TELOS CORP

TLS

Telos Corporation, together with its subsidiaries, provides cyber, cloud, and enterprise security solutions in the United States and internationally. It operates through two segments: Security Solutions and Secure Networks.

About the company

Country: United StatesPrice: $7.35Market Cap: $540.5M

Investment snapshot

6%positive consensus

Scored 1d ago

Positive

BUY / PASS

Neutral / negative

2 / 13

NEUTRAL / FAIL

Median fair value

$4.99

-32.1% vs price

Models with upside

0 / 17

Positive margin of safety

Strongest signal

8 of 12 pass — Graham, Buffett, Lynch +1 more object

Key risk

No clean pass — all 16 investors flag at least one profitability criterion

Framework analysis

Verdict	Meaning
BUY	Positive purchase signal: the framework's buy requirements are met.
PASS	The company clears the framework's checklist or screen, but the framework does not produce a buy signal. For valuation frameworks this often means margin of safety is missing, insufficient, or unavailable; some screen-only frameworks have no intrinsic-value BUY state.
NEUTRAL	Neither a positive nor negative conclusion. It does not mean to hold an existing position.
FAIL	The company does not clear the framework's requirements.
Ranked	Ranked strategies do not use PASS: selected cohort is BUY, outside the cohort is FAIL, and unranked is NEUTRAL.

Current investor scores use trailing 12-month flows and the latest balance sheet where supported. Multi-year and EPS tests retain annual history; each framework shows its financial basis below. Intrinsic values use annual financials.

Metric	Graham Defensive Value	Buffett Quality Compounder	Lynch GARP	Greenblatt Magic Formula	Piotroski F-Score	Dreman Contrarian Value	Munger Quality Focus	Pabrai Dhandho Framework	Akre Three-Legged Stool	Marks Risk-Aware Value	Ackman Activist Value	Templeton Global Bargain Hunter	Sleep Scale Economies Shared	Asness Systematic Factors	Neff Low-P/E Total Return	Schloss Asset-Value Discipline	O'Shaughnessy Systematic Factor Composite
Verdict	FAIL	FAIL	FAIL	FAIL · Rank #2644 (Top 85.4%)	NEUTRAL	FAIL	FAIL	FAIL	FAIL	FAIL	PASS	FAIL	FAIL	FAIL	FAIL	FAIL	NEUTRAL
Score
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Intrinsic Value (annual)	N/A	N/A	N/A	N/A	N/A	N/A		N/A	N/A	N/A		N/A	N/A	N/A	N/A	N/A	N/A
Margin of Safety	N/A	N/A	N/A	N/A	N/A	N/A	-9.7%	N/A	N/A	N/A	-124.1%	N/A	N/A	N/A	N/A	N/A	N/A
Financial Basis	TTM ended 2026-09-30 · Balance sheet at 2026-09-30 · Annual history · FY 2025 Latest source filing: 2026-11-09 Score computed: 2026-11-14	Annual history · FY 2025 · TTM ended 2026-09-30 Latest source filing: 2026-11-09 Score computed: 2026-11-14	Annual history · FY 2025 · Balance sheet at 2026-09-30 · TTM ended 2026-09-30 vs 2025-09-30 · TTM ended 2026-09-30 Latest source filing: 2026-11-09 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 · TTM ended 2026-09-30 · Balance sheet at 2026-09-30 · Market data at 2026-11-01 Latest source filing: 2026-11-09 Score computed: 2026-11-14	Qualitative assessment · Annual history · FY 2025 · TTM ended 2026-09-30 · Balance sheet at 2026-09-30 Latest source filing: 2026-11-09 Score computed: 2026-11-14	Qualitative assessment · Annual history · FY 2025 Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 · Qualitative assessment · TTM ended 2026-09-30 · Balance sheet at 2026-09-30 Latest source filing: 2026-11-09 Score computed: 2026-11-14	Annual history · FY 2025 · TTM ended 2026-09-30 · Qualitative assessment Latest source filing: 2026-11-09 Score computed: 2026-11-14	Annual history · FY 2025 · TTM ended 2026-09-30 · Balance sheet at 2026-09-30 · Market data at 2026-11-01 Latest source filing: 2026-11-09 Score computed: 2026-11-14	Annual history · FY 2025 · Price history 2025-01-01–2026-11-01 · Balance sheet at 2026-09-30 Latest source filing: 2026-11-09 Score computed: 2026-11-14	Annual history · FY 2025 · Qualitative assessment Latest source filing: 2026-03-16 Score computed: 2026-11-14	TTM ended 2026-09-30 · Balance sheet at 2026-09-30 · Price history 2025-01-01–2026-11-01 · Annual history · FY 2025 Latest source filing: 2026-11-09 Score computed: 2026-11-14	Annual history · FY 2025 · TTM ended 2026-09-30 Latest source filing: 2026-11-09 Score computed: 2026-11-14	Annual history · FY 2025 · Balance sheet at 2026-09-30 Latest source filing: 2026-11-09 Score computed: 2026-11-14	TTM ended 2026-09-30 · Annual history · FY 2025 · Price history 2025-01-01–2026-11-01 Latest source filing: 2026-11-09 Score computed: 2026-11-14

