TELA Bio (TELA) AI Stock Analysis

• Market Cap: $68.93M
• Dividend Yield: N/A
• Average Volume (3M): 83.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: 16.34%
• EPS Growth: 34.86%
• Country: US
• Employees: 209
• Sector: Healthcare
• Sector Strength: 53
• Industry: Medical - Devices
• EPS (TTM): -0.22
• Shares Outstanding: 39,616,440
• 10 Day Avg. Volume: 129,863
• 30 Day Avg. Volume: 83,851
• 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: 1.38
• Enterprise Value/Revenue: 1.26
• Enterprise Value/Gross Profit: 1.87
• Enterprise Value/Ebitda: -2.73
• 1Y Price Target: $4.83
• Price Target Upside: 185.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 48 Neutral
• Price Target: $1.50 ▼(-11.24% Downside)

TELA Bio's overall score is driven by strong revenue growth and strategic initiatives highlighted in the earnings call. However, significant financial challenges, including negative profitability and cash flow issues, weigh heavily on the score. Technical indicators suggest bearish momentum, and valuation metrics reflect ongoing losses.

Positive Factors

Leadership and Management

The appointment of Jeff Blizard, who brings extensive leadership experience from Abiomed, is seen as a positive move for TELA's growth strategy.

Product Innovation

New products like inguinal hernia and Liquifix have been successful since their launch, providing TELA opportunities in high-volume procedures.

Negative Factors

Financial Performance

Despite controlling some costs, the operating loss was higher than anticipated, suggesting financial challenges.

Sales Challenges

The departure of 11 of 69 high-performing territory managers led to a significant drop in sales.

TELA Bio Business Overview & Revenue Model

Company Description

TELA Bio, Inc. is a medical technology company focused on the design, development, and commercialization of innovative tissue reinforcement materials. The company operates primarily in the healthcare sector, specializing in advanced surgical solutions. Its core products include the OviTex Reinforced Tissue Matrix, which is used in soft tissue reconstruction, and the OviTex PRS for plastic and reconstructive surgery. TELA Bio aims to improve patient outcomes through its proprietary technology that integrates biologic and synthetic materials.

How the Company Makes Money

TELA Bio generates revenue primarily through the sale of its proprietary surgical solutions, particularly the OviTex product line. The company sells these products directly to hospitals and surgical centers, as well as through distributors. TELA Bio's revenue model is based on the adoption and utilization of its products by surgeons performing hernia repair and plastic and reconstructive surgery. Significant partnerships with healthcare providers and positive clinical outcomes support the company's sales and market penetration. Additionally, TELA Bio may engage in research collaborations and licensing agreements that contribute to its revenue streams.

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: Neutral
• Last Price: 1.69
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TELA, the sentiment is Neutral. The current price of 1.69 is below the 20-day moving average (MA) of 1.76, below the 50-day MA of 1.84, and below the 200-day MA of 2.09, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 46.81 is Neutral, neither overbought nor oversold. The STOCH value of 41.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TELA.

TELA Bio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVNO	58 Neutral	$80.65M	―	-64.55%	―	―	15.60%
Sector *	51 Neutral	$7.77B	-0.12	-39.78%	2.21%	22.68%	-1.42%
ECOR	51 Neutral	$37.69M	―	-210.58%	―	30.16%	22.51%
TELA	48 Neutral	$68.93M	―	-676.41%	―	16.34%	34.86%
APYX	44 Neutral	$74.50M	―	-156.90%	―	-5.14%	44.86%

TELA Bio Corporate Events

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.

TELA Bio Announces Leadership Change with New President

On May 30, 2025, TELA Bio announced the resignation of Jeffrey Blizard from its Board of Directors, effective June 2, 2025, as he transitions to the role of President. This strategic leadership change is expected to enhance TELA Bio’s growth trajectory, with Blizard bringing extensive industry experience from his previous role at Abiomed, a Johnson & Johnson company. The appointment is seen as a significant step in strengthening the company’s executive team to drive commercial performance and value delivery to stakeholders.

TELA Bio Approves Key Proposals at Annual Meeting

On May 28, 2025, TELA Bio, Inc. held its Annual Meeting of Stockholders where several key proposals were approved. The stockholders voted to amend the 2019 Equity Incentive Plan by increasing the authorized shares by 3,500,000 and removing the ‘evergreen’ provision. Additionally, the election of Class III directors, the ratification of KPMG LLP as the independent public accountant, and the approval of executive compensation were confirmed. The amendment to the company’s Certificate of Incorporation to limit officer liability was also approved, reflecting strategic governance adjustments.