Telos (TLS) Stock Forecast & Price Target

Telos Corp has demonstrated a strong performance in its Security Solutions segment, which generated $21.9 million in revenue, reflecting a 6% year-over-year increase and surpassing analyst expectations. The company's contract backlog is also strengthening, with existing contracts projected to contribute approximately $70 million in calendar year 2025, indicating robust growth driven by contract extensions and scope expansions. Additionally, the increased revenue mix from the Security Solutions segment is anticipated to enhance Gross Margins, expected to improve by approximately 150-215 basis points year-over-year for GAAP Gross Margins.

Telos Corp has adjusted its calendar year 2025 revenue forecast down to $139 million, reflecting a modest decline in anticipated growth due to cautious demand and adverse contract dynamics. The Security Solutions segment experienced a significant drop in gross margins, down approximately 730 basis points year-over-year, while the Secure Networks segment suffered a substantial revenue decline of 78% year-over-year to $4.5 million, indicating underlying operational challenges. Furthermore, delayed revenue recognition in certain programs and a slight EBITDA loss in the first quarter contribute to an unfavorable outlook for the company's financial performance.