TLS

Over the past six months, Telos Corp. (TLS) stock declined approximately 14% over a 30-day period leading up to mid-September 2026, and 38.29% over the last 12 months, generally trading in a narrow range of $4 to $5. Key events include analyst rating changes, with Wedbush downgrading to 'neutral' in September 2026, while Wall Street Zen and Zacks Research upgraded to 'buy' and 'strong-buy' respectively. The company reported strong second-quarter 2026 results, beating expectations with $0.04 EPS and $47.75 million revenue, representing 33% year-over-year growth and a positive net income of $0.7 million, though tempered forward guidance and insider selling weighed on sentiment. Telos also announced significant contract wins, including a $34.3 million Air Force Intelligence Community task order and a $13.7 million contract with HHS for its Xacta suite. The company repurchased over one million shares for $4.7 million in Q2 2026, but basic weighted-average shares outstanding increased, indicating potential dilution. Additionally, Telos is strategically exiting $33 million of low-margin revenue, primarily from third-party software resale, to boost cash gross margin and focus on higher-quality earnings.