Revenue growth accelerated to 55.9% in 2026Q1, yet structural margin constraints persist as evidenced by a modest 3.0% operating margin.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 |
|---|
| Sales/Revenue | 181.93M | 164.81M | 108.27M | 145.38M | 216.89M | 242.43M | 179.92M | 159.22M | 138.02M | 107.73M | 134.87M | 120.63M | 127.56M | 207.39M | 226.1M | 189.89M | 225.8M | 275.68M | 217.07M | 226.59M | 140.87M | 142.59M | 116.7M | 88.44M | 169.97M | 0 |
| Revenue Growth % | 66.5% | 52.21% | -25.52% | -32.97% | -10.54% | 34.75% | 13% | 15.36% | 28.12% | -20.12% | 11.8% | -5.43% | -38.49% | -8.27% | 19.07% | -15.9% | -18.09% | 27% | -4.2% | 60.84% | -1.21% | 22.18% | 31.95% | -47.97% | - | - |
| Cost of Goods Sold | 115.57M | 103.79M | 73.84M | 92.44M | 137.84M | 156.4M | 117.5M | 106.87M | 84.95M | 67.16M | 91.42M | 89.96M | 102.61M | 168.79M | 171.29M | 142.34M | 178.5M | 230.11M | 172.64M | 185M | 119.02M | 118.54M | 88.09M | 71.36M | 0 | 117.5B |
| COGS % of Revenue | - | 62.98% | 68.2% | 63.58% | 63.56% | 64.51% | 65.31% | 67.12% | 61.55% | 62.34% | 67.79% | 74.57% | 80.44% | 81.39% | 75.76% | 74.96% | 79.05% | 83.47% | 79.53% | 81.65% | 84.49% | 83.13% | 75.48% | 80.68% | - | - |
| Gross Profit | 66.36M | 61.02M | 34.43M | 52.94M | 79.04M | 86.03M | 62.42M | 52.34M | 53.06M | 40.57M | 43.45M | 30.67M | 24.95M | 38.6M | 54.81M | 47.54M | 47.3M | 45.57M | 44.43M | 41.58M | 21.85M | 24.06M | 28.62M | 17.08M | 169.97M | -117.5B |
| Gross Margin % | 36.48% | 37.02% | 31.8% | 36.42% | 36.44% | 35.49% | 34.69% | 32.88% | 38.45% | 37.66% | 32.21% | 25.43% | 19.56% | 18.61% | 24.24% | 25.04% | 20.95% | 16.53% | 20.47% | 18.35% | 15.51% | 16.87% | 24.52% | 19.32% | 100% | - |
| Gross Profit Growth % | - | 77.23% | -34.97% | -33.02% | -8.12% | 37.82% | 19.25% | -1.35% | 30.8% | -6.63% | 41.64% | 22.92% | -35.35% | -29.57% | 15.28% | 0.51% | 3.79% | 2.58% | 6.85% | 90.31% | -9.17% | -15.94% | 67.51% | -89.95% | 100.14% | - |
| Operating Expenses | 80.36M | 85.53M | 90.3M | 93.26M | 132.89M | 127.49M | 62.12M | 47.32M | 44.05M | 40.15M | 41.33M | 34.29M | 36.6M | 32.49M | 37.11M | 34.86M | 32.29M | 31.86M | 29.81M | 32.23M | 30.87M | 29.92M | 22.67M | 19.03M | 19.56M | 62.12B |
| OpEx % of Revenue | - | 51.9% | 83.4% | 64.15% | 61.27% | 52.59% | 34.53% | 29.72% | 31.92% | 37.27% | 30.65% | 28.42% | 28.69% | 15.67% | 16.41% | 18.36% | 14.3% | 11.56% | 13.73% | 14.22% | 21.92% | 20.98% | 19.43% | 21.51% | 11.51% | - |
| Selling, General & Admin | 73.52M | 78.92M | 75.49M | 81.01M | 115.97M | 108.4M | 47.88M | 36.67M | 35.29M | 40.15M | 41.33M | 34.29M | 36.6M | 32.49M | 37.11M | 34.86M | 32.29M | 31.86M | 29.81M | 32.23M | 30.87M | 29.92M | 22.67M | 19.03M | 19.56M | 47.88B |
| SG&A % of Revenue | - | 47.89% | 69.72% | 55.72% | 53.47% | 44.71% | 26.61% | 23.03% | 25.57% | 37.27% | 30.65% | 28.42% | 28.69% | 15.67% | 16.41% | 18.36% | 14.3% | 11.56% | 13.73% | 14.22% | 21.92% | 20.98% | 19.43% | 21.51% | 11.51% | - |
| Research & Development | 6.84M | 7.06M | 8.44M | 12.25M | 16.92M | 19.1M | 14.24M | 10.65M | 3.5M | 3.2M | 2.6M | 2.1M | 2.2M | 1.7M | 1.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 14.24B |
