Telos (TLS) AI Stock Analysis

• Market Cap: $395.50M
• Dividend Yield: N/A
• Average Volume (3M): 1.86M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.97
• Revenue Growth: -13.76%
• EPS Growth: -75.18%
• Country: US
• Employees: 504
• Sector: Technology
• Sector Strength: 94
• Industry: Information Technology Services
• EPS (TTM): -0.03
• Shares Outstanding: 72,703,010
• 10 Day Avg. Volume: 4,355,922
• 30 Day Avg. Volume: 1,856,021
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.47
• Enterprise Value/Revenue: 1.58
• Enterprise Value/Gross Profit: 4.86
• Enterprise Value/Ebitda: -4.11
• 1Y Price Target: $5.46
• Price Target Upside: -1.62% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 60 Neutral
• Price Target: $6.00 ▲(8.11% Upside)

Telos's overall stock score is primarily influenced by its significant financial challenges, including declining revenues and negative cash flows, which weigh heavily on the score. However, strong technical indicators and positive earnings call guidance provide a counterbalance, suggesting potential for future growth. The recent executive appointment also adds a positive note, though its impact is less significant.

Positive Factors

Program Growth

TLS is benefiting from the ongoing ramp of the TSA program as well as the DMDC program.

Revenue Performance

TLS delivered $36 million of total revenue, above the high end of guidance of $34.5 million.

Security Solutions

Security Solutions revenue grew 82% year over year, driven by solid execution on large programs including TSA PreCheck.

Negative Factors

Government Spending

The government is exhibiting caution on spend, which impacts new business for TLS.

Revenue Recognition

CY25 forecasts were negatively impacted by delayed revenue recognition in certain programs.

Revenue Uncertainty

There is great uncertainty to durable revenue growth and cash flow generation.

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 Corporation generates revenue through the sale of cybersecurity solutions and services, primarily focusing on government contracts and business enterprises. Key revenue streams include the provision of software-as-a-service (SaaS) offerings, consulting services, and managed security services. Telos's partnerships with technology providers and its long-standing relationships with federal agencies significantly contribute to its earnings. The company also benefits from recurring revenue models associated with its software and service contracts, providing a steady income stream from its diverse client base.

Telos Financial Statement Overview

Summary

Telos faces significant financial challenges with declining revenues, sustained net losses, and negative cash flows. Despite a strong equity position, the company struggles with profitability and cash generation, posing risks to financial stability.

Income Statement

Telos shows a declining revenue trend with a significant drop from $242.4M in 2021 to $109.3M in the TTM period. The company has struggled with profitability, as evidenced by negative net profit margins and EBIT margins over the years. Despite a gross profit margin of approximately 32.6% in TTM, the substantial net losses indicate challenges in managing operating expenses.

Balance Sheet

The company maintains a strong equity position with an equity ratio of about 79.8% in TTM, signifying financial stability. However, the debt-to-equity ratio of 0.06 suggests low leverage, which could limit growth opportunities. The return on equity is negative, reflecting ongoing net losses impacting shareholder returns.

Cash Flow

Telos faces challenges with cash flow generation, evident from negative operating and free cash flows in recent periods. The company has shown negative free cash flow growth, reflecting operational inefficiencies or high capital expenditure relative to cash inflows, which could strain liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	116.74M	108.27M	145.38M	216.89M	242.43M	179.92M
Gross Profit	37.88M	34.43M	52.94M	79.04M	86.03M	62.42M
EBITDA	-44.78M	-39.98M	-24.17M	-46.61M	-36.76M	19.41M
Net Income	-55.51M	-52.52M	-34.42M	-53.43M	-43.13M	1.69M
Balance Sheet
Total Assets	165.04M	158.24M	208.70M	237.40M	246.08M	183.82M
Cash, Cash Equivalents and Short-Term Investments	57.00M	54.58M	99.26M	119.31M	126.56M	106.05M
Total Debt	6.96M	10.15M	11.47M	21.69M	15.25M	17.26M
Total Liabilities	46.63M	31.10M	49.70M	65.04M	65.83M	56.71M
Stockholders Equity	118.41M	127.14M	159.00M	172.35M	180.25M	127.10M
Cash Flow
Free Cash Flow	-2.81M	-28.19M	-13.89M	2.79M	-5.91M	-9.56M
Operating Cash Flow	-4.54M	-25.94M	1.59M	16.51M	7.26M	-2.10M
Investing Cash Flow	-11.77M	-16.76M	-15.48M	-13.72M	-19.09M	-7.46M
Financing Cash Flow	-6.79M	-1.98M	-6.15M	-9.91M	32.35M	108.86M

Telos Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TLS, the sentiment is Positive. The current price of 5.55 is above the 20-day moving average (MA) of 3.28, above the 50-day MA of 3.02, and above the 200-day MA of 3.05, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 82.85 is Negative, neither overbought nor oversold. The STOCH value of 90.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TLS.

Telos Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSSI	68 Neutral	$446.92M	45.38	122.80%	―	328.80%	339.87%
III	62 Neutral	$239.53M	31.84	8.29%	3.62%	-9.86%	―
CSPI	62 Neutral	$119.64M	40,175.00	-3.33%	0.99%	-0.37%	-161.02%
Sector *	62 Neutral	£500.82M	27.12	0.85%	2.82%	3.88%	-21.07%
TLS	60 Neutral	$395.50M	―	-41.49%	―	-13.76%	-75.18%
TTEC	45 Neutral	$176.41M	―	-9.11%	1.75%	-8.21%	91.83%
DMRC	41 Neutral	$237.72M	―	-63.65%	―	-8.07%	7.66%

Telos Corporate Events

Telos Appoints DJ Terreri as Principal Accounting Officer

On June 30, 2025, Telos Corporation appointed Mr. Donald Joseph (DJ) Terreri as the controller and chief accounting officer, later designating him as the principal accounting officer on July 8, 2025. Mr. Terreri, who brings extensive experience from his previous roles at CBRE Government and Defense Business, J&J Worldwide Services, ICF International, Privia Health, and Discovery Communications, will report directly to the Executive Vice President and Chief Financial Officer, Mr. Mark Bendza. His appointment is expected to strengthen Telos’s financial leadership and enhance its accounting operations.

The most recent analyst rating on (TLS) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Telos stock, see the TLS Stock Forecast page.

Telos Announces Resignation of Chief Accounting Officer

On May 19, 2025, Victoria Harding announced her resignation as Controller and Chief Accounting Officer of Telos Corporation, effective May 30, 2025, to pursue a new professional opportunity. The company will begin searching for her replacement, with Assistant Controller Brian Bienert stepping in as Interim Controller in the meantime.

The most recent analyst rating on (TLS) stock is a Buy with a $3.75 price target. To see the full list of analyst forecasts on Telos stock, see the TLS Stock Forecast page.