Company Overview - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team operates from key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The content includes insights across various sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is recognized as a forward-looking company that actively adopts new technologies to enhance workflows [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all content is edited and authored by humans [5]

Core Viewpoint - BMO Capital has reduced its price target for Telos Corp. to $5 from $8 while maintaining a Market Perform rating, despite the company reporting stronger-than-expected quarterly results [1] Group 1: Financial Performance - Revenue exceeded expectations, driven by strong growth in the Security Solutions segment, particularly in Telos ID [1] - Adjusted EBITDA and margins surpassed forecasts, indicating improved cost discipline and execution [1] Group 2: Future Guidance - For fiscal 2026, revenue guidance aligns with expectations, with potential upside from new contract awards, although uncertainty exists due to government-related timing factors [2] - BMO anticipates gross margin pressure in fiscal 2026 compared to fiscal 2025, but expects adjusted EBITDA margins to expand year over year [2] - The firm maintains a neutral stance while adjusting its valuation to reflect updated assumptions [2]

FORM 10-K Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-08443 TELOS CORPORATION (Exact name of registrant as specified in its charter) | Maryland | 52-0880974 | | --- | --- | | (State or other jurisdiction of incorporati ...

Core Insights - Telos Corporation (TLS) projects a revenue growth of 14%-21% by 2026 while expanding its federal security programs [2] - The company reported that 2025 was an exceptional year financially, attributing success to investments in people, systems, and customer relationships [2] - The Security Solutions segment now accounts for over 90% of total revenue, indicating a strong focus on this area [2]

分组1 - Telos Corporation reported quarterly earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of $0.02 per share, compared to a loss of $0.04 per share a year ago, representing an earnings surprise of +166.67% [1] - The company achieved revenues of $46.78 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 3.49%, and this is an increase from year-ago revenues of $26.37 million [2] - Telos has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] 分组2 - The stock has underperformed, losing about 16.1% since the beginning of the year, while the S&P 500 has declined by 3.1% [3] - The current consensus EPS estimate for the upcoming quarter is breakeven on $41.83 million in revenues, and $0.10 on $197.5 million in revenues for the current fiscal year [7] - The Computers - IT Services industry, to which Telos belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Core Insights - Telos reported strong fourth-quarter performance, exceeding guidance across key metrics, driven by robust execution in Telos ID and large program ramp-ups [3][4] - The company anticipates continued double-digit revenue growth and Adjusted EBITDA margin expansion for 2026, despite expected gross margin pressure due to revenue mix [4][5] Financial Performance - Fourth-quarter revenue increased 77% year-over-year to $46.8 million, surpassing the guidance range of $44.0 million to $46.3 million [3][7] - Adjusted EBITDA for the quarter was $7.3 million, significantly above the company's guidance of $4.0 million to $5.7 million, with an Adjusted EBITDA margin of 15.6% [1][3] - Full-year 2025 revenue rose 52% to $164.8 million, with free cash flow of $21.3 million and share repurchases totaling $13.6 million [10][12] Cost Management and Restructuring - The company implemented a restructuring plan resulting in a $1.5 million charge, aimed at streamlining operations and enhancing growth potential [8][9] - Cash operating expenses decreased by $8 million, or nearly 12%, reflecting effective expense management initiatives [11] 2026 Guidance - For 2026, Telos projects revenue between $187 million and $200 million, indicating growth of 14% to 21% year-over-year [5][13] - Adjusted EBITDA is expected to range from $20.6 million to $28.0 million, with an Adjusted EBITDA margin of 11% to 14% [15] Product and Market Developments - The Security Solutions segment now accounts for over 90% of total revenue, with strong demand for the Xacta platform and TSA PreCheck services [17][18] - The company has a robust pipeline valued at over $4.2 billion, although award timing has shifted due to external factors [19] Capital Return Strategy - Telos has increased its share repurchase authorization from $50 million to $75 million to support ongoing buybacks [20]

Financial Data and Key Metrics Changes - Revenue increased 77% year-over-year to $46.8 million, exceeding guidance of $44 million-$46.3 million [7] - Adjusted EBITDA was $7.3 million, surpassing guidance of $4-$5.7 million, with an Adjusted EBITDA margin of 15.6% [10] - Full year 2025 revenue increased 52% to $164.8 million, with Adjusted EBITDA of $18.1 million, representing a $27.8 million improvement year-over-year [11] - Free cash flow was $21.3 million, a $61 million improvement year-over-year, with a free cash flow margin of 12.9% [12] Business Line Data and Key Metrics Changes - The Telos ID business drove significant revenue growth, particularly from the TSA PreCheck program [17] - Secure Networks segment experienced a $14.9 million non-cash goodwill impairment due to a decline in contract backlog [8] - Cash gross margin for the quarter was 35%, improving to 36% when excluding certain charges, while cash gross margin was 41.9% [9] Market Data and Key Metrics Changes - Over 90% of revenue comes from government contracts, including the Department of Defense and other federal agencies [18] - The company’s pipeline remains strong at over $4.2 billion, with 20% of that value expected to be awarded in the first half of 2026 [20] Company Strategy and Development Direction - The company plans to continue focusing on disciplined program execution and operating expense management to drive growth and margin expansion [6] - A company-wide restructuring plan was approved to streamline operations and position for growth in 2026 [8] - The board increased share repurchase authorization from $50 million to $75 million to support capital deployment [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of revenue due to well-funded government programs tied to national security and compliance [19] - The company expects another year of double-digit revenue growth in 2026, forecasting revenue growth of 14%-21% year-over-year [13] - Management acknowledged heightened scrutiny in federal spending but noted that the programs supported remain operationally essential [19] Other Important Information - The company returned $13.6 million to shareholders through share repurchases in 2025 [12] - Adjusted operating expenses are expected to decline in 2026, even as revenue continues to grow [8] Q&A Session Summary Question: Initial guidance for the year and pipeline opportunities - Management noted that existing programs are driving growth, with the confidential IT security work expanding and the IT GEMS program ramping up [26][27] Question: Gross margin assumptions for the year - Management explained that gross margin compression is due to the growth of lower-margin revenue streams and the recognition of prepaid expenses [31][33] Question: Contribution of Xacta to revenue and renewal rates - Renewal rates for Xacta are excellent, with minimal revenue loss typically experienced [39] Question: Pipeline and large contract contributions - A significant portion of the revenue growth is tied to a large DMDC contract, contributing roughly a third of the improvement from previous outlooks [45] Question: Strategies to maintain cash gross margin - Management indicated that gross margins will fluctuate based on revenue mix, but they expect to maintain a solid cash gross margin profile [50][51]

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Fourth Quarter and Full Year 2025 Earnings March 16, 2026 DISCLAIMERS The information contained in this presentation does not constitute or form part of, and should not be construed as, any offer, sale or subscription of, or any invitation to offer, buy or subscribe for, any securities, nor shall there be any offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful. Telos Corporation (the "Company") will only make such an offer or sale pursuant to an effect ...

ASHBURN, Va., March 16, 2026 (GLOBE NEWSWIRE) -- Telos Corporation (NASDAQ: TLS), a leading provider of cyber, cloud and enterprise security solutions for the world’s most security-conscious organizations, has posted its 2025 fourth quarter and full year financial results on its investor relations website at https://investors.telos.com. Telos will host a live webcast to discuss its fourth quarter and full year 2025 financial results today, March 16, 2026, at 9:30 a.m. ET. To access the webcast, visit https: ...