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what it is
Telos sells cybersecurity, cloud security, and identity tools for governments and enterprises.
how it gets paid
Last year Telos made $165M in revenue.
why it's growing
Revenue grew 52.2% last year. Revenue was up 129% from a year ago.
what just happened
Telos posted $118M in quarterly revenue, far above the $45.22M estimate, while EPS stayed at -$0.28.
At a glance
B balance sheet — gets the job done, barely
40/100 earnings predictability — expect surprises
3.8% return on capital — nothing to write home about
-$0.73 fy2024 eps est
$108M fy2024 rev est
xvary composite: 62/100 — average
What they do
Telos sells cybersecurity, cloud security, and identity tools for governments and enterprises.
Telos wins when customers value security that is already woven into their workflow. TSA PreCheck runs through 500+ enrollment locations, and that footprint is hard to rip out. You would have to replace software, staff, and identity checks at the same time.
How they make money
$165M
annual revenue · their business grew +52.2% last year
total revenue
$165M
+52.2%
The products that matter
secure identity solutions
Telos ID
Q4 growth engine
it drove 105% growth from a year ago in Q4 2025. that is the fastest number on the page, which is why management keeps pointing you back to identity.
+105%
government identity verification
TSA PreCheck Enrollment
500+ locations
it operates more than 500 enrollment locations. that scale matters because it turns a security story into a physical service footprint the government already uses.
500+ sites
cyber risk and compliance
Xacta AI
0 disclosed revenue here
management calls it a differentiator, but this page gives you zero revenue disclosure for it. that does not mean it lacks value. it means the narrative is ahead of the proof you have today.
watch proof
Key numbers
$165M
TTM revenue
You are paying about 1.9x sales with a $316M market cap, so the market is not paying up for profits yet.
24.2%
op margin
Operating margin, or profit after normal business costs, was -24.2%. So for every $100 of sales, Telos lost $24.20 before interest and taxes.
$6M
debt
Long-term debt is only 2% of capital, so leverage is not the part trying to kill you.
1.4
beta
Beta, or how much the stock swings versus the market, was 1.4. So a 10% market drop can look like a 14% TLS drop.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 1 — safer than 95% of stocks
- price stability 5 / 100
- long-term debt $6M (2% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for TLS right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Telos posted $118M in quarterly revenue, far above the $45.22M estimate, while EPS stayed at -$0.28.
Revenue was up 129% from a year ago. Gross margin, or revenue left after direct costs, was 37.8%, which says the business is scaling faster than profit is.
$118M
revenue
$0.28
eps
37.8%
gross margin
the number that mattered
The $118M revenue print mattered because it was about 2.6x the $45.22M estimate, yet the company still lost money.
source: company earnings report, 2026
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What could go wrong
the #1 risk here is 2026 margin compression inside a government contract rebound.
med
Gross margin falls while revenue rises
Management expects 2026 GAAP gross margin of 30.5%–33.5%, down from 37.0% in 2025. That's a 3.5–6.5 point drop in the amount Telos keeps after direct costs.
If 2026 lands at the low end of margin guidance, the company can grow and still disappoint you on profitability.
med
Too much of the story sits on a few programs
The page points to TSA PreCheck and IT GEMS as major growth drivers, while new-business visibility stays thin. That's concentration risk in plain English.
If one large program slips, a small $108M revenue base feels it fast.
med
The valuation discount may be correct
TLS trades at 1.8x sales versus 3.4x for software peers, but it also has a 31/100 moat score, a 40/100 predictability score, and expected negative EPS. Cheap can stay cheap.
Without sustained execution, the stock does not re-rate. It just remains a discounted contract story.
A margin drop from 37.0% to 30.5%–33.5% means each dollar of 2026 revenue is worth less than it was in 2025. That's the entire risk math.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
gross margin versus the 30.5%–33.5% guide
This is the number that matters. If revenue grows 14%–21% but margin lands near the low end, the comeback is lower quality than it looks.
trend
whether Security Solutions stays hot after the 105% jump
One explosive quarter gets attention. Two or three starts to look like a business line you can model.
calendar
new contract announcements beyond existing programs
If the pipeline is real, you should see fresh awards, not just more commentary about TSA PreCheck and IT GEMS.
risk
buybacks versus operating proof
The 3.1M-share repurchase matters less than whether the core business can convert growth into profit. Financial engineering is a side story here.
Analyst rankings
earnings predictability
40 / 100
Earnings can swing more than you'd like. In human-speak, analysts do not trust this company to print steady quarters yet.
risk rank
1
That score says the balance-sheet risk looks low versus most stocks. It does not mean the business model is stable.
source: institutional data
Institutional activity
institutional ownership data for TLS is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$5
current price
n/a
target midpoint · n/a from current
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
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