Tela Bio Inc (TELA)
NASDAQHealth CareMedical - DevicesSnapshot 2026-09-04
$0.82+5.19%
Close 2026-09-04 · 1-day change
NASDAQHealth CareMedical - DevicesSnapshot 2026-09-04
Broken: Primary pillar broken — Progress toward positive free cash flow: FCF not reported; OCF -11.2M flat vs -9.7M YoY.
Tela Bio aims to grow revenue at least 8% in 2026 from $80.2 million in 2025. Q2 2026 revenue target is $20 million, slightly above Q1's $19.1 million. The company focuses on tissue reinforcement materials with unmet medical needs. If growth resumes, the stock could recover from recent losses.
Tela Bio is loss-making with negative free cash flow and missed recent earnings. The stock is down 21% from its high amid weak momentum. Revenue growth is uncertain and the company faces listing risks. Profitability and cash flow remain distant goals.
The market expects about 12% revenue growth next year, slightly above management's 8% target. Our fair value is $3.95, reflecting the company's cheap valuation versus peers. The stock price has fallen sharply, pricing in significant risk and slow recovery.
Breaks if: free cash flow remains flat or worsens in FY26
Breaks if: Q2 2026 revenue falls below $19 million
Breaks if: YoY revenue growth falls below 5% in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround story with a focus on improving sales and reducing costs. The current thesis state is cautious due to recent volatility and mixed results in execution.
The market appears to have priced in a low expectations gap, indicating that TELA is seen as cheap compared to its peers. However, the overall valuation reflects a justified stance given the company's loss-making status.
Management is focused on improving product sales and returning to revenue growth, but recent results show mixed progress. The company has also announced a significant workforce reduction to cut costs, although operating expenses have not yet declined as planned.
The long-term thesis hinges on TELA's ability to reinstate guidance and improve its financial performance. Additionally, the company's success may depend on broader sector momentum and the performance of key healthcare peers.
In the next 1 to 3 years, TELA's outlook will depend on management's execution of its priorities and external market conditions. Not investment advice.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The appointment of Heather Getz as CEO may drive growth. However, the company missed earnings expectations and withdrew its revenue guidance, raising growth concerns.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.