(TLS) Telos - Overview
Sector: Technology | Industry: Software - Infrastructure | Exchange: NASDAQ (USA) | Market Cap: 347m USD | Total Return: 90.1% in 12m
Avg Turnover: 3.04M
Qual. Beats: 0
Rev. Trend: -5.7%
Qual. Beats: 0
Warnings
High Debt/EBITDA (25.9) with thin interest coverage (-27.1)
Interest Coverage Ratio -27.1 is critical
Altman Z'' -15.00 < 1.0 - financial distress zone
Choppy
Tailwinds
No distinct edge detected
Telos Corporation (TLS) specializes in cybersecurity, cloud security, and enterprise solutions for government and commercial sectors. The company operates through two primary segments: Security Solutions and Secure Networks. Its portfolio includes the Xacta platform for automated cyber risk management, identity verification services such as TSA PreCheck enrollment, and mission-critical communication systems for military operations.
As a provider in the systems software industry, Telos utilizes a business model heavily weighted toward federal government contracts and regulated industries that require high-level security clearances and compliance certifications. The company’s focus on identity management and biometric authentication, including its proprietary touchless fingerprint technology, addresses a growing demand for secure, remote access in hybrid work environments.
You can find more detailed financial metrics and historical performance data on ValueRay.
Founded in 1968 and headquartered in Ashburn, Virginia, Telos maintains a global footprint by offering network defense, digital forensics, and penetration testing services. Its integration of artificial intelligence through Xacta.ai aims to streamline governance, risk, and compliance (GRC) processes for complex enterprise infrastructures.
- Growth in TSA PreCheck enrollment services drives recurring identity solutions revenue
- Federal contract awards for Xacta platform influence long-term security software margins
- Expansion of touchless biometric technology adoption increases commercial market penetration
- Security Solutions segment performance depends on government defense and intelligence spending
- Backlog execution efficiency impacts quarterly revenue recognition and operating cash flow
| Net Income: -25.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.20 > 0.02 and ΔFCF/TA 37.07 > 1.0 |
| NWC/Revenue: 32.23% < 20% (prev 64.62%; Δ -32.39% < -1%) |
| CFO/TA 0.23 > 3% & CFO 32.7m > Net Income -25.9m |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 2.59 > 1.5 & < 3 |
| Outstanding Shares: last quarter (77.6m) vs 12m ago 6.74% < -2% |
| Gross Margin: 36.48% > 18% (prev 0.37%; Δ 3.61k% > 0.5%) |
| Asset Turnover: 122.1% > 50% (prev 69.13%; Δ 52.99% > 0%) |
| Interest Coverage Ratio: -27.07 > 6 (EBITDA TTM -1.45m / Interest Expense TTM 517k) |
| A: 0.42 (Total Current Assets 95.6m - Total Current Liabilities 37.0m) / Total Assets 139.9m |
| B: -2.59 (Retained Earnings -361.9m / Total Assets 139.9m) |
| C: -0.09 (EBIT TTM -14.0m / Avg Total Assets 149.0m) |
| D: -8.34 (Book Value of Equity -361.9m / Total Liabilities 43.4m) |
| Altman-Z'' = -15.08 = D |
| DSRI: 0.53 (Receivables 16.4m/18.8m, Revenue 181.9m/109.3m) |
| GMI: 1.02 (GM 36.48% / 37.12%) |
| AQI: 0.77 (AQ_t 0.27 / AQ_t-1 0.34) |
| SGI: 1.66 (Revenue 181.9m / 109.3m) |
| TATA: -0.42 (NI -25.9m - CFO 32.7m) / TA 139.9m) |
| Beneish M = -3.49 (Cap -4..+1) = AA |
As of May 30, 2026, the stock is trading at USD 4.79 with a total of 1,899,482 shares traded.
Over the past week, the price has changed by +1.91%,
over one month by +9.61%,
over three months by +19.15% and
over the past year by +90.08%.
Telos has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy TLS.
