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What is the revenue and EPS growth rate for Telos year over year?

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- **Revenue Growth**: Q4 2025 revenue up 77% YoY to $46.8 million, with 2026 guidance of $187-200 million (+14-21%).
- **Profitability Expansion**: Adjusted EBITDA margin 15.6% in Q4, with 2026 target of 11-14% margin expansion.
- **AI Innovation**: Xacta AI licenses sold to federal customers, reducing compliance time by 90%, with tens of millions in pipeline.
- **Federal Pipeline**: $4.2 billion pipeline, 34 H1 2026 opportunities, and $13.6 million in share buybacks in 2025.
- **Risk Management**: 2026 gross margin compression (37-39.5%) due to IT GEMS hardware, offset by EBITDA margin expansion.

**【CFO Financial Commentary】**
- **Q4 2025 Results**: Revenue of $46.8 million (+77% YoY), exceeding guidance, driven by Telos ID and IT GEMS programs. Adjusted EBITDA of $7.3 million (15.6% margin), with free cash flow of $6.3 million.
- **2025 Full Year**: Revenue $164.8 million (+52% YoY), adjusted EBITDA $18.1 million, free cash flow $21.3 million. Share repurchases totaled $13.6 million.
- **2026 Outlook**: Revenue $187-200 million (+14-21%), with cash gross margin 37-39.5% (down due to IT GEMS hardware mix). Operating expenses expected to decline by $1.5-4 million.
- **Restructuring**: $16.4 million charge in Q4, including $14.9 million goodwill impairment. 2026 expenses to decrease despite revenue growth.

**【CEO Strategic Remarks】**
- **Xacta AI Momentum**: 400 licenses sold to federal customers, with AI-driven compliance insights reducing time-to-authority by 90%. Pipeline for new sales is tens of millions.
- **Telos ID Growth**: TSA PreCheck enrollment volumes up, with biometric ID processing millions annually. New federal IT security work added in Q4.
- **Pipeline Strength**: $4.2 billion pipeline, with 64 opportunities expected in 2026 (34 in H1). Federal funding stability supports program durability.

**【Q&A Highlights】**
- **Gross Margin Compression**: IT GEMS hardware (low-margin) and TSA PreCheck prepaid expenses drive 200+ bps margin decline. Adjusted EBITDA margins still expected to expand.
- **Xacta AI Adoption**: Existing customers prioritizing AI upgrades, with 90%+ renewal rates. New sales pipeline growing alongside renewals.
- **DMDC Contract Impact**: One large deal contributes ~1/3 of the $18 million increase from prior guidance, with additional upside from pipeline awards.
- **Cash Flow Resilience**: Despite margin headwinds, strong operating cash flow ($8 million Q4) and balance sheet flexibility support share buybacks ($75M authorization).

Telos Corporation (TLS) Q4 2025 Earnings Call Transcript

- **Q3 2025 Superformance**: 116% revenue growth to $51.4M, $10.1M EBITDA, and $6.6M free cash flow.
- **Xacta.ai Breakthrough**: 93% efficiency gains, first enterprise deployment, and strong customer interest.
- **2026 Outlook**: $180M+ baseline with tens of millions from new wins and AI-driven growth.
- **Government Shutdown Impact**: Delays in awards but no pipeline cancellations; expects resolution soon.


**【CFO Financial Highlights】**
- Q3 2025 revenue surged 116% YoY to $51.4 million, exceeding guidance of $44-47 million.
- Adjusted EBITDA reached $10.1 million (19.6% margin), up from $4-5.7 million guidance.
- Free cash flow was $6.6 million (12.8% margin), with $3.6 million in share buybacks.
- Full-year 2025 revenue up 44% YoY to $152.3 million, with free cash flow improving by $39.8 million.

**【CEO Business Updates】**
- Launched Xacta.ai in October, securing first enterprise customer with 93% efficiency improvement in GRC tasks.
- Expanded TSA PreCheck to 504 locations across 41 states, exceeding 500-location target.
- 2026 outlook: $180 million baseline from existing programs, plus potential tens of millions from new wins and Xacta.ai sales.

**【CFO Q4 Guidance】**
- Q4 2025 revenue: $44-46.3 million (67-76% YoY growth).
- Adjusted EBITDA: $4-5.7 million (9.1-12.3% margin).
- Note: Federal government shutdown may delay awards and administrative processes.

**【Q&A Highlights】**
- **Xacta.ai Adoption**: First enterprise sale completed pre-shutdown; existing customers show strong interest for upselling.
- **TSA PreCheck Growth**: Focus on underserved markets and partnerships for continued expansion.
- **2026 Pipeline**: $5 billion pipeline, with ~$100 million expected to be awarded in 2026, excluding Xacta.ai.
- **Free Cash Flow**: Targeting low double-digit EBITDA margins at $180 million baseline, with upside from new wins.


