What factors could drive TLS's EPS surprise in 2025?

Telos Corporation (TLS) could experience an EPS surprise in 2025 due to several key factors:

1. **Revenue Growth**: Telos has demonstrated strong revenue growth, with a 11% sequential increase in the fourth quarter of 2024. The company's Security Solutions segment, which contributes significantly to revenue, has seen a 20% sequential growth. This trend suggests a potential for continued revenue growth in 2025, which could positively impact EPS.
2. **Market Expansion**: Telos has been expanding its TSA PreCheck enrollment centers significantly, which could lead to increased revenue from this segment. Additionally, the company's projects for 7% to 15% revenue growth in Q1 2025 indicate a positive outlook for future earnings.
3. **Financial Flexibility**: Telos maintains a strong balance sheet with more cash than debt, providing financial flexibility for future growth. This financial stability could enable the company to invest in growth opportunities that may enhance earnings.
4. **Technological Advancements**: The cybersecurity market is growing rapidly, with a projected CAGR of 13.57% from 2023 to 2027. Telos's focus on cyber, cloud, and enterprise security solutions positions it well to capitalize on this market growth.
5. **New Business Opportunities**: The company has substantial new business awards received, subject to favorable resolution of protests. These opportunities could lead to significant revenue contributions in 2025.

In conclusion, Telos's potential EPS surprise in 2025 can be attributed to its strong revenue growth, market expansion, financial flexibility, technological advancements, and new business opportunities. These factors collectively position the company for a positive earnings outlook.