Core Points - ItsEasy.com Passport & Visa Services and Telos Corporation have launched two permanent TSA PreCheck enrollment centers in Manhattan, specifically at the MetLife Building and Rockefeller Center [1][2] - The partnership aims to enhance customer service by addressing the growing travel needs and streamlining the travel document processes [2] - Telos now operates 387 TSA PreCheck enrollment and renewal locations across the U.S., facilitating easier access for travelers [4] Company Overview - ItsEasy.com has processed over 2 million passport and visa applications and has been a trusted agent of the U.S. Department of State since 1976 [9] - The company specializes in expediting passport and visa services, ensuring compliance with governmental requirements, and providing customer support throughout the application process [9] - Telos Corporation focuses on cybersecurity solutions and serves various sectors, including commercial enterprises and government customers [10] TSA PreCheck Program - TSA PreCheck is a Trusted Traveler program that allows expedited screening for enrolled travelers, with over 22 million active members [8] - Members enjoy benefits such as faster security screening, with 99% of members waiting less than 10 minutes at checkpoints [6] - The program is available at over 200 airports and involves a straightforward enrollment process, including online pre-enrollment and in-person appointments [7]

Core Points - ItsEasy.com and Telos Corporation have launched two permanent TSA PreCheck enrollment centers in Manhattan, New York, enhancing travel convenience for customers [1][2] - The enrollment centers are located at the MetLife Building and Rockefeller Center, following successful pop-up events in March 2025 [1][2] - Telos Corporation now operates 387 TSA PreCheck enrollment locations across the U.S., streamlining travel for millions [4] Company Overview - ItsEasy.com is a leading passport and visa expediting company that has processed over 2 million applications and has been a trusted agent of the U.S. Department of State since 1976 [9] - Telos Corporation (NASDAQ: TLS) provides cybersecurity solutions and services for security-conscious organizations, focusing on continuous security assurance [10] TSA PreCheck Program - TSA PreCheck is a Trusted Traveler program that allows expedited screening for enrolled travelers, with over 22 million active members since its launch in December 2013 [8] - Members enjoy benefits such as faster security screening, with about 99% waiting less than 10 minutes at checkpoints [6] - The program is available at over 200 airports, and applicants can pre-enroll online and schedule in-person appointments [7]

ASHBURN, Va., July 15, 2025 (GLOBE NEWSWIRE) -- Telos Corporation (NASDAQ: TLS), a leading provider of cyber, cloud and enterprise security solutions for the world’s most security-conscious organizations, announced today that its premier cyber governance, risk and compliance (GRC) platform, Xacta®, has achieved authorization from the Federal Risk and Authorization Management Program (FedRAMP) at Impact Level “High.” With this achievement, Telos is now listed in the FedRAMP Marketplace as an Authorized vendo ...

Core Points - Telos Corporation has expanded its TSA PreCheck enrollment network by opening 41 new locations in May and another 41 in June 2025, totaling 350 enrollment centers across 38 states [1][2][3] - The expansion aims to provide greater access and convenience for travelers, allowing them to enroll in TSA PreCheck at various partner locations, including Office Depot [1][2] - TSA PreCheck members enjoy expedited security screening, with 99% of members waiting less than 10 minutes at airport checkpoints [3][5] Company Overview - Telos Corporation (NASDAQ: TLS) specializes in security solutions, including cybersecurity, cloud security, and enterprise security for various sectors, including commercial and government clients [6] - The company is an authorized provider for TSA PreCheck, a program designed to expedite airport security for low-risk travelers, which has grown to over 20 million active members since its launch in December 2013 [5][6] Enrollment Process - New TSA PreCheck applicants can pre-enroll or schedule appointments through the Telos TSA PreCheck website, while existing members can renew their membership online [4] - The TSA PreCheck program is part of the Department of Homeland Security's Trusted Traveler initiative, facilitating faster security checks at over 200 airports with participation from more than 90 airlines [5]

U.S. Air Force looks to Xacta for critical automation and training solutionsASHBURN, Va., June 11, 2025 (GLOBE NEWSWIRE) -- Telos Corporation (NASDAQ: TLS), a leading provider of cyber, cloud and enterprise security solutions for the world’s most security-conscious organizations, today announced a contract extension with the U.S. Air Force to help meet complex compliance requirements with Telos’ flagship cyber governance, risk and compliance (GRC) platform, Xacta®. The Company secured a $3.7 million option ...

Core Points - Telos Corporation has been awarded a $14 million contract over five years by the Defense Information System Agency (DISA) to support the Organizational Messaging Service with its Automated Message Handling System (AMHS) [1] - DISA provides assured messaging and directory services to various military and government entities, facilitating secure information exchange and interoperability [2] - The Telos AMHS solution is utilized by multiple organizations, including the U.S. Army, Marine Corps, and various Defense and Intelligence Agencies, ensuring compliance with official messaging standards [3][4] Company Overview - Telos Corporation specializes in cybersecurity, cloud security, and enterprise security solutions, serving security-conscious organizations globally [4] - The company's offerings include IT risk management, information security, identity and access management, and secure mobility solutions [4]

