Telos Corporation (TLS)
NASDAQ:TLS
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Telos
(NASDAQ:TLS)
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Rating:55Neutral
Price Target:
$4.50
▲(7.66% Upside)
Action:ReiteratedDate:03/17/26
Overall score reflects a company that is still fundamentally challenged by persistent GAAP losses and weak technicals, partially offset by improved cash generation, a solid balance sheet, and notably strong, profitability-improving guidance from the latest earnings call.
Positive Factors
Large Visible Pipeline
A >$4.2B pipeline with 64 opportunities (34 in H1) provides multi-period line-of-sight for awards and backlog replenishment. This depth reduces single-award concentration risk, supports management's revenue guidance, and underpins durable top-line visibility over the next several quarters.
Negative Factors
Persistent GAAP Losses
Despite cash improvements, multi-year negative net margins indicate the business has not yet achieved sustained GAAP profitability. Persistent losses can erode shareholder value over time, limit retained capital for growth, and mean the company remains sensitive to revenue or margin shocks unless profitability is maintained.
Read all positive and negative factors
Positive Factors
Negative Factors
Large Visible Pipeline
A >$4.2B pipeline with 64 opportunities (34 in H1) provides multi-period line-of-sight for awards and backlog replenishment. This depth reduces single-award concentration risk, supports management's revenue guidance, and underpins durable top-line visibility over the next several quarters.
Read all positive factors
Telos (TLS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$310.23M
Dividend YieldN/A
Average Volume (3M)895.93K
Price to Earnings (P/E)―
Beta (1Y)2.95
Revenue Growth17.44%
EPS Growth41.97%
CountryUS
Employees504
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.06
Shares Outstanding74,217,620
10 Day Avg. Volume558,577
30 Day Avg. Volume895,927
Financial Highlights & Ratios
PEG Ratio0.32
Price to Book (P/B)3.87
Price to Sales (P/S)2.26
P/FCF Ratio12.62
Enterprise Value/Market Cap0.82
Enterprise Value/Revenue1.55
Enterprise Value/Gross Profit4.17
Enterprise Value/Ebitda-19.20
Forecast
1Y Price Target
$7.75Price Target Upside85.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.1
Revenue Forecast (FY)$195.30M
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 la...
How the Company Makes Money
Telos makes money primarily by delivering cybersecurity and IT services—largely under contracts—where it is paid to design, implement, integrate, and operate secure systems for customers. Key revenue streams include: (1) professional and technical...
Telos Earnings Call Summary
Earnings Call Date:Mar 16, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 08, 2026
Earnings Call Sentiment Positive
The earnings call conveyed a strongly positive operational and financial trajectory: exceptional top-line growth (Q4 +77%, full-year +52%), meaningful adjusted EBITDA and free cash flow improvement, disciplined expense management, share repurchases, and a large $4.2B pipeline with meaningful near-term opportunity. Material headwinds were acknowledged — chiefly a $14.9M noncash goodwill impairment in Secure Networks, a $1.5M restructuring charge, and forecasted gross margin compression driven by revenue mix and prepaid expense timing — but these issues are either noncash, one-time, or tied to expected program mix. Management reiterated durable government demand, product momentum (notably Xacta AI and Telos ID), and guidance for continued margin expansion and robust cash generation in 2026. Overall, the positives around growth, profitability improvement, cash generation, and pipeline visibility outweigh the lowlights.Positive Updates
Exceptional Revenue Growth
Q4 revenue increased 77% year over year to $46.8M. Full-year 2025 revenue grew 52% to $164.8M. 2026 revenue guidance implies 14%–21% growth to $187M–$200M, with Q1 guidance of 44%–47% growth to $44M–$45M.
Negative Updates
Goodwill Impairment in Secure Networks
A noncash $14.9M goodwill impairment was recorded in the Secure Networks segment due to a decline in contract backlog as several large programs reached natural completion; total quarter charges (including restructuring) were $16.4M.
