TELA Bio (TELA) AI Stock Analysis

• Market Cap: $64.18M
• Dividend Yield: N/A
• Average Volume (3M): 93.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: 16.34%
• EPS Growth: 34.86%
• Country: US
• Employees: 209
• Sector: Healthcare
• Sector Strength: 51
• Industry: Medical - Devices
• EPS (TTM): -0.22
• Shares Outstanding: 39,616,440
• 10 Day Avg. Volume: 77,175
• 30 Day Avg. Volume: 93,653
• 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: 1.48
• Enterprise Value/Revenue: 1.26
• Enterprise Value/Gross Profit: 1.87
• Enterprise Value/Ebitda: -2.73
• 1Y Price Target: $6.50
• Price Target Upside: 311.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 49 Neutral
• Price Target: $1.50 ▼(-5.06% Downside)

TELA Bio's overall score reflects its revenue growth and strategic initiatives, but ongoing profitability challenges and negative valuation metrics weigh heavily. The earnings call provided positive guidance, but financial performance remains a critical area for improvement.

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., 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 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: Negative
• Last Price: 1.58
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 1.58 is below the 20-day moving average (MA) of 1.69, below the 50-day MA of 1.81, and below the 200-day MA of 1.99, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 41.83 is Neutral, neither overbought nor oversold. The STOCH value of 21.57 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
ICAD	60 Neutral		―		―	-4.15%	3.49%
NVNO	58 Neutral	$15.13M	―	-64.55%	―	―	15.60%
Sector *	51 Neutral	$8.02B	-0.31	-43.38%	2.24%	22.31%	-2.14%
ECOR	51 Neutral	$38.07M	―	-210.58%	―	30.16%	22.51%
TELA	49 Neutral	$64.18M	―	-676.41%	―	16.34%	34.86%
APYX	47 Neutral	$75.64M	―	-156.90%	―	-5.14%	44.86%
MODD	―	$38.70M	―	-215.41%	―	―	―

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.