Telos Corporation (TLS) Q3 2025 Earnings Call Transcript

- **Revenue surge**: 26% YoY to $36M, driven by Security Solutions (90% of total). Free cash flow $4.6M, up $16M YoY.
- **Margin improvement**: Adjusted EBITDA profit vs. loss, 40-41% Q3 gross margin guidance. FedRAMP High authorization for Xacta platform.
- **Growth catalysts**: 415 TSA locations (43% QoQ), $4B pipeline, 85-98% Q3 revenue growth. Share buybacks resumed ($4M Q2).
- **Sustainability**: Robust cash flow conversion, disciplined OpEx, and recession-resistant markets.

**【CFO Financial Overview】**
- Q2 2025 revenue reached $36 million, up 26% YoY, with 90% from Security Solutions. GAAP gross margin was 33.2%, cash gross margin 38.4%, and adjusted EBITDA improved to a $400,000 profit (vs. $2.1M loss guidance). Free cash flow was $4.6 million, with $8.4 million year-to-date.
- Resumed share repurchases: $4 million (1.5M shares) at $2.69 avg price.

**【CEO Business Highlights】**
- TSA PreCheck expanded to 415 locations (43% QoQ growth), targeting 500 by year-end. FedRAMP High authorization for Xacta platform secured.
- New Xacta orders/renewals with U.S. Treasury, Air Force, DIA, and Fortune 100 tech company. Cyber services renewal with DHS.

**【CFO Q3 Guidance】**
- Revenue: $44-47 million (85-98% YoY growth). Adjusted EBITDA: $4-5.7 million (9.1-12.1% margin). Cash gross margin: 40-41% (up from 38.4%).
- Sequential improvement in margins driven by program mix, including DMDC and TSA PreCheck.

**【Q&A Highlights】**
- TSA PreCheck enrollments growing with location expansion, offsetting COVID-5-year renewal decline. Gross margin variability due to program mix, but 38%+ long-term average.
- $4 billion pipeline with 69 new opportunities (>$1M each). Focus on buybacks, opportunistic M&A, and transformational deals.
- Free cash flow sustainability expected, with working capital tailwind moderating over time.

Telos Corporation (TLS) Q2 2025 Earnings Call Transcript

- **Q1 2025 Strong Financials**: Sequential revenue up 16% to $30.6M, positive EBITDA of $362K, and $6.1M cash flow from operations.
- **TSA PreCheck Expansion**: 73 new enrollment centers added in 9 weeks, total 291 locations, targeting 500 by end-2025.
- **DMDC Growth Driver**: Expected to contribute $50-75M in 2025, but will dilute margins sequentially.
- **Positive Cash Flow Outlook**: Free cash flow to improve YoY, driven by TSA PreCheck and cost control.
- **Risks**: Secure Networks contraction, renewal market decline, and DMDC margin dilution.

**【CFO Financial Highlights】**
- Q1 2025 revenue grew 16% sequentially to $30.6M, driven by 18% growth in Security Solutions and 8% in Secure Networks.
- Adjusted EBITDA turned positive at $362K vs. guidance of -$1.8M to -$800K, with cash flow from operations at $6.1M.
- Year-over-year, Security Solutions revenue surged 39% to $25.8M, offsetting Secure Networks contraction.
- GAAP gross margin expanded 278bps to 39.8%, while cash gross margin rose 313bps to 45.3% due to mix shift.
- Operating expenses declined $1.3M YoY, with $800K better-than-expected savings in non-labor costs.

**【CEO Business Updates】**
- TSA PreCheck added 73 new enrollment centers in 9 weeks, totaling 291 locations, targeting 500 by end-2025.
- DMDC program ramping on schedule, expected to contribute $50-75M in 2025 revenue.
- Xacta secured new orders with Infor, U.S. Federal Gov, and a Fortune 100 tech company.
- AMHS achieved renewals with U.S. Marine Corps, DISA, and SOCOM.

**【Q2 2025 Guidance】**
- Revenue: $32.5-34.5M (14-21% YoY growth)
- Security Solutions: 60-70% YoY growth
- Secure Networks: 70-50% YoY decline
- Cash gross margin: 38-39.5% (down due to DMDC margin dilution)
- Adjusted EBITDA: -$2.1M to -$600K
- Free cash flow expected to improve YoY, driven by TSA PreCheck cash generation.

**【Key Risks & Dynamics】**
- DMDC program will dilute margins sequentially, with lower-margin streams ramping first.
- TSA PreCheck costs recognized in COGS without corresponding cash outflows, boosting cash flow.
- Renewal market contraction expected to continue, impacting Secure Networks.
- Pipeline remains over $4B, with single-digit wins possible in 2025.


Telos (TLS)-9 May 25-2025 Q1 Earnings call transcript

- **Q4 2024 Strong Finish**: $26.4M revenue, 47% cash gross margin (highest since 2020). 
- **TSA PreCheck Growth**: 218 centers (45% of 500 target), targeting $200M market. 
- **DMDC/DHS Programs**: $50-75M 2025 contribution, delayed revenue recognition in first year. 
- **2025 Outlook**: $70M+ existing business, positive free cash flow, 7%-15% Q1 revenue growth.

