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Telos Corporation

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Telos Corporation • NASDAQ
$5.78 ▲ 0.52% (+0.03)
Market Cap $420.26 M
52w High $8.36
52w Low $1.83
Dividend Yield 0%
P/E -14.1
Volume 219.69K
Outstanding Shares 72.71M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $51.444M ▲ $23.014M ▲ $-2.114M ▲ -4.109% ▲ $-0.03 ▲ $-652K ▲
Q2-2025 $35.968M ▲ $21.815M ▲ $-9.517M ▼ -26.46% ▲ $-0.13 ▼ $-6.821M ▼
Q1-2025 $30.616M ▲ $21.204M ▲ $-8.604M ▲ -28.103% ▲ $-0.12 ▲ $-6.125M ▲
Q4-2024 $26.372M ▲ $20.545M ▼ $-9.33M ▲ -35.378% ▲ $-0.13 ▲ $-6.704M ▲
Q3-2024 $23.783M $24.931M $-28.055M -117.962% $-0.39 $-25.133M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $59.05M ▲ $164.281M ▼ $44.606M ▼ $119.675M ▲
Q2-2025 $56.998M ▼ $165.042M ▲ $46.629M ▲ $118.413M ▼
Q1-2025 $57.791M ▲ $158.061M ▼ $31.947M ▲ $126.114M ▼
Q4-2024 $54.578M ▼ $158.235M ▼ $31.098M ▼ $127.137M ▼
Q3-2024 $69.762M $166.329M $36.846M $129.483M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-2.114M ▲ $9.146M ▲ $-2.547M ▼ $-4.546M ▲ $2.053M ▲ $6.599M ▼
Q2-2025 $-9.517M ▼ $6.95M ▲ $-2.321M ▲ $-5.422M ▼ $-793K ▼ $6.816M ▲
Q1-2025 $-8.604M ▲ $6.106M ▲ $-2.337M ▲ $-556K ▼ $3.213M ▲ $5.983M ▲
Q4-2024 $-9.33M ▲ $-10.518M ▼ $-4.272M ▼ $-393K ▲ $-15.183M ▼ $-14.79M ▼
Q3-2024 $-28.055M $-7.08M $-2.838M $-423K $-10.342M $-7.129M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Product
Product
 $0 ▲$0 ▲$10.00M ▲$10.00M ▲
Service
Service
 $50.00M ▲$30.00M ▼$30.00M ▲$40.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has been shrinking over the last few years after an initial post-IPO lift, which suggests the company is still searching for steady, scalable growth. The business generates a positive gross profit, so its core services appear to have economic value, but overhead and other operating costs more than absorb that, leaving the company consistently in the red. Profitability has been negative for several years in a row at the operating and net income level, which points to a business model that has not yet been right-sized to current revenue. Overall, the income statement shows a company with promising technology and customers but without a proven, sustainable profit engine yet.

Balance Sheet

Balance Sheet The balance sheet looks relatively clean but under some pressure. The company still holds a meaningful cash cushion and only modest financial debt, so leverage risk appears low and Telos is not heavily reliant on borrowing. Equity is clearly positive, but it has been gradually eroded by repeated losses, which slowly chips away at the financial buffer for shareholders. Total assets and cash have been trending down from earlier peaks, a sign that the company has been drawing on its past financial strength to support operations. In short, the balance sheet is not weak in a structural sense, but it is slowly being worn down by ongoing unprofitability.

Cash Flow

Cash Flow Cash generation has been patchy and fragile. Operating cash flow hovered around breakeven for several years and has recently slipped into negative territory again, which means the business is not consistently funding itself from day-to-day activities. Free cash flow has generally been slightly negative, with only brief periods near breakeven, reflecting modest investment needs but still not enough incoming cash to fully cover them. Capital spending is disciplined and not excessive, which limits cash burn, but the lack of strong, self-sustaining cash flow is a key operational risk. Overall, Telos is managing its cash carefully but remains dependent on its existing cash reserves and future improvements in contracts and margins.

Competitive Edge

Competitive Edge Telos operates in a specialized corner of cybersecurity and IT services, with a heavy focus on U.S. federal government and defense clients. Its long history, deep relationships, and familiarity with complex security and compliance rules create meaningful barriers for new entrants. The company’s tools are designed specifically for high-assurance, government-grade environments, giving it an edge over more generic commercial solutions. On the other hand, it competes against both large defense contractors and well-funded cybersecurity firms, and it depends heavily on winning and renewing big government contracts. This makes its competitive position defensible but also highly sensitive to procurement cycles, budget shifts, and a small number of key customers.

Innovation and R&D

Innovation and R&D Innovation is a core strength. Telos has built proprietary platforms around three major themes: automated security compliance (Xacta, now enhanced with AI via Xacta.ai), secure and anonymous network operations (Telos Ghost), and high-assurance digital identity and biometrics (IDTrust360, bolstered by the Diamond Fortress acquisition). These offerings address complex, high-stakes use cases where accuracy, security, and regulatory alignment matter more than volume alone. The company is also leaning into government identity programs such as TSA PreCheck enrollment, which could open more recurring, service-based revenue streams if scaled well. Future performance will depend on how effectively Telos can commercialize its AI features, win new identity and compliance contracts, and selectively acquire or develop new technologies without overstretching its resources.

Summary

Telos blends strong technical capabilities and deep government relationships with a financial profile that is still unproven. The story is one of high strategic value but weak and declining profitability. Its balance sheet provides some breathing room, and low debt reduces immediate financial strain, but continued operating losses and inconsistent cash flow are steadily eating into that cushion. Competitively, Telos benefits from specialization, regulatory know-how, and sticky, mission-critical solutions, yet it is exposed to concentration in government spending and intense competition from much larger players. The key swing factors going forward are its ability to reignite revenue growth, convert its innovation pipeline—especially AI-driven compliance tools and identity services—into recurring, profitable contracts, and keep costs aligned with a more realistic scale of business. Until those pieces line up, the company remains strategically interesting but financially fragile.

NEWS

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November 10, 2025 · 9:02 AM UTC

Telos Corporation Announces Third Quarter 2025 Earnings

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November 3, 2025 · 10:02 AM UTC

Telos Corporation to Participate in Upcoming Investor Conferences

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October 27, 2025 · 8:30 AM UTC

Telos Corporation to Announce Third Quarter 2025 Financial Results on November 10, 2025

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October 15, 2025 · 9:30 AM UTC

Telos Corporation, an Official TSA PreCheck® Enrollment Provider, Expands Enrollment and Renewal Options by Opening New Locations

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