- StrongBuy: 2
- Buy: 0
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 7 | 46.1% |
P/S = 1.9082
P/B = 3.5886
Revenue TTM = 181.9m USD
EBIT TTM = -14.0m USD
EBITDA TTM = -1.45m USD
Long Term Debt = unknown (none)
Short Term Debt = 2.27m USD (from shortTermDebt, last fiscal year)
Debt = 12.7m USD (from shortLongTermDebtTotal, last quarter) + Leases 7.53m
Net Debt = -37.5m USD (calculated: Debt 12.7m - CCE 50.2m)
Enterprise Value = 309.7m USD (347.2m + Debt 12.7m - CCE 50.2m)
Interest Coverage Ratio = -27.07 (Ebit TTM -14.0m / Interest Expense TTM 517k)
EV/FCF = 11.17x (Enterprise Value 309.7m / FCF TTM 27.7m)
FCF Yield = 8.95% (FCF TTM 27.7m / Enterprise Value 309.7m)
FCF Margin = 15.24% (FCF TTM 27.7m / Revenue TTM 181.9m)
Net Margin = -14.25% (Net Income TTM -25.9m / Revenue TTM 181.9m)
Gross Margin = 36.48% ((Revenue TTM 181.9m - Cost of Revenue TTM 115.6m) / Revenue TTM)
Gross Margin QoQ = 36.39% (prev 35.78%)
Tobins Q-Ratio = 2.21 (Enterprise Value 309.7m / Total Assets 139.9m)
Interest Expense / Debt = 4.06% (Interest Expense 517k / Debt 12.7m)
Taxrate = 0.88% (18.0k / 2.04m)
NOPAT = -13.9m (EBIT -14.0m * (1 - 0.88%)) [loss with tax shield]
Current Ratio = 2.59 (Total Current Assets 95.6m / Total Current Liabilities 37.0m)
Debt / Equity = 0.13 (Debt 12.7m / totalStockholderEquity, last quarter 96.5m)
Debt / EBITDA = 25.86 (negative EBITDA) (Net Debt -37.5m / EBITDA -1.45m)
Debt / FCF = -1.35 (Net Debt -37.5m / FCF TTM 27.7m)
Total Stockholder Equity = 107.6m (last 4 quarters mean from totalStockholderEquity)
RoA = -17.40% (Net Income -25.9m / Total Assets 139.9m)
RoE = -5.52% (Net Income TTM -25.9m / Total Stockholder Equity 469.5m)
RoCE = -13.60% (EBIT -14.0m / Capital Employed (Total Assets 139.9m - Current Liab 37.0m))
RoIC = -25.24% (negative operating profit) (NOPAT -13.9m / Invested Capital 54.9m)
WACC = 11.51% (E(347.2m)/V(359.9m) * Re(11.78%) + D(12.7m)/V(359.9m) * Rd(4.06%) * (1-Tc(0.01)))
Discount Rate = 11.78% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 91.11 | Cagr: 4.81%
[DCF] Terminal Value 65.22% ; FCFF base≈27.7m ; Y1≈27.8m ; Y5≈29.5m
[DCF] Fair Price = 4.49 (EV 298.5m - Net Debt -37.5m = Equity 336.0m / Shares 74.8m; r=11.51% [WACC]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.64 | # QB: 0
Revenue Correlation: -5.68 | Revenue CAGR: -1.11% | SUE: 0.70 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.02 | Chg30d=N/A | Revisions=+33% | Analysts=3
EPS next Quarter (2026-09-30): EPS=0.03 | Chg30d=-33.40% | Revisions=-33% | Analysts=3
EPS current Year (2026-12-31): EPS=0.13 | Chg30d=+4.08% | Revisions=+20% | GrowthEPS=+41.7% | GrowthRev=+17.9%
EPS next Year (2027-12-31): EPS=0.27 | Chg30d=+4.90% | Revisions=+33% | GrowthEPS=+109.8% | GrowthRev=+14.9%
[Analyst] Revisions Ratio: +33%