Telos (NASDAQ:TLS) Issues Earnings Results

Telos (NASDAQ:TLS) announced its quarterly earnings results on Monday. The company reported $0.09 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.04 by $0.05, FiscalAI reports. Telos had a negative net margin of 4.66% and a positive return on equity of 4.16%. The business had revenue of $55.20 million for the quarter, compared to analyst estimates of $50.11 million.

Here are the key takeaways from Telos’ conference call:

• Third-quarter results beat expectations: Revenue rose 7% year over year to $55.2 million, while adjusted EBITDA reached $10.6 million, its highest quarterly level since Telos’s 2020 IPO. The company also generated $7.4 million in free cash flow and repurchased $5.7 million of shares.
• Telos raised its 2026 outlook, forecasting revenue of $198.2 million–$200.7 million and adjusted EBITDA of $32.3 million–$34.1 million, citing stronger Information Assurance business and TSA PreCheck volumes, favorable program margins, and revenue mix.
• Management said $58 million in net-new Xacta and professional-services bookings are recurring in nature, with about $6 million of revenue expected in 2026 and $20 million in 2027. Executives described the broader Xacta pipeline as robust, with additional opportunities still possible.
• The planned phase-out of low-margin third-party software resale is expected to create a roughly $32 million revenue headwind in 2027, though management said the profit impact should be modest. Telos believes Xacta growth and other opportunities could offset the drag; it also expects margin benefits from the phase-out and TSA PreCheck contract renewal.

Telos Trading Up 7.0%

NASDAQ:TLS opened at $7.67 on Wednesday. The company has a 50-day moving average price of $4.65 and a 200-day moving average price of $4.54. Telos has a 12 month low of $3.79 and a 12 month high of $8.30. The company has a current ratio of 2.38, a quick ratio of 2.26 and a debt-to-equity ratio of 0.05. The stock has a market cap of $573.26 million, a price-to-earnings ratio of -63.92 and a beta of 0.98.

Trending Headlines about Telos

Here are the key news stories impacting Telos this week:

• Positive Sentiment: Telos reported Q3 adjusted earnings of $0.09 per share, above the $0.04 consensus, and revenue of $55.2 million versus expectations of $50.11 million. The earnings coverage cited strength in identity services and an expansion of the Xacta offering. Q3 earnings beat and guidance raised
• Positive Sentiment: Management raised its full-year 2026 revenue outlook to $198.2 million–$200.7 million, above the $191.3 million consensus, and forecast Q4 revenue of $47.5 million–$50.0 million, versus $45.5 million expected. New cybersecurity contracts and plans to exit low-margin resale activity may support growth and margins in 2027. Q3 call highlights
• Positive Sentiment: Needham raised its price target from $6 to $9 and kept a Buy rating; B. Riley raised its target from $9 to $11 and also rated the shares Buy. Needham rating B. Riley rating
• Neutral Sentiment: Wedbush raised its target from $5 to $7 but maintained a Neutral rating, signaling a more cautious view than the Buy-rated analysts. Wedbush rating
• Neutral Sentiment: A report lists short interest at zero shares, while also describing it as an increase; that inconsistency makes the short-interest figure difficult to interpret.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on TLS shares. Wall Street Zen lowered shares of Telos from a “buy” rating to a “hold” rating in a report on Saturday. Needham & Company LLC boosted their price target on Telos from $6.00 to $9.00 and gave the company a “buy” rating in a report on Tuesday. Zacks Research lowered Telos from a “strong-buy” rating to a “hold” rating in a research report on Monday. Yorkville Ives initiated coverage on Telos in a report on Monday, October 5th. They issued an “outperform” rating and a $6.00 price objective for the company. Finally, Weiss Ratings upgraded Telos from a “sell (e+)” rating to a “sell (d-)” rating in a report on Wednesday, August 26th. Three equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Telos presently has a consensus rating of “Hold” and an average target price of $7.60.

Insider Activity at Telos

In other Telos news, EVP Gary Bendza sold 174,539 shares of the firm’s stock in a transaction dated Friday, September 18th. The shares were sold at an average price of $4.05, for a total value of $706,882.95. Following the completion of the sale, the executive vice president directly owned 337,008 shares in the company, valued at $1,364,882.40. This trade represents a 34.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, EVP Hutchinson Robbins sold 62,398 shares of Telos stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $4.73, for a total value of $295,142.54. Following the sale, the executive vice president directly owned 589,915 shares in the company, valued at approximately $2,790,297.95. The trade was a 9.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 570,549 shares of company stock worth $2,464,843. 14.90% of the stock is currently owned by company insiders.

Telos Company Profile

Telos Corporation (NASDAQ: TLS) is a cybersecurity and information technology company that provides secure technology solutions to government and commercial organizations. The company focuses on helping customers protect critical systems, data and digital identities while supporting secure operations in complex and highly regulated environments. Its offerings include cybersecurity consulting, cloud security, secure networking, identity and access management, risk management and governance solutions.