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TELA Bio, Inc. (TELA) Fundamental Analysis & AI Grade 2026

TELA Nasdaq Surgical & Medical Instruments & Apparatus DE CIK: 0001561921
Updated This Month • Analysis: May 14, 2026 • SEC Data: 2026-03-31
Combined AI Grade
D
87% Confidence
N/A
D
87% Conf
Pending
Analysis scheduled

📊 TELA Key Takeaways

Revenue: $19.1M
Net Margin: -64.4%
Free Cash Flow: $-11.3M
Current Ratio: 3.61x
Debt/Equity: N/A
EPS: $-0.21
AI Grade: D with 87% confidence
TELA Bio, Inc. (TELA) receives a D fundamental grade with 87% confidence from our AI analysis based on SEC 10-K filings. With revenue of $19.1M, net profit margin of -64.4%, TELA Bio, Inc. demonstrates mixed fundamentals in the Healthcare sector. Below is our complete TELA stock analysis for 2026.

Is TELA Bio, Inc. (TELA) a Good Investment?

Claude

TELA Bio exhibits a critical solvency crisis with negative shareholders' equity (-5.2M) and insufficient operating cash flows (-11.2M annually) to service 55.9M in debt, creating severe financial distress risk. While strong gross margins (65.7%) and revenue growth (+15.8% YoY) indicate product viability, the company faces insolvency within 3-4 years at current burn rates unless achieving rapid profitability or securing dilutive capital.

TELA Bio, Inc. Key Strengths (TELA)

Claude
  • + Strong gross margin of 65.7% demonstrates product pricing power and operational efficiency in manufacturing
  • + Revenue growth of 15.8% YoY shows market traction and demand for surgical products
  • + Cash position of 39.5M provides near-term operational runway versus current burn rate

TELA Stock Risks: TELA Bio, Inc. Investment Risks

Claude
  • ! Negative shareholders' equity of -5.2M indicates technical insolvency; liabilities exceed assets
  • ! Operating cash burn of -11.2M annually is unsustainable with only 3.5 year runway at current rate
  • ! Debt service impossible from operations (negative interest coverage -7.9x); refinancing risk is acute

Key Metrics to Watch

Claude
  • * Operating income trajectory and path to breakeven; critical to assess narrowing of -55.2% operating margin
  • * Operating cash flow improvement; company must achieve positive OCF to avoid forced restructuring
  • * Debt refinancing activity and capital raise announcements; assess dilution impact on remaining equity value

TELA Bio, Inc. (TELA) Financial Metrics & Key Ratios

Revenue
$19.1M
Net Income
$-12.3M
EPS (Diluted)
$-0.21
Free Cash Flow
$-11.3M
Total Assets
$69.9M
Cash Position
$39.5M

💡 AI Analyst Insight

Strong liquidity with a 3.61x current ratio provides a solid financial cushion.

TELA Profit Margin, ROE & Profitability Analysis

Gross Margin 65.7%
Operating Margin -55.2%
Net Margin -64.4%
ROE N/A
ROA -17.6%
FCF Margin -59.2%

TELA vs Healthcare Sector: How TELA Bio, Inc. Compares

How TELA Bio, Inc. compares to Healthcare sector averages

Net Margin
TELA -64.4%
vs
Sector Avg 12.0%
TELA Sector
ROE
TELA 0.0%
vs
Sector Avg 15.0%
TELA Sector
Current Ratio
TELA 3.6x
vs
Sector Avg 2.0x
TELA Sector
Debt/Equity
TELA 0.0x
vs
Sector Avg 0.6x
TELA Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is TELA Bio, Inc. Stock Overvalued? TELA Valuation Analysis 2026

Based on fundamental analysis, TELA Bio, Inc. has mixed fundamental signals relative to the Healthcare sector in 2026.

