TELA Bio (TELA)
NASDAQ:TELA
US Market
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TELA Bio (TELA) AI Stock Analysis

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TELA

TELA Bio

(NASDAQ:TELA)

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Underperform 39 (OpenAI - 4o)
Rating:39Underperform
Price Target:
$1.00
▲(0.00% Upside)
TELA Bio's overall stock score reflects significant financial and technical challenges. Despite revenue growth and reduced debt levels, the company faces ongoing profitability issues and bearish technical indicators. The valuation is constrained by negative earnings, and while the earnings call provided some positive future guidance, the current financial state remains a concern.
Positive Factors
Revenue Growth
Consistent revenue growth indicates successful market penetration and product adoption, supporting long-term business expansion.
Operational Efficiency
Improved operational efficiency enhances profitability potential, allowing more resources to be allocated to growth initiatives.
Financial Enhancements
Strengthened financial resources provide greater flexibility for strategic investments and support future growth plans.
Negative Factors
Profitability Challenges
Ongoing profitability issues can hinder long-term financial health, limiting reinvestment in innovation and market expansion.
Sales Force Turnover
High sales force turnover can disrupt customer relationships and sales momentum, impacting revenue growth and market position.
Ongoing Net Loss
Sustained net losses indicate challenges in achieving profitability, which can strain financial resources and investor confidence.

TELA Bio (TELA) vs. SPDR S&P 500 ETF (SPY)

TELA Bio Business Overview & Revenue Model

Company DescriptionTELA Bio, Inc., a commercial-stage medical technology company, focuses on providing soft-tissue reconstruction solutions that optimize clinical outcomes by prioritizing the preservation and restoration of the patient's anatomy. It provides a portfolio of OviTex Reinforced Tissue Matrix (OviTex) products for hernia repair and abdominal wall reconstruction; and OviTex PRS Reinforced Tissue Matrix products to address the unmet needs in plastic and reconstructive surgery, as well as OviTex for Laparoscopic and Robotic Procedures, a sterile reinforced tissue matrix derived from ovine rumen with polypropylene fiber intended to be used in laparoscopic and robotic-assisted hernia surgical repairs. The company markets its products through a single direct sales force, principally in the United States. TELA Bio, Inc. was incorporated in 2012 and is headquartered in Malvern, Pennsylvania.
How the Company Makes MoneyTELA 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 Earnings Call Summary

Earnings Call Date:Nov 13, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Mar 19, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments, such as revenue growth and operational efficiency improvements, alongside challenges including lower than expected Q3 results and ongoing net losses. The sentiment is balanced with strategic steps being taken to improve future performance.
Q3-2025 Updates
Positive Updates
Revenue Growth
TELA Bio reported revenue of $20.7 million for Q3 2025, representing 9% growth over the prior year, with contributions from both the U.S. and international markets.
Sales and Marketing Efficiency
Sales and marketing expenses improved as a percentage of revenue from 89.7% in Q1 to 73.6% in Q3, demonstrating increased operational efficiency.
OviTex and OviTex PRS Performance
Achieved a significant milestone of surpassing 100,000 implantations of OviTex and OviTex PRS combined globally.
LIQUIFIX Technology Growth
Marked best revenue quarter ever with LIQUIFIX, highlighted by 126% growth year-over-year with the user base.
Financial Enhancements
Refinanced and upsized debt facility from $40 million to $60 million and completed a $13 million equity offering, significantly bolstering financial resources.
Negative Updates
Lower Than Expected Q3 Results
Q3 results came in lower than expected, despite achieving a new global quarterly revenue record.
Sales Force Turnover and Hiring Challenges
Encountered turnover in the sales force which affected performance, although they have now reached the 2025 budgeted commercial headcount target.
Ongoing Net Loss
Recorded a net loss of $8.6 million in the third quarter compared to $10.4 million in the prior year period.
Company Guidance
During TELA Bio's Third Quarter 2025 Earnings Call, the company provided detailed guidance highlighting various metrics. TELA Bio reported a revenue of $20.7 million for Q3 2025, marking a 9% year-over-year growth. This increase was driven by a 6% growth in OviTex revenue and a 12% growth in OviTex PRS revenue. The company achieved a gross margin of 68% for both Q3 2025 and 2024, with a gross profit increase to $14 million from $12.9 million in the previous year. Operating expenses decreased to $21.5 million from $22.2 million, resulting in a reduced net loss of $8.6 million compared to $10.4 million in 2024. Sales and marketing expenses were trimmed to $15.2 million, reflecting improved operational efficiencies. For 2025, TELA Bio projects a revenue growth of at least 16% over 2024, with a preliminary expectation of 15% growth for 2026. The company also bolstered its financial position with a $26 million increase in net cash from a refinancing and equity offering, preparing for profitability in the near future.

TELA Bio Financial Statement Overview

Summary
TELA Bio shows revenue growth but struggles with profitability, indicated by negative net profit margins and cash flows. The reduction in debt levels is a positive sign, but negative returns on equity highlight ongoing financial challenges.
Income Statement
45
Neutral
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
40
Negative
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
38
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue75.32M69.30M58.45M41.42M29.46M18.21M
Gross Profit50.70M46.49M40.11M27.04M18.81M11.23M
EBITDA-34.73M-31.68M-40.63M-39.06M-29.14M-24.70M
Net Income-40.77M-37.84M-46.66M-44.30M-33.28M-28.79M
Balance Sheet
Total Assets67.54M86.57M78.05M67.86M62.54M86.46M
Cash, Cash Equivalents and Short-Term Investments34.98M52.67M46.73M42.02M43.93M74.39M
Total Debt41.90M41.67M41.08M40.26M31.49M30.83M
Total Liabilities58.35M58.11M59.17M53.55M42.45M37.43M
Stockholders Equity9.18M28.46M18.88M14.30M20.10M49.03M
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 Flow30.00K4.45M-599.00K-1.87M-627.00K9.12M
Financing Cash Flow42.89M43.06M46.27M40.85M585.00K44.41M

TELA Bio Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.00
Price Trends
50DMA
1.44
Negative
100DMA
1.64
Negative
200DMA
1.67
Negative
Market Momentum
MACD
-0.11
Positive
RSI
23.66
Positive
STOCH
12.25
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 is below the 20-day moving average (MA) of 1.30, below the 50-day MA of 1.44, and below the 200-day MA of 1.67, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 23.66 is Positive, neither overbought nor oversold. The STOCH value of 12.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TELA.

TELA Bio Risk Analysis

TELA Bio disclosed 74 risk factors in its most recent earnings report. TELA Bio reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

TELA Bio Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$70.96M-5.71%-13.79%-132.21%
53
Neutral
$36.14M-4.57-95.39%145.48%67.36%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
48
Neutral
$70.08M-1.20-73.73%15.59%4.13%
40
Underperform
$48.96M-2.58-230.80%-16.46%4.14%
39
Underperform
$51.11M-1.1512.24%47.45%
38
Underperform
$49.66M-4.34-96.15%-8.97%47.29%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TELA
TELA Bio
1.00
-1.88
-65.28%
CTSO
Cytosorbents
0.66
-0.27
-29.03%
SRTS
Sensus Healthcare
4.32
-4.09
-48.63%
NMTC
NeuroOne Medical Technologies
0.69
-0.01
-1.43%
LUNG
Pulmonx
1.49
-4.63
-75.65%
ICCM
Icecure Medical
0.71
0.12
20.34%

TELA Bio Corporate Events

Business Operations and StrategyPrivate Placements and Financing
TELA Bio Secures $70M Loan for Growth Initiatives
Positive
Nov 14, 2025

On November 13, 2025, TELA Bio, Inc. entered into a Credit Agreement with Perceptive Credit Holdings V, LP, for a senior secured term loan facility of up to $70 million, with an initial $60 million loan funded on November 14, 2025. This agreement, which includes warrants for common stock, aims to enhance the company’s financial flexibility and support its operational growth. Additionally, TELA Bio announced a registered direct offering of common stock and pre-funded warrants, expected to close on November 17, 2025, with net proceeds of approximately $11.9 million intended for general corporate purposes. This financial maneuvering is likely to impact the company’s market positioning by providing necessary capital for expansion and operational needs.

The most recent analyst rating on (TELA) stock is a Hold with a $1.25 price target. To see the full list of analyst forecasts on TELA Bio stock, see the TELA Stock Forecast page.

TELA Bio Reports Revenue Growth and Strategic Moves
Nov 14, 2025

TELA Bio, Inc. is a commercial-stage medical technology company specializing in innovative soft-tissue reconstruction solutions, aiming to optimize clinical outcomes by leveraging the patient’s natural healing response while minimizing exposure to synthetic materials.

Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresPrivate Placements and Financing
TELA Bio Reports Q3 Revenue Growth and New Credit Facility
Positive
Nov 13, 2025

On November 13, 2025, TELA Bio reported its third-quarter financial results, highlighting a 9% revenue increase to $20.7 million compared to the same period in 2024. The company also announced a strengthened capital position through a $70 million credit facility with Perceptive Advisors, expanded its board, and accelerated hiring in its U.S. sales organization. Despite a net loss of $8.6 million, the results reflect strategic changes and leadership enhancements that are expected to support future growth. TELA Bio revised its full-year 2025 revenue guidance to at least 16% growth over 2024, demonstrating confidence in its operational strategies and market positioning.

The most recent analyst rating on (TELA) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on TELA Bio stock, see the TELA Stock Forecast page.

Executive/Board Changes
TELA Bio Appoints William Plovanic to Board
Positive
Nov 3, 2025

On October 31, 2025, TELA Bio, Inc. expanded its Board of Directors from six to seven members by appointing William Plovanic as a Class I director, with his term set to expire at the 2026 Annual Meeting of Stockholders. Mr. Plovanic, with extensive experience in healthcare equity research and leadership roles in medical technology companies, is expected to bring valuable insights to TELA Bio. His appointment, accompanied by an initial equity award, aligns with the company’s non-employee director compensation policy, potentially enhancing TELA Bio’s strategic direction and governance.

The most recent analyst rating on (TELA) stock is a Sell with a $1.00 price target. To see the full list of analyst forecasts on TELA Bio stock, see the TELA Stock Forecast page.

Tela Bio’s OviTex PRS Study: A New Frontier in Breast Reconstruction
Oct 27, 2025

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
Oct 27, 2025

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
Oct 27, 2025

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
Oct 27, 2025

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.

Executive/Board Changes
TELA Bio Appoints Dr. Betty Jo Rocchio to Board
Neutral
Oct 9, 2025

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
Sep 1, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 15, 2025