TLS
Telos Corporation

Telos CorporationTLS

Technology · Software - Infrastructure
4.82USD
+0.84%
Nov 08, 2026
TLS overview ready
Automated Cyber Risk Management and Compliance Platform for Regulated Customers
Telos is a cyber governance, risk, and compliance automation vendor and federal-security services provider.
Primary theme is weakening
Cybersecurity is weakening (-3.1pp vs SPY over 21 sessions; 8 of 20 members ahead of SPY).
Constructive pullback in an uptrend
Longer-term context reads early trend, with a near-term setup of constructive pullback.
Fair valuation
The price broadly reflects the cash the business actually produces, with upside and risk reasonably balanced.
Solid fundamentals
Free cash flow yield is strong.
Primary risk
Dependence on government and regulated sector spending.
Market Nov 6Filing Jun 30Price action Nov 7Research Jul 21

Conviction Level

PriceAction9.4BusinessPerformance5.0BusinessQuality4.1Valuation3.5ThemeMomentum3.0Mixed — Revenue is still growing (+33% YoY), but growth has slowed for 3 consecutive quarters, down from +116%. Earnings turned positive: diluted EPS of $0.01 against a loss of -$0.13 a year earlier. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
CybersecurityWeakening
vs SPY
−3.1pp
Theme return
−8.1%
Beating SPY
8 of 20
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Constructive pullback in an uptrend
Longer-term context reads early trend, with a near-term setup of constructive pullback.
EntryBreakout + retest

Price broke through the weekly SMA200, then retested it constructively and recovered — a fresh structural entry rather than a chase.

Key Financials

Market Cap
$360.2M
Avg Volume (60D)
766.1K
60 sessions
Revenue Growth YoY
+52.2%
FY2025 vs FY2024
Gross Margin
+36.6%
Trailing twelve months
Operating Margin
-9.9%
Trailing twelve months
Free Cash Flow Yield
+9.4%
Distance from 200DMA
+6.9%
Next Earnings
2026-11-09
P/E
N/M
Market metrics as of Nov 6, 2026
Financial results for the period ended Jun 30, 2026
Filed balance-sheet data as of Jun 30, 2026

Business Performance

Mixed

Revenue is still growing (+33% YoY), but growth has slowed for 3 consecutive quarters, down from +116%. Earnings turned positive: diluted EPS of $0.01 against a loss of -$0.13 a year earlier.

Latest reported: Q2 FY2026, ended Jun 30
Revenue growthSlowing
+33%
$47.7M in Q2 FY2026 · YoY
YoY growth, last 4 quarters
  1. +116%
  2. +77%
  3. +56%
  4. +33%
Earnings growthTurned profitable
$0.01
Diluted EPS $0.01 vs -$0.13 a year earlier · GAAP
Too few comparable EPS quarters: a loss or a turn to profit has no meaningful percentage.
Operating marginExpanding
0.7%
+28.1 pp YoY · gross margin 35.0% (+1.8 pp)
The share count is rising

Business Quality

4.1 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

All three valuation perspectives agree this company is cheap. The published stance is held at fair because operating losses behind the low multiple.
Telos Corporation has a Fair valuation stance because the price broadly reflects the cash the business actually produces, with upside and risk reasonably balanced.

Company Research

Thesis
Telos is a cyber governance, risk, and compliance automation vendor and federal-security services provider.
Opportunity
Moderate opportunity
Enterprise and government spending to continuously identify, assess, authorize, and reduce cyber exposure across cloud, hybrid, and mission-critical systems.
Key risk
Dependence on government and regulated sector spending.

Economic classification

Loading the economic classification…

Business & Markets

Technology · Software - Infrastructure
What they do

Telos Corporation provides cyber, cloud, and enterprise security solutions primarily through two segments: Security Solutions and Secure Networks, serving both U.S. International customers.

How it earns

The company generates revenue mainly through subscription-based software licenses and project-based consulting services.

Products & services
Xacta automated cyber risk management platform
Xacta.ai artificial intelligence capability
Risk management framework consulting services
Identity and secure messaging solutions
Secure network offerings
Customers & end markets
Enterprise customers
Government and federal agencies
Market position

Niche provider specializing in cyber governance, risk, and compliance automation with a focus on regulated customers and federal security services.

Demand drivers
Low cyclicality

Driven by ongoing regulatory and security compliance needs that create steady demand.