Telos Reports 26% Revenue Growth Driven by Federal Security Programs

Telos Corporation reported strong second quarter 2025 financial results, with revenue reaching $36 million, a 26% year-over-year increase driven primarily by its security solutions segment, which grew 82%. Adjusted EBITDA turned positive at $400,000, a $3.3 million improvement from the prior year, and free cash flow was $4.6 million, supporting a $4 million share repurchase program. The company expanded its TSA PreCheck network to 415 centers nationwide with a goal of 500 by year-end and secured new and renewed contracts with federal agencies including the US Department of Treasury and Defense Intelligence Agency. Management highlighted a robust pipeline of over 200 unique opportunities valued at approximately $4 billion, expecting most awards in late 2025 and early 2026. Operational discipline led to adjusted operating expenses coming in $900,000 below guidance, while GAAP and cash gross margins remained within historical ranges despite some mix-related pressures. Telos emphasized continued growth momentum underpinned by federal cybersecurity and digital modernization demand, with a webcast available for further details.