olivLaw · US equity research
Telos Corporation TLS
Services-Computer Integrated Systems Design · SIC 7373 · Vertical: Services-Computer Integrated Systems Design (SIC 7373)
Telos Corporation provides Xacta cyber governance, risk and compliance software, identity and biometric solutions, secure networks and TSA PreCheck enrollment for the U.S. federal government and commercial clients. The company reported revenue growth of 52.2% in fiscal 2025, with 91.0% of revenue coming from the federal government, so federal defense and security budgets remain central to its results.
At the close of 04 Nov 2026, Telos Corporation (TLS) stock was 5.06 USD (−1.75% on the day), with market capitalisation 378.2 m USD, beta 1.71, 52-week range 3.88–7.76 USD. Latest reported quarter (Q2 2026): revenue of 47.7 m USD (+32.7% YoY), net income of 660.0 k USD, diluted EPS 0.01 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 55.1
- strong (55–70)
- Bollinger (20, 2)
- 3.69 – 5.92
- in the upper half of the band · %B 0.61 · band width 46.4%
- SMA 50 / 200
- 4.54 / 4.52
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.27 / 0.24
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +14.2% | −2.0% | +16.2 pp | — |
| 3 months | +8.1% | −2.2% | +10.3 pp | — |
| 6 months | +20.5% | +4.3% | +16.2 pp | — |
| Year to date | −0.8% | +10.6% | −11.4 pp | — |
| 1 year | −22.4% | +10.5% | −32.9 pp | −34.8% |
| 3 years | +90.2% | +73.7% | +16.6 pp | −27.7% |
| 5 years | −80.9% | +61.7% | −142.6 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 23.8 m | 26.4 m | 30.6 m | 36.0 m | 51.4 m | 46.8 m | 47.7 m | 47.7 m |
| Cost of revenue | 20.6 m | 15.8 m | 18.4 m | 24.0 m | 30.9 m | 30.4 m | 30.4 m | 31.1 m |
| Gross profit | 3.1 m | 10.6 m | 12.2 m | 11.9 m | 20.5 m | 16.4 m | 17.4 m | 16.7 m |
| Research & development | 2.4 m | 1.4 m | 1.6 m | 1.5 m | 1.9 m | 2.1 m | 1.4 m | 1.3 m |
| SG&A | 23.2 m | 19.1 m | 19.6 m | 20.3 m | 21.1 m | 17.9 m | 14.6 m | 15.0 m |
| Operating income | -28.9 m | -9.9 m | -9.0 m | -9.9 m | -2.5 m | -18.5 m | 1.5 m | 310.0 k |
| Depreciation & amortisation | 2.7 m ≈ | 2.5 m | 2.3 m | 2.5 m ≈ | 3.2 m ≈ | 3.4 m | 3.4 m | 3.3 m ≈ |
| Interest expense | 157.0 k | 152.0 k | 147.0 k | 141.0 k | 136.0 k | 129.0 k | 111.0 k | 107.0 k |
| Pre-tax income | -28.0 m | -9.4 m | -8.6 m | -9.5 m | -2.1 m | -17.0 m | 2.0 m | 704.0 k |
| Income tax | 17.0 k | -25.0 k | -4.0 k | 46.0 k | 21.0 k | -726.0 k | 18.0 k | 44.0 k |
| Net income | -28.1 m | -9.3 m | -8.6 m | -9.5 m | -2.1 m | -16.3 m | 2.0 m | 660.0 k |
| Diluted EPS | -0.39 | -0.13 ≈ | -0.12 | -0.13 | -0.03 | -0.22 ≈ | 0.03 | 0.01 |
| Operating cash flow | -7.1 m ≈ | -10.5 m | 6.1 m | 7.0 m ≈ | 9.1 m ≈ | 8.0 m | 8.7 m | 8.8 m ≈ |
| Capex | 49.0 k ≈ | 1.9 m | 123.0 k | 134.0 k ≈ | 452.0 k ≈ | 30.0 k | 145.0 k | 246.0 k ≈ |
| Share repurchases | 0 ≈ | 0 | 0 | 4.0 m ≈ | 3.6 m ≈ | 6.0 m | 2.2 m | 4.7 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 138.0 m | 159.2 m | 179.9 m | 242.4 m | 216.9 m | 145.4 m | 108.3 m | 164.8 m |
| Revenue YoY | +28.1% | +15.4% | +13.0% | +34.7% | −10.5% | −33.0% | −25.5% | +52.2% |
