Palo Alto Networks for government cyber defense.

Okta for government identity and digital trust.

• Xacta: A premier platform designed for enterprise cyber risk management and security compliance automation solutions.
• Telos Ghost: A solution that eliminates cyber-attack surfaces by obfuscating and encrypting data, masking identity, and hiding network resources for enhanced security and privacy.
• Telos Automated Message Handling System (AMHS): A web-based platform for organizational message distribution and management of mission-critical communications, primarily used by military field operatives.
• Telos ID: Offers identity trust and digital services, including the IDTrust360 platform, which utilizes biometrics and credentials to provide cloud identity and custom digital identity services.
• Secure Network Services: Provides secure mobility solutions that enable remote work for businesses and governments while minimizing operational and security concerns.
• Network Management and Defense Services: Services for operating, administrating, and defending complex enterprise networks and conducting defensive cyber operations.

Telos Corporation (TLS) primarily sells its IT solutions and services to organizational customers rather than individuals. Its major customer categories include:

• United States federal government
• Large commercial businesses
• State and local governments
• International customers

John B. Wood, Chief Executive Officer and Chairman of the Board

John B. Wood has served as the Chief Executive Officer of Telos Corporation since January 2003, and as Chairman of the Board since 2002. He initially joined Telos in 1992, and previously held roles as President and Chief Executive from 1994-2000, and Executive Chairman in 2000. Prior to his tenure at Telos, Mr. Wood worked on Wall Street with firms such as Dean Witter Reynolds, UBS Securities, and a boutique investment bank. He is also recognized as the founder of EnterWorks, Inc. in 1996, where he served as Executive Chairman. Mr. Wood earned a BSBA in finance and computer science from Georgetown University.

Mark Bendza, Executive Vice President and Chief Financial Officer

Mark Bendza joined Telos Corporation in July 2021 as Executive Vice President and Chief Financial Officer. He is responsible for the company's accounting, financial reporting, financial planning and analysis, financial strategy and operations, corporate development, investor relations, tax, and treasury functions. Mr. Bendza brings over 20-25 years of experience in investor relations, business development, financial planning and analysis, financial strategy, mergers and acquisitions, and capital markets. His previous roles include Vice President and Head of Investor Relations for Honeywell from 2019 to 2021, and Vice President of International Business for Northrop Grumman from 2016 to 2019. He also held financial planning and analysis and investment banking roles at major investment banks, including Nomura Securities International and Morgan Stanley. Mr. Bendza holds a bachelor's degree from Wesleyan University and an MBA from Columbia Business School.

Mark Griffin, Executive Vice President of Security Solutions

As Telos' Executive Vice President of Security Solutions, Mark Griffin oversees the strategic direction and daily operations of the entire Telos portfolio of cybersecurity and identity offerings. He possesses more than two decades of experience in government IT contracting, materials management, and systems integration, and has managed significant programs supporting U.S. defense and federal civilian customers. Mr. Griffin also serves as President and General Manager of Telos Identity Management Solutions, LLC.

E. Hutchinson Robbins, Jr., Executive Vice President, General Counsel

E. Hutchinson Robbins, Jr., known as Hutch Robbins, serves as Telos' Executive Vice President and General Counsel, where he manages all legal affairs for the company. His responsibilities encompass corporate governance, risk mitigation, intellectual property, litigation and dispute resolution, contract enforcement, and legal compliance. With a career spanning three decades, Mr. Robbins is recognized for his extensive experience across a broad spectrum of legal issues. Before joining Telos in 2022, he was a principal at Miles & Stockbridge P.C. in Baltimore, Maryland, where he led the firm's commercial and business litigation practice group for ten years.

Malcolm Cooke, Vice President and Chief Information Technology Officer

As Vice President and Chief Information Technology Officer for Telos, Malcolm Cooke is responsible for all of the company's corporate information technology operational readiness, as well as internal information technology initiatives and strategy. He also oversees the physical, logical, and industrial security for all Telos facilities. Mr. Cooke joined Telos in 2008 as a system engineer and has accumulated extensive IT and security skills and certifications throughout his career.

Here are the key risks to Telos Corporation's business:

1. Profitability Challenges: Telos Corporation has faced persistent challenges in achieving consistent profitability, marked by negative operating margins, return on equity (ROE), and return on assets (ROA). The company has operated below its breakeven revenue level in recent years, and while revenue growth is anticipated, maintaining profitability remains a significant hurdle.
2. Customer Concentration and Dependence on Government Contracts: A substantial portion of Telos's business relies on contracts with the U.S. federal government. This concentration creates a risk of volatility stemming from potential government shutdowns, changes in policy, or a decline in spending on specific programs. For instance, its Secure Networks segment has experienced revenue declines, raising concerns due to its dependency on a limited number of programs.
3. Rapidly Evolving Cybersecurity Threat Landscape: Operating within the cybersecurity sector, Telos is exposed to the inherent risk of a constantly and rapidly evolving threat landscape. The need for continuous innovation to stay ahead of sophisticated cyber threats is paramount. Failure to adapt and innovate quickly could impact the company's competitive position and the effectiveness of its security solutions.

