Telos (TLS) AI Stock Analysis

• Market Cap: $424.09M
• Dividend Yield: N/A
• Average Volume (3M): 1.02M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.87
• Revenue Growth: 17.44%
• EPS Growth: 41.97%
• Country: US
• Employees: 504
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.09
• Shares Outstanding: 73,754,326
• 10 Day Avg. Volume: 1,008,873
• 30 Day Avg. Volume: 1,023,466
• PEG Ratio: -0.10
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 2.27
• P/FCF Ratio: -8.72
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 3.09
• Enterprise Value/Gross Profit: 8.07
• Enterprise Value/Ebitda: -21.97
• 1Y Price Target: $8.70
• Price Target Upside: 51.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): -0.03
• Revenue Forecast (FY): $158.41M

• Rating: 52 Neutral
• Price Target: $6.50 ▲(13.04% Upside)

Telos Corporation's overall stock score reflects strong revenue growth and positive earnings call highlights, which are offset by challenges in profitability, cash flow management, and technical indicators. The company's strategic expansions and improved financial outlook are promising, but the negative P/E ratio and bearish technical signals suggest caution.

Positive Factors

Revenue Growth

Telos's significant revenue growth indicates strong demand for its cybersecurity solutions, enhancing its market position and long-term growth prospects.

Product Innovation

The launch of Xacta.ai reflects Telos's commitment to innovation, improving its competitive edge in cybersecurity by enhancing efficiency in cybersecurity tasks.

Strategic Expansion

Expanding TSA PreCheck locations strengthens Telos's market reach and service accessibility, supporting sustained revenue growth and customer base expansion.

Negative Factors

Profitability Challenges

Ongoing profitability issues, as indicated by negative net profit margins, suggest Telos needs to improve cost management and operational efficiency for long-term sustainability.

Cash Flow Management

Negative free cash flow growth reflects challenges in maintaining positive cash flow, potentially impacting Telos's ability to invest in growth and manage financial obligations.

Return on Equity

A negative return on equity suggests that Telos is not effectively utilizing shareholder investments, which could hinder long-term financial performance and investor confidence.

Telos Business Overview & Revenue Model

Company Description

Telos Corporation, together with its subsidiaries, provides information technology (IT) solutions and services worldwide. It provides Xacta, a premier platform for enterprise cyber risk management and security compliance automation solutions to large commercial and government enterprises; and Telos Ghost, a solution to eliminate cyber-attack surfaces by obfuscating and encrypting data, masking user identity and location, and hiding network resources, as well as provides security and privacy for intelligence gathering, cyber threat protection, securing critical infrastructure, and protecting communications and applications. The company also offers Telos Automated Message Handling System, a web-based organizational message distribution and management platform for mission-critical communications used by military field operatives; and Telos ID that provides identity trust and digital services through IDTrust360, an enterprise-class digital identity risk platform for extending cloud identity services for mobile and enterprise and custom digital identity services that reduces threats through the integration of advanced technologies that fuse biometrics, credentials, and other identity-centric data used for continuously monitor trust. In addition, it provides secure network services, including secure mobility solutions for business and government that enable remote work and minimize operational and security concern across and beyond the enterprises; and network management and defense services for operating, administrating, and defending complex enterprise networks and defensive cyber operations. It serves to the United States federal government, large commercial businesses, state and local governments, and international customers. The company was founded in 1968 and is headquartered in Ashburn, Virginia.

How the Company Makes Money

Telos generates revenue through multiple streams, primarily by selling its cybersecurity software and services to government agencies and commercial enterprises. The company charges licensing fees for its software products, subscription fees for ongoing access to its services, and consulting fees for its expertise in cybersecurity. Additionally, Telos has established strategic partnerships with other technology providers and government contractors, which helps expand its market reach and enhance its service offerings. These partnerships, along with a focus on long-term contracts with federal agencies, contribute significantly to the company's financial stability and growth.

Telos Financial Statement Overview

Summary

Telos is experiencing strong revenue growth, but profitability and cash flow management are significant challenges. The company maintains a stable balance sheet with low leverage, yet the negative return on equity and persistent losses indicate a need for strategic improvements in cost control and operational efficiency to enhance financial performance.

