Wedbush analyst Daniel Ives maintains a Buy rating and $6.00 price target for Telos (TLS). TipRanks rates Ives as a 5-star analyst with a 48.59% success rate and 9.3% average return. Northland Securities also gave TLS a Buy rating, while BMO Capital maintained a Hold rating. TLS market cap is $284.4M with a P/E ratio of -5.06. Corporate insider sentiment is negative due to an increase in insider selling over the past quarter.
Telos Corporation (TLS) reported robust financial results for Q2 2025, highlighting a significant turnaround in its operations. The company achieved $36 million in revenue, representing a 26% year-over-year (YoY) growth, primarily driven by an 82% surge in security solutions sales [1]. Telos' strategic focus on high-margin defense programs and R&D investments has positioned it as a key player in the national security tech sector.
The company's security solutions segment accounted for 90% of total sales, with notable growth from large federal programs like the Defense Manpower Data Center (DMDC) and the TSA PreCheck initiative. The expansion of TSA PreCheck to 415 enrollment centers across 40 states and Puerto Rico further underscores Telos' role in U.S. border security. Additionally, the FedRAMP "High" certification for its Xacta software positions the platform as a gold standard for securing sensitive government data in cloud environments [1].
Telos' financial discipline is evident in its $4 million share repurchase and a 12.9% free cash flow margin. The company's Q3 2025 guidance projects revenue of $44–47 million, suggesting continued growth and profitability. Analysts remain optimistic about Telos' prospects, with Wedbush analyst Daniel Ives maintaining a Buy rating and a $6.00 price target [2]. Despite insider sentiment being negative due to increased selling, the company's strong balance sheet and pipeline of high-margin contracts provide a compelling investment case.
References:
[1] https://www.ainvest.com/news/telos-corporation-tls-turnaround-story-gaining-momentum-national-security-tech-2508/
[2] https://www.tipranks.com/stocks/tls/forecast
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