Telos NASDAQ: TLS reported a stronger-than-expected first quarter for fiscal 2026, with revenue and adjusted EBITDA exceeding the company's guidance as growth in TSA PreCheck enrollment activity and execution across large programs helped lift results.
Telos Corporation (TLS) Q1 2026 Earnings Call Transcript
Telos Corporation (TLS) came out with quarterly earnings of $0.06 per share, beating the Zacks Consensus Estimate of $0.02 per share. This compares to a loss of $0.03 per share a year ago.
Telos (TLS) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Telos (TLS) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Telos stands out as a value opportunity amid the broader software sector downturn and 'SaaSpocalypse' fears. TLS is down ~20% YTD but is positioned for significant growth as its federal programs, especially TSA Precheck, scale. I reiterate my buy rating on TLS, citing its insulation from sector-wide risks and attractive valuation.
Telos Corporation (NASDAQ:TLS) reported first quarter results that beat Wall Street expectations, but shares reversed early gains and fell about 2.5% Tuesday morning as investors appeared to focus on continued profitability challenges. The cybersecurity firm's stock had initially surged as much as 18% following the earnings beat.
Telos is initiated at a "Buy" rating, benefiting from rapid growth, government contracts, and a strong balance sheet with no debt. TLS's Security Solutions segment, led by Telos ID for TSA PreCheck, drove 154% y/y growth, with Q3 revenue up 116% y/y to $51.4 million. TLS expects 67%-76% y/y revenue growth in Q4 and projects at least $180 million in 2025 revenue from existing programs, excluding new wins.
Telos Corporation is showing a strong financial recovery, with Q3 2025 marking its best operating quarter in five years. TLS's growth is powered by Security Solutions, especially Telos ID and Xacta, benefiting from federal compliance and identity program tailwinds. Despite a 74% stock rally, TLS trades at a reasonable 2.3x EV/Sales, with potential for further re-rating if execution remains consistent.
Telos Corporation (TLS) is deeply undervalued, trading at a 38% EV/Sales discount despite 116% YoY Q3 revenue growth and a $5B federal contract pipeline. TLS's Xacta platform achieved FedRAMP High authorization, positioning it for significant federal cybersecurity contracts amid surging AI-driven threats. TLS reported a Q3 adjusted EBITDA margin of 19.6%, guiding FY2025 revenue of $162–$164M, and maintains a nearly debt-free balance sheet.
Telos Corporation (TLS) came out with quarterly earnings of $0.09 per share, beating the Zacks Consensus Estimate of $0.02 per share. This compares to a loss of $0.1 per share a year ago.
Telos (TLS) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).