TELA Bio, Inc. (TELA) AI Stock Analysis

TELA Bio, Inc. is a Malvern, Pennsylvania-based medical technology company focused on soft-tissue reconstruction solutions designed to preserve and restore anatomical integrity. Its core portfolio includes OviTex Reinforced Tissue Matrix products, which combine ovine rumen and polypropylene fiber for hernia repair and abdominal wall reconstruction. The company also offers OviTex PRS Reinforced Tissue Matrix for plastic and reconstructive surgery, alongside OviTex designs optimized for laparoscopic and robotic procedures. TELA Bio commercializes its products primarily across the United States through a dedicated direct sales force.

Between FY2021 and FY2025, TELA Bio expanded annual revenue from $29.5M to $80.3M, reflecting a 5-year revenue CAGR of 34.5%. Annual gross margin improved from 63.9% in FY2021 to 67.7% in FY2025. However, the company has operated at continuous operating losses, posting an operating margin of -42.0% and a net loss of -$38.8M in FY2025. In the trailing twelve months, revenue reached $79.9M with an operating margin of -48.1% and a net margin of -51.5%. For the latest quarter ended June 30, 2026, quarterly revenue fell 4.5% year-over-year, while trailing twelve-month diluted EPS was -$0.77.

As of June 30, 2026, TELA Bio held $30.4M in cash and short-term investments against total debt of $56.6M, resulting in net debt of $26.2M. The company carries negative shareholders' equity of -$15.9M, though its current ratio is 2.99. Operating cash flow in FY2025 was -$28.2M, and free cash flow was -$28.7M after capital expenditures of $448,000. Dilution has been significant, with the 5-year share count increasing by 295.7%, while FY2025 share issuance generated $105,000.

Trading at $0.97 as of October 16, 2026, TELA Bio has an enterprise value of $84.9M and a market capitalization of $44.0M. The stock trades at a price-to-sales multiple of 0.6x and an EV-to-revenue multiple of 1.1x, both below the median of its US-listed Healthcare peers, which trade at a price-to-sales ratio of 4.1x. Its price-to-book multiple is 7.3x. Over the past year, TELA shares fell 35.0%, trailing the S&P 500 return of 16.8%. Over five years, the stock dropped 92.3% compared to an 83.0% gain for the index.

Wall Street coverage consists of 4 Strong Buy, 1 Buy, and 1 Hold rating, with no Sell or Strong Sell recommendations. The mean price target is $1.90, representing a 94.9% upside compared to the last close of $0.97. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $79.5M and an EPS of -$0.70. For the following fiscal year, 5 analysts expect revenue to reach $86.3M and EPS of -$0.45. The company beat EPS estimates in 2 of the last 4 quarters, with next earnings scheduled for November 12, 2026.

This page is an AI-written research summary of TELA Bio, Inc. (TELA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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