NEWARK, N.J.--(BUSINESS WIRE)--Telos Advisers, a national advisory firm specializing in complex transportation and infrastructure projects, announces that Stephen Gardner has joined the company as a Strategic Advisory Board Member. Gardner adds to an existing team of former transportation executives providing strategic advisory for complex infrastructure projects to public and private clients. Gardner most recently served as CEO of Amtrak, where he oversaw the nation's largest intercity passenger rail opera ...

We're about to head into the Q4 earnings season, and the stock market remains incredibly volatile. Investors continue to bear major concerns about frothy valuations in the wake of potential macroeconomic disruption. And though no massive rotation has happened yet, my core strategy forWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping ...

Core Insights - Telos Corporation (TLS) has faced significant challenges in revenue and margins over the past few years, but there are promising signs of a turnaround expected in 2025 [1]. Financial Performance - The company has struggled particularly in revenue generation and maintaining profit margins [1]. Future Outlook - Analysts are optimistic about a potential recovery in 2025, indicating a shift in the company's financial trajectory [1].

Core Insights - Telos Corporation has renewed its partnership with a Fortune 100 global technology company, focusing on cyber governance, risk, and compliance (GRC) and security operations for large-scale cloud environments [1][2][3] - The agreement is valued at $5.4 million and reflects the growth of the relationship that began in July 2022 [2] - Telos emphasizes its expertise in cyber GRC and operational security, aiding customers in maintaining compliance while scaling cloud platforms [3] Company Overview - Telos Corporation provides cyber, cloud, and enterprise security solutions, serving security-conscious organizations [1][4] - The company has over two decades of experience in delivering GRC solutions across government and commercial sectors [3][4] - Telos offers advanced capabilities in GRC, identity and biometric solutions, secure networks, and TSA PreCheck enrollment services [4]

Core Insights - Telos Corporation has been awarded a significant contract with the Missile Defense Agency for the Scalable Homeland Innovative Enterprise Layered Defense (SHIELD) program, with a ceiling value of $151 billion, allowing for rapid delivery of innovative capabilities to the warfighter [1] Company Overview - Telos Corporation specializes in providing cyber, cloud, and enterprise security solutions, focusing on the needs of security-conscious organizations [2] - The company offers a range of services including cyber governance, risk, and compliance (GRC) through its Xacta platform, identity and biometric solutions, secure networks and communications, and TSA PreCheck enrollment services [2] - Telos serves various sectors including the U.S. federal government, regulated industries, and global enterprises, aiming to help customers stay ahead of evolving threats and achieve mission success [2]

Core Insights - The article discusses the author's extensive experience in financial analysis and investment opportunities, emphasizing a focus on market trends and strategic recommendations for optimizing financial portfolios [1]. Group 1: Company Analysis - The author has previously contributed to Fade The Market on Seeking Alpha, providing insights into various investment opportunities [1]. - There is a potential for initiating a long position in TLS within the next 72 hours, indicating a possible investment opportunity [2]. Group 2: Industry Context - The article highlights the importance of thorough analysis and research in the financial sector, particularly in evaluating market trends and investment strategies [1].

Core Insights - The article discusses the author's extensive experience in financial analysis and investment opportunities, emphasizing a focus on market trends and strategic recommendations for optimizing financial portfolios [1]. Group 1: Company Analysis - The author has previously contributed to Fade The Market on Seeking Alpha, providing insights into various investment opportunities [1]. - There is a potential for initiating a long position in TLS within the next 72 hours, indicating a possible investment opportunity [2]. Group 2: Industry Context - The article highlights the importance of thorough analysis and research in the financial sector, particularly in evaluating market trends and investment strategies [1].

