TELA Bio Inc. Common Stock (TELA)

FairStock Score: 31/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I start with the business. TELA Bio sells OviTex soft-tissue reconstruction products, a real commercial-stage medical device effort with 218 employees. Revenue has grown from $58.5M in FY2023 to $69.3M in FY2024 to $80.3M in FY2025, which is the kind of top-line traction I like. But the bottom line is ugly: net income was -$46.7M in FY2023, -$37.8M in FY2024, and -$38.8M in FY2025. In the latest filed quarter, fiscal Q2 2026 ended 2026-06-30, revenue was $19.3M and net income was -$11.3M, worse than fiscal Q2 2025 ended 2025-06-30, when revenue was $20.2M and net income was -$9.9M. So growth has stalled and losses are wider. The balance sheet and cash flow do not give me comfort. Trailing free cash flow was -$31.6M, a FairStock-calculated FCF yield of -66.1% against the $47.8M market cap at the 2026-10-13 close. The FairStock-calculated Altman Z-Score is -8.95 and Piotroski F-Score is 3/9, both pointing to financial fragility. Debt-to-equity is 9.13, and ROE is -616.62% by FairStock's calculation. The Lynch category is none because the company has lost money in each of the last four years. Valuation is not supportable on earnings: the FairStock-calculated P/E is -1.38 and P/B is 6.46 at that close. A $1.07 stock in a $47.8M company may look small, but without profits, positive cash flow, or a clear moat, I see speculation, not margin of safety. I would wait for evidence of durable revenue growth and a credible path to profitability.

In plain English: TELA Bio makes soft-tissue repair products for hernia and reconstructive surgery. The business has grown annual revenue but still loses money each year and uses cash; in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $19.3M and net loss was $11.3M. At the 2026-10-13 close of $1.07, the price looks expensive relative to those current losses and cash use.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer