Telos Corporation Awarded $5.8M Contract to Support Defense Department’s Microwave Line of Sight Program

Rhea-AI Summary

Telos (NASDAQ: TLS) has secured a $5.8 million contract to support the U.S. Department of Defense's Microwave Line of Sight (MLoS) program. The contract includes a six-month base period from April 2, 2025, through September 30, 2025, with a three-month option period extending through December 31, 2025.

The MLoS program provides rapidly deployable, high-bandwidth communication infrastructure for warfighters, offering up to 300 Mbps full duplex bandwidth. Telos will deliver Field Service Representative support and technical expertise, with systems providing point-to-point and point-to-multi-point functionality with LTE and Mesh capabilities.

Notable features of Telos' support include:

• 24x7x365 global field support with over 500 systems deployed in the Middle East
• Up to 95% repurposing of MLoS equipment costs
• Field personnel with 75% prior military service and 95% contingency operations experience

Positive

• Secured new $5.8M DoD contract
• Potential 3-month contract extension beyond initial 6-month term
• 95% cost efficiency through equipment repurposing
• Demonstrated success with 500+ deployed systems in Middle East

Negative

• Short contract duration (6-9 months)
• Contract value relatively small compared to typical defense contracts

Insights

Financial Analyst

This $5.8 million DoD contract represents meaningful business for Telos , especially considering their market capitalization of approximately $171 million. The contract value equals roughly 3.4% of the company's market cap, making it financially relevant for a company of this size. The structured timeframe (six-month base with three-month option) provides near-term revenue visibility through potentially the end of 2025.

What makes this contract notable is its strategic alignment with Telos' core competency in secure networks. The press release emphasizes their ability to achieve "significant savings over fiber solutions while enabling up to 95% repurposing of MLoS equipment costs" - a compelling value proposition for government procurement officers operating under budget constraints.

This continuation of business with the Department of Defense demonstrates Telos' ability to maintain key customer relationships in the highly competitive government contracting space. While a single contract of this size won't dramatically alter Telos' financial trajectory, it reinforces their revenue base and validates their specialized capabilities in secure communications infrastructure.

For investors, this represents positive momentum in Telos' government business segment, though the relatively short duration suggests this is an incremental rather than transformative development for the company's financial outlook.

Defense Technology Expert

The MLoS contract award underscores Telos' strategic positioning in battlefield communications technology, an increasingly critical capability as military operations become more network-dependent. Their Microwave Line of Sight systems address a fundamental challenge: establishing reliable, high-bandwidth communications in austere environments without permanent infrastructure.

The technical specifications mentioned (300 Mbps full duplex capacity) provide substantial bandwidth for tactical environments, enabling crucial data, voice, and video transmission essential for modern warfare. Telos' operational credibility is particularly compelling - with 75% of their team having prior military service and 95% having contingency operations experience in places like Iraq and Afghanistan.

Their track record of 500+ system deployments throughout the Middle East demonstrates proven capability in precisely the challenging environments where these systems must perform reliably. The contract's emphasis on Field Service Representatives indicates the DoD values not just the technology but also Telos' human expertise in implementation and support.

The ability to provide "rapidly deployable, high-bandwidth, low-latency communication infrastructure" addresses a persistent gap in military communications capabilities between fixed infrastructure and satellite communications. This positions Telos well in an operational environment where resilient, redundant communications across the battlefield remain a persistent military requirement.

Cybersecurity leader to support warfighter field communications

ASHBURN, Va., April 10, 2025 (GLOBE NEWSWIRE) -- Telos Corporation (NASDAQ: TLS), a leading provider of cyber, cloud, and enterprise security solutions for the world's most security-conscious organizations, today announced it has been awarded a $5.8 million contract to provide Field Service Representative (FSR) support and technical expertise for the U.S. Department of Defense’s Microwave Line of Sight (MLoS) program. The award includes a six-month base period of performance from April 2, 2025, through September 30, 2025, with a three-month option period extending through December 31, 2025.

The MLoS program delivers and sustains rapidly deployable, high-bandwidth, low-latency communication infrastructure for warfighters operating in joint, interagency, and coalition environments. As a scalable, mobile, and cost-effective alternative to fiber, MLoS ensures critical voice, video, and data connectivity across the battlefield – providing resilient, redundant communications in even the most austere settings.

“Continuing our support for the Department of Defense in operational environments by delivering technical, operational, and lifecycle expertise to the MLoS program is a testament to our exceptional secure networks portfolio," said John B. Wood, CEO and chairman, Telos. "Our proven deployment systems, technical acumen, and mission-aligned personnel deliver real-time advantage and value to warfighters in the field."