Income Statement

Telos has shown a significant revenue growth rate of 23.7% in the TTM, indicating a positive trajectory in sales. However, the company is struggling with profitability, as evidenced by negative net profit, EBIT, and EBITDA margins. The gross profit margin is moderate at 38.3%, but the persistent negative net profit margin of -20.5% highlights ongoing challenges in cost management and operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.053, suggesting limited leverage and financial risk. However, the negative return on equity of -24.1% indicates that the company is not generating sufficient returns on shareholders' investments, which is a concern for long-term sustainability.

Cash Flow

Telos has improved its operating cash flow to net income ratio to 0.31, showing better cash generation relative to net income. However, the free cash flow growth rate is significantly negative at -338.97%, indicating challenges in maintaining positive cash flow. The free cash flow to net income ratio of 0.57 suggests some ability to cover net income with free cash flow, but overall cash flow management remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	144.40M	108.27M	145.38M	216.89M	242.43M	179.92M
Gross Profit	55.28M	34.43M	52.94M	79.04M	86.03M	62.42M
EBITDA	-20.30M	-39.98M	-24.17M	-46.61M	-36.76M	19.41M
Net Income	-29.57M	-52.52M	-34.42M	-53.43M	-43.13M	1.69M
Balance Sheet
Total Assets	164.28M	158.24M	208.70M	237.40M	246.08M	188.49M
Cash, Cash Equivalents and Short-Term Investments	59.05M	54.58M	99.26M	119.31M	126.56M	106.05M
Total Debt	6.38M	10.15M	11.47M	21.69M	15.25M	17.26M
Total Liabilities	44.61M	31.10M	49.70M	65.04M	65.83M	61.38M
Stockholders Equity	119.67M	127.14M	159.00M	172.35M	180.25M	127.10M
Cash Flow
Free Cash Flow	4.61M	-28.19M	-13.89M	2.79M	-5.91M	-9.56M
Operating Cash Flow	11.68M	-25.94M	1.59M	16.51M	7.26M	-2.10M
Investing Cash Flow	-11.48M	-16.76M	-15.48M	-13.72M	-19.09M	-7.46M
Financing Cash Flow	-10.92M	-1.98M	-6.15M	-9.91M	32.35M	108.86M

Telos Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.75
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TLS, the sentiment is Neutral. The current price of 5.75 is below the 20-day moving average (MA) of 6.26, below the 50-day MA of 6.72, and above the 200-day MA of 4.18, indicating a neutral trend. The MACD of -0.32 indicates Positive momentum. The RSI at 41.09 is Neutral, neither overbought nor oversold. The STOCH value of 41.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TLS.

Telos Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
III	69 Neutral	$256.18M	27.61	10.22%	2.97%	-5.74%	―
HCKT	64 Neutral	$485.84M	29.49	10.27%	2.48%	0.68%	-67.84%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TLS	52 Neutral	$424.09M	―	-23.73%	―	17.44%	41.97%
TSSI	46 Neutral	$271.14M	47.81	13.73%	―	91.66%	7.52%
CNDT	44 Neutral	$293.55M	―	-15.87%	―	-12.45%	-142.77%
UIS	38 Underperform	$240.26M	-2.85	―	―	-4.93%	18.65%

Telos Corporate Events

Telos Corporation Reports Robust Q3 Earnings

Telos Corporation’s recent earnings call revealed a strong financial performance, characterized by significant revenue growth and successful product launches. Despite challenges such as the government shutdown and potential margin fluctuations, the company maintains a positive growth outlook, bolstered by strategic expansions and a robust trajectory.

Telos Corporation Reports Strong Q3 2025 Earnings

Telos Corporation is a prominent provider of cybersecurity, cloud, and enterprise security solutions, catering to highly security-conscious organizations across commercial, regulated, and government sectors globally.

Telos Reports Strong Q2 2025 Financial Results

Telos Corporation reported its second quarter 2025 financial results on August 11, 2025, leading to a favorable response in its stock price. The company has reassured investors that it has no current plans to raise capital through dilutive securities, citing its strong liquidity position with $57 million in cash and cash equivalents, no outstanding debt, and expected positive cash flow for the remainder of the year.

The most recent analyst rating on (TLS) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Telos stock, see the TLS Stock Forecast page.