| R&D % of Revenue | - | 4.28% | 7.8% | 8.42% | 7.8% | 7.88% | 7.92% | 6.69% | 2.54% | 2.97% | 1.93% | 1.74% | 1.72% | 0.82% | 0.53% | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | -454K | 6.37M | 0 | 0 | 0 | 0 | 0 | 12K | 11K | 18K | 19K | 414K | 239K | 470K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -13.99M | -24.47M | -55.87M | -40.31M | -53.85M | -41.46M | 297K | 5.03M | 9.01M | 414K | 2.11M | -3.62M | -11.64M | 6.11M | 17.7M | 12.69M | 15.01M | 13.71M | 14.61M | 9.35M | -9.03M | -5.86M | 5.94M | -1.94M | -8.5M | 297M |
| Operating Margin % | -7.69% | -14.85% | -51.6% | -27.73% | -24.83% | -17.1% | 0.17% | 3.16% | 6.53% | 0.38% | 1.57% | -3% | -9.13% | 2.95% | 7.83% | 6.68% | 6.65% | 4.97% | 6.73% | 4.13% | -6.41% | -4.11% | 5.09% | -2.2% | -5% | - |
| Operating Income Growth % | - | 56.2% | -38.59% | 25.13% | -29.87% | -14060.94% | -94.09% | -44.25% | 2077.29% | -80.4% | 158.39% | 68.94% | -290.54% | -65.47% | 39.51% | -15.45% | 9.43% | -6.16% | 56.24% | 203.63% | -53.93% | -198.64% | 405.92% | 77.13% | -102.86% | - |
| EBITDA | -1.45M | -13.02M | -44.01M | -30.89M | -47.96M | -35.84M | 5.65M | 10M | 12.04M | 2.41M | 5.01M | 674K | -7.39M | 9.93M | 21.51M | 15.41M | 16.63M | 15.19M | 16.04M | 11.1M | -7.17M | -3.91M | 5.94M | -1.94M | -8.5M | 297M |
| EBITDA Margin % | -0.8% | -7.9% | -40.64% | -21.25% | -22.11% | -14.78% | 3.14% | 6.28% | 8.73% | 2.24% | 3.71% | 0.56% | -5.8% | 4.79% | 9.51% | 8.12% | 7.37% | 5.51% | 7.39% | 4.9% | -5.09% | -2.74% | 5.09% | -2.2% | -5% | - |
| EBITDA Growth % | 95.64% | 70.41% | -42.48% | 35.6% | -33.82% | -734.34% | -43.48% | -16.98% | 399.05% | -51.84% | 643.32% | 109.12% | -174.47% | -53.85% | 39.55% | -7.31% | 9.52% | -5.35% | 44.49% | 254.87% | -83.28% | -165.81% | 405.92% | 77.13% | -102.86% | - |
| D&A (Non-Cash Add-back) | 12.54M | 11.45M | 11.87M | 9.43M | 5.89M | 5.62M | 5.35M | 4.97M | 3.03M | 2M | 2.9M | 4.29M | 4.25M | 3.82M | 3.81M | 2.73M | 1.63M | 1.47M | 1.43M | 1.75M | 1.85M | 1.95M | 0 | 0 | 0 | 0 |
| EBIT | -13.99M | -24.47M | -51.85M | -33.6M | -52.5M | -42.38M | 14.05M | 5.23M | 9.01M | 414K | 2.11M | -3.6M | -11.23M | 6.11M | 23.36M | 13.01M | 15.18M | 13.8M | 14.8M | 14.18M | -9.09M | -6.29M | 5.96M | -3.74M | -13.18M | -464M |
| Net Interest Income | -517K | -553K | -644K | -786K | -874K | -777K | -7.26M | -7.47M | -7.26M | -6.69M | -5.46M | -5.64M | -5.37M | -5.48M | -6.63M | -6.26M | -6.23M | -7.23M | -7.7M | -8.35M | -20.58M | -8.76M | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 517K | 553K | 644K | 786K | 874K | 777K | 7.26M | 7.47M | 7.26M | 6.69M | 5.46M | 5.64M | 5.37M | 5.48M | 6.63M | 6.26M | 6.23M | 7.23M | 7.7M | 8.35M | 20.58M | 8.76M | -8.86M | -5.54M | -2.35M | -7.26B |
| Other Income/Expense | -12.57M | -12.74M | 3.38M | 5.93M | 476K | -1.7M | 6.5M | -7.27M | -7.25M | -6.68M | -5.45M | -5.62M | -4.96M | -5.24M | -975K | -5.95M | -6.05M | -7.14M | -7.51M | -3.53M | -20.64M | -9.19M | -8.84M | 3.75M | -2.34M | 6.5B |
| Pretax Income | -26.56M | -37.21M | -52.49M | -34.39M | -53.37M | -43.16M | 6.79M | -2.24M | 1.77M | -6.26M | -3.33M | -9.24M | -16.6M | 867K | 16.73M | 6.74M | 8.95M | 6.57M | 4.96M | 5.83M | -29.67M | -15.05M | -2.89M | 1.8M | -10.84M | 6.79B |
