The earnings call highlighted strong revenue growth driven by the Security Solutions segment and positive cash flow, with significant expansion in TSA PreCheck enrollment centers and a positive outlook for the third quarter. However, there were some concerns regarding gross margin variability and contraction in the secure networks segment. Overall, the highlights significantly outweigh the lowlights, indicating strong performance and optimism for future growth.

Company Guidance -

Q3 2025

During the Telos Corporation Second Quarter 2025 Earnings Conference Call, the company provided optimistic guidance for the upcoming quarter, showcasing strong financial performance and future expectations. For Q3 2025, Telos forecasts revenue growth between 85% and 98% year-over-year, targeting a range of $44 million to $47 million. The adjusted EBITDA is expected to be between $4 million to $5.7 million, resulting in an adjusted EBITDA margin of 9.1% to 12.1%. The company anticipates cash gross margins to increase sequentially to approximately 40% to 41%, up from 38.4% in Q2, attributed to favorable revenue mix fluctuations. Adjusted operating expenses are projected to decrease by $1.6 million year-over-year to $14.3 million. Security Solutions are expected to contribute around 90% of the total company revenue. Additionally, Telos resumed share repurchases, deploying $4 million to buy back 1.5 million shares, reflecting confidence in its financial outlook and robust cash flow performance.

Significant Revenue Growth

Revenue grew 26% year-over-year to $36 million, exceeding the guidance range of $32.5 million to $34.5 million.

Strong Performance in Security Solutions

Security Solutions delivered approximately 90% of total company revenue and achieved 82% growth year-over-year.

Positive Cash Flow and Share Repurchases

Operating cash flow was $7 million, and free cash flow was $4.6 million. The company resumed share repurchases, buying back 1.5 million shares.

Expansion of TSA PreCheck Program

The number of TSA PreCheck enrollment centers increased by 43% since May, reaching 415 locations across 40 states.

FedRAMP High Authorization for Xacta Software

The Xacta platform received FedRAMP High Authorization, recognizing its capability to protect highly sensitive government data in cloud environments.

Positive Third Quarter Forecast

The company forecasts revenue growth of 85% to 98% year-over-year for the third quarter, with adjusted EBITDA projected to be $4 million to $5.7 million.

Telos (TLS) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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TLS Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 18, 2025	2025 (Q3)	0.01 / -	-0.1	―	―	―
Aug 11, 2025	2025 (Q2)	-0.05 / -0.03	-0.09	66.67% (+0.06)
May 09, 2025	2025 (Q1)	-0.05 / -0.03	-0.08	62.50% (+0.05)
Mar 10, 2025	2024 (Q4)	-0.09 / -0.04	-0.09	55.56% (+0.05)
Nov 12, 2024	2024 (Q3)	-0.14 / -0.10	-0.07	-42.86% (-0.03)
Aug 09, 2024	2024 (Q2)	-0.14 / -0.09	-0.03	-200.00% (-0.06)
May 10, 2024	2024 (Q1)	-0.11 / -0.08	-0.04	-100.00% (-0.04)
Mar 15, 2024	2023 (Q4)	-0.11 / -0.09	0.05	-280.00% (-0.14)
Nov 09, 2023	2023 (Q3)	-0.14 / -0.07	0.1	-170.00% (-0.17)
Aug 09, 2023	2023 (Q2)	-0.13 / -0.03	0.04	-175.00% (-0.07)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

TLS Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Aug 11, 2025	$2.38	$3.87	+62.61%
May 09, 2025	$2.45	$1.96	-20.00%
Mar 10, 2025	$2.87	$2.60	-9.41%
Nov 12, 2024	$4.24	$3.92	-7.55%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.