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Here are 1-3 brief analogies for Telos (TLS):

• CrowdStrike for government agencies and critical infrastructure cybersecurity.
• Okta for federal and defense identity management.
• A specialized cybersecurity version of a government tech contractor like Leidos.

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• Xacta: A comprehensive platform for automated cyber risk management and compliance, helping organizations meet complex regulatory requirements like FedRAMP and NIST RMF.
• Telos ID / IDTrust 360: Identity management and credentialing services, including background checks, identity verification, and access control solutions for secure environments.
• Telos Ghost: A secure network platform that provides untraceable and encrypted communication, enhancing operational anonymity and cybersecurity.
• Cybersecurity Consulting and Engineering: Expert professional services offering cybersecurity architecture, engineering, and managed security solutions to government and commercial clients.

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The Telos Corporation (symbol: TLS) primarily sells its advanced cybersecurity and enterprise risk management solutions to other entities, specifically government agencies and large commercial enterprises. Its major customer base is overwhelmingly centered around government contracts.

Major Customers:

• U.S. Federal Government: This is by far Telos's largest and most significant customer, consistently accounting for a vast majority of its revenue (e.g., over 80-90% in recent fiscal years). Telos provides critical cybersecurity, enterprise risk management (e.g., Xacta), and identity management solutions to numerous federal agencies, including departments within the intelligence community, the Department of Defense (DoD), and various civilian agencies.
  Note: The U.S. Federal Government is not a publicly traded company and therefore does not have a stock symbol.
• U.S. State and Local Governments: Telos also serves various state and local government entities across the United States, providing similar security and risk management services tailored to their specific needs.
• Commercial Enterprises: Telos sells its cybersecurity products and services to a range of large commercial businesses across different industries. While this segment contributes to Telos's overall revenue, no single commercial entity or a small group of commercial entities individually account for a significant enough portion of Telos's revenue to be designated as "major customers" in the same way the U.S. Federal Government does. Their commercial customer base is more diversified.

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

John B. Wood joined Telos Corporation in 1992 and became its Chief Executive Officer in 1994, later also assuming the role of Chairman of the Board. Before his tenure at Telos, he worked on Wall Street. Under his leadership, Telos has diversified its product portfolio and expanded its reach to serve commercial enterprises, the military, civilian, and intelligence agencies of the federal government, and allied nations worldwide. Wood is a recognized voice in cybersecurity, frequently speaking at industry and government events and having testified at congressional committee hearings on the subject. He was the founding chairman of the Loudoun County CEO Cabinet and served for five years as chairman of Loudoun County's Economic Development Commission.

Mark Bendza, Executive Vice President, Chief Financial Officer

Mark Bendza joined Telos as Executive Vice President and Chief Financial Officer in July 2021. Prior to Telos, he served as Vice President and head of investor relations for Honeywell International Inc. from 2019 to 2021. He previously held executive positions in finance and international business at Northrop Grumman Corporation from 2012 to 2019, including Director of Financial Planning and Analysis and Vice President of International Business. His career also includes investment banking roles with global investment banks from 1998 to 2011.

Mark Griffin, Executive Vice President, Security Solutions

As Executive Vice President of Security Solutions, Mark Griffin is responsible for the strategic direction and daily operations of Telos's cybersecurity offerings. He has over 20 years of experience in government IT contracting, materials management, and systems integration. Griffin joined Telos as a program manager and was promoted to Vice President of the Traditional Business Division in 2004, later becoming head of the Telos Identity Management Solutions subsidiary in 2007.

Edward Hutchinson Robbins, Jr., Executive Vice President and General Counsel

Edward Hutchinson Robbins, Jr. serves as Executive Vice President and General Counsel for Telos Corporation.

Malcolm Cooke, Vice President and Chief Information Technology Officer

As Vice President and Chief Information Technology Officer, Malcolm Cooke oversees all of Telos' corporate information technology operational readiness, internal IT initiatives, and strategy. He is also responsible for the physical, logical, and industrial security of Telos facilities. Cooke joined Telos in 2008 as a system engineer.

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The key risks to Telos Corporation (TLS) are primarily centered around its financial performance, reliance on government contracts, and operational execution:

1. Financial Struggles and Lack of Profitability: Telos has reported net losses and negative operating cash flow, with its Q4 2024 revenue plummeting 36% year-over-year and missing estimates. The company is not forecast to become profitable over the next three years. This financial bleeding indicates severe operational inefficiencies and poses a significant risk to its sustained viability.
2. Dependence on Volatile Government Contracts: Telos is highly dependent on government contracts, particularly in the defense sector, which is characterized as a slow-growth market. This reliance makes the company vulnerable to government budget delays, shifting priorities, and a challenging environment for topline growth, as evidenced by a 78% year-over-year revenue plunge in its Secure Networks segment in Q4 2024.
3. Operational Stagnation and Lack of Innovation: The company has shown signs of operational stagnation, including a lack of new initiatives, strategic partnerships, or growth guidance in recent earnings announcements. In a rapidly evolving cybersecurity landscape demanding AI-driven solutions and advanced cloud security, Telos is perceived as falling behind, lacking a competitive edge in the faster-growing commercial cybersecurity market.

