Telos Corporation
- Open
- 4.46
- Day high
- 4.57
- Day low
- 4.38
- Prev close
- 4.51
- Volume
- 239K
- Mkt cap
- $336M
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 3.5
- P/S
- 1.8
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$113K over the last 3 months (0 open-market buys, 2 sales)
- 🏛Institutions accumulating (13F)
Telos Corporation (TLS) is a Technology company listed on NASDAQ. The stock is up 42% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 2 sales (SEC Form 4).
Telos Corporation (TLS) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
TLS earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 11, 2026 | $0.02 | $0.06 | +200.0% | $48M | +7.0% |
| Mar 16, 2026 | $0.02 | $0.06 | +180.0% | $47M | +13.4% |
| May 9, 2025 | $-0.05 | $-0.03 | +40.0% | $31M | +4.8% |
| Mar 10, 2025 | $-0.09 | $-0.04 | +55.6% | $26M | -13.9% |
| Aug 9, 2024 | $-0.14 | $-0.09 | +35.7% | $28M | +7.7% |
| May 10, 2024 | $-0.11 | $-0.08 | +27.3% | $30M | +4.4% |
| Mar 15, 2024 | $-0.12 | $-0.09 | +25.0% | $41M | +28.1% |
| Nov 9, 2023 | $-0.15 | $-0.07 | +53.3% | $36M | -52.4% |
| Mar 16, 2023 | $-0.01 | $0.05 | +600.0% | $47M | -37.7% |
| Mar 16, 2022 | $0.04 | $0.11 | +175.0% | $64M | +1.3% |
| Nov 15, 2021 | $0.10 | $0.10 | +0.0% | $70M | -7.8% |
| Aug 16, 2021 | $0.02 | $0.04 | +100.0% | $53M | -30.9% |
TLS insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 28, 2026 | Dockery Derrick D.director | Sell | 8,000 | $4.78 |
| May 27, 2026 | Jacobs Bradley W.director | Grant | 34,091 | — |
| May 27, 2026 | Wood John Bdirector, officer: Chairman and CEO | Grant | 544,101 | — |
| May 27, 2026 | Borland Daviddirector | Grant | 34,091 | — |
| May 27, 2026 | Terreri Donald Josephofficer: Controller, Chief Acct Officer | Grant | 13,288 | — |
| May 27, 2026 | Robbins Edward Hutchinson Jr.officer: EVP, General Counsel | Grant | 138,337 | — |
| May 27, 2026 | Cooke Malcolm G.officer: VP, Chief Info Tech Officer | Grant | 19,004 | — |
| May 27, 2026 | Griffin Mark Dofficer: EVP, Security Solutions | Grant | 106,763 | — |
| May 27, 2026 | Schaufeld Fredrickdirector | Grant | 34,091 | — |
| May 27, 2026 | Bendza Gary Markofficer: EVP, CFO | Grant | 123,477 | — |
| May 27, 2026 | Cooke Malcolm G.officer: VP, Chief Info Tech Officer | Grant | 52,787 | — |
| May 27, 2026 | Hill Donna K.officer: VP, Human Resources | Grant | 12,942 | — |
| May 27, 2026 | Dockery Derrick D.director | Grant | 34,091 | — |
| May 27, 2026 | Bendza Gary Markofficer: EVP, CFO | Grant | 185,216 | — |
| May 27, 2026 | Robbins Edward Hutchinson Jr.officer: EVP, General Counsel | Grant | 92,225 | — |
Source: TLS SEC Form 4 filings, latest May 28, 2026. For informational purposes only — not investment advice.
See the full TLS insider & 13F page →Telos Corporation company profile
Overview
Telos Corporation (NASDAQ:TLS) is a cybersecurity and information technology services company founded in 1968 and headquartered in Ashburn, Virginia. The company went public in November 2020 and provides enterprise cybersecurity solutions, secure communications, and identity management services primarily to the U.S. federal government, large commercial businesses, and international customers. Telos has evolved from its origins as a defense contractor into a comprehensive cybersecurity solutions provider, with significant growth driven by major government programs including TSA PreCheck enrollment services and defense identity management contracts.
Business
Telos operates in the cybersecurity and information technology services industry, providing specialized solutions that help organizations manage cyber risks, secure communications, and verify digital identities. The company's business is organized around two primary segments that together address the growing need for comprehensive cybersecurity infrastructure. Security Solutions (approximately 84% of revenue) represents the company's core cybersecurity offerings. The flagship product is Xacta, an enterprise cyber risk management and security compliance automation platform that helps large organizations identify, assess, and manage cybersecurity risks across their IT infrastructure. Xacta automates the complex process of security compliance reporting that organizations must complete to meet federal regulations and industry standards. The segment also includes Telos Ghost, a solution that protects sensitive communications by encrypting data, masking user identities and locations, and hiding network resources from potential cyber attackers. Additionally, this segment encompasses Telos ID services, which provide digital identity verification and trust services through biometric authentication and credential management - essentially ensuring that the right people have access to the right systems at the right times. Secure Networks (approximately 16% of revenue) focuses on network infrastructure and communications services. This includes the Telos Automated Message Handling System (AMHS), a web-based platform used by military field operatives for mission-critical communications and message distribution. The segment also provides secure mobility solutions that enable remote work while maintaining security standards, along with network management and defense services for operating and protecting complex enterprise networks. A significant revenue driver has emerged from Telos's role as a TSA PreCheck enrollment services provider, where the company operates physical enrollment centers across the United States to process background checks and biometric data for travelers seeking expedited airport security screening. This program has grown from 26 locations to over 200 locations and represents one of the company's largest individual revenue sources.