| Pretax Margin % | -14.6% | -22.58% | -48.48% | -23.65% | -24.61% | -17.8% | 3.78% | -1.41% | 1.28% | -5.82% | -2.47% | -7.66% | -13.01% | 0.42% | 7.4% | 3.55% | 3.96% | 2.38% | 2.28% | 2.57% | -21.06% | -10.56% | -2.48% | 2.04% | -6.37% | - |
| Income Tax | -641K | -663K | 26K | 36K | 54K | -28K | -46K | -104K | 31K | -2.77M | 334K | 4.26M | -5.99M | 1.68M | 7.23M | 3.24M | 4.71M | 4.26M | -5.73M | 280K | 12K | 9K | 59K | -11.49M | 3.36M | 46M |
| Effective Tax Rate % | 2.41% | 1.78% | -0.05% | -0.1% | -0.1% | 0.06% | -0.68% | 4.64% | 1.75% | 44.17% | -10.01% | -46.17% | 36.07% | 193.54% | 43.23% | 48.03% | 52.59% | 64.87% | -115.61% | 4.81% | -0.04% | -0.06% | -2.04% | -637.46% | -31.02% | 0.68% |
| Net Income | -25.92M | -36.55M | -52.52M | -34.42M | -53.43M | -43.13M | 1.69M | -6.4M | -1.64M | -5.83M | -7.17M | -15.94M | -12.29M | -2.62M | 7.43M | 1.45M | 3.05M | 1.28M | 10.69M | 5.55M | -29.68M | -14.06M | -2.95M | -11.82M | -14.2M | 6.75B |
| Net Margin % | -14.25% | -22.18% | -48.51% | -23.68% | -24.63% | -17.79% | 0.94% | -4.02% | -1.19% | -5.41% | -5.32% | -13.21% | -9.63% | -1.26% | 3.29% | 0.77% | 1.35% | 0.46% | 4.92% | 2.45% | -21.07% | -9.86% | -2.53% | -13.36% | -8.35% | - |
| Net Income Growth % | 51.78% | 30.42% | -52.58% | 35.57% | -23.87% | -2656.85% | 126.36% | -290.3% | 71.88% | 18.7% | 54.99% | -29.72% | -369.37% | -135.21% | 411.35% | -52.28% | 138.61% | -88.05% | 92.72% | 118.69% | -111.1% | -376.13% | 75.01% | 16.75% | -100.21% | - |
| Net Income (Continuing) | -25.92M | -36.55M | -52.52M | -34.42M | -53.43M | -43.13M | 6.84M | -2.14M | 1.74M | -3.5M | -3.67M | -13.5M | -10.61M | -811K | 9.49M | 3.5M | 4.24M | 2.31M | 12.83M | 6.94M | -29.68M | -15.06M | -2.95M | -11.82M | -14.2M | 6.75B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4.51M | 2.62M | 913K | 2.23M | 635K | 584K | 454K | 468K | 381K | 454K | 328K | 563K | 217K | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.33 | -0.50 | -0.73 | -0.50 | -0.79 | -0.65 | 0.03 | -0.03 | -0.03 | -0.10 | -0.16 | -0.36 | -0.28 | -0.06 | 0.19 | 0.04 | 0.08 | 0.03 | 0.38 | 0.22 | -0.52 | -0.25 | -0.05 | -0.21 | -0.25 | 15.74 |
| EPS Growth % | 53.33% | 31.51% | -46% | 36.71% | -21.54% | -2590.42% | 179.09% | 0.9% | 66.7% | 37.5% | 55.56% | -28.57% | -372.97% | -131.16% | 421.98% | -55.06% | 138.94% | -91.08% | 72.73% | 142.31% | -108% | -384.5% | 75.43% | 16% | -101.59% | - |
| EPS (Basic) | - | -0.50 | -0.73 | -0.50 | -0.79 | -0.65 | 0.03 | -0.03 | -0.03 | -0.11 | -0.16 | -0.36 | -0.28 | -0.06 | 0.19 | 0.04 | 0.08 | 0.03 | 0.38 | 0.22 | -0.54 | -0.25 | -0.05 | -0.21 | -0.26 | 16.21 |
| Diluted Shares Outstanding | 77.61M | 72.88M | 71.85M | 69.26M | 67.56M | 66.37M | 64.63M | 64.7M | 49.2M | 57.21M | 44.28M | 44.28M | 44.28M | 44.26M | 39.95M | 39.94M | 37.63M | 37.67M | 28.31M | 25.21M | 57.21M | 57.21M | 57.21M | 57.21M | 57.21M | 428.77M |
| Basic Shares Outstanding | 73.82M | 72.88M | 71.85M | 69.26M | 67.56M | 66.37M | 64.63M | 64.7M | 49.2M | 55.36M | 44.28M | 44.28M | 44.28M | 44.26M | 39.95M | 39.94M | 37.63M | 37.67M | 28.31M | 25.21M | 55.36M | 55.36M | 55.36M | 55.36M | 55.36M | 416.42M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 332.5% | 44.41% | 95.1% | - | - | - | - | - | 50.14% |
Federal budget cycle dependency
