Telos Earnings Call Transcripts
Fiscal Year 2026
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Revenue grew 33% year-over-year to $47.7M, driven by Telos ID and strong TSA PreCheck performance. Profitability and cash flow exceeded guidance, with improved margins and ongoing share repurchases. The company is phasing out low-margin software revenue to further enhance gross margins.
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Q1 2026 saw 56% revenue growth, strong margins, and robust cash flow, driven by TSA PreCheck and Security Solutions. Guidance for Q2 and the full year remains confident, with accelerated share repurchases planned and a $500M pipeline of government contract proposals.
Fiscal Year 2025
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Delivered strong revenue and EBITDA growth in 2025, driven by Security Solutions and disciplined cost management. 2026 guidance calls for double-digit revenue growth, margin expansion, and robust cash flow, with most growth from existing programs and a strong government-focused pipeline.
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Q3 2025 saw 116% revenue growth, strong cash flow, and outperformance on all key metrics, driven by Telos ID and the launch of Xacta.ai. Guidance for Q4 and 2026 was raised, with double-digit growth expected and a robust $5B pipeline offering further upside.
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Q2 2025 saw 26% revenue growth and a return to profitability, driven by security solutions and major federal programs. Free cash flow and margins improved, with strong guidance for the second half and continued share repurchases.
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First quarter results exceeded guidance with 16% sequential revenue growth, driven by Security Solutions and major programs like DMDC and TSA PreCheck. Margins are expected to contract as lower-margin programs ramp, but year-over-year growth in revenue, adjusted EBITDA, and cash flow is forecast to accelerate in the second half of 2025.
Fiscal Year 2024
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Fourth quarter revenue grew 11% sequentially to $26.4 million, with Security Solutions driving growth and gross margins reaching record highs. TSA PreCheck and DMDC programs are expected to fuel further revenue and cash flow improvements in 2025.
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Q3 2024 revenue and adjusted EBITDA exceeded guidance, driven by Security Solutions and the ramp-up of TSA PreCheck and DMDC programs. Gross margins improved, restructuring actions were taken, and the company expects sequential growth in Q4 and a return to year-over-year growth in 2025.
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Second quarter revenue and margins exceeded guidance, driven by Security Solutions and Secure Networks. TSA PreCheck expansion is on track, and two major federal awards remain under protest but are expected to have minimal 2025 revenue impact if resolved favorably.