Revenue model
Telos generates revenue through multiple business models depending on the service offering. The company primarily operates on a contract-based service model with government agencies and large enterprises, where customers pay for ongoing cybersecurity services, software licenses, and system integration work. For products like Xacta, revenue comes from software licensing fees and ongoing support services. The TSA PreCheck program generates revenue through a per-enrollment fee structure, where Telos receives payment for each traveler processed through their enrollment centers. The company's customer base consists primarily of U.S. federal government agencies including the Department of Defense, Department of Homeland Security, and various intelligence agencies, which typically represent long-term, multi-year contracts. Commercial customers include Fortune 100 technology companies and large enterprises that require enterprise-grade cybersecurity solutions. International customers, particularly government agencies in allied nations like New Zealand, provide additional revenue diversification. Several factors influence Telos's profit margins. Positive margin drivers include the scalability of software solutions like Xacta once developed, the recurring nature of government contracts which provide revenue predictability, and the company's specialized expertise in government compliance requirements which commands premium pricing. Negative margin pressures come from the labor-intensive nature of many cybersecurity services, the significant upfront investment required to develop new solutions, competitive bidding processes for government contracts that can compress pricing, and the dilutive effect of lower-margin programs like TSA PreCheck enrollment services. The company has also faced margin pressure from the need to maintain security clearances for personnel and the costs associated with meeting stringent government security requirements. Revenue growth depends heavily on winning new government contract awards, successfully expanding existing programs like TSA PreCheck to additional locations, and the overall federal cybersecurity budget allocation. Economic factors such as government spending priorities and the competitive landscape for cybersecurity services significantly impact the company's financial performance.
Competitive moat
Telos possesses a moderate competitive moat built primarily around its specialized expertise in government cybersecurity requirements and established relationships with federal agencies. The company's strongest defensive position comes from its deep understanding of complex government compliance frameworks and security clearance requirements, which create significant barriers for new entrants. Having personnel with appropriate security clearances and the institutional knowledge to navigate federal procurement processes provides meaningful competitive advantages. The company's Xacta platform has developed some switching costs among existing customers due to the complexity of cybersecurity compliance workflows and the integration required with existing IT infrastructure. Government customers particularly value continuity in cybersecurity services, making them somewhat resistant to switching providers once systems are implemented and personnel are trained. However, Telos's moat faces several challenges. The cybersecurity industry is highly competitive with well-funded competitors including large defense contractors like Lockheed Martin and Raytheon, as well as specialized cybersecurity firms. Many of Telos's solutions, while technically sophisticated, are not fundamentally differentiated from competitive offerings. The government contracting environment is also inherently competitive, with contracts regularly re-competed through formal bidding processes that can result in customer losses regardless of past performance. The TSA PreCheck program provides some temporary competitive advantages through operational scale and geographic coverage, but this is ultimately a government-controlled program where contract terms are dictated by the Transportation Security Administration. The company's network effects and operational expertise in enrollment services create some defensibility, but this could be disrupted by changes in government policy or contract re-competitions. Overall, while Telos has built meaningful competitive advantages in specific niches, the company operates in a highly competitive industry where technological differentiation is difficult to maintain long-term and customer relationships, while valuable, do not guarantee contract renewals in the government procurement environment.
Risks & safety
Telos maintains a strong financial safety profile with substantial cash reserves and minimal debt, though the company faces profitability challenges. • Liquidity and Solvency: Strong cash position of $57.8 million with minimal debt (debt-to-equity ratio of 0.06), providing significant runway for operations. Current ratio of 4.0 indicates excellent short-term liquidity. • Cash Flow: Positive operating cash flow of $6.1 million in Q1 2025 and positive free cash flow of $6.0 million, representing improvement from previous periods of cash burn. • Profitability Metrics: Company remains unprofitable with negative EBITDA, though showing sequential improvement. Recent quarters show path toward breakeven with cost reduction initiatives implemented. • Valuation Considerations: Trading at low absolute price levels with negative P/E ratios due to losses, though Graham net-net ratio of 0.56 suggests potential asset value relative to market capitalization. • Risk Factors: Heavy dependence on government contracts creates revenue concentration risk, and the company's ability to achieve sustained profitability depends on successful execution of major programs like TSA PreCheck expansion and new contract awards.
Recent development
Over the past few years, Telos has undergone significant strategic transformation focused on streamlining operations and capitalizing on major government program opportunities. The company implemented substantial cost reduction initiatives in 2024, including a 20% workforce reduction and discontinuation of underperforming solution development, resulting in over $13 million in charges but improved operational efficiency. The most significant development has been the rapid expansion of the TSA PreCheck enrollment program, which grew from 26 locations in early 2024 to 218 locations by year-end, with plans to reach 500 locations by the end of 2025. This program has become the company's single largest revenue source and represents a major strategic pivot toward high-volume, operationally-focused services. Telos successfully resolved major contract protests and began revenue generation from the Defense Manpower Data Center (DMDC) program, a $485 million potential contract for identity management services. The company also had a stop-work order lifted on a Department of Homeland Security program worth up to $40 million, with revenue expected to begin in 2025. The company has refocused its business development strategy on federal government opportunities, centralizing sales efforts and emphasizing task orders from existing contract vehicles rather than pursuing single-award contracts. This approach has shown success with new orders from agencies including the Office of Naval Intelligence, Department of Energy, and various Fortune 100 commercial customers. Recent quarters have demonstrated improved financial trajectory with sequential revenue growth, positive cash flow generation, and progress toward adjusted EBITDA breakeven. The company's 2025 revenue framework targets $120-145 million based on existing business, new program ramp-ups, and continued TSA PreCheck expansion.
TLS company profile · for informational purposes only — not investment advice.
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