Telos wins $2.2 million contract with US federal agency

ASHBURN, Va. - Cybersecurity firm Telos Corporation (NASDAQ:TLS), with a market capitalization of $494 million and strong liquidity position, announced Monday it has secured a $2.2 million contract with an unnamed U.S. federal agency for its cyber governance, risk and compliance platform, Xacta. According to InvestingPro data, the company maintains more cash than debt on its balance sheet, with a healthy current ratio of 2.65.

Under the agreement, the federal agency will deploy Telos’ platform within a FedRAMP High environment to manage compliance requirements. The contract includes premium support services and full access to Xacta’s capabilities aimed at reducing manual workloads and enhancing security oversight.

"This award underscores the trust federal agencies place in Xacta to meet mission-critical compliance and cybersecurity requirements," said John B. Wood, chairman and CEO of Telos.

The contract represents an expansion of Telos’ presence in the government sector, aligning with the company’s strategy to grow by providing compliance solutions to both government and commercial customers.

Telos describes itself as a provider of cyber, cloud and enterprise security solutions for security-conscious organizations. The company’s Xacta platform is designed to help organizations manage complex compliance requirements and streamline security operations.

The announcement comes as federal agencies increasingly seek automation tools to address growing compliance demands and strengthen cyber resilience, according to the company’s press release statement.

In other recent news, Telos Corporation reported a strong performance for the second quarter of 2025, with revenue reaching $36 million. This figure exceeded the company’s guidance and represented a 26% increase compared to the previous year. Additionally, Telos achieved a positive adjusted EBITDA of $400,000, surpassing analyst expectations that had anticipated a loss. Following these results, the company announced it has no current plans to raise capital through equity offerings, citing approximately $57 million in cash and cash equivalents as of June 30, 2025, and no outstanding debt.

Analysts have responded positively to Telos’ performance. BMO Capital raised its price target for Telos to $4.50, citing improved execution on large contracts over the past year. Similarly, Wedbush increased its price target to $6.00, maintaining an Outperform rating due to the company’s strong second-quarter results. Telos also indicated it expects to maintain positive cash flow for the remainder of the year. These developments reflect the company’s improved financial health and operational execution.

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