TELA Bio (TELA) AI Stock Analysis

• Market Cap: $44.98M
• Dividend Yield: N/A
• Average Volume (3M): 90.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.43
• Revenue Growth: 12.24%
• EPS Growth: 47.45%
• Country: US
• Employees: 209
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.19
• Shares Outstanding: 44,530,537
• 10 Day Avg. Volume: 68,447
• 30 Day Avg. Volume: 90,440
• PEG Ratio: 0.07
• Price to Book (P/B): 3.03
• Price to Sales (P/S): 1.24
• P/FCF Ratio: -2.02
• Enterprise Value/Market Cap: 2.11
• Enterprise Value/Revenue: 1.23
• Enterprise Value/Gross Profit: 1.83
• Enterprise Value/Ebitda: -2.87
• 1Y Price Target: $3.31
• Price Target Upside: 234.34% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $0.98 ▼(-1.01% Downside)

TELA Bio's overall stock score is primarily impacted by its weak financial performance, characterized by high leverage and ongoing losses. Technical analysis and valuation further weigh down the score due to bearish trends and a negative P/E ratio. Despite these challenges, the company is taking strategic steps to improve its financial position and operational efficiency, as highlighted in the earnings call and recent corporate events.

Positive Factors

Gross Margin Strength

A durable gross margin near 67% indicates TELA Bio’s implant products have substantial per-unit margin, reflecting efficient biologic manufacturing and pricing power. This margin cushion can absorb SG&A while scaling, supporting a sustainable path to operating leverage as revenues grow.

Product Adoption

Crossing 100k implantations signals durable clinical adoption and an installed-base of surgeon familiarity. That scale creates repeat-procedure demand, referenceability in hospitals, and a foundation for incremental sales of related products, supporting predictable procedure-driven revenue over time.

Improved Liquidity

The upsized facility and equity raise materially extend runway and financial flexibility, reducing near-term liquidity pressure. With additional capital, management can invest in sales expansion and R&D, making the firm less dependent on volatile capital markets while pursuing breakeven.

Negative Factors

High Leverage

Extremely high leverage and severely negative ROE are enduring structural risks: elevated fixed obligations increase solvency pressure, raise financing costs, and limit strategic options. This capital structure heightens refinancing and covenant risk during growth or downturns.

Persistent Operating Losses

Despite healthy gross margins, sustained wide operating and net losses show SG&A and other operating costs outpacing sales. Long-term viability requires substantial revenue scale or structural cost reduction; otherwise losses will continue to erode equity and hamper reinvestment.

Weak Cash Generation

Deteriorating free cash flow and poor conversion of earnings to cash are structural concerns: they force reliance on external financing to fund operations and debt service. Coupled with high leverage, weak cash generation raises long-term liquidity and execution risk for growth plans.

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 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 modest revenue growth but struggles with profitability and financial stability. High leverage and negative cash flow growth are significant risks, while efficient gross profit management is a positive aspect.

Income Statement

TELA Bio's income statement shows a modest revenue growth of 2.3% TTM, indicating some positive momentum. However, the company is struggling with profitability, as evidenced by negative net profit margins of -50.6% and EBIT margins of -34.7%. The gross profit margin is relatively healthy at 67.2%, suggesting efficient cost management at the gross level, but the high operating losses are a concern.

Balance Sheet

The balance sheet reveals significant leverage with a debt-to-equity ratio of 4.56, indicating high financial risk. The return on equity is deeply negative at -315.2%, reflecting substantial losses relative to shareholder equity. The equity ratio is low, suggesting limited financial stability and a heavy reliance on debt financing.

Cash Flow

Cash flow analysis shows negative free cash flow growth of -9.2% TTM, indicating deteriorating cash generation. The operating cash flow to net income ratio is negative, highlighting challenges in converting earnings into cash. However, the free cash flow to net income ratio is slightly positive at 1.02, suggesting some alignment between cash flow and reported earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	77.06M	69.30M	58.45M	41.42M	29.46M	18.21M
Gross Profit	51.81M	46.49M	40.11M	27.04M	18.81M	11.23M
EBITDA	-33.12M	-31.68M	-40.63M	-39.06M	-29.14M	-24.70M
Net Income	-39.00M	-37.84M	-46.66M	-44.30M	-33.28M	-28.79M
Balance Sheet
Total Assets	61.59M	87.33M	78.05M	67.86M	62.54M	86.46M
Cash, Cash Equivalents and Short-Term Investments	29.71M	52.67M	46.73M	42.02M	43.93M	74.39M
Total Debt	42.02M	43.06M	42.77M	41.46M	31.49M	30.83M
Total Liabilities	60.03M	58.87M	59.17M	53.55M	42.45M	37.43M
Stockholders Equity	1.56M	28.46M	18.88M	14.30M	20.10M	49.03M
Cash Flow
Free Cash Flow	-31.50M	-42.58M	-41.47M	-42.62M	-31.06M	-24.62M
Operating Cash Flow	-30.88M	-41.59M	-40.86M	-40.75M	-30.43M	-24.46M
Investing Cash Flow	464.00K	4.45M	-599.00K	-1.87M	-627.00K	9.12M
Financing Cash Flow	42.81M	43.06M	46.27M	40.85M	585.00K	44.41M

TELA Bio Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 0.99 is below the 20-day moving average (MA) of 1.11, below the 50-day MA of 1.13, and below the 200-day MA of 1.43, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 32.73 is Neutral, neither overbought nor oversold. The STOCH value of 14.82 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	65 Neutral	$81.80M	-26.85	-5.71%	―	-13.79%	-132.21%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
LUNG	51 Neutral	$82.49M	-1.30	-73.73%	―	15.59%	4.13%
NMTC	50 Neutral	$43.85M	-11.47	-91.34%	―	250.35%	83.06%
ICCM	45 Neutral	$46.62M	-2.67	-157.91%	―	-18.96%	8.98%
TELA	44 Neutral	$44.98M	-1.12	―	―	12.24%	47.45%
CTSO	44 Neutral	$45.09M	-3.63	-96.15%	―	-8.97%	47.29%

TELA Bio Corporate Events

TELA Bio Secures $70M Loan for Growth Initiatives

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 Q3 Revenue Growth and New Credit Facility

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.

TELA Bio Appoints William Plovanic to Board

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.