust Growth

In the recent earnings call, TELA Bio, Inc. showcased a positive sentiment overall, driven by significant revenue growth in its OviTex and LIQUIFIX portfolios and successful expansion in the European market. Despite facing challenges such as net loss and a slight increase in sales and marketing expenses, the company’s achievements in revenue and market expansion were prominent highlights.

TELA Bio Reports Strong Q2 2025 Growth

TELA Bio, Inc. is a commercial-stage medical technology company dedicated to providing innovative soft-tissue reconstruction solutions, focusing on optimizing clinical outcomes while minimizing the use of permanent synthetic materials.

TELA Bio Reports Strong Q2 2025 Financial Results

On August 11, 2025, TELA Bio reported its financial results for the second quarter of 2025, highlighting a revenue of $20.2 million, marking a 26% increase from the previous year. The company experienced increased demand for its OviTex and OviTex PRS products and launched OviTex Inguinal in Europe. Despite a net loss of $9.9 million, TELA Bio reiterated its full-year revenue guidance, reflecting confidence in its growth trajectory. The appointment of Jeffrey Blizard as President is expected to strengthen the company’s commercial leadership and drive sales execution.

The most recent analyst rating on (TELA) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on TELA Bio stock, see the TELA Stock Forecast page.