Return on Equity
N/A
Sector avg: 15%
Net Profit Margin
-64.4%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
N/A
Sector avg: 0.6x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

TELA Bio, Inc. Balance Sheet: TELA Debt, Cash & Liquidity

Current Ratio
3.61x
Quick Ratio
2.92x
Debt/Equity
N/A
Debt/Assets
107.4%
Interest Coverage
-7.90x
Long-term Debt
$55.9M

TELA Revenue & Earnings Growth: 5-Year Financial Trend

TELA 5-year financial data: Year 2021: Revenue $29.5M, Net Income -$22.4M, EPS $-17.10. Year 2022: Revenue $41.4M, Net Income -$28.8M, EPS $-2.23. Year 2023: Revenue $58.5M, Net Income -$33.3M, EPS $-2.30. Year 2024: Revenue $69.3M, Net Income -$44.3M, EPS $-2.72. Year 2025: Revenue $80.3M, Net Income -$46.7M, EPS $-2.04.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: TELA Bio, Inc.'s revenue has grown significantly by 172% over the 5-year period, indicating strong business expansion. The most recent EPS of $-2.04 indicates the company is currently unprofitable.

TELA Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-59.2%
Free cash flow / Revenue

TELA Quarterly Earnings & Performance

Quarterly financial performance data for TELA Bio, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $18.5M -$11.3M $-0.21
Q3 2025 $19.0M -$8.6M $-0.19
Q2 2025 $16.1M -$9.9M $-0.22
Q1 2025 $16.6M -$5.7M $-0.23
Q3 2024 $15.1M -$10.4M $-0.42
Q2 2024 $14.5M -$10.8M $-0.46
Q1 2024 $11.9M -$5.7M $-0.23
Q3 2023 $11.2M -$10.7M $-0.45

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

TELA Bio, Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$11.2M
Cash generated from operations
Capital Expenditures
$119.0K
Investment in assets
Dividends
None
No dividend program

TELA SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for TELA Bio, Inc. (CIK: 0001561921)

📋 Recent SEC Filings

Date Form Document Action
May 13, 2026 10-Q tela-20260331x10q.htm View →
May 12, 2026 8-K tm2614218d1_8k.htm View →
Apr 30, 2026 DEF 14A tm261452-1_def14a.htm View →
Apr 30, 2026 8-K tm2612982d1_8k.htm View →
Mar 25, 2026 10-K tela-20251231x10k.htm View →

Frequently Asked Questions about TELA

What is the AI rating for TELA?

TELA Bio, Inc. (TELA) has an AI grade of D with 87% confidence, based on fundamental analysis of SEC EDGAR filings.

What are TELA's key strengths?

Claude: Strong gross margin of 65.7% demonstrates product pricing power and operational efficiency in manufacturing. Revenue growth of 15.8% YoY shows market traction and demand for surgical products.

What are the risks of investing in TELA?

Claude: Negative shareholders' equity of -5.2M indicates technical insolvency; liabilities exceed assets. Operating cash burn of -11.2M annually is unsustainable with only 3.5 year runway at current rate.

What is TELA's revenue and growth?

TELA Bio, Inc. reported revenue of $19.1M.

Does TELA pay dividends?

TELA Bio, Inc. does not currently pay dividends.

Where can I find TELA SEC filings?

Official SEC filings for TELA Bio, Inc. (CIK: 0001561921) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is TELA's EPS?

TELA Bio, Inc. has a diluted EPS of $-0.21.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is TELA's fundamental grade?

Based on our AI fundamental analysis in June 2026, TELA Bio, Inc. has a D grade with 87% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is TELA stock overvalued or undervalued?

Valuation metrics for TELA: ROE of N/A (sector avg: 15%), net margin of -64.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

What is TELA's AI grade for 2026?

Our dual AI analysis gives TELA Bio, Inc. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is TELA's free cash flow?

TELA Bio, Inc.'s operating cash flow is $-11.2M, with capital expenditures of $119.0K. FCF margin is -59.2%.

How does TELA compare to other Healthcare stocks?

Vs Healthcare sector averages: Net margin -64.4% (avg: 12%), ROE N/A (avg: 15%), current ratio 3.61 (avg: 2).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 14, 2026 | Data as of: 2026-03-31 | Powered by Claude AI