Read all updates
Q4-2025 Updates
Positive
Negative
Exceptional Revenue Growth
Q4 revenue increased 77% year over year to $46.8M. Full-year 2025 revenue grew 52% to $164.8M. 2026 revenue guidance implies 14%–21% growth to $187M–$200M, with Q1 guidance of 44%–47% growth to $44M–$45M.
Read all positive updates
Company Guidance
Telos guided 2026 revenue to grow 14%–21% year over year to $187.0–$200.0 million (noting substantially all forecast is from existing programs), with cash gross margin of ~37.0%–39.5% (down vs. 2025 due to IT GEMS hardware/software mix and timing of prepaid expense recognition), cash operating expenses expected to be ~$1.5–$4.0 million lower year over year, and adjusted EBITDA of $20.6–$28.0 million (11%–14% adjusted EBITDA margin); management also forecast robust cash flow and continued share repurchases, raised the repurchase authorization from $50.0 million to $75.0 million, and cited a pipeline in excess of $4.2 billion. For Q1 2026 they expect revenue of $44.0–$45.0 million (up 44%–47% y/y), cash gross margin >39%, cash OpEx ~ $1.0 million lower y/y, and adjusted EBITDA of $4.5–$5.0 million (10.2%–11.1% margin).Telos Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
62
Positive
Cash Flow
57
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 164.81M | 108.27M | 145.38M | 216.89M | 242.43M |
| Gross Profit | 61.02M | 34.43M | 52.94M | 79.04M | 86.03M |
| EBITDA | -13.02M | -39.98M | -24.17M | -46.61M | -36.76M |
| Net Income | -36.55M | -52.52M | -34.42M | -53.43M | -43.13M |
Balance Sheet | |||||
| Total Assets | 139.86M | 158.24M | 208.70M | 237.40M | 246.08M |
| Cash, Cash Equivalents and Short-Term Investments | 53.18M | 54.58M | 99.26M | 119.31M | 126.56M |
| Total Debt | 8.06M | 10.15M | 11.47M | 21.69M | 15.25M |
| Total Liabilities | 43.91M | 31.10M | 49.70M | 65.04M | 65.83M |
| Stockholders Equity | 95.95M | 127.14M | 159.00M | 172.35M | 180.25M |
Cash Flow | |||||
| Free Cash Flow | 29.44M | -28.19M | -13.89M | 2.79M | -5.91M |
| Operating Cash Flow | 30.18M | -25.94M | 1.59M | 16.51M | 7.26M |
| Investing Cash Flow | -8.91M | -16.76M | -15.48M | -13.72M | -19.09M |
| Financing Cash Flow | -22.66M | -1.98M | -6.15M | -9.91M | 32.35M |
Telos Technical Analysis
Negative
4.18
Price Trends
4.45
Negative
5.00
Negative
5.16
Negative
Market Momentum
-0.04
Negative
44.74
Neutral
38.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TLS, the sentiment is Negative. The current price of 4.18 is below the 20-day moving average (MA) of 4.24, below the 50-day MA of 4.45, and below the 200-day MA of 5.16, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 44.74 is Neutral, neither overbought nor oversold. The STOCH value of 38.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TLS.
Telos Risk Analysis
Telos disclosed 43 risk factors in its most recent earnings report. Telos reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Telos Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $194.03M | 29.80 | 9.87% | 3.03% | -5.74% | ― | |
66 Neutral | $369.39M | 10.94 | 38.06% | ― | 91.66% | 7.52% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $310.23M | -10.17 | -31.77% | ― | 17.44% | 41.97% | |
52 Neutral | $332.74M | 42.13 | 12.82% | 2.41% | 0.68% | -67.84% | |
45 Neutral | $149.72M | 2.63 | 126.78% | ― | -4.93% | 18.65% | |
44 Neutral | $221.23M | -1.68 | -20.84% | ― | -12.45% | -142.77% |
* Technology Sector Average
TLS
Telos
4.18
1.82
77.12%
III
Information Services Group
4.07
0.66
19.42%
HCKT
The Hackett Group
13.11
-12.56
-48.92%
UIS
Unisys
2.07
-1.70
-45.09%
CNDT
Conduent
1.43
-0.70
-32.86%
TSSI
TSS
13.30
6.33
90.82%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.