Telos (NASDAQ:TLS) Releases Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Telos (NASDAQ:TLS) issued its quarterly earnings results on Monday. The company reported $0.04 EPS for the quarter, topping analysts’ consensus estimates of $0.02 by $0.02, FiscalAI reports. The company had revenue of $47.75 million for the quarter, compared to analysts’ expectations of $45.16 million. Telos had a negative return on equity of 2.53% and a negative net margin of 8.13%.

Here are the key takeaways from Telos’ conference call:

• Second-quarter results exceeded guidance: revenue rose 33% year over year to $47.7 million, while adjusted EBITDA reached $6.9 million with a 14.4% margin.
• Telos generated $6.6 million in free cash flow, a 13.9% margin and its sixth consecutive quarter above 12%; it also repurchased more than 1 million shares for $4.7 million.
• Management raised full-year adjusted EBITDA guidance to $23.6 million-$28.6 million, increased cash gross-margin guidance to 39%-40%, and lowered expected operating expenses by approximately $1.7 million.
• Full-year revenue guidance was reduced to $187 million-$195 million as Telos phases out roughly $33 million of annual low-margin third-party software resale revenue, although management expects the move to improve run-rate cash gross margin by more than 600 basis points.
• The company has more than $500 million in total contract value under proposal, with award decisions expected in the second half of 2026; timing remains dependent on government procurement schedules and budgets.

Telos Stock Up 6.5%

Shares of Telos stock opened at $4.29 on Wednesday. The stock’s 50-day moving average is $4.57 and its 200 day moving average is $4.51. Telos has a one year low of $3.79 and a one year high of $8.36. The firm has a market cap of $320.97 million, a price-to-earnings ratio of -20.43 and a beta of 1.00. The company has a debt-to-equity ratio of 0.05, a current ratio of 2.59 and a quick ratio of 2.59.

Insider Buying and Selling

In other news, EVP Gary Mark Bendza sold 97,976 shares of the company’s stock in a transaction dated Thursday, June 25th. The shares were sold at an average price of $4.19, for a total transaction of $410,519.44. Following the transaction, the executive vice president owned 817,148 shares in the company, valued at approximately $3,423,850.12. This represents a 10.71% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Derrick D. Dockery sold 8,000 shares of the stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $4.78, for a total value of $38,240.00. Following the completion of the transaction, the director owned 186,591 shares in the company, valued at approximately $891,904.98. This represents a 4.11% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 320,772 shares of company stock valued at $1,386,488 over the last ninety days. 14.90% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Telos

Large investors have recently added to or reduced their stakes in the business. Invesco Ltd. increased its position in shares of Telos by 51.3% during the 1st quarter. Invesco Ltd. now owns 40,042 shares of the company’s stock valued at $95,000 after purchasing an additional 13,584 shares during the last quarter. AQR Capital Management LLC purchased a new stake in Telos in the first quarter worth approximately $39,000. NewEdge Advisors LLC grew its position in Telos by 28.7% during the first quarter. NewEdge Advisors LLC now owns 17,918 shares of the company’s stock valued at $43,000 after acquiring an additional 4,000 shares during the last quarter. Rhumbline Advisers grew its position in Telos by 3.4% during the second quarter. Rhumbline Advisers now owns 82,432 shares of the company’s stock valued at $261,000 after acquiring an additional 2,740 shares during the last quarter. Finally, American Century Companies Inc. raised its stake in shares of Telos by 3.6% during the second quarter. American Century Companies Inc. now owns 112,106 shares of the company’s stock worth $355,000 after acquiring an additional 3,889 shares in the last quarter. Institutional investors own 62.14% of the company’s stock.

Analysts Set New Price Targets

Several equities analysts have commented on TLS shares. Needham & Company LLC initiated coverage on shares of Telos in a report on Tuesday, May 26th. They issued a “buy” rating and a $6.00 target price on the stock. Weiss Ratings reiterated a “sell (d-)” rating on shares of Telos in a research report on Friday, July 17th. Three investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $7.10.

Telos Company Profile

Telos Corporation (NASDAQ: TLS) is a provider of cybersecurity, secure communications, and enterprise IT solutions designed to help organizations manage risk, accelerate mission delivery and maintain compliance. The company’s core business activities encompass risk management and compliance automation, secure mobility, zero-trust architecture, cloud security, and identity and access management. Telos serves a diverse customer base that includes U.S. federal agencies, the Department of Defense, intelligence communities and select commercial enterprises.

Among its flagship offerings is the Xacta® platform, which automates assessment and authorization for IT systems and cloud environments, helping clients streamline compliance with NIST, FedRAMP and other frameworks.