Telos (TLS) Q2 2025 Earnings Call Transcript
- Author's Perspective: The opinions shared in the article are solely those of the author and do not represent Nasdaq, Inc.
- Data Limitations: The information is based on data available up to October 2023.
Trade with 70% Backtested Accuracy
Analyst Views on TLS
About TLS
About the author
Telos Corporation Renews $5.4 Million Cybersecurity Agreement with Fortune 100 Company
- Partnership Renewal: Telos Corporation has renewed a $5.4 million agreement with a Fortune 100 global technology company, continuing to provide cyber governance, risk, and compliance (GRC) and security operations support, reflecting the growth of their relationship since July 2022.
- Cloud Environment Support: This agreement will facilitate cyber GRC oversight across multiple cloud product lines, ensuring the maintenance of existing authorities to operate (ATOs) and achieving new authorizations, thereby enhancing client compliance capabilities in complex cloud environments.
- Industry Leadership: Telos's deep expertise in cyber GRC and operational security positions it as a trusted long-term partner for organizations in highly regulated cloud environments, further solidifying its market position in cybersecurity.
- Experience Accumulation: With over two decades of experience delivering cyber governance, risk, and compliance solutions across government and commercial sectors, Telos helps clients navigate evolving threats and accelerate compliance processes, enhancing the company's industry reputation.
Wall Street Optimistic About Telos Corporation (TLS) as Financials Improve and Price Target Increased
Telos Corporation Overview: Telos Corporation (NASDAQ: TLS) is recognized as a promising cybersecurity stock under $50, holding a Moderate Buy consensus rating from analysts with a significant upside potential of 53.44% based on an average price target of $8.70.
Recent Analyst Upgrades: Analysts from DA Davidson and Northland have raised their price targets for Telos to $7.50 and $9 respectively, reflecting confidence in the company's strong third-quarter performance and positive future outlook, particularly regarding EBITDA margins.
Financial Performance: The company reported a revenue of $51.4 million, exceeding guidance and showing a 116% year-over-year increase, while also narrowing its net loss to $0.03 per share compared to $0.39 a year prior.
Investment Considerations: While Telos shows potential as an investment, the article suggests that certain AI stocks may offer better upside potential and lower risk, encouraging readers to explore other investment opportunities.
SHARON AI Appoints Drew Kelton to Board, Enhancing Leadership for Public Transition
- Leadership Enhancement: SHARON AI announces the appointment of global technology executive Drew Kelton to its board, leveraging his 40 years of experience in information and communications technology to guide the company through a pivotal transition to public status, thereby strengthening governance capabilities.
- Industry Background: Kelton's previous roles include CEO of Superloop and senior positions at several renowned companies, and his extensive industry background will aid SHARON AI in enhancing its competitiveness in the rapidly evolving AI and cloud computing markets.
- Strategic Development: This appointment aligns with SHARON AI's Business Combination Agreement with Roth CH Acquisition Co., aimed at preparing for an upcoming public listing and ensuring the company's success in capital markets.
- Market Outlook: Focusing on high-performance computing and sovereign AI infrastructure, Kelton's addition will further propel SHARON AI's leadership in the global AI solutions market, supporting its future growth trajectory.
SHARON AI Appoints Drew Kelton to Board of Directors
- Enhanced Global Leadership: Drew Kelton's appointment to SHARON AI's board brings 40 years of experience in information and communications technology, which is expected to provide strategic guidance as the company transitions to a public entity during this pivotal growth phase.
- Rich Industry Background: Having served as CEO of Superloop and Executive Vice President at T-Mobile, Kelton's extensive industry background will help SHARON AI enhance its competitiveness in the fiercely contested cloud computing and AI markets.
- Support for Strategic Transformation: As SHARON AI builds the next generation of sovereign AI and digital infrastructure, Kelton's addition is seen as a crucial step in realizing the company's vision, likely accelerating technological innovation and market expansion.
- Progress on Business Combination Agreement: SHARON AI previously entered into a business combination agreement with Roth CH Acquisition Co., and Kelton's leadership experience will support the successful execution of this transaction, aiding the company's future performance in capital markets.
DA Davidson Keeps Neutral Rating on Telos, Increases Price Target to $7.5
Real-time Intelligence: Benzinga Pro offers the fastest news alerts for traders, helping them stay informed and make timely decisions in the stock market.
Exclusive Content: The platform provides exclusive stories and insights generated by Benzinga reporters, enhancing the trading experience for its users.
Community Engagement: Over 10,000 serious traders are part of the Benzinga Pro community, indicating a robust network for sharing market intelligence.
Market Success: Traders utilize Benzinga Pro's resources to gain an edge in the markets, aiming for consistent success in their trading activities.
Telos Projects Double-Digit Revenue and EBITDA Growth for 2026 with Launch of Xacta.ai
Management Insights: Telos Corporation launched its Xacta.ai product, achieving significant efficiency gains in cyber governance and compliance, while also expanding its TSA PreCheck enrollment locations to 504 across 41 states and Puerto Rico.
Financial Performance: The company reported a 116% year-over-year revenue increase in Q3 2025, reaching $51.4 million, and raised its revenue outlook for the second half of the year, anticipating continued double-digit growth in 2026.
Outlook and Guidance: Management forecasts fourth quarter revenue growth of 67% to 76% year-over-year, with expectations of generating approximately $180 million in revenue for 2026, bolstered by the new Xacta.ai product and a strong business pipeline.