**【CFO Financial Summary】**
- Q4 2024 revenue: $26.4M (11% sequential growth), Security Solutions: $21.9M (83% of total). 
- Cash gross margin: 47% (highest since IPO in 2020), full year 2024: 43.7% (highest since 2000). 
- Adjusted EBITDA improved sequentially from -$4.2M to -$0.2M. 
- Cash flow from operations: -$10.5M (working capital buildup), expects positive Q1 2025. 

**【CEO Business Highlights】**
- TSA PreCheck: 218 enrollment centers (up from 26 in 2024), targeting 500 by end-2025. 
- DMDC program: Transitioned from incumbent, generating revenue in Q4. 
- DHS program: Stop work order lifted in Jan 2025, expects revenue later this year. 
- New orders: Xacta with ONI, DOE, cyber services for Fortune 100 tech company. 

**【Q1 2025 Guidance】**
- Revenue: $28.2M-$30.2M (7%-15% sequential growth). 
- EBITDA: -$1.8M to -$0.8M. 
- GAAP gross margin: +150-215bps YoY. 
- Cash flow: Positive in Q1, expects significant improvements in 2025. 

**【Key 2025 Projections】**
- Existing business: $70M (up from $60-65M prior estimate). 
- DMDC/DHS programs: $50-75M (down from $60-85M due to revenue recognition timing). 
- TSA PreCheck: $200M market, targeting pro rata share as rollout completes. 
- Free cash flow: Expected positive, breakeven EBITDA implies $8M+ positive cash flow.

Telos (TLS)-10 Mar 25-2024 Q4 Earnings call transcript

Telos (TLS)-12 Nov 24-2024 Q3 Earnings call transcript

Telos (TLS)-9 Aug 24-2024 Q2 Earnings call transcript

Telos (TLS)-10 May 24-2024 Q1 Earnings call transcript

- **Q4 Revenue Beat**: $41.1 million (vs. $30-34M guidance), driven by Secure Networks' $7.8M accelerated delivery. 
- **$525M New Business Win**: 85% of $610M pipeline converted, with protests expected to resolve in ~100 days. 
- **TSA PreCheck Growth**: Sequential transaction volume increases, 26/500 enrollment centers operational. 
- **FY24 Outlook**: $60-85M annual revenue from new awards (H2 2024+), offsetting $16M headwinds. 
- **FY25 Potential**: $30M headwinds vs. multi-year contract upside and enrollment center expansion.

**【CEO Summary Section】**
- Telos exceeded 2023 expectations, reducing workforce by 20% and securing $525 million in new business over 5 years (85% of $610 million pipeline). 
- TSA PreCheck transaction volumes grew sequentially, with 26 enrollment centers operational and plans for 500 locations. 
- Completed a global satellite communication solution for the U.S. Air Force.

**【CFO Financial Commentary】**
- Q4 2023 revenue: $41.1 million (vs. $30-34 million guidance), driven by Secure Networks' $7.8 million accelerated delivery. 
- GAAP gross margin: 34.3% (below 35.1-36.4% guidance due to lower-margin business). 
- Adjusted EBITDA: $(3.2 million) (vs. $(6.5 million) to $(4.5 million) guidance). 
- Q1 2024 guidance: Revenue $28-29 million, EBITDA $(5.5 million) to $(5 million). 
- FY24 outlook: $16 million headwind from preexisting programs, potential $60-85 million annual revenue from new awards starting H2 2024.

**【Q&A Key Highlights】**
- Protest resolution timeline: ~100 days (5% success rate for protests). 
- TSA PreCheck: Q1 2024 revenue contribution significant, with online renewal platform driving growth. 
- Gross margins: Similar to 2023 levels for new contracts. 
- FY25: Potential $30 million headwinds offset by new business wins and enrollment center expansion.

Actual	0.08	0	0.04	0.1	0.11	-0.01	0.04	0.1	0.05	-0.04	-0.03	-0.07	-0.09	-0.08	-0.09	-0.1	-0.04	-0.03	-0.03	0.09	0.06
Forecast	-0.0975	-0.0437	0.0193	0.1046	0.0426	-0.01	-0.0294	0.0201	-0.0083	-0.1267	-0.125	-0.1352	-0.1086	-0.1133	-0.137	-0.1417	-0.0873	-0.052	-0.0514	0.0151	0.0214
Surprise	+182.05%	+100.00%	+107.25%	-4.40%	+158.22%	0.00%	+236.05%	+397.51%	+702.41%	+68.43%	+76.00%	+48.22%	+17.13%	+29.39%	+34.31%	+29.43%	+54.18%	+42.31%	+41.63%	+496.03%	+180.37%

TLS

TLS fundamentals

TLS Q4 2025 Earnings

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TLS

TLS fundamentals

TLS Q4 2025 Earnings

Earnings Call

TLS Earnings Call Summary for Q4/20259:30 AM on Mar 16, 2026

TLS Earnings Call Summary for Q3/20259:30 AM on Nov 10, 2025

TLS Earnings Call Summary for Q2/20259:30 AM on Aug 11, 2025

TLS Earnings Call Summary for Q1/20259:30 AM on May 9, 2025

TLS Earnings Call Summary for Q4/20249:30 AM on Mar 10, 2025

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