Where It Passes

Debt & Leverage67% pass✓ 11✗ 4▾
8 of 12 pass — Graham, Buffett, Lynch +1 more object
LT Debt vs Net Current Assets
✗GrahamLT Debt <= Net Current Assets
Debt/Equity & Interest CoverageD/E: 0.06, IC: -28.3x
✗BuffettD/E < 0.5 AND Interest Coverage > 5x
Total Debt / Equity0.06
✓Lynch< 0.33
Cash - Long-term Debt
✗LynchPositive preferred
LT Debt / Total Assets Change0.00% -> 0.00%
✓PiotroskiDecreased YoY
Current Assets / Current Liabilities2.49
✓Dreman> 1.5✓SchlossCurrent ratio >= 1.50x (app cutoff)
Total Debt / Shareholders' Equity0.06
✓Dreman< 0.8✓Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✓SchlossD/E < 1.00x
Debt Levels0.06
✓MungerDebt/Equity < 0.5✓AkreDebt/Equity < 0.3
Interest Coverage & Debt/EBITDAIC=-28.3x, D/EBITDA=6.0x
✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x
Total Debt / Shareholders Equity0.06
✓Ackman<= 1.0
Negative debt-to-equity (higher means less debt)-0.0649; #1104/4210 (top 26.2%)
✓AsnessTop 30% of eligible cross-section
Cash Flow60% pass✓ 8✗ 4▾
6 of 10 pass — Buffett, Dreman, Pabrai +1 more object
Free Cash Flow Proxy$-25.8M
✗BuffettPositive and growing
FCF Positive and Growing$34.4M
✓LynchPositive and growing
Operating Cash Flow$30.2M
✓PiotroskiCFO > 0
(CFO / Total Assets) vs ROACFO/Assets=21.58%, ROA=-26.13%
✓PiotroskiCFO/Assets > ROA
Price / (CFO / Shares)18.1x
✗Dreman< 8x
P/E or FCF YieldFCF Yield=5.4%
✗PabraiP/E < 15 or FCF Yield > 10%
FCF Positive14/17 years FCF positive
✓MarksPositive FCF in majority of recent years
(OCF - CapEx) / Market Cap6.3%
✓Ackman>= 4%
Price / FCF per Share18.5x
✓Ackman<= 25
Positive Operating Cash Flow frequency14/17 years positive
✓SleepPositive OCF in >= 70% of available years
Operating Cash Flow - Capital Expenditures$34.4M
✓Neff> $0 (app proxy for a strong fundamental case)
(Operating cash flow - capex) / market capitalization+6.37%; #1281/4519 (top 28.3%)
✗OshaughnessyTop 10% of eligible cross-section