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The addressable markets for Telos Corporation's main products and services are identified as follows:

• Xacta (Cyber Governance, Risk, and Compliance - GRC): The global GRC platform market size reached $49.2 billion in 2024 and is projected to reach $127.7 billion by 2033, exhibiting a Compound Annual Growth Rate (CAGR) of 11.18% from 2025-2033. The global Governance Risk Management and Compliance (GRC) Market was valued at USD 82.56 billion in 2025 and is estimated to grow to USD 287.07 billion by 2034, with a CAGR of 14.85% from 2025 to 2034. The U.S. GRC market is projected to be worth USD 27.86 billion in 2025.
• Telos ID (Digital Identity Solutions): The global digital identity solutions market was valued at $36.19 billion in 2024 and is projected to grow from $43.07 billion in 2025 to $153.63 billion by 2032, at a CAGR of 19.9%. North America held the largest share of this market, at 35.78% in 2024. Specifically, the U.S. digital identity solutions market generated $11,380.4 million in revenue in 2024 and is expected to reach $25,689.6 million by 2030, with a CAGR of 13.8% from 2025 to 2030.
• Telos Automated Message Handling System (AMHS): The global Automatic Message Handling System market was valued at $572.21 million in 2024 and is projected to increase to $918.85 million by 2031, growing at a CAGR of 7.0%. This market size is for the global region.
• Secure Mobility Solutions / Telos Ghost: While a direct market size for "Telos Ghost" or "Secure Mobility Solutions" is not explicitly available, its capabilities align with broader cybersecurity trends.
  • Zero Trust Security: The global zero trust security market size was valued at USD 36.35 billion in 2024 and is projected to grow from USD 42.28 billion in 2025 to USD 124.50 billion by 2032, at a CAGR of 16.7%. North America accounted for over 35.57% of this global market in 2024.
  • Secure Access Service Edge (SASE): The global Secure Access Service Edge (SASE) market size was valued at USD 44.20 billion in 2024 and is expected to reach USD 103.33 billion by 2032, growing at a CAGR of 11.20%. North America leads the SASE market with a 41.6% revenue share in 2025, and the U.S. is expected to dominate with an 81% revenue share within North America in 2025.
• Secure Networks: This segment's offerings, including network management and defense services, fall within the broader network security and defense cybersecurity markets.
  • Network Security: The global network security market size was valued at $40.04 billion in 2024 and is projected to reach $62.10 billion by 2033, growing at a CAGR of 16.7% during the forecast period (2025-2033). North America generated 35.60% of the network security market revenue in 2024. The U.S. network security market size was valued at USD 5.3 billion in 2024 and is estimated to reach USD 11.6 billion by 2033, exhibiting a CAGR of 9.1% from 2025-2033.
  • Defense Cybersecurity: The global defense cybersecurity market was valued at USD 38.8 billion in 2024 and is estimated to grow at a CAGR of 9.8% from 2025 to 2034.

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1. Expansion of Telos ID Programs: Growth is anticipated from the continued expansion and optimization of Telos ID, particularly driven by the accelerating ramp of TSA PreCheck enrollments. Telos reached 500 TSA PreCheck enrollment locations in 2025 and aims to further expand its network, including targeting underserved areas. Additionally, a new program with the Defense Manpower Data Center (DMDC) is expected to contribute to revenue.
2. Adoption and Sales of Xacta.ai: The recently launched Xacta.ai platform, which enhances cyber risk management capabilities and offers significant efficiency improvements, is expected to be a key revenue driver. Telos has already secured its first enterprise customer for Xacta.ai and plans to target its existing customer base, who have shown substantial interest in the product, for additional sales in 2026 and beyond.
3. Strong Federal Demand for Cybersecurity and Digital Modernization: Telos is well-positioned to capitalize on ongoing federal demand for cybersecurity, digital modernization, and infrastructure protection. The company maintains a robust pipeline of over 200 unique opportunities, representing an estimated contract value exceeding $4 billion, with award activity projected to be weighted towards late 2025 and early 2026.
4. Growth in Security Solutions Segment: The Security Solutions segment, which encompasses cybersecurity, cloud, and identity solutions, is the primary revenue generator for Telos and is expected to continue its growth trajectory. This segment's strong performance, exemplified by its significant contribution to overall revenue in recent quarters, provides a foundational driver for the company's future growth.
5. New Program Wins from Multi-Billion Dollar Pipeline: Beyond the growth of existing programs and new product sales like Xacta.ai, Telos anticipates significant additional revenue in 2026 from new program wins. The company's multi-billion dollar pipeline (approximately $5 billion) of new business opportunities is expected to contribute tens of millions of dollars to revenue, indicating continued success in securing new contracts and expanding its customer base.

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Share Repurchases

• On May 24, 2022, Telos announced a share repurchase program authorizing the company to repurchase up to $50.0 million of its common stock.
• This share repurchase program has no expiration date and can be modified, suspended, or terminated at any time.
• Telos reinitiated share repurchases in the second quarter of 2025, deploying $4.0 million to repurchase approximately 1.5 million shares at a weighted average price of $2.69 per share.

Share Issuance

• Telos completed its initial public offering (IPO) on November 19, 2020, issuing 14,968,859 shares of common stock at a price of $17.00 per share, generating gross proceeds of $254,470,603.
• The underwriters fully exercised their over-allotment option for an additional 2,245,328 shares at the IPO price, increasing the total gross proceeds to $292,641,179 from 17,214,187 shares.
• The net proceeds from the IPO were intended for general corporate purposes, to repurchase a non-controlling interest in Telos Identity Management Solutions LLC, retire outstanding preferred stock, and repay debt.

Outbound Investments

• On August 2, 2021, Telos acquired the assets of Diamond Fortress Technologies (DFT), including all patents, to integrate the ONYX® touchless fingerprinting software with its IDTrust360 platform.
• This acquisition aimed to expand Telos' biometric and digital identity intellectual property and enhance IDTrust360 for mobile-enabled biometric capture and authentication services.

Capital Expenditures

• Telos expects to have capital expenditures in 2025.
• From 2019 to 2024, Telos had an average annual "Reinvestment" of $14 million, which includes capital expenditures and acquisitions, indicating that cash flow from operations was generally insufficient to cover these investments during this period.