What is the market's earnings forecast for Telos next quarter?

What guidance did Telos's management provide for the next earnings period?

What is Telos's gross profit margin?

What were the key takeaways from Telos’s earnings call?

What does Telos do and what are its main business segments?

What is Telos's latest dividend and current dividend yield?

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

What were the key takeaways from Telos's earnings call?

- **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

You can ask Aime