Telos (NASDAQ:TLS) Announces Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Telos (NASDAQ:TLS) announced its quarterly earnings results on Monday. The company reported $0.09 earnings per share for the quarter, beating analysts’ consensus estimates of $0.03 by $0.06, FiscalAI reports. Telos had a negative net margin of 8.13% and a negative return on equity of 2.60%. The company 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 Stock Performance

Telos stock opened at $7.17 on Tuesday. The firm has a market capitalization of $535.89 million, a PE ratio of -34.14 and a beta of 0.98. Telos has a one year low of $3.79 and a one year high of $8.36. The stock’s 50 day moving average price is $4.59 and its 200 day moving average price is $4.53. The company has a debt-to-equity ratio of 0.05, a quick ratio of 2.26 and a current ratio of 2.38.

Key Telos News

Here are the key news stories impacting Telos this week:

• Positive Sentiment: Telos reported Q3 earnings of $0.09 per share, ahead of analyst estimates of $0.03–$0.04, and revenue of $55.2 million versus expectations of about $50.1 million. Telos Q3 earnings and revenue beat estimates
• Positive Sentiment: Management’s Q4 revenue forecast of $47.5 million–$50.0 million is above the $45.5 million consensus estimate. Full-year 2026 revenue guidance of $198.2 million–$200.7 million also exceeds the $191.3 million consensus, suggesting a stronger revenue outlook than analysts had anticipated.
• Negative Sentiment: Despite the earnings beat, Telos reported a negative net margin of 8.13% and negative return on equity of 2.60%, highlighting that profitability remains a concern. Telos earnings report

Insider Activity

In other Telos news, EVP Gary Bendza sold 174,539 shares of the stock in a transaction that occurred on 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 owned 337,008 shares of the company’s stock, 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 legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO John Wood sold 96,151 shares of Telos stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $4.05, for a total transaction of $389,411.55. Following the sale, the chief executive officer owned 1,505,867 shares in the company, valued at $6,098,761.35. This represents a 6.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 581,549 shares of company stock worth $2,512,583 over the last three months. Insiders own 14.90% of the company’s stock.

Analyst Upgrades and Downgrades

TLS has been the subject of a number of research analyst reports. Wedbush downgraded Telos from an “outperform” rating to a “neutral” rating and set a $5.00 price objective for the company. in a report on Thursday, September 10th. Yorkville Ives assumed coverage on Telos in a report on Monday, October 5th. They issued an “outperform” rating and a $6.00 target price on the stock. Wall Street Zen downgraded Telos from a “buy” rating to a “hold” rating in a research report on Saturday. Weiss Ratings upgraded Telos from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Wednesday, August 26th. Finally, Zacks Research upgraded Telos from a “hold” rating to a “strong-buy” rating in a research note on Thursday, August 20th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $6.42.

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.