Telos Corp

Telos Corporation reported second quarter 2026 revenue of $47.7 million, up 33% year over year and above its guidance range of $44 million to $46 million, driven by stronger-than-forecasted performance in Telos ID. Adjusted EBITDA reached $6.9 million, exceeding the high end of guidance of $5 million to $6 million, with adjusted EBITDA margin expanding to 14.4% from 1.1% a year earlier. The company raised its full-year adjusted EBITDA guidance to a range of $23.6 million to $28.6 million, up from $20.6 million to $28 million, and increased its full-year cash gross margin outlook to 39% to 40%. Telos also announced it will phase out a low-margin third-party software resale revenue stream starting in the fourth quarter, which is expected to improve total company cash gross margin by over 600 basis points on a run-rate basis. The company repurchased more than 1 million shares for $4.7 million during the quarter, and management said it continues to expect government contract award decisions in the second half of 2026 on proposals representing over $500 million in total contract value.

Telos Corporation has been selected again by the Hawaii Department of Transportation to provide Aviation Channeling Services for aviation worker vetting across five state airports. The agreement covers Daniel K. Inouye International Airport, Ellison Onizuka Kona International Airport at Keāhole, Hilo International Airport, Kahului Airport, and Lihue Airport. Telos will continue supporting Security Threat Assessments, Criminal History Records Checks, and Rap Back enrollments for airport workers and authorized personnel, a partnership that began in 2018. The company’s Aviation Channeling Services platform is used by more than 100 airports, airlines, and aviation organizations nationwide, and Telos was the first third-party channeling provider approved by the Transportation Security Administration.

Telos has received a contract award to support the U.S. Air Force Distributed Common Ground System, the Air Force’s primary intelligence, surveillance, and reconnaissance planning, collection, processing, exploitation, analysis, and dissemination system. Under the contract, Telos will provide perpetual licenses for Xacta.ai, along with support services and maintenance for its Xacta platform, including Xacta 360 and Xacta.io. The award further expands the Air Force's use of Telos' cyber governance, risk, and compliance solutions.

Telos Corporation has gained roughly 6% since reporting fiscal Q1 2026 earnings that significantly beat expectations. Revenue reached $47.7 million, surpassing the $44.6 million consensus, while earnings per share of $0.06 topped the $0.02 estimate. Revenue jumped 56% year-over-year, driven by 78% growth in Security Solutions from strong TSA PreCheck enrollment and expansion of large Telos ID programs, with GAAP gross margins improving to 36.4%. Management reaffirmed full-year 2026 guidance for double-digit revenue growth, lower operating expenses, and expanding adjusted EBITDA margins and free cash flow, supported by a $500 million contract pipeline and recent wins including a Missile Defense Agency SHIELD contract and a $5.4 million cybersecurity renewal with a Fortune 100 firm.