Telos (TLS) AI Stock Analysis

• Market Cap: $202.08M
• Dividend Yield: N/A
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.66
• Revenue Growth: -21.83%
• EPS Growth: -67.07%
• Country: US
• Employees: 504
• Sector: Technology
• Sector Strength: 82
• Industry: Information Technology Services
• EPS (TTM): -0.03
• Shares Outstanding: 73,484,720
• 10 Day Avg. Volume: 433,817
• 30 Day Avg. Volume: 1,128,193
• 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: 1.22
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 6.91
• Enterprise Value/Ebitda: -1.79
• 1Y Price Target: $4.75
• Price Target Upside: 70.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 47 Neutral
• Price Target: $2.50 ▼(-10.07%Downside)

The overall score reflects significant financial challenges with declining revenue and negative cash flows as primary concerns. Despite some positive developments in the earnings call and corporate events suggesting strategic support, persistent profitability issues and valuation metrics remain pressing risks.

Positive Factors

Financial Performance

TLS delivered solid upside to key metrics in the quarter, and Security Solutions was the primary driver of upside.

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.

Negative Factors

Contract Run-offs

Secure Networks revenues declined significantly primarily due to contract run-offs.

Government Spending

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

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 a mix of product sales, software licensing, and professional services. The company's revenue streams are primarily driven by long-term contracts with government agencies and commercial clients who require advanced security solutions. Telos also earns money through recurring subscription fees for its software-as-a-service (SaaS) offerings, particularly in cloud security and identity management. Additionally, the company forms strategic partnerships with technology providers and systems integrators, which help expand its market reach and contribute to its revenue growth. Major factors contributing to Telos' earnings include its reputation for providing reliable, high-security solutions and its ability to adapt to the evolving cybersecurity landscape.

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
	EBIT
-50.08M	-49.50M	-40.31M	-53.85M	-41.46M	14.05M
	EBITDA
-43.17M	-39.98M	-24.17M	-46.61M	-36.76M	19.41M
	Net Income Common Stockholders
-53.75M	-52.52M	-34.42M	-53.43M	-43.13M	6.84M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
221.00K	54.58M	99.26M	119.31M	126.56M	106.05M
	Total Assets
69.49M	158.24M	208.70M	237.40M	246.08M	183.82M
	Total Debt
33.01M	10.15M	11.47M	21.69M	15.25M	17.26M
	Net Debt
32.79M	-44.43M	-87.79M	-97.62M	-111.31M	-88.79M
	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: 2.78
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 2.78 is above the 20-day moving average (MA) of 2.63, above the 50-day MA of 2.55, and below the 200-day MA of 3.15, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 58.84 is Neutral, neither overbought nor oversold. The STOCH value of 70.78 is Neutral, 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	69 Neutral	$496.41M	58.62	137.01%	―	262.87%	873.76%
III	67 Neutral	$232.34M	31.36	8.09%	3.73%	-12.26%	―
Sector *	62 Neutral	$11.90B	10.64	-7.50%	2.90%	7.41%	-8.19%
CSPI	57 Neutral	$131.33M	40,175.00	-3.16%	0.90%	-11.53%	-128.96%
TTEC	54 Neutral	$239.64M	―	-73.85%	1.20%	-9.86%	-2426.25%
DMRC	49 Neutral	$289.01M	―	-60.08%	―	2.44%	9.27%
TLS	47 Neutral	$202.08M	―	-38.32%	―	-21.83%	-67.07%

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.