TLS · Nasdaq · Technology
Telos Corporation (TLS) — Rank #112 by gross profitability (GP/assets 0.44) · ROE -39.1% · Piotroski F-Score N/A.
As-of 2026-10-30 · CIK 0000320121 · all metrics point-in-time as of the filing date.
About
Telos Corporation, together with its subsidiaries, provides cyber, cloud, and enterprise security solutions in the United States and internationally.
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It operates through two segments: Security Solutions and Secure Networks. The company offers Xacta, a platform delivering automated cyber risk management and compliance processes for systems based in the cloud, on-premises, and in hybrid environments; Xacta.ai, an artificial intelligence capability at Xacta cyber GRC platform; and risk management framework consulting services, security assessment and compliance, engineering and evaluation, operations, penetration testing, and digital forensics. It also provides Telos Automated Message Handling System, a web-based organizational message distribution and management for mission-critical communications used by military field operatives. In addition, the company offers Telos Identity Solutions, a portfolio of identity solutions that support secure identity verification, biometric enrollment, and trusted identity services for government and commercial customers; TSA PreCheck enrollment services, IDVetting, and Aviation Channeling Services, which provide identity enrollment, FBI background check submission, and biometric services for government agencies, transportation security programs, and regulated industries; and ONYX, a proprietary touchless fingerprint biometric technology designed to enable secure and scalable biometric authentication across mobile and enterprise environments. Further, the company provides secure mobility solutions that enable work off-premise and minimize operational and security concerns across and beyond the enterprise; and network management and defense services for operating, maintaining, and defending complex enterprise networks. It serves the United States federal government, large commercial businesses, state and local governments, and international customers.
Telos Corporation was founded in 1968 and is headquartered in Ashburn, Virginia.
- Industry
- Software - Infrastructure
- Sector
- Technology
- State
- MD
- Filer Category
- Accelerated filerSmaller reporting company
- Fiscal Year End
- December 31
- Website
- telos.com
Company Snapshot
P/S is the primary valuation lens — earnings are reinvested, not available for P/E.
Market Cap
—
P/E (annual)
—
P/S (annual)
—
P/B
—
P/OCF (annual)
—
Shareholder Yield
—
Employees
509
Industry
Software - Infrastructure
Exchange
Nasdaq
10/11
Flags passed
TLS passes 10/11 quality flags
1 caution to review
- CAUTIONDisclosure regression
A previously-disclosed line item is no longer reported — worth checking the filing for why
- PASSGross margin holding
- PASSDilution within 2%
- PASSFCF not negative from investment
- PASSRevenue not declining
- PASSOperating margin holding
- PASSFree cash flow intact
- PASSPasses safety gate
- PASSNo competitive retreat
- PASSSBC not compressing margin
- PASSNo valuation convergence
Strengths Revenue growth accelerating · Deferred revenue growing
No data Balance sheet — not counted as a pass.
A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.
Quality Profile
Profitability
1/1 passSafety
1/1 passCash Flow
3/3 passGrowth
2/2 passRevenue growth and the path to profitability (margin trend) are the primary reads at this stage.
Profitability
Does it make money well?
No warning flags · GP/assets 0.44
Gross profitability (GP / assets)
0.44
Primary signal (Novy-Marx).
2nd of 8 SIC 7373 peers
Return on equity
-39.1%
Gross margin
37.0%
5th of 7 SIC 7373 peers
Revenue growth (YoY)
52.2%
RPO growth (YoY)
34.4%
Remaining performance obligations growth — RPO > revenue = forward demand building.
Gross margin improving
Margin trend vs prior year.
Operating Leverage
| 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|
| Revenue vs COGS | ||||
| Revenue vs OpEx | ||||
| Op. Income vs Revenue |
Growth
Revenue CAGR (3Y)
-8.7%
Revenue CAGR (5Y)
-1.7%
Earnings CAGR (3Y)
—
FCF CAGR (3Y)
23.8%
Cash Flow Health
Is the cash real?
No warning flags · FCF 181% above net income
Free cash flow
$29.44M
Operating cash flow minus capex.
Positive free cash flow
FCF vs net income
180.6%
(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.
FCF not below net income
Fails when free cash flow is below net income (yellow flag).
Accruals healthy
Cash-backed earnings.
SBC / revenue
18.3%
Stock-based comp intensity.
Balance Sheet Strength
Can it survive a storm?
No warning flags · net cash $50.65M
Balance-sheet safety
Composite anti-fragile check.
Debt / equity
0.50
3rd of 8 SIC 7373 peers (best = lowest)
Current ratio
2.38×
1st of 8 SIC 7373 peers
Quick ratio
1.69×
Net cash
$50.65M
Cash & equivalents minus total debt.
Piotroski F-Score
N/A
Only 8/9 components determinable.
Valuation
Is the price reasonable?
No warning flags
Capital allocation quality
Composite score
2.7 / 5
Lifecycle Phase History
Price History
Source filings on SEC EDGAR: 10-K annual reports · 10-Q quarterly reports