Forensic Analysis · Technology / Software · as of Jun 28, 2026
TELOS CORP (TLS)
A forensic read on TELOS CORP built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Distress
Financial health
-5.4
Altman Z-score
Clean
Earnings quality
4
Forensic signals
-24.1%
ROE
$337M
Market cap
TELOS CORP earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is -5.4, placing it in the Distress zone. 4 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-63%Return on invested capital.Return on invested capital is -63% and slipping from -59% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+2.6%/yrShare-count dilution.Diluted share count changed +8% over the last 3 years to FY2025 (+2.6%/yr). The count is GROWING — existing holders are being diluted. That's ~2.6% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~8%.
18% of revStock-based comp load.Stock-based compensation ran 18% of revenue and 102% of free cash flow in FY2025 — about $0.41 per diluted share. Heavy — a large slice of 'free cash flow' is really being paid out in stock, so the true owner cash per share is well below the headline.
$15MGoodwill impairments.Took $15M of goodwill writedowns across 1 year(s) (FY2025 ($15M)). Writedowns mean past acquisitions underperformed what was paid for them — worth weighing on capital-allocation skill.
Key fundamentals
Net Margin-22.2%
Debt / Equity0.11x
Free Cash Flow$29.4M
Latest Revenue$164.8M
Return on Equity-38.1%
Revenue Growth YoY+52.2%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on TELOS CORP:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about TLS's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown