Telos Corporation

TLS

Information Technology Services · Technology

Exchange

NASDAQ

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Weak

Growth

Mixed

Cash Flow

Mixed

Stability

Data not available

Valuation

Data not available

Track this stock — start free trial

Winston Score History

The full picture

Telos Corporation is a cybersecurity and IT services company that helps government agencies and large organizations protect their computer networks and sensitive data. Its main products include identity verification tools, cloud security services, and network access management systems. The company's biggest customers are U.S. federal government agencies, including the Department of Defense and intelligence community.

Telos earns money through a mix of software subscriptions, managed security services, and government contracts. It operates primarily in the United States, where federal IT spending provides a steady but competitive market. The company is small, with a market cap around $300 million, and its edge comes from long-standing security clearances and deep relationships with government clients that are hard for new competitors to replicate quickly. However, Telos is currently unprofitable, and its main risk is winning enough new government contracts to grow revenue faster than its operating costs, especially as federal IT budgets face scrutiny.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+32.7% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+107.7% YoY

YoY Growth Rate

EPS growth accelerating

Insider Activity

28.9%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$51M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Telos Corporation grew revenue 33% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

35.0%

Modest — 35.0% gross margin

Profit after running costs

Operating Margin

0.6%

Thin — 0.6% operating margin

Return on the money invested

ROCE

-4.1%

Weak — -4.1% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Growth

Sales growth

Sales YoY

+65.9%

Fast-growing sales (+65.9% YoY)

Profit growth

EPS YoY

N/A

—

Data not available

How steady the profit is

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

15.2%

Converts sales into free cash efficiently (15.2%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Stability

What it owes vs what it owns

Debt / Equity

N/A

Data not available

Covers its interest

Interest Cover

N/A

Data not available

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Valuation

Price vs profit

P/E Ratio (TTM)

N/M

no trend

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Dividends

Not applicable for this business.

🔒 See full fundamentals and if they are improving or declining — click here for your free trial now.

Start free trial