Telos Corporation

Telos Corporation

TLSยทNASDAQ

$4.37

-16%
TechnologyInformation Technology Services

Telos Corporation, together with its subsidiaries, provides information technology (IT) solutions and services worldwide. It provides Xacta, a premier platform for enterprise cyber risk management and security compliance automation solutions to large commercial and government enterprises; and Telos Ghost, a solution to eliminate cyber-attack surfaces by obfuscating and encrypting data, masking user identity and location, and hiding network resources, as well as provides security and privacy for intelligence gathering, cyber threat protection, securing critical infrastructure, and protecting communications and applications. The company also offers Telos Automated Message Handling System, a web-based organizational message distribution and management platform for mission-critical communications used by military field operatives; and Telos ID that provides identity trust and digital services through IDTrust360, an enterprise-class digital identity risk platform for extending cloud identity services for mobile and enterprise and custom digital identity services that reduces threats through the integration of advanced technologies that fuse biometrics, credentials, and other identity-centric data used for continuously monitor trust. In addition, it provides secure network services, including secure mobility solutions for business and government that enable remote work and minimize operational and security concern across and beyond the enterprises; and network management and defense services for operating, administrating, and defending complex enterprise networks and defensive cyber operations. It serves to the United States federal government, large commercial businesses, state and local governments, and international customers. The company was founded in 1968 and is headquartered in Ashburn, Virginia.

At a Glance

Live Snapshot
Market Cap$326.96M
EPS-0.5000
P/E Ratio-8.74
Earnings Date08/10/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

Medium confidence

Valuation multiple is compressed (P/E -8.7).

Valuation inputs: P/E -8.7, earnings yield N/A, momentum -16.0%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE -38.1%, ROIC -22.8%).

Profitability stack: net margin -22.2%, ROE -38.1%, ROIC -22.8%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile is elevated and scenario stress-testing is essential.

Risk factors: liabilities/assets +31.4%, momentum -16.0%, net margin -22.2%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Telos Corporation Market vs Earnings Trajectory

TLS ยท NASDAQ

Loading price and EPS data...

Telos Corporation

Telos Corporation Fair Value Envelope

TLS ยท NASDAQ

Our analysis suggests that TLS has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $4.37, this represents a potential HIDDEN relative to our calculated worth for Telos Corporation.

Intrinsic Value
Current Price: $4.37
3Y-37.0%
5Y-2016.0%
10Y+212.0%
3Y-24.0%
5Y-8.0%
10Y+22.0%
3Y-32.0%
5Y-2266.0%
10Y+409.0%
3Y+83.0%
5Y-1535.0%
10Y+118.0%
3Y+955.0%
5Y-408.0%
10Y+123.0%
3Y-41.0%
5Y-26.0%
10Y+146.0%
Telos Corporation

Telos Corporation Profit Bridge

TLS ยท NASDAQ
Revenue164.81M
Cost of Goods Sold (103.79M)
Gross Profit61.02M
Operating Expenses (85.53M)
Operating Income-24.47M
Interest Expense (553.00K)
Other Income/Expense-12.74M
Pretax Income-37.21M
Income Tax (-663.00K)
Net Income-36.55M
Net Income
-36.55M

Profitability Analysis

Gross Margin

37.0%

Strong gross margins indicate healthy pricing and efficient production or service delivery.

Operating Margin

-14.8%

Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.

Net Profit Margin

-22.2%

Net losses indicate the company is burning cash. Sustainability depends on path to profitability.

Profitability Insight

Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.

37.02%
Gross Profit Margin
16%
3Y+2.0%
5Y+7.0%
10Y+15.0%
-14.85%
Operating Profit Margin
-71%
3Y-40.0%
5Y-9094.0%
10Y-1048.0%
-22.18%
Net Profit Margin
-54%
3Y-10.0%
5Y-2465.0%
10Y+317.0%
-38.09%
Return on Equity
-8%
3Y+23.0%
5Y-2970.0%
10Y-802.0%
-26.13%
Return on Assets
-21%
3Y+16.0%
5Y-3020.0%
10Y+107.0%
-22.82%
Return on Invested Capital
-44%
3Y-17.0%
5Y-11741.0%
10Y-366.0%
TLS

Telos Corporation Cash Conversion Engine

TLS ยท NASDAQ
Net Income-36.55M
Depreciation & Amortization11.45M
Stock-Based Compensation30.15M
Change in Working Capital11.22M
Others14.67M
Capital Expenditures-739.00K
Free Cash Flow29.44M

Cash Flow Quality Analysis

FCF Conversion Rate

-80.6%

Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.

