Telos Corporation
Telos Corp is a U.S.-based provider of software-based security solutions and related services for organizations that need to protect people, information, and digital assets. Its business includes security products, implementation and support services, and work delivered through contracts with U.S. federal, state, local, commercial, and international customers.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueSoftware-based security offerings that protect information, systems, and digital assets.
Network security programs and related services delivered under customer contracts.
Telos ID products and services for identity assurance and access control.
Implementation, support, and subcontracted security work for customers.
Products
Reported · share of revenue- Services82.9 %
- Products17.1 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
Telos sells primarily to the U.S. federal government, with additional business from state and local governments, large commercial enterprises, and international customers. A large share of revenue is tied to prime contracts or subcontracts supporting U.S. government work, so customer demand is closely linked to public-sector procurement and program funding.
Buys security solutions and contract services for defense, civilian, and mission-critical use cases; this is the core demand base.
Purchase Telos capabilities as part of larger U.S. government programs and delivery chains.
Buy security products and services for public-sector IT and identity protection needs.
Use Telos security offerings to protect enterprise systems, users, and data.
Purchase security solutions for global operations and privacy-sensitive environments.
Strategy
Telos is focused on expanding its software-based security portfolio and winning new programs that replace or extend completed contracts. The company also emphasizes maintaining liquidity and preserving flexibility to support contract execution and future opportunities.
Revenue depends on replacing completed programs and sustaining contract flow.
Software and identity products can deepen customer relationships and broaden use cases.
Contract businesses require working capital and flexibility to support delivery and bidding.
Geography
Telos is headquartered in the United States and generates most of its revenue from U.S. government-related work. The company also serves state and local customers, commercial clients, and international customers, so its exposure is concentrated in the U.S. but not limited to one end market.
Risks
Telos is exposed to U.S. government spending patterns, contract timing, and the need to replace programs as they end. It also faces procurement-cost pressure from tariffs and trade policy, plus accounting and valuation risk around goodwill and stock-based compensation.
A large share of revenue comes from federal contracts, so budget shifts affect demand and timing.
Exposure: Federal agencies and defense-related programs
Revenue can fall when programs end unless new wins replace them.
Exposure: Secure Networks and other contract portfolios
Weak or sustained underperformance in a reporting unit can trigger impairment charges.
Exposure: Secure Networks reporting unit
Higher import costs can increase the cost of IT hardware used internally or sold on contracts.
Exposure: Imported hardware and contract procurement
Accounting
Judgemental itemsRevenue depends on contract delivery patterns, program milestones, and subcontract execution.
Impact: Can shift revenue between quarters and affect margin comparability
Management monitors whether reporting-unit fair value remains above carrying value.
Impact: Could create non-cash charges if Secure Networks weakens further
Expense is recognized over service periods and depends on performance and market assumptions.
Impact: Can materially affect operating expenses and net loss
Tax provision can be sensitive to losses, valuation allowances, and law changes.
Impact: Affects reported net loss and effective tax rate
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Last updated: 24/09/2026