Telos Corporation (TLS) has attracted renewed investor interest after Wall Street upgraded its outlook, citing improved financial performance and strategic progress. The stock received a price target increase from multiple brokerage firms, reflecting growing confidence in its operational recovery.
- Adjusted EBITDA rose 22% YoY to $148 million in Q3 2025
- Net loss narrowed from $36M to $19M in Q3 2025
- Recurring revenue grew 15% year-over-year
- Price target raised to $29.00 from $23.50 by a major brokerage
- Stock rose 12% on December 8, 2025, following upgrade
- Debt-to-EBITDA ratio at 2.3x, below sector average
Telos Corporation (TLS) has emerged as a focal point for Wall Street optimism, with several investment firms raising their price targets following a series of positive financial indicators. The company reported a 22% year-over-year increase in adjusted EBITDA for the third quarter of 2025, reaching $148 million, compared to $121 million in the same period the prior year. This marks the third consecutive quarter of EBITDA expansion, signaling sustained momentum in cost management and core business performance. The improved financials are underpinned by a 15% growth in recurring revenue, driven by expanded contracts with federal government clients and stronger cloud infrastructure adoption. Additionally, Telos reported a net loss narrowing to $19 million in Q3 2025, down from $36 million in Q3 2024, indicating progress in reducing operational inefficiencies. These metrics have prompted analysts to revise their long-term growth assumptions, with one major firm revising its 12-month price target from $23.50 to $29.00, representing a 23% upside from current levels. The market reaction has been immediate, with TLS stock surging 12% in early trading on December 8, 2025, outperforming the broader S&P 500’s 0.8% gain. Institutional activity has also shifted, with net buying observed in the past two weeks across three major asset managers. The stock’s performance is closely tied to its ability to maintain contract renewals and expand in cybersecurity and federal IT modernization, key growth drivers in the current fiscal cycle. Investors are particularly attentive to Telos’s capital allocation strategy, including a $50 million share buyback program announced in November 2025, which reflects confidence in future cash flow generation. The company’s balance sheet remains sound, with a debt-to-EBITDA ratio of 2.3x, well below the sector median of 3.1x.