Telos (TLS) AI Stock Analysis

• Market Cap: $225.60M
• Dividend Yield: N/A
• Average Volume (3M): 750.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.74
• Revenue Growth: -21.83%
• EPS Growth: -67.07%
• Country: US
• Employees: 504
• Sector: Technology
• Sector Strength: 86
• Industry: Information Technology Services
• EPS (TTM): -0.03
• Shares Outstanding: 73,484,720
• 10 Day Avg. Volume: 1,384,284
• 30 Day Avg. Volume: 750,455
• PEG Ratio: -0.30
• Price to Book (P/B): 2.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 123.21
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 6.91
• Enterprise Value/Ebitda: -1.79
• 1Y Price Target: $4.33
• Price Target Upside: 41.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 52 Neutral
• Price Target: $3.00 ▼(-2.28%Downside)

Telos faces significant financial challenges, with a notable decline in revenue and persistent profitability issues, which are the primary concerns impacting the stock score. While recent earnings showed positive growth and cash flow improvements, concerns about future margin contraction and negative EBITDA guidance persist. Technical analysis suggests moderate positive momentum but is overshadowed by high volatility. Despite strong shareholder support at the recent meeting, the overall outlook is cautious given underlying financial difficulties.

Positive Factors

Earnings

TLS reported upside to our forecast in the fourth quarter, and the Security Solutions business is better positioned for future growth, particularly due to the ramp-up of the large DMDC contract.

Program Expansion

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

Revenue Growth

Security Solutions revenue grew by 39% year-over-year, indicating a strong performance in this segment.

Negative Factors

Government Spending

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

Revenue Guidance

1Q Revenue guidance came in slightly below consensus, raising concerns about future performance.

Secure Networks

Secure Networks revenues declined significantly primarily due to contract run-offs, affecting overall financial performance.

Telos Business Overview & Revenue Model

Company Description

Telos Corporation (TLS) is a leading provider of cyber, cloud, and enterprise security solutions for businesses, government agencies, and other organizations. The company specializes in cybersecurity services, IT risk management, secure mobility, and identity management solutions, enabling its clients to protect their critical assets and maintain secure and resilient operations. With a strong focus on innovation, Telos offers a comprehensive suite of services designed to address the complex security challenges faced by its customers in an increasingly digital world.

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 and sustained net losses despite a strong equity position. Negative cash flows indicate potential liquidity issues, and strategic adjustments may be needed to enhance revenue growth and operational efficiency.

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	109.27M	108.27M	145.38M	216.89M	242.43M	179.92M
Gross Profit	35.65M	34.43M	52.94M	79.04M	86.03M	62.42M
EBITDA	-43.17M	-39.98M	-24.17M	-46.61M	-36.76M	19.41M
Net Income	-53.75M	-52.52M	-34.42M	-53.43M	-43.13M	6.84M
Balance Sheet
Total Assets	69.49M	158.24M	208.70M	237.40M	246.08M	183.82M
Cash, Cash Equivalents and Short-Term Investments	221.00K	54.58M	99.26M	119.31M	126.56M	106.05M
Total Debt	33.01M	10.15M	11.47M	21.69M	15.25M	17.26M
Total Liabilities	205.25M	31.10M	49.70M	65.04M	65.83M	56.71M
Stockholders Equity	-138.13M	127.14M	159.00M	172.35M	180.25M	127.10M
Cash Flow
Free Cash Flow	-20.96M	-28.19M	-13.89M	2.79M	-5.91M	-9.56M
Operating Cash Flow	-19.48M	-25.94M	1.59M	16.51M	7.26M	-2.10M
Investing Cash Flow	-14.95M	-16.76M	-15.48M	-13.72M	-19.09M	-7.46M
Financing Cash Flow	-1.69M	-1.98M	-6.15M	-9.91M	32.35M	108.86M

Telos Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.07
• 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 3.07 is above the 20-day moving average (MA) of 2.81, above the 50-day MA of 2.68, and below the 200-day MA of 3.11, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 70.57 is Negative, neither overbought nor oversold. The STOCH value of 83.51 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
III	68 Neutral	$240.54M	32.47	8.09%	3.61%	-12.26%	―
TSSI	68 Neutral	$708.08M	79.72	137.01%	―	262.87%	873.76%
CSPI	56 Neutral	$126.64M	40,175.00	-3.16%	1.00%	-11.53%	-128.96%
TTEC	54 Neutral	$238.21M	―	-73.85%	1.20%	-9.86%	-2426.25%
TLS	52 Neutral	$225.60M	―	-38.32%	―	-21.83%	-67.07%
Sector *	49 Neutral	C$2.91B	2.04	-80.91%	2.67%	12.55%	-24.32%
DMRC	44 Neutral	$295.26M	―	-60.08%	―	2.44%	9.27%

Telos Corporate Events

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.

Telos Corporation Holds Annual Stockholders’ Meeting

On May 8, 2025, Telos Corporation held its annual stockholders’ meeting where four key proposals were voted on. The stockholders elected seven directors to serve until the 2026 Annual Meeting, ratified the appointment of PricewaterhouseCoopers LLP as the independent accounting firm for 2025, approved an amendment to the 2016 Omnibus Long-Term Incentive Plan, and endorsed the compensation of the named executive officers. Each proposal received the necessary affirmative votes, indicating strong support from the stockholders.