Telos Corporation (TLS) operates in several key markets with substantial addressable opportunities for its main products and services:

• Xacta (Enterprise Cyber Risk Management and Security Compliance Automation):
  • The total addressable market for Telos's government contracts, which includes its Xacta platform for cyber governance, risk, and compliance (GRC) solutions, exceeds $24.5 billion (U.S. Government).
  • More broadly, the global cyber risk assessment market is projected to grow from USD 245.62 billion in 2024 to an estimated USD 639.23 billion by 2032.
  • The global enterprise risk management market was valued at approximately USD 15.40 billion in 2024 and is projected to reach USD 51.97 billion by 2033. North America held the largest revenue share in this market, at over 42% in 2024.
• Telos Ghost (Cyber-Attack Surface Management, Data Obfuscation, and Encryption):
  • The global attack surface management market was estimated at USD 1.40 billion in 2024 and is expected to reach USD 12.69 billion by 2033. North America dominated this market with a revenue share of 42.3% in 2023.
  • The global data obfuscation software market was valued at approximately USD 1.2 billion in 2023 and is expected to reach USD 5.8 billion by 2033. North America leads this market, accounting for approximately 35% market share.
  • The global encryption software market size was valued at USD 13.5 billion in 2024 and is projected to grow to USD 50.2 billion by 2034. North America held the largest revenue share in the encryption software market at 37.2% in 2022.
• Telos Automated Message Handling System (AMHS) (Military Communications):
  • The global military communication market is projected to reach USD 47.5 billion in 2025 and grow to USD 93.4 billion by 2034. North America is expected to hold the largest market share, approximately 44.4% in 2025.
• Telos ID (Identity Trust and Digital Services, including Biometrics):
  • The global digital identity market size is expected to grow from USD 64.44 billion in 2025 to USD 168.75 billion by 2031. North America accounted for 39.84% of the market share in 2025.
  • The global biometrics market size was valued at USD 51.6 billion in 2025 and is estimated to reach USD 175.0 billion by 2034. North America held 30.35% of the market share in 2025.
• Secure Network Services (Secure Mobility Solutions and Defensive Cyber Operations):
  • The global managed mobility services market size was valued at USD 39.62 billion in 2024 and is estimated to reach USD 343.65 billion by 2033. North America dominates this market with over 32.0% market share in 2024.
  • The global defense cybersecurity market was valued at USD 38.8 billion in 2024 and is estimated to grow to USD 96.5 billion by 2034.
  • The global defense cyber warfare market size was valued at USD 153.20 billion in 2024 and is expected to reach USD 583.71 billion by 2032. North America dominated this market with a 41.22% revenue share in 2024.
  • The global security automation market was valued at USD 8.6 billion in 2024 and is estimated to reach USD 26.25 billion by 2033. North America led this market in 2023, holding approximately 37% of the revenue share.

Telos Corporation (TLS) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market opportunities:

1. Expansion of Telos ID and the TSA PreCheck Program: The company views its Telos ID platform, particularly the TSA PreCheck enrollment program, as a significant revenue and cash generation driver. Telos has rapidly expanded its network of TSA PreCheck enrollment centers, exceeding its target of 500 locations by the end of 2025. This program is anticipated to be a major contributor to the company's growth.
2. Growth in the Security Solutions Segment: The broader Security Solutions segment, which includes offerings like Xacta, Telos Ghost, and Telos ID, consistently accounts for a substantial portion of the company's total revenue (approximately 90% in recent quarters) and is a primary driver of overall growth. Telos anticipates continued strong year-over-year growth in this segment due to robust demand for its innovative security solutions from federal and commercial customers.
3. Adoption and Success of the Xacta.ai Platform: The recently launched Xacta.ai, an AI-driven platform for cyber risk management and security compliance automation, is highlighted as a significant opportunity for the company. It has already secured its first enterprise customer and is demonstrating strong initial efficiency improvements, positioning it as a new product growth engine within its cybersecurity portfolio.
4. Execution and Scaling of Major Federal Government Contracts: Telos continues to benefit from the successful transition and ramp-up of significant federal programs, such as the Defense Manpower Data Center (DMDC) program. These large-scale government contracts are expected to be major drivers of revenue growth, aligning with ongoing federal demand for cybersecurity, digital modernization, and infrastructure protection.

Share Repurchases

• Telos Corporation's Board of Directors authorized a share repurchase program for up to $50 million of the company's common stock on May 24, 2022.
• This repurchase program has no expiration date and allows for purchases through various means, including open market repurchases and privately negotiated transactions.
• The funding for these repurchases is intended to come from Telos' existing cash and cash equivalents, as well as future cash flow.

Share Issuance

• Telos has approximately 73.75 million shares outstanding.
• The number of shares outstanding increased by 2.14% in the last year.

Capital Expenditures

• In the last 12 months, Telos reported capital expenditures of -$2.58 million.