Telos Corp

telos.com

What Do They Do?

Provides cybersecurity and cloud solutions, identity services, and secure communications to government and commercial customers.

How Do They Make Money?

Telos bills customers under contracts as work progresses or when milestones are reached; some product or service sales are completed when customers accept or receive them.

revenue

Segment	Share	Revenue
Cost of sales - services	83% FY2022: 89%
Product	17% FY2022: 11%

Who Are Their Customers?

Telos sells mainly to U.S. federal agencies, often as a prime contractor or subcontractor; its sales team works directly with customers, with some sales through partner organizations. State and local governments and commercial businesses are other customers.

Do Revenues Turn Into Profits?

Not on paper. It lost $36.5M in FY2025, but brought in more cash than it spent: $29.4M of free cash flow.

Operating income, FY2025

−24% of revenue

▼ −29% (Loss) vs FY2024 (−$55.9M, −52%)

Net income, FY2025

−22% of revenue

▼ −30% (Loss) vs FY2024 (−$52.5M, −49%)

Free cash flow, FY2025

18% of revenue

▲ Now profitable vs FY2024 (−$28.2M, −26%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +33%; vs $36M in Q2 FY2025
Net income: ▲ Now profitable; vs −$9.5M in Q2 FY2025

Cost of sales – services share of revenue vs 81.5% in Q2 FY2025

May 28, 2026 CEO John B. Wood returned from medical leave He resumed his full duties, ending interim CEO and chair arrangements.
Apr 29, 2026 CEO took medical leave; first-quarter results expected above guidance Interim executives assumed CEO responsibilities, and the company said it would reaffirm its full-year outlook.

Shrinking. Revenue fell 32% in 4 years, from $242.4M in FY2021 to $164.8M in FY2025, about 9% a year.

AI added to Xacta The latest report describes Xacta.ai as an AI capability at the core of Xacta's cyber risk and compliance platform; the older report describes Xacta as a cyber risk and compliance automation platform.

Revenue over time

Cost of sales - services Product

$250M$125M$0

FY2021 FY2022 FY2023 FY2024 FY2025

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