Telos Corporation Common Stock (TLS)

FairStock Score: 42/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Mr. Market is offering Telos at $4.35 as of 2026-10-13, a $325.1M market cap. The company provides cyber, cloud, and enterprise security solutions. I look first for durable earning power, and Telos has not yet shown it. In fiscal year 2025, the year ended 2025-12-31, revenue was $164.8M and net income was -$36.5M. In fiscal year 2024, the year ended 2024-12-31, revenue was $108.3M and net loss was -$52.5M. In fiscal year 2023, the year ended 2023-12-31, revenue was $145.4M and net loss was -$34.4M. Sales are uneven and the bottom line has been red in each of the last four years, which is why the Lynch category is none. The latest filings are better: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $47.7M and net income was $660,000, or $0.01 per diluted share. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $47.7M and net income was $2.0M. But in fiscal Q2 2025, the quarter ended 2025-06-30, Telos lost $9.5M on $36.0M of revenue. One or two good quarters do not prove a moat. The balance sheet is a relative bright spot: debt-to-equity is 0.07, and trailing free cash flow is $25.9M, an 8.0% FCF yield on the market cap. Still, FairStock’s P/B is 3.48, ROE is -14.86%, ROCE is -1.56%, Altman Z is 1.42, and FairStock score is 42/100. The P/E is negative, so it tells us nothing useful. Revenue from fiscal year 2024 to fiscal year 2025 rose from $108.3M to $164.8M, but profitability remains fragile. I would demand consistent positive earnings and cash generation before calling this a bargain. The price may be fair for an option-like turnaround, but not demonstrably cheap on proven earnings.

In plain English: Telos sells cybersecurity, cloud, and enterprise security products and services. Sales have improved and it earned a small profit in the latest quarter, but the company has lost money over the past four years. At $4.35, the price does not look clearly cheap against those mixed results.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer