Telos (NASDAQ:TLS) Announces Earnings Results, Beats Expectations By $0.04 EPS

Telos (NASDAQ:TLS) posted its quarterly earnings data on Monday. The company reported $0.06 EPS for the quarter, beating analysts’ consensus estimates of $0.02 by $0.04, FiscalAI reports. The company had revenue of $47.74 million during the quarter, compared to analysts’ expectations of $44.63 million. Telos had a negative return on equity of 20.30% and a negative net margin of 22.17%.

Here are the key takeaways from Telos’ conference call:

• Telos reported a strong Q1 beat with revenue up 56% YoY to $47.7M, GAAP gross margin of 36.4% (cash gross margin 42.3%), and adjusted EBITDA of $7.9M (16.5% margin), all above guidance.
• Operating cash flow was $8.7M and Free Cash Flow was $6.4M (13.4% FCF margin, the fifth consecutive quarter >12%), and the company repurchased $2.2M of stock in Q1 with plans to accelerate buybacks in Q2.
• The CEO, John Wood, is on a medical leave of absence and an interim leadership team (including the CFO and two EVPs) is running day-to-day operations, which introduces executive transition risk despite management saying operations remain uninterrupted.
• Management cites a nearly $500M proposal pipeline (with two ~ $90M bids and many multi?year/2?year opportunities) expected to see award decisions in H2 2026, and highlighted early traction for Xacta.ai with 400+ licenses and pilots across government and banking.

Telos Price Performance

Shares of NASDAQ TLS traded up $0.04 during mid-day trading on Monday, reaching $4.52. The company’s stock had a trading volume of 787,225 shares, compared to its average volume of 728,808. The firm has a market capitalization of $349.14 million, a PE ratio of -9.04 and a beta of 0.95. The company has a debt-to-equity ratio of 0.06, a current ratio of 2.57 and a quick ratio of 2.57. The stock has a fifty day moving average of $4.27 and a two-hundred day moving average of $5.14. Telos has a 52 week low of $2.15 and a 52 week high of $8.36.

Insider Buying and Selling at Telos

In other news, EVP Edward Hutchinson Jr. Robbins sold 64,527 shares of the company’s stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $4.02, for a total value of $259,398.54. Following the completion of the transaction, the executive vice president owned 567,278 shares of the company’s stock, valued at $2,280,457.56. This represents a 10.21% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Insiders sold a total of 105,723 shares of company stock valued at $425,292 over the last three months. Corporate insiders own 14.90% of the company’s stock.

Hedge Funds Weigh In On Telos

A number of hedge funds have recently made changes to their positions in the business. Rhumbline Advisers boosted its stake in shares of Telos by 3.4% in the second quarter. Rhumbline Advisers now owns 82,432 shares of the company’s stock worth $261,000 after acquiring an additional 2,740 shares during the period. Public Employees Retirement System of Ohio lifted its position in shares of Telos by 12.6% in the third quarter. Public Employees Retirement System of Ohio now owns 27,749 shares of the company’s stock worth $190,000 after buying an additional 3,100 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its position in shares of Telos by 5.8% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 67,936 shares of the company’s stock worth $347,000 after buying an additional 3,715 shares in the last quarter. American Century Companies Inc. lifted its position in shares of Telos by 3.6% in the second quarter. American Century Companies Inc. now owns 112,106 shares of the company’s stock worth $355,000 after buying an additional 3,889 shares in the last quarter. Finally, NewEdge Advisors LLC lifted its position in shares of Telos by 28.7% in the first quarter. NewEdge Advisors LLC now owns 17,918 shares of the company’s stock worth $43,000 after buying an additional 4,000 shares in the last quarter. Institutional investors own 62.14% of the company’s stock.

Analysts Set New Price Targets

TLS has been the subject of a number of research reports. Wedbush reduced their price objective on Telos from $10.00 to $8.00 and set an “outperform” rating for the company in a research report on Tuesday, March 17th. Weiss Ratings reissued a “sell (d-)” rating on shares of Telos in a report on Monday, April 20th. Finally, BMO Capital Markets cut their price target on Telos from $8.00 to $5.00 and set a “market perform” rating for the company in a report on Monday, March 16th. Two analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Telos currently has an average rating of “Hold” and an average target price of $7.38.

About Telos

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.