Telos Corporation — Earnings Quality Grade F
TLS · Technology
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 21 days, change -13 days YoY
AR growth -6.5% vs revenue growth 52.2%
Revenue 52.2%, CFFO 216.4%. Cash follows revenue
Expense Quality
Inventory -44.1% vs COGS 40.6%. Normal
CapEx growth -35.2% vs revenue 52.2%. Normal
SG&A/Gross Profit = 129.3%, exceeds 70%
Gross margin swung +5.2pp (31.8% → 37.0%)
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF $0.0B, FCF/NI = -0.58
Accruals ratio = -47.7%. Low accruals
Cash $0.1B covers debt $0.0B
Balance Sheet Health
Goodwill+Intangibles $0.0B = 35% of equity
Interest coverage = -45.1x (<2x). Financial stress
Other assets 5.6% vs revenue 52.2%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 2/3 years
Goodwill+Intangibles change -31% YoY. Normal
Manipulation Score
M-Score = -5.02 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25