Telos raised its full-year revenue and adjusted EBITDA outlook after a third quarter in which revenue from its Security Solutions segment grew 16.6 percent, which the company attributed primarily to the expansion of large programs in Telos ID, its identity and biometric business.
Total revenue rose 7.3 percent to $55.2 million, ahead of the company’s guidance. Security Solutions brought in $54.2 million, up from $46.5 million a year earlier, while revenue from Secure Networks fell to $1.0 million from $5.0 million. Revenue for the first nine months of the year reached $150.7 million, compared with $118.0 million in the same period of 2025. The results are the first reported since Mark Griffin succeeded John Wood as chief executive on November 2.
Telos posted GAAP net income of $4.4 million, compared with a net loss of $2.1 million a year earlier, and called it its highest quarterly profit since its IPO. Adjusted EBITDA was $10.6 million, a margin of 19.2 percent. GAAP gross margin was 37.9 percent, down from 39.9 percent, but above the company’s guidance assumptions, which Telos said was primarily due to the performance of Telos ID. Cash flow from operations was $9.4 million and free cash flow rose 11.9 percent to $7.4 million.
Alongside its identity work and TSA PreCheck enrollment services, Telos sells Xacta cyber governance, risk and compliance software. Its Information Assurance business secured $58 million of net new Xacta and professional services orders, which the company forecasts will generate about $20 million of revenue in 2027. Telos also spent $5.7 million to repurchase more than 1.2 million shares at an average price of $4.59.
The company now expects full-year revenue of $198.2 million to $200.7 million, up from its earlier range of $187 million to $195 million and representing growth of 20 to 22 percent, and adjusted EBITDA of $32.3 million to $34.1 million, up from $23.6 million to $28.6 million. Telos said the higher outlook reflects the new Information Assurance awards, strength in TSA PreCheck volumes and margin outperformance on large programs. For the fourth quarter, it projects revenue of $47.5 million to $50.0 million and adjusted EBITDA of $7.0 million to $8.8 million.
Sources: SEC, GlobeNewswire
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By the ID Tech Editorial Team