Under this contract, Telos will provide a high-impact, cost-effective strategy for delivering expeditionary, operational, and permanent communications infrastructure – achieving significant savings over fiber solutions while enabling up to 95% repurposing of MLoS equipment costs. The contract underscores Telos' commitment to rapid deployment, scalability, and sustainability in mission-critical environments.

With over 500 systems successfully deployed throughout the Middle East, Telos delivers 24x7x365 global field support, working shoulder-to-shoulder with customers and warfighters in extreme, high-threat operational environments. With experience across four continents, Telos ensures deployment speed, efficiency, and readiness. This includes:

• Rapid deployment management systems
• Expert compliance with ITAR and EAR regulations
• Full lifecycle support for Telos and third-party technologies
• Extensive network of prime and subcontractor partners
• Deep bench of technical and subject matter experts
  

Telos' MLoS communications solutions offer high bandwidth (up to 300 Mbps full duplex) with bidirectional IP connectivity. The systems provide point-to-point and point-to-multi-point functionality with LTE and Mesh. As part of the contract, Telos' field personnel bring unparalleled operational knowledge and technical fluency. Telos' diverse SME bench's wealth of experience includes:

• 75% prior military service (Army, Navy, Air Force, Marines, Special Operations)
• 95% contingency operations experience (Iraq, Afghanistan)
• Extensive government and military systems training
• Diverse roles: FSRs, engineers, logisticians, generator technicians, trainers, tower climbers, and more

This contract reinforces Telos Corporation's position as a trusted leader in delivering secure, agile, and mission-ready communication solutions in support of U.S. national security objectives. For more information about Telos’ secure networks capabilities, please visit https://www.telos.com/secure-networks.

About Telos Corporation
Telos Corporation (NASDAQ: TLS) empowers and protects the world’s most security-conscious organizations with solutions for continuous security assurance of individuals, systems, and information. Telos’ offerings include cybersecurity solutions for IT risk management and information security; cloud security solutions to protect cloud-based assets and enable continuous compliance with industry and government security standards; and enterprise security solutions for identity and access management, secure mobility, organizational messaging, and network management and defense. The company serves commercial enterprises, regulated industries and government customers around the world. 

Forward-Looking Statements
This press release contains forward-looking statements which are made under the safe harbor provisions of the federal securities laws. These statements are based on the Company’s management’s current beliefs, expectations and assumptions about future events, conditions and results and on information currently available to them. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The Company believes that these risks and uncertainties include, but are not limited to, those described under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” set forth from time to time in the Company’s filings and reports with the U.S. Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2024, as well as future filings and reports by the Company, copies of which are available at https://investors.telos.com and on the SEC’s website at www.sec.gov.

Although the Company bases these forward-looking statements on assumptions that its management believes are reasonable when made, the Company cautions the reader that forward-looking statements are not guarantees of future performance and that the Company’s actual results of operations, financial condition and liquidity, and industry developments, may differ materially from statements made in or suggested by the forward-looking statements contained in this release. Given these risks, uncertainties and other factors, many of which are beyond its control, the Company cautions the reader not to place undue reliance on these forward-looking statements. Any forward-looking statement speaks only as of the date of such statement and, except as required by law, the Company undertakes no obligation to update any forward-looking statement publicly, or to revise any forward-looking statement to reflect events or developments occurring after the date of the statement, even if new information becomes available in the future. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless specifically expressed as such, and should only be viewed as historical data.

Media: media@telos.com
Investors: InvestorRelations@telos.com

FAQ

What is the value and duration of Telos 's (TLS) new DoD contract?

Telos (TLS) secured a $5.8 million contract with a 6-month base period (April-September 2025) and a 3-month option period through December 2025.

What bandwidth capabilities does Telos' MLoS system provide for the Department of Defense?

Telos' MLoS communications solutions offer high bandwidth up to 300 Mbps full duplex with bidirectional IP connectivity.

How many MLoS systems has Telos (TLS) deployed in the Middle East?

Telos has successfully deployed over 500 MLoS systems throughout the Middle East.

What cost savings does Telos' MLoS solution provide compared to fiber alternatives?

Telos' MLoS solution enables up to 95% repurposing of equipment costs, achieving significant savings over fiber solutions.

What is the military experience level of Telos' field personnel for the MLoS program?

75% of Telos' field personnel have prior military service, and 95% have contingency operations experience in Iraq and Afghanistan.