| Net income | -1.6 m | -6.4 m | 1.7 m | -43.1 m | -53.4 m | -34.4 m | -52.5 m | -36.5 m |
| Net income YoY | unavailable | unavailable | unavailable | −2,656.8% | unavailable | unavailable | unavailable | unavailable |
| Diluted EPS | -0.04 | -0.17 | 0.04 | -0.65 | -0.79 | -0.50 | -0.73 | -0.50 |
| Diluted EPS YoY | unavailable | unavailable | unavailable | −1,725.0% | unavailable | unavailable | unavailable | unavailable |
| net % | -1.2% | -4.0% | 0.9% | -17.8% | -24.6% | -23.7% | -48.5% | -22.2% |
| Free cash flow | 3.8 m | 7.7 m | -2.9 m | 4.1 m | 15.5 m | 661.0 k | -28.2 m | 29.4 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 53.2 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 96.0 m USD
- Total assets
- 139.9 m USD
- Debt / equity
- unavailable
- Current ratio
- 2.57x
- ROE
- -32.8%
- ROA
- -24.5%
- FCF margin
- 17.9%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 179.9 m | 242.4 m | 216.9 m | 145.4 m | 108.3 m | 164.8 m | SEC (XBRL)· 16 Mar 2026verified |
| Cost of revenue | 117.5 m | 156.4 m | 137.8 m | 92.4 m | 73.8 m | 103.8 m | SEC (XBRL)· 16 Mar 2026verified |
| Gross profit | 62.4 m | 86.0 m | 79.0 m | 52.9 m | 34.4 m | 61.0 m | SEC (XBRL)· 16 Mar 2026verified |
| Research & development | 14.2 m | 19.1 m | 16.9 m | 11.8 m | 8.4 m | 7.1 m | SEC (XBRL)· 16 Mar 2026verified |
| SG&A | 62.1 m | 127.5 m | 132.9 m | 81.0 m | 75.5 m | 78.9 m | SEC (XBRL)· 16 Mar 2026verified |
| Operating income | 297.0 k | -41.5 m | -53.9 m | -40.3 m | -55.9 m | -39.9 m | SEC (XBRL)· 16 Mar 2026verified |
| Depreciation & amortisation | 5.4 m | 5.6 m | 5.9 m | 8.9 m | 11.9 m | 11.5 m | SEC (XBRL)· 16 Mar 2026verified |
| EBITDA | 5.7 m ≈ | -35.8 m ≈ | -48.0 m ≈ | -31.4 m ≈ | -44.0 m ≈ | -28.4 m ≈ | SEC (XBRL)· 16 Mar 2026derived |
| Interest expense | 7.3 m | 777.0 k | 874.0 k | 786.0 k | 644.0 k | 553.0 k | SEC (XBRL)· 16 Mar 2026verified |
| Pre-tax income | 6.8 m | -43.2 m | -53.4 m | -34.4 m | -52.5 m | -37.2 m | SEC (XBRL)· 16 Mar 2026verified |
| Income tax | -46.0 k | -28.0 k | 54.0 k | 36.0 k | 26.0 k | -663.0 k | SEC (XBRL)· 16 Mar 2026verified |
| Net income | 1.7 m | -43.1 m | -53.4 m | -34.4 m | -52.5 m | -36.5 m | SEC (XBRL)· 16 Mar 2026verified |
| Diluted EPS | 0.04 | -0.65 | -0.79 | -0.50 | -0.73 | -0.50 | SEC (XBRL)· 16 Mar 2026verified |
| Weighted average diluted shares | 42.9 m | 66.4 m | 67.6 m | 69.3 m | 71.9 m | 72.9 m | SEC (XBRL)· 16 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 106.0 m | 126.6 m | 119.3 m | 99.3 m | 54.6 m | 53.2 m | SEC (XBRL)· 16 Mar 2026verified |
| Receivables | 30.9 m | 59.8 m | 40.1 m | 30.4 m | 19.2 m | 17.0 m | SEC (XBRL)· 16 Mar 2026verified |
| Inventories | 3.3 m | 1.2 m | 2.9 m | 1.4 m | 1.8 m | 996.0 k | SEC (XBRL)· 16 Mar 2026verified |
| Current assets | 144.1 m | 191.7 m | 168.0 m | 140.0 m | 91.4 m | 94.4 m | SEC (XBRL)· 16 Mar 2026verified |
| Property, plant & equipment, net | 15.0 m | 6.1 m | 4.8 m | 3.5 m | 4.3 m | 3.1 m | SEC (XBRL)· 16 Mar 2026verified |
| Goodwill | 14.9 m | 17.9 m | 17.9 m | 17.9 m | 17.9 m | 3.0 m | SEC (XBRL)· 16 Mar 2026verified |
