Telos Q3 revenue and adj EPS beats on security solutions strength; raises FY outlook
Overview
Cybersecurity solutions provider's Q3 revenue beat analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Telos raises FY26 revenue and adjusted EBITDA outlook
Outlook
Telos raises FY26 revenue outlook to $198.2 mln-$200.7 mln from $187 mln-$195 mln
Company lifts FY26 adjusted EBITDA outlook to $32.3 mln-$34.1 mln from $23.6 mln-$28.6 mln
Information Assurance's $58 mln in new orders are forecast to generate about $20 mln of revenue in 2027
Result Drivers
TELOS ID PROGRAM EXPANSION – Security Solutions revenue grew 16.6%, primarily driven by expansion of large Telos ID programs
TELOS ID MARGIN PERFORMANCE – GAAP and cash gross margins exceeded guidance assumptions primarily due to Telos ID performance
LOWER STOCK COMPENSATION – GAAP operating expenses fell 26.8% yr/yr due to lower stock-based compensation expense
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $55.2 mln | $50.004 mln (6 Analysts) |
Q3 Adjusted EPS | Beat | $0.09 | $0.04 (5 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the integrated hardware & software peer group is "buy"
Wall Street's median 12-month price target for Telos Corp is $5.50, about 14.1% above its November 6 closing price of $4.82
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 24 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)