Telos (NASDAQ:TLS) Announces Earnings Results

Telos (NASDAQ:TLS) issued its quarterly earnings results on Monday. The company reported $0.04 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.02 by $0.02, FiscalAI reports. The business had revenue of $47.75 million for the quarter, compared to analysts’ expectations of $45.16 million. Telos had a negative net margin of 14.25% and a negative return on equity of 11.95%.

Here are the key takeaways from Telos’ conference call:

• Second-quarter results exceeded guidance: revenue rose 33% year over year to $47.7 million, while adjusted EBITDA reached $6.9 million with a 14.4% margin.
• Telos generated $6.6 million in free cash flow, a 13.9% margin and its sixth consecutive quarter above 12%; it also repurchased more than 1 million shares for $4.7 million.
• Management raised full-year adjusted EBITDA guidance to $23.6 million-$28.6 million, increased cash gross-margin guidance to 39%-40%, and lowered expected operating expenses by approximately $1.7 million.
• Full-year revenue guidance was reduced to $187 million-$195 million as Telos phases out roughly $33 million of annual low-margin third-party software resale revenue, although management expects the move to improve run-rate cash gross margin by more than 600 basis points.
• The company has more than $500 million in total contract value under proposal, with award decisions expected in the second half of 2026; timing remains dependent on government procurement schedules and budgets.

Telos Trading Down 15.7%

Shares of Telos stock opened at $4.03 on Tuesday. The company has a 50-day moving average of $4.59 and a two-hundred day moving average of $4.52. Telos has a 12-month low of $2.82 and a 12-month high of $8.36. The company has a current ratio of 2.59, a quick ratio of 2.59 and a debt-to-equity ratio of 0.05. The stock has a market cap of $301.52 million, a PE ratio of -11.51 and a beta of 1.00.

Analysts Set New Price Targets

TLS has been the topic of a number of research analyst reports. Weiss Ratings reissued a “sell (d-)” rating on shares of Telos in a report on Friday, July 17th. Needham & Company LLC began coverage on shares of Telos in a research report on Tuesday, May 26th. They issued a “buy” rating and a $6.00 price target for the company. Three equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $7.10.

Insiders Place Their Bets

In related news, Director Derrick D. Dockery sold 7,000 shares of the stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of $4.36, for a total value of $30,520.00. Following the sale, the director directly owned 179,591 shares of the company’s stock, valued at approximately $783,016.76. This represents a 3.75% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Bradley W. Jacobs sold 55,772 shares of the firm’s stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $4.31, for a total transaction of $240,377.32. Following the transaction, the director owned 166,612 shares of the company’s stock, valued at $718,097.72. This trade represents a 25.08% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 320,772 shares of company stock worth $1,386,488. 14.90% of the stock is owned by corporate insiders.

Institutional Trading of Telos

Several large investors have recently modified their holdings of the business. Zacks Investment Management purchased a new position in shares of Telos during the 4th quarter worth approximately $71,000. Tudor Investment Corp ET AL lifted its stake in Telos by 17.0% in the 4th quarter. Tudor Investment Corp ET AL now owns 450,882 shares of the company’s stock valued at $2,299,000 after buying an additional 65,587 shares in the last quarter. Polymer Capital Management US LLC acquired a new stake in Telos during the 4th quarter valued at $91,000. Occudo Quantitative Strategies LP grew its holdings in Telos by 12.3% during the 4th quarter. Occudo Quantitative Strategies LP now owns 68,514 shares of the company’s stock valued at $349,000 after buying an additional 7,484 shares during the last quarter. Finally, Oxford Asset Management LLP purchased a new position in Telos during the fourth quarter worth $243,000. 62.14% of the stock is currently owned by institutional investors and hedge funds.

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.