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ASHBURN, Va. - Telos Corporation (NASDAQ:TLS), a $497 million cybersecurity firm whose stock has surged over 186% in the past six months according to InvestingPro data, announced Wednesday the launch of Xacta.ai, a new artificial intelligence capability integrated into its Xacta cyber governance, risk and compliance platform.
The AI solution aims to streamline compliance processes by leveraging the company’s 25 years of industry expertise. According to a company press release, pilot testing showed Xacta.ai reduced certain compliance tasks from 4-6 months to nine days, and cut the time to generate control implementation statements from over an hour to under five minutes. With a strong current ratio of 2.65, Telos maintains robust operational flexibility to support its product innovations.
Xacta.ai features include instant control implementation, AI-driven control validation, risk remediation guidance, contextual risk insights, and an adaptive prompt library to accelerate Authority to Operate decisions.
"By uniting decades of cyber risk management and security compliance expertise with the latest AI innovations, we’re equipping organizations with the insight they need to move past reactive check-the-box compliance," said John B. Wood, CEO and chairman of Telos.
The system utilizes retrieval-augmented generation technology and can be customized with organization-specific data to provide context-aware responses to compliance questions.
Michael Rasmussen, GRC Analyst at GRC 20/20 Research, noted that embedding regulatory expertise into AI-assisted workflows "reduces manual effort, improves consistency, and enables faster, more informed decisions."
Xacta.ai is now available on the Xacta platform. The company stated that the solution is designed for security-conscious organizations across commercial enterprises, regulated industries and government customers. With annual revenue of $116.7 million and analysts projecting sales growth, Telos shows promising momentum. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
In other recent news, Telos Corporation reported a strong second quarter for 2025, achieving $36 million in revenue, which surpassed analyst expectations and represented a 26% increase from the previous year. The company’s adjusted EBITDA turned positive, reaching $400,000, contrary to predictions of a loss. In addition to these financial results, Telos announced it has secured a $2.2 million contract with an unnamed U.S. federal agency for its cyber governance, risk, and compliance platform, Xacta. This contract involves deploying the platform within a FedRAMP High environment to manage compliance requirements.
In terms of analyst activity, BMO Capital raised its price target for Telos to $4.50, citing improved execution on large contracts. Meanwhile, Wedbush increased its price target to $6.00, maintaining an Outperform rating after Telos’ second-quarter results exceeded expectations. Addressing investor concerns, Telos stated it has no current plans to raise capital through equity offerings, following a recent increase in its stock price. The company reported holding approximately $57 million in cash and cash equivalents as of June 30, 2025, with no outstanding debt, and anticipates positive cash flow for the year ending December 31, 2025.
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