Where It Falls Short

Profitability0% pass✓ 6✗ 29▾
No clean pass — all 16 investors flag at least one profitability criterion
Positive EPS (10 years)1/28 years positive
✗GrahamPositive EPS every year for 10 years
EPS Growth (3-yr avg, 10-yr window)
✗Graham>= 33% growth
Net Income Positive (10+ years)7/28 years positive
✗BuffettPositive every year for 10+ years
ROE (up to 5-year arithmetic mean)-31.2%
✗Buffett> 15% arithmetic mean (app rule)
Operating Margin (10-yr trend)-24.2% (latest)
✗BuffettStable or rising over 10 years
Free Cash Flow Proxy$-25.8M
✗BuffettPositive and growing
Earnings Variance (10-yr CoV)
✗BuffettCoV < 0.3
Retained Earnings Effectiveness
✗Buffett$1 retained -> > $1 market value created
Basic earnings-growth PEG (dividends excluded)
✗Lynch< 1.0 (ideally < 0.5)
3-5 Year EPS CAGR
✗Lynch15-30% (Fast Grower); > 0% to pass
ROE-9.7%
✗Lynch> 15%
EBIT / Enterprise Value-8.1%
✗Greenblatt> 10%
Earnings Yield + ROC AssessmentEY=-8.1%, ROC=-530.3%
✗GreenblattBoth EY > 10% and ROC > 25%
Net Income / Total Assets-26.13%
✗PiotroskiROA > 0
ROA Change YoY-33.19% -> -26.13% (delta: +7.06%)
✓PiotroskiCurrent ROA > Prior ROA
(CFO / Total Assets) vs ROACFO/Assets=21.58%, ROA=-26.13%
✓PiotroskiCFO/Assets > ROA
Gross Margin Change YoY31.8% -> 37.0%
✓PiotroskiImproved YoY
Pre-Tax Income / Revenue-5.0%
✗Dreman>= 8%
Net Income / Shareholders' Equity-9.7%
✗Dreman> 12%
Margin of SafetyP/B=5.7x
✗PabraiP/B < 1.5 or P/E < 15
Return on Equity-33.7% (3-yr avg)
✗AkreROE > 20% (3-year avg)
Discount to Intrinsic ValueN/A (negative normalized EPS)
✗Marks>= 20% below intrinsic value
Positive Net Income Frequency7/19 years positive
✓MarksPositive net income in >= 7 of last 10 years
Operating Income / Revenue-6.4%
✗Ackman>= 15%
Net Income / Shareholders Equity-9.7%
✗Ackman>= 15%
5-Year EPS CAGR
✗Templeton> 0% (5-year EPS CAGR)
Operating Margin Trend-27.7% (2023) -> -24.2% (2025)
✓TempletonNon-negative operating-margin trend over 3 years
Revenue growth vs. gross and operating margin trendgross margin 36.4% -> 37.0%, operating margin -27.7% -> -24.2%
✗SleepRevenue rising; gross margin flat or falling; operating margin holding
Net income / market capitalization-1.70%; #3514/6340 (top 55.4%)
✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section
Gross profit / total assets+51.56%; #640/3702 (top 17.3%)
✓AsnessTop 30% of eligible cross-section
Net income / positive book equity-9.73%; #3402/5226 (top 65.1%)
