TELA Bio (TELA)
NASDAQ:TELA
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TELA Bio
(NASDAQ:TELA)
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Rating:44Neutral
Price Target:
$0.58
▼(-21.08% Downside)
Action:ReiteratedDate:03/27/26
The score is held down primarily by weak financial quality (continued losses, negative free cash flow, and elevated leverage) and bearish technicals. More constructive earnings-call commentary and revenue/gross-margin progress provide some support, but conservative 2026 guidance plus Nasdaq listing risk keep the overall profile tilted toward higher risk.
Positive Factors
Revenue and Unit Growth
TELA has delivered consistent top-line expansion (16% FY2025 growth and record Q4), reflecting rising surgeon adoption and broader account penetration. Sustained revenue and unit gains expand the addressable base and provide a multi-quarter runway for operating leverage as salesforce productivity annualizes.
Negative Factors
Elevated Leverage
Material balance-sheet deterioration and an ~8.8x debt-to-equity ratio sharply reduce financial flexibility. High leverage raises refinancing and covenant risk, limits the firm's ability to invest opportunistically, and magnifies downside from operational shortfalls over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Unit Growth
TELA has delivered consistent top-line expansion (16% FY2025 growth and record Q4), reflecting rising surgeon adoption and broader account penetration. Sustained revenue and unit gains expand the addressable base and provide a multi-quarter runway for operating leverage as salesforce productivity annualizes.
Read all positive factors
TELA Bio (TELA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.07M
Dividend YieldN/A
Average Volume (3M)90.44K
Price to Earnings (P/E)―
Beta (1Y)0.28
Revenue Growth12.24%
EPS Growth47.45%
CountryUS
Employees209
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.17
Shares Outstanding44,740,370
10 Day Avg. Volume68,447
30 Day Avg. Volume90,440
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)8.78
Price to Sales (P/S)0.69
P/FCF Ratio-1.93
Enterprise Value/Market Cap1.27
Enterprise Value/Revenue0.40
Enterprise Value/Gross Profit0.58
Enterprise Value/Ebitda-0.99
Forecast
1Y Price Target
$2.00Price Target Upside170.27% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.57
Revenue Forecast (FY)$92.66M
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 portf...
How the Company Makes Money
TELA primarily makes money by selling its surgical implant products to healthcare providers (e.g., hospitals and ambulatory surgery centers) for use in procedures such as ventral/incisional hernia repair and other abdominal wall reconstructions. R...
TELA Bio Earnings Call Summary
Earnings Call Date:Mar 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call described meaningful operational and commercial progress—16% full-year revenue growth, strong unit gains, margin improvement, European traction, product launches, and a rebuilt sales organization—while candidly acknowledging near-term execution risks: a large cohort of new reps ramping, contract execution delays, product-mix pressure on ASPs, and a more conservative 2026 guide (at least 8%). The tone is constructive and forward-looking with prudence in guidance; fundamentals improved but short-term variability is expected as the commercial changes annualize.Positive Updates
Full-Year and Q4 Revenue Growth
Revenue grew 16% for full year 2025 to $80.3M and Q4 revenue increased 18% year-over-year to $20.9M, with the company reporting a record fourth quarter.
Negative Updates
Downshifted 2026 Guidance and Q1 Softness
2026 revenue guidance lowered to at least 8% growth over 2025 (below prior ~15% directional commentary); Q1 2026 revenue guidance ~ $18.5M, reflecting a softer start and back-half weighted expectation.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year and Q4 Revenue Growth
Revenue grew 16% for full year 2025 to $80.3M and Q4 revenue increased 18% year-over-year to $20.9M, with the company reporting a record fourth quarter.