| Intangibles (excl. goodwill) | 7.4 m | 19.2 m | 37.4 m | 39.6 m | 30.4 m | 30.3 m | SEC (XBRL)· 16 Mar 2026verified |
| Total assets | 183.8 m | 246.1 m | 237.4 m | 208.7 m | 158.2 m | 139.9 m | SEC (XBRL)· 16 Mar 2026verified |
| Accounts payable | 14.7 m | 7.9 m | 12.6 m | 8.3 m | 1.2 m | 4.1 m | SEC (XBRL)· 16 Mar 2026verified |
| Current liabilities | 38.9 m | 50.9 m | 45.5 m | 39.2 m | 22.1 m | 36.8 m | SEC (XBRL)· 16 Mar 2026verified |
| Total liabilities | 56.7 m | 65.8 m | 65.0 m | 49.7 m | 31.1 m | 43.9 m | SEC (XBRL)· 16 Mar 2026verified |
| Equity | 127.1 m | 180.3 m | 172.4 m | 159.0 m † | 127.1 m † | 96.0 m † | SEC (XBRL)· 16 Mar 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | -2.1 m | 7.3 m | 16.5 m | 1.6 m | -25.9 m | 30.2 m | SEC (XBRL)· 16 Mar 2026verified |
| Capex | 780.0 k | 3.2 m | 1.0 m | 926.0 k | 2.3 m | 739.0 k | SEC (XBRL)· 16 Mar 2026verified |
| Free cash flow | -2.9 m ≈ | 4.1 m ≈ | 15.5 m ≈ | 661.0 k ≈ | -28.2 m ≈ | 29.4 m ≈ | SEC (XBRL)· 16 Mar 2026derived |
| Investing cash flow | -7.5 m | -19.1 m | -13.7 m | -15.5 m | -16.8 m | -8.9 m | SEC (XBRL)· 16 Mar 2026verified |
| Financing cash flow | 108.9 m | 32.3 m | -9.9 m | -6.2 m | -2.0 m | -22.7 m | SEC (XBRL)· 16 Mar 2026verified |
| Share repurchases | 0 | 1.3 m | 11.1 m | 139.0 k | 0 | 13.6 m | SEC (XBRL)· 16 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 378.2 m USD
Key indicators
Coverage and freshness
Score by group
77% · Insufficient data
Estimated value range
unavailable — no valuation method could be computed
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
- DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/Salesunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
no valuation method could be computed
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 36.6% | 0 (on a fixed band) | 14% |
| EBIT margin · Quality | -9.9% | 50 (vs peers) | 11% |
| FCF margin · Quality | 17.4% | 70 (on a fixed band) | 11% |
| Revenue CAGR 3Y · Growth | -8.7% | 0 (on a fixed band) | 22% |
| Revenue growth (YoY) · Growth | 52.2% | 86 (vs peers) | 11% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 2.4x | 93 (on a fixed band) | 8% |
| EV/Sales · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 8.9% | 100 (on a fixed band) | 17% |
| Shareholder yield (distributions) · Returns | 4.4% | 100 (on a fixed band) | 6% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial93/100 · 1/2 factors with a value
- Growth29/100 · 2/2 factors with a value
- Quality37/100 · 3/3 factors with a value
- Returns100/100 · 1/1 factors with a value
- Valuation· partial100/100 · 1/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
TELOS CORPORATION (TLS). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 164.8 m USD in 2025; YoY growth 52.2%; net margin -8.1%; ROE -14.9%.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Revenue growth (YoY): 52.2%
- Current ratio: 2.4x
- FCF yield: 8.9%
- Shareholder yield (distributions): 4.4%
What contradicts it
- Gross margin: 36.6%
- Revenue CAGR 3Y: -8.7%
Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA, EV/Sales.