CapEx Intensity

2.4%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

+204.4%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

+$11.22M

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

tls

Telos Corporation Funding & Solvency Profile

TLS ยท NASDAQ
Cash & Cash Equivalents50.23M
Net Receivables16.43M
Inventory0.00
Other Current Assets28.97M
Total Current Assets96 M
Property, Plant & Equipment7.17M
Goodwill & Intangible Assets32.81M
Long-Term Investments0.00
Other Non-Current Assets4.29M
Total Non-Current Assets11 M
Total Assets
139.90M

Financial Health Analysis

Current Ratio

2.59x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

0.45x

Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.

Working Capital

59 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

68% Current

Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.

Financial Health Insight

Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.

tls

Telos Corporation Street Expectations Map

TLS ยท NASDAQ

Wall Street analysts project that TLS stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 5.50, with estimates ranging from a low of 3.00 to a high of 10.00.

Lowest Target
3.00
-31.35%
Consensus Target
5.50
25.86%
Highest Target
10.00
128.83%

The consensus 1-year price target stands at 5.50, with estimates ranging from a low of 3.00 to a high of 10.00.

Analyst Consensus Analysis

Upside Potential

+25.9%

Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.

Analyst Agreement

127.3% spread

High uncertainty. Very wide target spread indicates significant disagreement among analystsโ€”major valuation uncertainty or transformation underway.

Risk-Reward Profile

4.11x

Favorable risk-reward. Potential upside significantly exceeds downside risk, offering asymmetric return profile attractive for risk-tolerant investors.

Analyst Conviction

Low

High uncertainty: Wide dispersion indicates analysts struggle to agree on valuationโ€”proceed with caution and independent analysis.

Market Sentiment Insight

High risk, high reward: Substantial upside potential exists, but wide analyst disagreement signals execution risk or unclear catalysts. Thorough due diligence essential before committing capital.

tls

Telos Corporation Insider Positioning

TLS ยท NASDAQ

During the last 12 months, insiders have purchased $3.97M and sold $8.92M worth of TLS shares, resulting in $4.95M of net selling activity.

3 Months

Bought

0

0.00

Sold

131.7K

538.05K

Net Activity

-538K

-$538K

3-6 Months

Bought

0

0.00

Sold

264.6K

1.63M

Net Activity

-1.6M

-$1.63M

6-9 Months

Bought

660.9K

3.97M

Sold

930.2K

5.66M

Net Activity

-1.7M

-$1.70M

9-12 Months

Bought

0

0.00

Sold

174.7K

1.08M

Net Activity

-1.1M

-$1.08M

Top Buyers

1
WJB

Wood John B

Director, Officer: Chairman And Ceo

660.9K sharesโ€ข1 transactions

$3.97M

Top Sellers

1
SF

Schaufeld Fredrick

Director

590.3K sharesโ€ข6 transactions

$3.68M

2
WJB

Wood John B

Director, Officer: Chairman And Ceo

474.7K sharesโ€ข3 transactions

$2.76M

3
BGM

Bendza Gary Mark

Officer: Evp, Cfo

300.0K sharesโ€ข2 transactions

$1.91M

4
REHJ

Robbins Edward Hutchinson Jr.

Officer: Evp, General Counsel

101.6K sharesโ€ข2 transactions

$408K

5
DDD

Dockery Derrick D.

Director

34.6K sharesโ€ข4 transactions

$161K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Negative insider sentiment with $4.95M net selling. Selling notably exceeds buying, warranting closer scrutiny of company fundamentals.

Buy/Sell Ratio

0.44:1

Weak buy/sell ratio. Selling significantly exceeds buyingโ€”monitor for potential fundamental concerns.

Recent Trend (3 Months)

$538K

Heavy recent selling activity. Recent insider sales notably exceed purchasesโ€”may warrant investigation into company developments.

Insider Participation

High Selling

5 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.

Insider Activity Insight

Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.

0.00%
Dividend Yield
3Y-
5Y-
10Y-
ย 

tls Dividend History

TLS
10Y CAGR +0%
Latest $0
Annual $0
Stable dividend payments
Last Period: +0%