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TelosTLS +0.31%69 Gross Margin % is 36.39% as of Mar. 2026, which is 1% above its 10-year median of 35.96. GuruFocus rates TLS with a GF Score™ of 69/100 and a GF Value™ of $4.61 (Fairly Valued). The stock has 4 warning signs investors should review. Among 2,685 Software companies, Telos ranks worse than 54.97% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Telos's Gross Profit for the
three
months ended in Mar. 2026 was $17.4 Mil. Telos's Revenue for the
three
months ended in Mar. 2026 was $47.7 Mil. Therefore, Telos's Gross Margin % for the quarter that ended in Mar. 2026 was 36.39%.
The historical rank and industry rank for Telos's Gross Margin % or its related term are showing as below:
TLS'
s Gross Margin % Range Over the Past 10 Years
Min: 31.8 Med: 35.96 Max: 38.45
Current: 36.39
During the past 13 years, the highestGross Margin % of Telos was 38.45%. The lowest was 31.80%. And the median was 35.96%.
TLS's Gross Margin % is ranked worse than 54.97% of 2685
companies
in the Software industry
Industry Median: 40.49
vs TLS: 36.39
Telos had a gross margin of 36.39% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Telos was 0.00% per year.
Telos (NAS:TLS) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Telos had a gross margin of 36.39% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Telos Gross Margin % Related Terms
Telos Gross Margin % Historical Data
* Premium members only.
The historical data trend for Telos's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TLS vs SUPX, XNET, BKKT: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Telos's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Telos Gross Margin % vs Software Industry
For the Software industry and Technology sector, Telos's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Telos's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Telos (TLS) has a Gross Margin % of 36.39% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Telos and its competitors. This is near median its historical median of 35.96. Over the past decade, Telos' Gross Margin % has ranged from 31.80 to 38.45. According to the industry distribution chart, Telos ranks #1476 out of 2685 companies in the Software industry, placing it in the top 55%.
Is Telos' Gross Margin % too high?
Telos' current Gross Margin % of 36.39% is near median its 10-year median of 35.96. Over the past 10 years, this metric has ranged from a low of 31.80 to a high of 38.45. The Software industry median Gross Margin % is 40.49. Telos' value of 36.39% is 10.1% below this industry median. Based on the distribution chart, Telos ranks #1476 out of 2685 companies in the Software industry, which is below the industry midpoint. Overall, Telos has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Telos' Gross Margin % compare to SUPX and XNET?
According to the Software industry distribution chart, Telos ranks #1476 out of 2685 companies for Gross Margin %. This places Telos in the lower half of its industry. The industry median Gross Margin % is 40.49. Telos' value of 36.39% is 10.1% below this benchmark. Historically, Telos' own Gross Margin % has ranged from 31.80 to 38.45 over the past decade. While the company's 10-year median is 35.96 vs. the industry median of 40.49, Telos has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.49, based on 2,685 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Telos's current Gross Margin % of 36.39% is 10.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Telos and its competitors. For the Software industry, the median Gross Margin % is 40.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telos's current Gross Margin % is 36.39%, which is near median its own 10-year median of 35.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telos stock overvalued right now?
Based on GuruFocus' analysis, Telos (TLS) is currently considered Fairly Valued. The stock's GF Value™ is $4.61, compared to a current price of $4.89 — trading 6.1% above its estimated fair value. The current Gross Margin % is 36.39%, which is near median its 10-year median of 35.96 and 10.1% below the Software industry median of 40.49. Telos' overall GF Score™ is 69/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Telos (TLS), the current Gross Margin % is 36.39% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Telos (TLS) Overvalued in 2026?
Based on GuruFocus' analysis, Telos stock appears to be overvalued.
The current stock price of $4.89 is trading 6.1% above its estimated GF Value™ of $4.61.
GuruFocus considers Telos to be Fairly Valued.
Key valuation signals for TLS:
Gross Margin %: 36.39% (near median its 10-year median of 35.96)
GF Value™: $4.61 vs. price of $4.89 (6.1% above fair value)
Industry Position: 10.1% below the Software median (#1476 of 2685)
No single metric tells the full story. See the TLS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telos Corp offers technology solutions and services that empower and protect the world's security-conscious organizations. The company delivers efficient, adaptable, and secure solutions that protect people, organizations, and information across government and industry. The company conducts its business through two reportable and operating segments: Security Solutions and Secure Networks. The Security Solutions segment is focused on cybersecurity, cloud, and identity solutions, and secure messaging through Xacta, Telos AMHS, and Telos ID offerings. The Secure Networks segment provides secure networking architectures and solutions to customers through secure mobility solutions, network management, and defense services. The majority of revenue is from Secure Networks.
69GF Score
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