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Telos (TLS)
NASDAQ:TLS
Earnings Data
Report Date
May 08, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
<0.01Last Year’s EPS
-0.03Same Quarter Last Year
Moderate Buy
Based on 5 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The earnings call conveyed a strongly positive operational and financial trajectory: exceptional top-line growth (Q4 +77%, full-year +52%), meaningful adjusted EBITDA and free cash flow improvement, disciplined expense management, share repurchases, and a large $4.2B pipeline with meaningful near-term opportunity. Material headwinds were acknowledged — chiefly a $14.9M noncash goodwill impairment in Secure Networks, a $1.5M restructuring charge, and forecasted gross margin compression driven by revenue mix and prepaid expense timing — but these issues are either noncash, one-time, or tied to expected program mix. Management reiterated durable government demand, product momentum (notably Xacta AI and Telos ID), and guidance for continued margin expansion and robust cash generation in 2026. Overall, the positives around growth, profitability improvement, cash generation, and pipeline visibility outweigh the lowlights.Company Guidance
Exceptional Revenue Growth
Q4 revenue increased 77% year over year to $46.8M. Full-year 2025 revenue grew 52% to $164.8M. 2026 revenue guidance implies 14%–21% growth to $187M–$200M, with Q1 guidance of 44%–47% growth to $44M–$45M.
Strong Profitability and Margin Expansion
Full-year adjusted EBITDA was $18.1M, a $27.8M improvement year over year, and adjusted EBITDA margin expanded nearly 20 percentage points to 11%. Q4 adjusted EBITDA was $7.3M with a 15.6% margin. 2026 adjusted EBITDA guidance is $20.6M–$28.0M (11%–14% margin).
Robust Cash Generation
Q4 operating cash flow was $8.0M and free cash flow was $6.3M (13.4% free cash flow margin). Full-year free cash flow was $21.3M, representing a $61.0M improvement year over year, and full-year free cash flow margin was 12.9%.
Improved Operating Efficiency
Cash operating expenses declined approximately $8.0M (nearly 12%) year over year. Adjusted operating expenses came in ~$1.0M better than guidance assumptions, and 2026 cash operating expenses are forecasted to be $1.5M–$4.0M lower year over year due to a company-wide expense management plan and restructuring.
Capital Return and Balance Sheet Flexibility
During 2025 the company repurchased $13.6M of stock (~4.3% of outstanding shares at an average price of $4.38). Board increased repurchase authorization from $50M to $75M and management expects additional repurchases in 2026.
Product Momentum — Xacta and Xacta AI
Xacta remains a strong recurring product with high renewal rates. Xacta AI launched in 2025; 400 Xacta AI licenses have been sold to two major federal customers and the company reports strong prospect interest and sizable attach opportunities (tens of millions across existing customers).
Telos ID Ramp and Market Demand
Telos ID programs (including TSA PreCheck) ramped strongly with improving transaction volumes and market share gains; biometric solutions process millions of identity transactions annually. Management expects continued ramp of large Telos ID programs into 2026.
Large and Visible Pipeline
Pipeline remains large at over $4.2B. Management notes ~64 opportunities expected to be awarded in 2026 (34 in H1), with ~20% of pipeline value concentrated in the first half, providing line-of-sight for additional awards.
TLS Earnings History
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 |
|---|---|---|---|
Mar 16, 2026 | $4.28 | $4.12 | -3.74% |
Nov 10, 2025 | $6.38 | $7.76 | +21.63% |
Aug 11, 2025 | $2.38 | $3.87 | +62.61% |
May 09, 2025 | $2.45 | $1.96 | -20.00% |
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.
FAQ
When does Telos (TLS) report earnings?
Telos (TLS) is schdueled to report earning on May 08, 2026, After Close (Confirmed).
What is Telos (TLS) earnings time?
Telos (TLS) earnings time is at May 08, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is TLS EPS forecast?
TLS EPS forecast for the fiscal quarter 2026 (Q1) is <0.01.
