Telos provides cybersecurity, identity, and secure networking solutions almost exclusively to U.S. federal government customers, including the DoD, intelligence community, and civilian agencies like DHS. Telos operates two segments: Security Solutions (~91% of revenue) and Secure Networks (~9%). The core of the business is built around two products. First, Xacta is a software platform that automates cyber risk and compliance management, helping federal agencies meet government security frameworks like NIST RMF and FedRAMP to achieve an Authority to Operate. Xacta customers have very high renewal rates, making it a sticky, recurring revenue stream. Telos recently launched Xacta.ai, an AI layer that management claims can reduce the time to achieve government ATO by up to 90%, which Telos is pitching as an upsell to its existing installed base. Second, Telos ID operates a nationwide network of TSA PreCheck enrollment centers where travelers enroll or renew their PreCheck status, alongside broader biometric and identity vetting services for government customers. This business is a scale model driven by transaction volumes across enrollment locations. Beyond these two, Telos operates a large IT services contract for the Defense Manpower Data Center, reselling third-party hardware and software to the DoD, which is a lower-margin business. Telos also provides secure organizational messaging (AMHS) and managed network services. Telos sells primarily through a direct sales force, with most business won through competitive bids. A key structural advantage is Telos' cleared workforce—approximately 309 of ~525 employees hold U.S. security clearances, limiting competition on many contracts.