Risks and Analyst Sentiment: While analysts expressed optimism about revenue growth and product traction, concerns about the impact of the government shutdown on awards and revenue visibility were noted, though management maintained a confident outlook on future performance.
Telos Corporation Renews $5.4 Million Cybersecurity Agreement with Fortune 100 Company
- Partnership Renewal: Telos Corporation has renewed a $5.4 million agreement with a Fortune 100 global technology company, continuing to provide cyber governance, risk, and compliance (GRC) and security operations support, reflecting the growth of their relationship since July 2022.
- Cloud Environment Support: This agreement will facilitate cyber GRC oversight across multiple cloud product lines, ensuring the maintenance of existing authorities to operate (ATOs) and achieving new authorizations, thereby enhancing client compliance capabilities in complex cloud environments.
- Industry Leadership: Telos's deep expertise in cyber GRC and operational security positions it as a trusted long-term partner for organizations in highly regulated cloud environments, further solidifying its market position in cybersecurity.
- Experience Accumulation: With over two decades of experience delivering cyber governance, risk, and compliance solutions across government and commercial sectors, Telos helps clients navigate evolving threats and accelerate compliance processes, enhancing the company's industry reputation.
Wall Street Optimistic About Telos Corporation (TLS) as Financials Improve and Price Target Increased
Telos Corporation Overview: Telos Corporation (NASDAQ: TLS) is recognized as a promising cybersecurity stock under $50, holding a Moderate Buy consensus rating from analysts with a significant upside potential of 53.44% based on an average price target of $8.70.
Recent Analyst Upgrades: Analysts from DA Davidson and Northland have raised their price targets for Telos to $7.50 and $9 respectively, reflecting confidence in the company's strong third-quarter performance and positive future outlook, particularly regarding EBITDA margins.
Financial Performance: The company reported a revenue of $51.4 million, exceeding guidance and showing a 116% year-over-year increase, while also narrowing its net loss to $0.03 per share compared to $0.39 a year prior.
Investment Considerations: While Telos shows potential as an investment, the article suggests that certain AI stocks may offer better upside potential and lower risk, encouraging readers to explore other investment opportunities.
SHARON AI Appoints Drew Kelton to Board, Enhancing Leadership for Public Transition
- Leadership Enhancement: SHARON AI announces the appointment of global technology executive Drew Kelton to its board, leveraging his 40 years of experience in information and communications technology to guide the company through a pivotal transition to public status, thereby strengthening governance capabilities.
- Industry Background: Kelton's previous roles include CEO of Superloop and senior positions at several renowned companies, and his extensive industry background will aid SHARON AI in enhancing its competitiveness in the rapidly evolving AI and cloud computing markets.
- Strategic Development: This appointment aligns with SHARON AI's Business Combination Agreement with Roth CH Acquisition Co., aimed at preparing for an upcoming public listing and ensuring the company's success in capital markets.
- Market Outlook: Focusing on high-performance computing and sovereign AI infrastructure, Kelton's addition will further propel SHARON AI's leadership in the global AI solutions market, supporting its future growth trajectory.
SHARON AI Appoints Drew Kelton to Board of Directors
- Enhanced Global Leadership: Drew Kelton's appointment to SHARON AI's board brings 40 years of experience in information and communications technology, which is expected to provide strategic guidance as the company transitions to a public entity during this pivotal growth phase.
- Rich Industry Background: Having served as CEO of Superloop and Executive Vice President at T-Mobile, Kelton's extensive industry background will help SHARON AI enhance its competitiveness in the fiercely contested cloud computing and AI markets.
- Support for Strategic Transformation: As SHARON AI builds the next generation of sovereign AI and digital infrastructure, Kelton's addition is seen as a crucial step in realizing the company's vision, likely accelerating technological innovation and market expansion.
- Progress on Business Combination Agreement: SHARON AI previously entered into a business combination agreement with Roth CH Acquisition Co., and Kelton's leadership experience will support the successful execution of this transaction, aiding the company's future performance in capital markets.
DA Davidson Keeps Neutral Rating on Telos, Increases Price Target to $7.5
Real-time Intelligence: Benzinga Pro offers the fastest news alerts for traders, helping them stay informed and make timely decisions in the stock market.
Exclusive Content: The platform provides exclusive stories and insights generated by Benzinga reporters, enhancing the trading experience for its users.
Community Engagement: Over 10,000 serious traders are part of the Benzinga Pro community, indicating a robust network for sharing market intelligence.
Market Success: Traders utilize Benzinga Pro's resources to gain an edge in the markets, aiming for consistent success in their trading activities.
Telos Projects Double-Digit Revenue and EBITDA Growth for 2026 with Launch of Xacta.ai
Management Insights: Telos Corporation launched its Xacta.ai product, achieving significant efficiency gains in cyber governance and compliance, while also expanding its TSA PreCheck enrollment locations to 504 across 41 states and Puerto Rico.
Financial Performance: The company reported a 116% year-over-year revenue increase in Q3 2025, reaching $51.4 million, and raised its revenue outlook for the second half of the year, anticipating continued double-digit growth in 2026.
Outlook and Guidance: Management forecasts fourth quarter revenue growth of 67% to 76% year-over-year, with expectations of generating approximately $180 million in revenue for 2026, bolstered by the new Xacta.ai product and a strong business pipeline.
Risks and Analyst Sentiment: While analysts expressed optimism about revenue growth and product traction, concerns about the impact of the government shutdown on awards and revenue visibility were noted, though management maintained a confident outlook on future performance.