✗AsnessTop 30% of eligible cross-section
Negative 5-year standard deviation of ROA-0.0610; #2834/5884 (top 48.2%)
✗AsnessTop 30% of eligible cross-section
3-5 Year Diluted EPS CAGR
✗Neff7%-20% annualized
Positive Diluted-EPS Years1/8 years positive
✗Schloss>= 70% positive over 5-10 observed years (app rule)
Valuation models0% pass✗ 2▾
TLS overvalued: all 2 models price fair value below $7.35 (median $4.99)
Munger fair value$6.70
✗Munger-9.7% margin vs $7.35
Ackman fair value$3.28
✗Ackman-124.1% margin vs $7.35
Verdicts7% pass✓ 1✗ 14▾
Split decision: 13 FAIL · 2 NEUTRAL · 1 PASS
Overall verdict
✗GrahamFAIL (2/9)✗BuffettFAIL (0/9)✗LynchFAIL (3/7)✗GreenblattRank #2644•PiotroskiNEUTRAL (F-Score 6)✗DremanFAIL (2/11)✗MungerFAIL (1/4)✗PabraiFAIL (0/3)✗AkreFAIL (2/6)✗MarksFAIL (2/5)✓AckmanPASS (4/9)✗TempletonFAIL (3/8)✗SleepFAIL (2/6)✗AsnessFAIL (Rank #1498/2370 (Top 63.2%))✗NeffFAIL (1/6)✗SchlossFAIL (2/7)•OshaughnessyNEUTRAL (Not ranked)
Valuation8% pass✓ 2✗ 26▾
12 of 13 flag TLS's valuation — Graham, Lynch, Greenblatt +9 more
Price / 3-yr avg EPS
✗Graham<= 15x
Price-to-Book Ratio5.7x
✗Graham<= 1.5x
P/E x P/B
✗Graham<= 22.5
Basic earnings-growth PEG (dividends excluded)
✗Lynch< 1.0 (ideally < 0.5)
EBIT / Enterprise Value-8.1%
✗Greenblatt> 10%
Earnings Yield + ROC AssessmentEY=-8.1%, ROC=-530.3%
✗GreenblattBoth EY > 10% and ROC > 25%
Price / EPS
✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)
Price / (CFO / Shares)18.1x
✗Dreman< 8x
Price / Book Value per Share5.7x
✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)
Valuation ReasonablenessOE Yield=-4.7%
✗MungerP/E < 25 or Owner Earnings Yield > 5%
P/E or FCF YieldFCF Yield=5.4%
✗PabraiP/E < 15 or FCF Yield > 10%
P/B or P/E vs. Historical AverageP/B=5.7x
✗MarksP/E < 15 or P/B < 2.0
Discount to Intrinsic ValueN/A (negative normalized EPS)
✗Marks>= 20% below intrinsic value
Price / FCF per Share18.5x
✓Ackman<= 25
Price vs. Trailing Low309% of trailing low ($2.38)
✗Templeton<= 120% of trailing low (certified split-adjusted live window)
Net income / market capitalization-1.70%; #3514/6340 (top 55.4%)
✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section
Positive book equity / market capitalization+0.1747; #4326/6449 (top 67.1%)
✗AsnessTop 30% of eligible cross-section
Price / Diluted EPS
✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)
(EPS CAGR % + Dividend Yield %) / P/E
✗Neff> 0.7 (Neff's published traditional edge)
Price / Tangible Book Value per Share8.71x
✗SchlossP/TBV <= 1.00x (app cutoff)
Book Value per Share Change-34.3%
✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)
Revenue / market capitalization+0.3654; #3047/5247 (top 58.1%)
✗OshaughnessyTop 10% of eligible cross-section
(Operating cash flow - capex) / market capitalization+6.37%; #1281/4519 (top 28.3%)
✗OshaughnessyTop 10% of eligible cross-section
Trailing six-month price return through the evaluation date+72.13%; #478/6202 (top 7.7%)
✓OshaughnessyTop 10% of eligible cross-section
Growth13% pass✓ 2✗ 11▾
7 of 8 flag TLS's growth — Graham, Lynch, Dreman +4 more
EPS Growth (3-yr avg, 10-yr window)
✗Graham>= 33% growth
Basic earnings-growth PEG (dividends excluded)
✗Lynch< 1.0 (ideally < 0.5)
3-5 Year EPS CAGR
✗Lynch15-30% (Fast Grower); > 0% to pass
Inventory Growth vs Revenue GrowthInv: -12.5% vs Rev: 36.7%
✓LynchInventory growth < Revenue growth
EPS Growth Direction
✗DremanPositive over recent years
EPS CAGR
✗Dreman> 5% annualized
Positive Net Income Frequency7/19 years positive
✓MarksPositive net income in >= 7 of last 10 years
3yr Median Revenue Growth-25.5%
✗Ackman>= 5%
Positive EPS Growth Frequency
✗AckmanPositive EPS growth in >= 3 of last 5 years
5-Year EPS CAGR
✗Templeton> 0% (5-year EPS CAGR)
Revenue growth vs. gross and operating margin trendgross margin 36.4% -> 37.0%, operating margin -27.7% -> -24.2%
✗SleepRevenue rising; gross margin flat or falling; operating margin holding
5-year Revenue CAGR-1.7%
✗SleepCAGR > 7%
3-5 Year Diluted EPS CAGR
✗Neff7%-20% annualized
Efficiency25% pass✓ 3✗ 8▾
6 of 8 flag TLS's efficiency — Buffett, Greenblatt, Piotroski +3 more
Current Ratio2.49
✓Graham>= 2.0
ROIC (3-5 yr avg)-54.8%
✗Buffett> 10%
ROIC - WACC-64.8%
✗BuffettPositive (WACC = 10%)
EBIT / (NWC + Net Fixed Assets)-530.3%
✗Greenblatt> 25%
Current Ratio Change YoY4.13 -> 2.57
✗PiotroskiIncreased YoY
Revenue / Total Assets Change YoY0.68x -> 1.18x
✓PiotroskiImproved YoY
Current Assets / Current Liabilities2.49
✓Dreman> 1.5
Return on Invested Capital-9.9%
✗Munger> 15%
ROIC (high and growing)FY2023: ROIC=-18.7%; FY2024: ROIC=-32.3%; FY2025: ROIC=-30.4%
✗AkreLatest 3 consecutive FYs: ROIC > 15% in each
Reinvestment Rate x ROICN/A (non-positive net income)
✗AkreReinvestment Rate * ROIC > 10%
ROIC (5-year)0/5 years above 12% (latest -30.4%)
✗SleepROIC > 12% in a majority of years

