Telos Corp

Telos Corp has a market capitalization of $331.5 million and a price-to-book ratio of 2.15, indicating a premium valuation relative to its book value. The company holds $93.9 million in cash and equivalents, which is significantly higher than its $40.9 million in total liabilities, resulting in a current ratio of 4.05 and suggesting strong liquidity. However, the company reported negative operating cash flow of $350,000 and free cash flow of -$7.55 million, indicating cash flow challenges despite its strong cash position.

Profitability metrics show a mixed picture. Telos reported a net loss of $7.38 million and an operating loss of $8.44 million, with a return on equity of -4.78% and a return on assets of -3.78%, both significantly below the industry median for integrated hardware and software firms. Gross profit of $10.96 million on $29.62 million in revenue yields a gross margin of 37.0%, which is in line with the industry average but does not offset the operating and net losses.

The company's revenue is concentrated in a single business segment focused on secure communications and information systems, with no disclosed geographic diversification. This concentration increases exposure to sector-specific risks and potential client concentration. No material geographic revenue breakdown is available in the latest financials.

Telos has a negative growth trajectory, with a net loss of $7.38 million and an operating loss of $8.44 million in the latest period. Analysts have provided a mean price target of $7.00 and a median of $8.00, suggesting potential upside from the current market price of $4.23. However, the company's free cash flow of -$7.55 million and negative operating cash flow indicate ongoing financial stress that could limit growth initiatives.

Risk factors include the company's negative operating and net income, which could pressure liquidity and necessitate additional financing. The debt-to-equity ratio of 0.07 is low, but the negative free cash flow and operating cash flow could increase leverage if the company needs to borrow to fund operations. No immediate dilution or liquidity flags were detected in the latest filings, but the company's cash position may not be sufficient to cover long-term obligations without generating positive cash flow.

Recent events include the release of the latest financial snapshot, which shows continued losses and cash flow challenges. Analysts have provided a range of price targets from $4.00 to $9.00, with a mean of $7.00 and a median of $8.00, indicating a generally positive outlook despite the company's current financial performance.

Telos Corporation (TLS.O) has seen a wave of new institutional interest, marked by several notable additions to its shareholder base. The most significant recent entry occurred as of June 30, 2024, when an investor acquired 3,674,231 shares, representing a position value of approximately $14.77 million. This substantial accumulation stands out as the largest single addition among the recent signals, indicating a strong vote of confidence from at least one major stakeholder during the second quarter of 2024. In addition to this large position, multiple other investors initiated new holdings in the company as of March 31, 2026. These additions include purchases ranging from 80,902 shares to 1,293,134 shares, with the latter representing a value of roughly $5.42 million. Other notable entries during this period included positions valued between $0.92 million and $4.38 million, suggesting a broadening of the investor base rather than isolated interest. These changes are particularly relevant given that this is the first analysis for Telos Corporation, meaning there is no prior basis for computing deltas in shareholder activity. The company currently has 26 top holders, but lacks coverage from analysts or inclusion in major indices, as indicated by zero counts for both analyst coverage and index membership. The absence of officer count data further limits the context for internal governance changes, placing greater emphasis on external capital flows. The influx of new holders, particularly the large $14.77 million position, may signal growing recognition of Telos Corporation’s market position despite its lack of analyst coverage. With no prior shareholder data to compare against, these initial entries establish a baseline for future monitoring. Investors and observers will likely watch to see if these new positions are maintained or expanded in subsequent reporting periods, which could provide further insight into the company’s trajectory.

Analysts project 61.7% upside to a mean price target of $7.00, reflecting a consensus buy recommendation.

Long-term debt decreased to $7.6 million, supporting a low leverage band and reduced financial risk.

Dilution and liquidity risks are rated low, suggesting stable capital structure and adequate short-term resources.

Operating and net margins rank in the bottom quartile of the Integrated Hardware & Software cohort.

The company faces high credit risk, signaling potential difficulties in meeting financial obligations or securing financing.

Revenue declined at a 9.2% CAGR over four years, indicating a long-term downward trend despite recent growth.

Net income losses widened to -$52.5 million in FY2025, highlighting persistent profitability challenges.

Revenue $46.8M, +77,4% YoY; Operating income −86,4% YoY.

• ▍Revenue $46.8M, +77,4% YoY
• ▍Operating income −86,4% YoY
• ▍Net income −74,8% YoY
• ▍Free cash flow −31,4% YoY
• ▍Net margin -34.9%

Revenue $51.4M, +116,3% YoY; Operating income +91,5% YoY.

• ▍Revenue $51.4M, +116,3% YoY
• ▍Operating income +91,5% YoY
• ▍Net income +92,5% YoY
• ▍Free cash flow +94,7% YoY
• ▍Net margin -4.1%

Revenue $36.0M, +26,2% YoY; Operating income −14,3% YoY.

• ▍Revenue $36.0M, +26,2% YoY
• ▍Operating income −14,3% YoY
• ▍Net income −22,7% YoY
• ▍Free cash flow −22,5% YoY
• ▍Net margin -26.5%

Revenue $30.6M, +3,4% YoY; Operating income −6,9% YoY.

• ▍Revenue $30.6M, +3,4% YoY
• ▍Operating income −6,9% YoY
• ▍Net income −16,6% YoY
• ▍Free cash flow −14,0% YoY
• ▍Net margin -28.1%

Revenue $26.4M; Operating income -$9.9M.

• ▍Revenue $26.4M
• ▍Operating income -$9.9M
• ▍Net margin -35.4%

Revenue $23.8M; Operating income -$28.9M.

• ▍Revenue $23.8M
• ▍Operating income -$28.9M
• ▍Net margin -118.0%

Revenue $28.5M; Operating income -$8.6M.

• ▍Revenue $28.5M
• ▍Operating income -$8.6M
• ▍Net margin -27.2%

Revenue $29.6M; Operating income -$8.4M.

• ▍Revenue $29.6M
• ▍Operating income -$8.4M
• ▍Net margin -24.9%

Revenue $164.8M, +52,2% YoY; Operating income +28,6% YoY.

• ▍Revenue $164.8M, +52,2% YoY
• ▍Operating income +28,6% YoY
• ▍Net income +30,4% YoY
• ▍Free cash flow +37,5% YoY
• ▍Net margin -22.2%

Revenue $108.3M, −25,5% YoY; Operating income −33,9% YoY.

• ▍Revenue $108.3M, −25,5% YoY
• ▍Operating income −33,9% YoY
• ▍Net income −52,6% YoY
• ▍Free cash flow −34,4% YoY
• ▍Net margin -48.5%

Revenue $145.4M, −33,0% YoY; Operating income +22,5% YoY.

• ▍Revenue $145.4M, −33,0% YoY
• ▍Operating income +22,5% YoY
• ▍Net income +35,6% YoY
• ▍Free cash flow +33,9% YoY
• ▍Net margin -23.7%

Revenue $216.9M, −10,5% YoY; Operating income −29,9% YoY.

• ▍Revenue $216.9M, −10,5% YoY
• ▍Operating income −29,9% YoY
• ▍Net income −23,9% YoY
• ▍Free cash flow −20,9% YoY
• ▍Net margin -24.6%