Telos Corporation (TLS) AI Stock Analysis

Telos Corporation provides advanced information technology solutions and services primarily for commercial enterprises and government entities worldwide. Its flagship platform, Xacta, automates cyber risk management and security compliance across both sectors. The company also offers Telos Ghost, which protects critical infrastructure and sensitive communications by obfuscating data, masking user identities, and concealing network resources. In addition, Telos provides mission-critical communication tools through its Automated Message Handling System for military operatives, enterprise digital identity management via IDTrust360, and secure network mobility and defense services.

Telos saw annual revenue contract from $242.4M in FY2021 to $108.3M in FY2024 before rebounding 52.2% to $164.8M in FY2025. Gross margin improved from 31.8% in FY2024 to 37.0% in FY2025, while operating margin narrowed its loss from -51.6% to -14.8%. The company reported net losses in each fiscal period, finishing FY2025 with a net loss of $36.5M. For the latest quarter ended June 30, 2026, revenue increased 32.7% year-over-year, lifting trailing twelve-month revenue to $193.7M. Over the trailing twelve months, Telos generated an operating margin of 0.7% and diluted earnings per share of -$0.22.

As of June 30, 2026, Telos held $50.6M in cash and short-term investments against $7.0M in total debt, yielding net cash of $43.7M and a current ratio of 2.38. Debt-to-equity stood low at 0.07 on $93.4M in shareholders' equity. In FY2025, the company delivered $30.2M in operating cash flow and $29.4M in free cash flow. Capital expenditures totaled $739,000, while share buybacks absorbed $13.6M during FY2025.

Telos trades at a price-to-sales ratio of 1.5x and an enterprise value to revenue multiple of 1.4x, lower than the median of its US-listed Technology peers at 2.8x price-to-sales. Its trailing twelve-month operating margin of 0.7% remains below the peer median of 13.2%. Over the past year, TLS stock fell 40.8%, while the S&P 500 gained 16.8%. Over a five-year period, TLS dropped 85.9% compared to an 83.0% gain for the benchmark index.

Wall Street coverage consists of 2 Strong Buy, 1 Buy, and 3 Hold ratings. The mean price target is $6.33, implying upside of 57.9% from the October 16, 2026 closing price of $4.01. Analysts forecast FY2026 revenue of $191.4M with EPS of $0.16, followed by FY2027 revenue of $191.9M and EPS of $0.26. Telos beat earnings estimates in 3 of the last 4 quarters, with its next earnings report scheduled for November 9, 2026.

This page is an AI-written research summary of Telos Corporation (TLS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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