According to the most recent quarterly financial data, Telos Corporation achieved a significant revenue acceleration, posting 55.9% year-over-year growth in 2026Q1, which marks a sharp recovery from the contractionary periods observed throughout the 2024 fiscal year and suggests improved execution in securing federal contract wins.
The recent surge in top-line performance indicates that the company may be successfully navigating the lumpy nature of federal procurement cycles. Investors should monitor whether this growth is sustainable or if it reflects the recognition of large, non-recurring project milestones that could mask underlying volatility in core software subscription demand.
As reported in the company's income statements, gross margins have fluctuated within a narrow band, peaking at 40.3% in 2024Q4 before settling at 36.4% in 2026Q1, highlighting the persistent difficulty in scaling higher-margin software revenue against the dilutive impact of labor-intensive professional services and hardware resale.
The inability to consistently expand gross margins suggests that the company's product mix remains heavily weighted toward lower-margin service engagements. This structural reality implies that Telos may struggle to achieve industry-standard profitability until the Xacta platform accounts for a significantly larger share of the total revenue base.
Based on the provided financial figures, Telos has struggled to demonstrate positive operating leverage, as evidenced by the 2026Q1 operating margin of 3.0% following a long string of negative quarterly operating margins that reached as low as -70.5% during the 2024 fiscal year.
While the return to positive operating income in the most recent quarter is a constructive development, the historical data suggests that SG&A expenses often scale in tandem with revenue. This pattern warrants further investigation into whether the company can maintain operational discipline as it attempts to capture additional market share.
Analysis of the income statement reveals that stock-based compensation has been a significant recurring expense, with quarterly figures reaching as high as $9.4 million in 2025Q3, which appears to have materially impacted the company's ability to report consistent net income during periods of high revenue growth.
The reliance on equity-based incentives suggests that the company is utilizing non-cash compensation to preserve liquidity, which may be masking the true economic cost of talent acquisition. Investors should carefully evaluate the impact of these recurring charges on long-term shareholder dilution and the underlying quality of reported earnings.
Quick answers to the most common questions about buying TLS stock.
For fiscal year 2025, Telos Corporation (TLS) reported total revenue of $164.8M.
Telos Corporation (TLS) reported a net loss of $36.5M for the fiscal year ending 2025.
Telos Corporation (TLS) reported an operating income of $-24.5M, resulting in an operating profit margin of -14.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Telos Corporation (TLS) generated $61.0M in gross profit for the year, representing a gross profit margin of 37.0%. This demonstrates the company's core pricing power and production efficiency.