Read all positive updates
Company Guidance
Management guided 2026 revenue growth of at least 8% versus 2025 (2025 revenue $80.3M; Q4 2025 $20.9M) and forecast Q1 2026 revenue of ~$18.5M, noting operating and net losses should decline year‑over‑year and across quarters (but with a likely step‑up from Q4→Q1); the guide is more conservative than the prior ~15% directional outlook. The plan assumes a commercial ramp from a ~90‑person salesforce (88 quota‑carrying U.S. territory managers today, +1 imminent, 5 open), ~40% of reps hired in the last six months, ~35% tenured reps averaging >$1M/year, and a territory‑manager breakeven/ramp of about 6–9 months (breakout 6–9 months) with back‑half weighted growth as hires annualize. They cited cadence expectations of Q1→Q2 step‑up, smaller Q2→Q3 (summer) lift, and larger Q3→Q4 acceleration, and highlighted revenue drivers including European sales (15% of 2025 revenue, $12.1M, +17% YoY), OviTex revenue +12% in 2025 (OviTex units +22% YoY), PRS revenue +20% in 2025 (PRS units +12% YoY), LiquiFix >3x 2024, and ending cash of $50.8M.TELA Bio Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
18
Very Negative
Cash Flow
16
Very Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 80.28M | 69.30M | 58.45M | 41.42M | 29.46M |
| Gross Profit | 54.34M | 46.49M | 40.11M | 27.04M | 18.81M |
| EBITDA | -33.76M | -31.68M | -40.63M | -39.06M | -29.14M |
| Net Income | -38.83M | -37.84M | -46.66M | -44.30M | -33.28M |
Balance Sheet | |||||
| Total Assets | 81.42M | 87.33M | 78.05M | 67.86M | 62.54M |
| Cash, Cash Equivalents and Short-Term Investments | 50.84M | 52.67M | 46.73M | 42.02M | 43.93M |
| Total Debt | 55.65M | 43.06M | 42.77M | 41.46M | 31.49M |
| Total Liabilities | 75.11M | 58.87M | 59.17M | 53.55M | 42.45M |
| Stockholders Equity | 6.31M | 28.46M | 18.88M | 14.30M | 20.10M |
Cash Flow | |||||
| Free Cash Flow | -28.67M | -42.58M | -41.47M | -42.62M | -31.06M |
| Operating Cash Flow | -28.22M | -41.59M | -40.86M | -40.75M | -30.43M |
| Investing Cash Flow | 846.00K | 4.45M | -599.00K | -1.87M | -627.00K |
| Financing Cash Flow | 25.75M | 43.06M | 46.27M | 40.85M | 585.00K |
TELA Bio Technical Analysis
Negative
0.74
Price Trends
0.76
Negative
0.93
Negative
1.28
Negative
Market Momentum
-0.06
Positive
42.33
Neutral
26.18
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 0.74 is above the 20-day moving average (MA) of 0.67, below the 50-day MA of 0.76, and below the 200-day MA of 1.28, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 42.33 is Neutral, neither overbought nor oversold. The STOCH value of 26.18 is Neutral, 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 2 New Risks
1.
Item Q3, 2024
TELA Bio Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
52 Neutral | $72.93M | -5.13 | -15.11% | ― | -13.79% | -132.21% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | $38.06M | -6.63 | -91.34% | ― | 250.35% | 83.06% | |
46 Neutral | $23.18M | -2.62 | -221.04% | ― | -18.96% | 8.98% | |
45 Neutral | $60.82M | -1.67 | -82.79% | ― | 15.59% | 4.13% | |
44 Neutral | $25.07M | -1.43 | -441.55% | ― | 12.24% | 47.45% | |
44 Neutral | $36.69M | -4.85 | -91.54% | ― | -8.97% | 47.29% |
* Healthcare Sector Average
TELA
TELA Bio
0.60
-0.36
-37.29%
CTSO
Cytosorbents
0.59
-0.43
-42.25%
SRTS
Sensus Healthcare
4.49
-0.23
-4.87%
NMTC
NeuroOne Medical Technologies
0.73
0.17
29.43%
LUNG
Pulmonx
1.42
-3.37
-70.35%
ICCM
Icecure Medical
0.35
-0.77
-68.39%
TELA Bio Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresPrivate Placements and Financing
TELA Bio Posts Record 2025 Revenue, Sets 2026 Outlook
Positive
Mar 24, 2026
On March 24, 2026, TELA Bio reported that fourth-quarter 2025 revenue rose 18% year over year to a record $20.9 million and full-year 2025 revenue grew 16% to $80.3 million, driven by new customers, the U.S. launch of a larger OviTex PRS configura...
Delistings and Listing ChangesRegulatory Filings and Compliance
TELA Bio Receives Nasdaq Deficiency Notice on Listing
Negative
Mar 20, 2026
On March 17, 2026, TELA Bio disclosed that it had received a Nasdaq deficiency notice after its shares closed below the $1.00 minimum bid price for 30 consecutive business days, jeopardizing its compliance with Nasdaq Global Market listing rules. ...
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.