Business & financials

Financial snapshot: annual FY 2025. Current investor scores may use newer quarterly data.

Company Profile

Industry: Business Services

Size: Small Cap($540.5M)

Revenue: $164.8M+52.2% YoY

Net Income: $36.5M+30.4% YoY

Financial Snapshot

Operating Margin-24.2%

Return on Equity-38.1%

Debt / Equity0.08

Current Ratio2.57

EPS (Diluted)$-0.50

Buybacks (1y)$13.6M

Buybacks (2y)$13.6M

Shares Retired−2.3% / −5.5% 2y

Similar Companies

No peer companies found in this industry.

Shareholder Return

Fiscal 2025

Issued 2.3% of shares last year, 5.5% issued over two.

Buybacks: $13.6M
Dividends: —

Company Financials

Latest TTM and quarters alongside annual years

TTM sums four consecutive quarters and uses the latest quarter-end balances. Quarter columns show three-month results; annual columns show full-year totals. Growth compares the same period a year earlier. EPS is not added for TTM; full-year ratios are blank for quarters.

The latest annual period end is unavailable. Showing the latest fiscal cycle’s quarters; quarter and annual columns may overlap. Quarterly shows the full quarter history.

Metric	TTM · 2026-09-30 2025-10-01 – 2026-09-30 Sources · derived quarter values 10-K · 2026-03-16 10-Q · 2026-05-11 10-Q · 2026-08-10 10-Q · 2026-11-09 Derived from cumulative filings: revenue, net income, operating income, gross profit, ebit, pre tax income, interest expense, operating cash flow, depreciation amortization, capex, buybacks.	Q3 FY 2026 2026-07-01 – 2026-09-30 Sources · derived quarter values 10-Q · 2026-11-09 Derived from cumulative filings: operating cash flow, depreciation amortization, capex, buybacks.	Q2 FY 2026 2026-04-01 – 2026-06-30 Sources · derived quarter values 10-Q · 2026-08-10 Derived from cumulative filings: operating cash flow, depreciation amortization, capex, buybacks.	Q1 FY 2026 2026-01-01 – 2026-03-31 Sources 10-Q · 2026-05-11	FY 2025 Sources 10-K · 2026-03-16	FY 2024 Sources 10-K · 2025-03-10	FY 2023 Sources 10-K · 2024-03-15	FY 2022 Sources 10-K · 2023-03-16	FY 2021 Sources 10-K · 2022-03-28
Market Cap	$540.5Mcurrent	--	--	--	$405.2Mest.	$225.6Mest.	$284.1Mest.	$332.5Mest.	$793.4Mest.
Revenue	$197.5M↑37%	$55.2M↑7%	$47.7M↑33%	$47.7M↑56%	$164.8M↑52%	$108.3M↓26%	$145.4M↓33%	$216.9M↓11%	$242.4M
Operating Income	-$12.7M↑60%	$4.1M↑266%	$310.0K↑103%	$1.5M↑116%	-$39.9M↑29%	-$55.9M↓39%	-$40.3M↑25%	-$53.9M↓30%	-$41.5M
Net Income	-$9.2M↑69%	$4.4M↑310%	$660.0K↑107%	$2.0M↑124%	-$36.5M↑30%	-$52.5M↓53%	-$34.4M↑36%	-$53.4M↓24%	-$43.1M
EPS (Diluted)	--	$0.06↑300%	$0.01↑108%	$0.03↑125%	$-0.50↑32%	$-0.73↓46%	$-0.50↑37%	$-0.79↓22%	$-0.65
Gross Margin	36.1%↓6%	37.9%↓5%	35.0%↑5%	36.4%↓9%	37.0%↑16%	31.8%↓13%	36.4%	36.4%↑3%	35.5%
Operating Margin	-6.4%↑70%	7.4%↑254%	0.6%↑102%	3.0%↑110%	-24.2%↑53%	-51.6%↓86%	-27.7%↓12%	-24.8%↓45%	-17.1%
ROE	-9.7%↑61%	—	—	—	-38.1%↑8%	-41.3%↓91%	-21.6%↑30%	-31.0%↓30%	-23.9%
Total Debt	$6.1M↓25%	$6.1M↓25%	$6.6M↓23%	$7.2M↓21%	$7.6M↓20%	$9.5M↓15%	$11.2M↓12%	$12.8M↓10%	$14.3M
Shareholders' Equity	$94.4M↓21%	$94.4M↓21%	$93.4M↓21%	$96.5M↓23%	$96.0M↓25%	$127.1M↓20%	$159.0M↓8%	$172.4M↓4%	$180.3M
Current Ratio	2.49↓10%	2.49↓10%	2.38↓10%	2.59↓35%	2.57↓38%	4.13↑16%	3.57↓3%	3.69↓2%	3.76
Debt / Equity	0.06↓4%	0.06↓4%	0.07↓2%	0.07↑3%	0.08↑6%	0.07↑6%	0.07↓5%	0.07↓6%	0.08
Operating Cash Flow	$34.9M↑199%	$9.4M↑3%	$8.8M↑27%	$8.7M↑42%	$30.2M↑216%	-$25.9M↓1734%	$1.6M↓90%	$16.5M↑127%	$7.3M
Free Cash Flow	$34.4M↑278%	$9.4M↑8%	$8.6M↑26%	$8.5M↑42%	$29.4M↑204%	-$28.2M↓4365%	$661.0K↓96%	$15.5M↑282%	$4.1M