Versus the vertical median
Services-Computer Integrated Systems Design (SIC 7373) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| LDOSLeidos Holdings, Inc. | 16.4 bn | 12.1 | 28.2% | 8.0% | +3.1% | −30% / +26% |
| GDDYGoDaddy Inc. | 14.3 bn | 16.2 | — | 18.6% | +8.3% | −7% / +18% |
| CACICACI International Inc | 14.0 bn | 25.9 | 12.5% | 5.5% | +10.9% | +2% / +97% |
| JKHYJack Henry & Associates, Inc. | 12.6 bn | 25.7 | 24.0% | 19.8% | +7.1% | +3% / +13% |
| IONQIonQ, Inc. | 11.3 bn | — | -60.8% | -553.3% | +201.9% | −40% / +142% |
| OTEXOpen Text Corp | 6.4 bn | 10.3 | 16.2% | 12.3% | +1.5% | −21% / −34% |
| SAICScience Applications International Corporation | 6.3 bn | 17.6 | 25.7% | 5.1% | −2.9% | +75% / +28% |
| WAYWaystar Holding Corp. | 5.7 bn | 42.9 | 3.7% | 10.7% | +16.5% | −20% / unavailable |
| KDKyndryl Holdings, Inc. | 3.7 bn | 46.2 | 7.6% | 0.6% | +0.2% | −35% / −7% |
| AGYSAgilysys, Inc. | 3.5 bn | 78.5 | 13.6% | 12.9% | +15.9% | −0% / +42% |
| NTCTNetscout Systems Inc | 2.8 bn | 23.3 | 7.5% | 13.7% | +4.5% | +42% / +90% |
| AURAurora Innovation, Inc. | 2.6 bn | — | -45.7% | -13,328.6% | unavailable | −3% / +86% |
| PONYPony AI Inc. | 2.1 bn | — | -10.3% | -148.9% | +20.0% | −65% / unavailable |
| OSPNOneSpan Inc. | 872.9 m | 13.2 | 26.8% | 27.5% | +0.0% | +94% / +136% |
| TLSTelos Corporation | 378.2 m | — | -14.9% | -8.1% | +52.2% | −22% / +90% |
| SLPSimulations Plus, Inc. | 374.2 m | 46.7 | 6.2% | 9.9% | +13.1% | unavailable / unavailable |
| SMRTSmartrent, Inc. | 310.4 m | — | -8.4% | -13.0% | −12.9% | −6% / −48% |
| ASURAsure Software, Inc. | 293.6 m | — | -1.9% | — | +24.3% | +22% / +22% |
| VEEAVeea Inc. | 281.2 m | — | — | -2,491.9% | +56.6% | −55% / −98% |
| RBBNRibbon Communications Inc. | 275.9 m | 22.5 | 5.0% | 2.3% | +1.3% | −46% / −28% |
| KDKKodiak AI, Inc. | 220.7 m | — | — | -4,259.6% | −74.6% | −82% / unavailable |
| AIOSAIOS Tech Inc. | 138.9 m | — | -208.9% | -4,359.1% | −98.5% | −87% / −86% |
| MRLNMerlin, Inc. | 91.5 m | — | — | — | unavailable | −92% / unavailable |
| CSPICSP Inc | 75.4 m | — | -1.5% | -1.2% | +6.4% | −35% / −40% |
| HCTIHealthcare Triangle, Inc. | 69.2 m | — | -57.4% | -66.3% | +18.8% | −97% / −100% |
1- and 3-year price returns: for TLS from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Telos Corporation provides Xacta cyber governance, risk and compliance software, identity and biometric solutions, secure networks and TSA PreCheck enrollment for the U.S. federal government and commercial clients. The company reported revenue growth of 52.2% in fiscal 2025, with 91.0% of revenue coming from the federal government, so federal defense and security budgets remain central to its results.
SWOT
Strengths
- The company holds a strong position in cyber risk management through the Xacta platform and employs personnel with security clearances, which limits the number of competitors.
- Revenue and gross margin grew over the last year, and operating cash flow turned positive, indicating better operational efficiency.
- The identity and biometric portfolio is certified and operational across several federal agencies, which gives an advantage in repeatable contracts.
Weaknesses
- Heavy dependence on the U.S. federal government exposes the company to budget and policy changes in Washington.
- Concentration of revenue in a few large contracts means that delay or cancellation of a single program could have a significant effect on results.
- The company reported net losses in earlier years, and profitability in 2026 is still fragile and depends on keeping cost discipline.
Opportunities
- Priorities in cybersecurity, artificial intelligence and defense could create new contract opportunities for Xacta and identity solutions.
- A possible transfer of some government services to the private sector could benefit the company given its broad range of capabilities.
- Expansion into regulated commercial clients such as financial institutions could reduce reliance on government procurement.
Threats
- Cuts in federal spending and shifts in priorities could reduce contract volume or delay awards.
- Intense competition in public bidding and price pressure could compress margins over the long term.
- Cyberattacks on the company's own infrastructure could damage its reputation and create costs and legal liability.
