Start here if you're new
what it is
Tela Bio sells surgical implant materials that help reinforce soft tissue in hernia, abdominal wall, and reconstructive procedures.
how it gets paid
Last year Tela Bio made $69M in revenue. OviTex hernia repair was the main engine at $31.1M, or 45% of sales.
what just happened
The clean takeaway: quarterly EPS improved to -$0.23 from -$0.53 a year earlier, but the business still is not close to breakeven.
At a glance
C+ balance sheet — struggling to keep the lights on
65/100 earnings predictability — reasonably predictable
-$1.33 fy2024 eps est
$69M fy2024 rev est
49.2% operating margin
xvary composite: 31/100 — weak
What they do
Tela Bio sells surgical implant materials that help reinforce soft tissue in hernia, abdominal wall, and reconstructive procedures.
This is not a scale moat yet. It is a product-acceptance moat. If your surgeon already trusts OviTex in the operating room, switching is not just a spreadsheet choice. Gross margin (money left after making the product) was 68.3%, but operating margin (money left after running the whole business) was -49.2%, so the product looks strong while the company still has to prove your trust can cover overhead.
How they make money
$69M
annual revenue
OviTex hernia repair
$31.1M
Abdominal wall reconstruction
$17.3M
OviTex PRS
$13.8M
OviTex LPR
$6.8M
The products that matter
reinforced biologic hernia matrix
OviTex
$~62M of revenue mix
it's the flagship line and most of the roughly $77M trailing-revenue base. if OviTex adoption stalls, your whole thesis stalls with it.
core franchise
plastic and reconstructive surgery matrix
OviTex PRS
$~15M of revenue mix
this smaller line extends Tela Bio into a $1B+ soft-tissue reconstruction market. it's only about one-fifth of the current mix, which is exactly why you should care if it starts carrying more weight.
adjacency bet
Key numbers
49.2%
operating margin
Operating margin → profit after running the whole company → so what: sales growth still is not paying for the machine.
$42M
long-term debt
Debt → money that must be repaid → so what: the debt load is bigger than the company's ~$32M market cap.
68.3%
gross margin
Gross margin → money left after making the product → so what: the product economics look far better than the corporate cost structure.
$69M
2024 revenue
Revenue → total sales → so what: Tela is real enough to have traction, but still too small for mistakes.
Financial health
C+
strength
- balance sheet grade C+ — weak — may struggle to fund operations
- risk rank 5 — safer than 5% of stocks
- price stability 10 / 100
- long-term debt $42M (56% of capital)
C+ — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for TELA right now.
source: institutional data · return history unavailable
What just happened
missed estimates
The clean takeaway: quarterly EPS improved to -$0.23 from -$0.53 a year earlier, but the business still is not close to breakeven.
Value Line shows Q4 2024 EPS of -$0.23 versus -$0.53 in Q4 2023. EDGAR shows gross margin at 68.3%, which says the products make money before the overhead arrives.
$69M
revenue
$0.23
eps
68.3%
gross margin
the number that mattered
The number that mattered was -49.2% operating margin, because a 68.3% gross margin does not help shareholders if overhead keeps eating the business.
source: and EDGAR filings, 2026
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What could go wrong
the #1 risk is the Becton Dickinson antitrust case failing to improve access in hernia mesh.
med
Antitrust case does not deliver commercial relief
Tela sued Becton Dickinson while alleging BD controls 65% of the hernia mesh market. If that effort fails, you still own the same small challenger trying to grow around a dominant incumbent.
Management itself tied roughly $10M–$17M of revenue exposure to this fight. On a $69M–$77M revenue base, that is central to the story.
med
Losses keep forcing outside capital
A -50.6% net margin and -36.5% operating margin mean growth is still being bought, not harvested. The November 2025 $13M direct offering helped, but it also showed you where this story breaks if execution slips.
More dilution is the obvious risk. The less obvious one is raising capital from a weak negotiating position when the stock trades at $0.95.
med
Revenue growth slows before fixed costs get absorbed
Q3 2025 revenue of $21.1M missed the $22.23M consensus, even with management still guiding for at least 16% full-year growth. This company needs steady top-line progress because gross margin alone will not save the model.
If growth cools while margins stay deeply negative, the stock stops trading on recovery math and starts trading on survival math.
A failed legal push exposes $10M–$17M of revenue pressure, and the current margin structure already points toward more dilution if growth does not outrun cash burn.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
Q4 and full-year 2025 results
March 24, 2026 is the next hard checkpoint. Revenue growth needs to support the at least 16% full-year guide with something better than another near-miss.
legal
Antitrust case milestones
Any ruling, filing, or procedural setback matters because the lawsuit is not background noise here. It is tied to a market where the incumbent controls 65% share.
margins
Whether 70% gross margin reaches the bottom line
The gross margin is already respectable. The next number that matters is whether operating losses start narrowing from the current -36.5% operating margin.
funding
Any sign of another capital raise
The November 2025 $13M offering solved one problem for one moment. If another raise shows up before operating performance improves, the market will read that as confirmation.
Analyst rankings
earnings predictability
65 / 100
This sits in the middle of the pack. In human-speak, analysts think the business is readable, but one bad quarter can still rewrite the script fast.
median price target
$4.00
That implies more than 300% upside from $0.95. Read it as a statement of possible recovery value, not proof that the market has made a simple mistake.
source: institutional data
Institutional activity
institutional ownership data for TELA is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$1
current price
n/a
target midpoint · n/a from current
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