Telos Surges on First Federal Deployment of Xacta.ai Platform
Cybersecurity firm's new AI-powered compliance tool secures a major enterprise-wide government contract, signaling strong growth potential.
Telos Corporation (NASDAQ: TLS) has secured a landmark deal for its new Xacta.ai platform, with a U.S. federal agency becoming the . This significant adoption of Telos's artificial intelligence-powered cybersecurity platform marks a pivotal moment for the company, reinforcing its stronghold in the lucrative federal market and signaling a potential catalyst for future revenue growth.
The announcement builds on a series of positive developments for Telos, which has seen its stock price climb dramatically in recent months. The company's shares have surged over 186% in the last six months, a rally supported by strong financial performance and key contract wins. , with firms like BMO Capital and Wedbush raising their price targets for the stock.
The Xacta.ai platform, which launched on October 1, 2025, is designed to revolutionize the time-consuming process of cyber governance, risk, and compliance. By leveraging AI, the platform automates and streamlines complex compliance tasks, with pilot testing demonstrating a drastic reduction in completion times—from months to as little as nine days for some tasks. This efficiency is a critical selling point for federal agencies navigating a complex web of regulatory requirements.
This latest contract follows a recently announced to deploy the broader Xacta platform. Telos also secured a $3.7 million contract extension with the U.S. Air Force earlier this year, further cementing its position as a trusted partner for the nation's most sensitive networks. The platform's , achieved in July 2025, underscores its capability to handle highly sensitive government data, a key differentiator in the competitive cybersecurity landscape.
Investors have responded positively to Telos's improved execution and strong financial results. The company reported a 26% year-over-year revenue increase in the second quarter of 2025, reaching $36 million and achieving positive adjusted EBITDA. With this first enterprise-wide deployment of Xacta.ai, Telos is well-positioned to capitalize on the growing demand for AI-driven cybersecurity solutions within the federal government, potentially paving the way for wider adoption across other agencies.