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: 339.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 45 Neutral
• Price Target: $1.50 ▲(1.35% Upside)

TELA Bio's overall stock score is primarily impacted by its financial performance challenges, including negative profitability and cash flow issues. Technical indicators suggest a bearish trend, and valuation metrics are unattractive due to ongoing losses. The earnings call provided some positive insights into revenue growth, but these are overshadowed by the company's financial struggles.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market penetration and product adoption, enhancing TELA Bio's competitive position in the medical devices sector.

Product Portfolio Expansion

Significant growth in the OviTex IHR product line suggests successful product diversification and increased demand, supporting long-term revenue sustainability.

Leadership Change

Strategic leadership change with an experienced industry professional is expected to strengthen commercial execution and drive future growth.

Negative Factors

Profitability Challenges

Ongoing profitability issues highlight challenges in cost management, which could impact long-term financial health and investment capacity.

Negative Cash Flow

Negative cash flow from operations suggests difficulties in generating sufficient cash internally, potentially limiting growth and operational flexibility.

Sales and Marketing Expenses

Rising sales and marketing expenses could pressure margins and profitability, requiring careful management to ensure sustainable 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: 1.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.48 is below the 20-day moving average (MA) of 1.50, below the 50-day MA of 1.59, and below the 200-day MA of 1.79, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 44.40 is Neutral, neither overbought nor oversold. The STOCH value of 30.30 is Neutral, 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	61 Neutral	$54.91M	―	-1.62%	―	3.30%	-112.70%
NMTC	53 Neutral	$41.25M	―	-95.39%	―	145.48%	67.36%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TELA	45 Neutral	$60.61M	―	-676.41%	―	16.34%	34.86%
CTSO	43 Neutral	$53.36M	-4.66	-68.84%	―	-7.81%	65.39%
LUNG	43 Neutral	$66.82M	-1.15	-66.88%	―	18.24%	4.81%
ICCM	40 Underperform	$55.27M	―	-230.80%	―	-16.46%	4.14%

TELA Bio Corporate Events

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.