Risks
- Dependence on the federal governmenthigh
Most revenue comes from federal contracts, which the government may modify, delay or cancel at any time, with effects on results.
- Budget uncertaintyhigh
Budgets that are not approved on time and periods of temporary funding can delay projects and reduce expected revenue.
- Customer concentrationmedium
A small number of large contracts make up an important part of future revenue, and a delay in one of them could affect profitability.
- Cybersecurity risksmedium
The company is a frequent target of attacks, and a breach could compromise sensitive data and lead to financial and reputational losses.
- Competition for skilled personnelmedium
A shortage of staff with security clearances could limit the ability to deliver contracts and to expand quickly.
Investment thesis
What would need to be true (bull case)
- If defense and cybersecurity budgets convert into contracts, growth in the Security Solutions segment could continue and the Xacta platform could become a reference product.
- Improving margins and cash flow point to greater operational discipline, which could support more consistent positive net results.
- Expansion in identity and biometric solutions could open new markets in both government and commercial segments.
What would break the thesis
- If federal budgets shrink or stall, new contracts could be postponed and revenue could fall quickly.
- Reliance on a small number of large contracts could make quarterly results volatile and hard to forecast.
- Profitability is not yet stable, and higher costs or stronger competition could erase recent margin gains.
What to watch
- Revenue and margin trend in the Security Solutions segmentQ3 2026
- Adoption and revenue from Xacta.ai and the Xacta platform2026
- Funded and unfunded backlog levels in the annual reportnext 10-K
- Federal funding for defense and cybersecurity after the 2027 budget2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Telos Corporation, headquartered in Ashburn, Virginia, supplies technology and services to security-conscious organizations. Its activity is split into two reportable segments: Security Solutions and Secure Networks. The Xacta platform, which automates cyber risk and compliance management, is its main product, and in fiscal 2025 the company launched Xacta.ai, an artificial intelligence capability.
Market context
The market Telos serves is fragmented, with no dominant player, and competitive bidding determines both new contracts and renewals. Federal defense and cybersecurity budgets provide a supportive backdrop, with the fiscal 2026 defense appropriations bill providing 838.7 billion USD in discretionary funding. Budget delays and political uncertainty, however, can lengthen sales cycles.
Trends
- Rising demand for defense cybersecuritytailwind
The NDAA authorization for Department of War cyber activities suggests sustained demand for risk and compliance management, an area where Xacta is positioned. If the funding converts into contracts, growth in the Security Solutions segment could continue.
- Adoption of artificial intelligence in federal agenciesmixed
Budget priorities for AI and automation may favor products such as Xacta.ai, which shorten compliance time. However, shifts in policy could change compliance requirements and call for additional investment.
- Budget uncertainty and government shutdownsheadwind
Delays in passing annual budgets and federal spending reductions can postpone contract awards and reduce their value. The company cited spending reductions, personnel changes and partial government shutdowns in 2026 as concerns.
- Pressure from trade and tariff policiesheadwind
Higher tariffs on imported IT equipment could raise procurement costs for the company and its customers. The effect on margins depends on whether those costs can be passed through in contracts.
Competitive position
Telos competes with large defense contractors offering overlapping capabilities and with smaller firms specialized in compliance, organizational messaging and information security. Competition for federal contracts is intense, and the requirement for security clearances can limit both the number of rivals and how quickly the company can scale.
- Large defense contractors
Companies named in the filing offer overlapping capabilities across several service areas and are an important competitor in federal bidding.
- Specialty compliance and risk firms
Smaller firms focused on risk and compliance management compete directly with the Xacta platform in cybersecurity.
- Organizational messaging providers
Specialists in organizational messaging compete with Telos AMHS for critical government communications.
- Information security consulting firms
Consulting firms in information security offer competing services for assessment, compliance and penetration testing.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report02 Nov 2026Departure or appointment of officers · Other events · Financial statements and exhibits
- Quarterly report10 Aug 2026
- Current report10 Aug 2026Results of operations · Financial statements and exhibits
- Current report28 May 2026Departure or appointment of officers
- Quarterly report11 May 2026
- Current report11 May 2026Results of operations · Financial statements and exhibits
- Current report07 May 2026Departure or appointment of officers · Shareholder vote · Financial statements and exhibits
- Current report29 Apr 2026Results of operations · Departure or appointment of officers
- Proxy statement27 Mar 2026
- Annual report16 Mar 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Telos Corporation · 16 Mar 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Telos Corporation · 10 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Telos Corporation · 10 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.