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgency to invest now [1][13] - The energy demands of AI technologies are highlighted, with data centers consuming as much energy as small cities, leading to concerns about power grid strain and rising electricity prices [2][3] Investment Opportunity - A specific company is positioned as a critical player in the AI energy landscape, owning essential energy infrastructure assets that will benefit from the increasing energy demands of AI [3][7] - This company is not a chipmaker or cloud platform but is described as a "toll booth" operator in the AI energy boom, collecting fees from energy exports [5][6] Financial Position - The company is noted for being debt-free and holding a significant cash reserve, amounting to nearly one-third of its market capitalization, which positions it favorably compared to heavily indebted competitors [8][10] - It is trading at less than 7 times earnings, indicating a potentially undervalued investment opportunity in the context of its critical role in AI and energy [10][12] Market Trends - The company is poised to benefit from the onshoring trend driven by tariffs, as well as a surge in U.S. LNG exports under the "America First" energy policy [14][7] - The influx of talent into the AI sector is expected to drive continuous innovation and advancements, further solidifying the importance of investing in AI-related infrastructure [12][11] Future Outlook - The narrative suggests that investing in this company is not just about financial returns but also about participating in the future of technology and energy [15][19] - The potential for significant returns, estimated at over 100% within 12 to 24 months, is emphasized as a compelling reason to act now [15][19]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Revenue Growth - Revenue increased by 116.3% year-over-year, driven by a 153.5% growth in Security Solutions due to the expansion of large programs in Telos ID [115]. - For the nine months ended September 30, 2025, total revenue reached $118.0 million, up from $81.9 million in the same period of 2024, marking a dollar change of $36.1 million [116]. - Security Solutions segment revenue for Q3 2025 was $46.5 million, an increase of $28.1 million, or 153.5%, compared to Q3 2024 [123]. - For the nine months ended September 30, 2025, Security Solutions segment revenue increased by $49.9 million, or 91.1%, primarily due to the expansion of large programs in Telos ID [125]. Profitability and Margins - Gross margin expanded by 2,672 basis points year-over-year, reaching 39.9% for Q3 2025, compared to 13.2% in Q3 2024 [115]. - Security Solutions segment gross profit for Q3 2025 increased by $17.0 million, or 734.9%, compared to Q3 2024, with gross margin rising from 12.6% to 41.5% [124]. - Year-to-date segment gross margin for Security Solutions increased from 33.2% in 2024 to 39.7% in 2025, attributed to a decrease in cost of sales related to prior impairment losses [126]. - Secure Networks segment gross profit for Q3 2025 increased by $0.4 million, or 51.3%, with gross margin rising from 15.3% to 25.4% [129]. Operating Performance - Net loss improved by $25.9 million year-over-year, resulting in a net loss of $2.1 million for Q3 2025 [115]. - Operating loss for Q3 2025 was $2.5 million, significantly improved from an operating loss of $28.9 million in Q3 2024 [116]. - Operating expenses decreased by $9.0 million, or 28.1%, in Q3 2025 compared to Q3 2024, primarily due to the absence of impairment losses recorded in the prior year [118]. - R&D expenses decreased by $0.5 million, or 21.2%, in Q3 2025 compared to Q3 2024, due to lower amortization costs [118]. Cash Flow and Liquidity - Cash flow from operations improved by $16.2 million year-over-year, totaling $9.1 million, or 17.8% of revenue [115]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $22.2 million, an increase of $37.6 million compared to the same period in 2024 [135]. - As of September 30, 2025, the company had cash and cash equivalents of $59.1 million and working capital of $65.6 million [133]. - The company emphasizes liquidity management, believing available cash and access to a $30.0 million revolving credit facility are sufficient for operational needs over the next 12 months [134]. Investment and Financing Activities - Net cash used in investing activities for the nine months ended September 30, 2025, decreased by $5.3 million compared to the prior year, primarily due to the absence of a significant investment transaction [136]. - Net cash used in financing activities for the nine months ended September 30, 2025, increased by $8.9 million, primarily due to stock repurchases totaling $7.6 million [137]. Segment Performance - Secure Networks segment revenue for the nine months ended September 30, 2025, decreased by $13.8 million, or 51.0%, due to the ramp down of several programs without new business wins [130]. - Other income decreased by $0.5 million, or 48.0%, for Q3 2025 compared to Q3 2024, primarily due to changes in dividend income from money market placements [120].