Telos (NASDAQ:TLS) Announces Quarterly Earnings Results

Telos (NASDAQ:TLS) posted its earnings results on Monday. The company reported $0.06 EPS for the quarter, topping the consensus estimate of $0.02 by $0.04, FiscalAI reports. The firm had revenue of $47.74 million for the quarter, compared to the consensus estimate of $44.63 million. Telos had a negative net margin of 14.25% and a negative return on equity of 11.55%.

Here are the key takeaways from Telos’ conference call:

• Telos reported a strong Q1 beat with revenue up 56% YoY to $47.7M, GAAP gross margin of 36.4% (cash gross margin 42.3%), and adjusted EBITDA of $7.9M (16.5% margin), all above guidance.
• Operating cash flow was $8.7M and Free Cash Flow was $6.4M (13.4% FCF margin, the fifth consecutive quarter >12%), and the company repurchased $2.2M of stock in Q1 with plans to accelerate buybacks in Q2.
• The CEO, John Wood, is on a medical leave of absence and an interim leadership team (including the CFO and two EVPs) is running day-to-day operations, which introduces executive transition risk despite management saying operations remain uninterrupted.
• Management cites a nearly $500M proposal pipeline (with two ~ $90M bids and many multi?year/2?year opportunities) expected to see award decisions in H2 2026, and highlighted early traction for Xacta.ai with 400+ licenses and pilots across government and banking.

Telos Stock Up 2.8%

TLS stock opened at $4.37 on Wednesday. Telos has a twelve month low of $2.37 and a twelve month high of $8.36. The company has a market cap of $337.63 million, a PE ratio of -12.49 and a beta of 0.95. The business’s 50-day simple moving average is $4.29 and its 200 day simple moving average is $5.09. The company has a quick ratio of 2.57, a current ratio of 2.57 and a debt-to-equity ratio of 0.06.

Insiders Place Their Bets

In related news, EVP Edward Hutchinson Jr. Robbins sold 64,527 shares of Telos stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $4.02, for a total transaction of $259,398.54. Following the sale, the executive vice president directly owned 567,278 shares of the company’s stock, valued at $2,280,457.56. This trade represents a 10.21% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders sold 105,723 shares of company stock worth $425,292 over the last 90 days. 14.90% of the stock is owned by company insiders.

Institutional Investors Weigh In On Telos

A number of institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its position in Telos by 3.7% during the third quarter. Vanguard Group Inc. now owns 2,914,891 shares of the company’s stock worth $19,938,000 after buying an additional 104,515 shares in the last quarter. Millennium Management LLC grew its position in Telos by 28.1% during the third quarter. Millennium Management LLC now owns 2,090,011 shares of the company’s stock worth $14,296,000 after buying an additional 457,997 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in Telos by 11.1% during the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,694,473 shares of the company’s stock worth $11,592,000 after buying an additional 169,285 shares in the last quarter. Geode Capital Management LLC grew its position in Telos by 3.6% during the fourth quarter. Geode Capital Management LLC now owns 1,361,502 shares of the company’s stock worth $6,945,000 after buying an additional 47,688 shares in the last quarter. Finally, Dimensional Fund Advisors LP lifted its stake in Telos by 13.2% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,177,250 shares of the company’s stock worth $6,004,000 after purchasing an additional 137,598 shares during the period. 62.14% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research firms have commented on TLS. Wedbush lowered their target price on shares of Telos from $10.00 to $8.00 and set an “outperform” rating on the stock in a research report on Tuesday, March 17th. Weiss Ratings reissued a “sell (d-)” rating on shares of Telos in a research report on Monday, April 20th. Finally, BMO Capital Markets lowered their target price on shares of Telos from $8.00 to $5.00 and set a “market perform” rating on the stock in a research report on Monday, March 16th. Two investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $7.38.

Telos Company Profile

Telos Corporation (NASDAQ: TLS) is a provider of cybersecurity, secure communications, and enterprise IT solutions designed to help organizations manage risk, accelerate mission delivery and maintain compliance. The company’s core business activities encompass risk management and compliance automation, secure mobility, zero-trust architecture, cloud security, and identity and access management. Telos serves a diverse customer base that includes U.S. federal agencies, the Department of Defense, intelligence communities and select commercial enterprises.

Among its flagship offerings is the Xacta® platform, which automates assessment and authorization for IT systems and cloud environments, helping clients streamline compliance with NIST, FedRAMP and other frameworks.