Revenue Performance - Consolidated revenue for the first quarter of FY 2025 was $30.616 million, a year-over-year increase of 3.4% from $29.619 million in FY 2024[93] - Security Solutions segment revenue increased by 38.5% to $25.818 million, driven by the successful ramp-up of a significant program[98] - Secure Networks segment revenue decreased by 56.3% to $4.798 million, primarily due to the ramp-down of several programs[100] Profitability Metrics - Gross margin improved to 39.8% in Q1 FY 2025 from 37.0% in Q1 FY 2024, attributed to a more favorable program mix[93] - Net loss for Q1 FY 2025 was $8.604 million, compared to a net loss of $7.378 million in Q1 FY 2024, reflecting a year-over-year increase of 16.6%[93] - Adjusted EBITDA for Q1 FY 2025 was $362,000, a significant improvement from an adjusted loss of $2.335 million in Q1 FY 2024[106] - Adjusted net loss for the three months ended March 31, 2025, was $2.1 million, or $0.03 per share, compared to an adjusted net loss of $5.7 million, or $0.08 per share, for the same period in 2024[109] Expenses Overview - Operating expenses rose by $1.8 million, or 9.3%, in Q1 FY 2025 compared to the same period in FY 2024, with selling, general and administrative expenses increasing by 21.0%[95] - Research and development expenses declined by 50.4% in Q1 FY 2025, due to lower amortization costs and discontinued development of selected solutions[95] - The company reported stock-based compensation expense of $7.0 million for the three months ended March 31, 2025, compared to $3.0 million for the same period in 2024[109] Cash Flow and Liquidity - Free cash flow for the three months ended March 31, 2025, was $3.8 million, an increase from a negative free cash flow of $3.6 million for the same period in 2024[115] - Net cash provided by operating activities for the three months ended March 31, 2025, was $6.1 million, an increase of $6.5 million compared to the same period in 2024[120] - Cash and cash equivalents as of March 31, 2025, were $57.8 million, with working capital of $70.6 million[118] - Net cash used in investing activities for the three months ended March 31, 2025, decreased by $1.8 million compared to the same period in 2024, primarily due to reduced capital expenditures[121] - The company has a $30.0 million revolving credit facility with a maturity date of December 30, 2025, providing additional liquidity if needed[117] - The company emphasizes liquidity management to maintain a strong balance sheet and support future opportunities[119] Other Income - Other income decreased by 55.2% in Q1 FY 2025, primarily due to a decrease in dividend income from money market placements[96] Gross Profit - Gross profit for the three months ended March 31, 2025, was $12.2 million, representing a gross margin of 39.8%, compared to a gross profit of $11.0 million and a margin of 37.0% for the same period in 2024[112] - Adjusted gross profit for the three months ended March 31, 2025, was $12.4 million, with an adjusted gross margin of 40.4%, compared to $11.2 million and 37.9% for the same period in 2024[112] Government Contracts - The company generated approximately 89% of total revenues from contracts with U.S. government agencies in Q1 FY 2025[89]

Financial Performance - Telos Corporation reported a quarterly loss of $0.03 per share, better than the Zacks Consensus Estimate of a loss of $0.05, and an improvement from a loss of $0.08 per share a year ago, representing an earnings surprise of 40% [1] - The company posted revenues of $30.62 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.73% and showing an increase from $29.62 million in the same quarter last year [2] - Over the last four quarters, Telos has exceeded consensus EPS estimates four times and has also topped consensus revenue estimates four times [2] Stock Performance and Outlook - Telos shares have declined approximately 28.4% since the beginning of the year, compared to a decline of 3.7% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is -$0.05 on revenues of $32.52 million, and for the current fiscal year, it is -$0.16 on revenues of $145.4 million [7] - The estimate revisions trend for Telos is mixed, resulting in a Zacks Rank 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Industry Context - The Computers - IT Services industry, to which Telos belongs, is currently in the top 38% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Total company revenue grew 16% sequentially to $30.6 million, exceeding guidance [7] - GAAP gross margin was 39.8%, and cash gross margin was 45.3%, both exceeding guidance due to a favorable mix [8] - Adjusted EBITDA was a profit of $362,000 compared to guidance of a loss between $1.8 million to $800,000 [8] - Cash flow from operations was positive at $6.1 million, and free cash flow was positive at $3.8 million [9] Business Line Data and Key Metrics Changes - Security Solutions revenue grew 18% sequentially to $25.8 million, while Secure Networks revenue grew 8% sequentially to $4.8 million [8] - Security Solutions revenue increased from 63% of total company revenue in Q1 2024 to 84% in Q1 2025 [10] - Adjusted operating expenses declined by $1.3 million year over year due to a restructuring and cost reduction plan [11] Market Data and Key Metrics Changes - Revenue grew 3% year over year, driven by a 39% increase in Security Solutions, partially offset by contraction in Secure Networks [9] - Cash flow from operations increased by $6.5 million year over year, and free cash flow increased by $7.4 million [11] Company Strategy and Development Direction - The company is focusing on expanding its TSA PreCheck program, targeting 500 enrollment locations by the end of 2025 [12][13] - The DMDC program is expected to be a major source of revenue growth over the next several quarters [13] - The company anticipates year-over-year growth in revenue, adjusted EBITDA, and cash flow to accelerate in the second half of 2025 [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver mission-critical offerings to government customers and highlighted the robust pipeline of opportunities [19][29] - The company expects cash flow to significantly improve year over year, driven by TSA PreCheck performance [31] - Management acknowledged that the renewal market is expected to contract significantly this year [52] Other Important Information - The company has achieved new orders with several customers, including federal government agencies and a Fortune 100 technology company [14] - The business pipeline remains robust, with over $4 billion in opportunities [29] Q&A Session Summary Question: Any changes on the new business front and margin profile for DMDC? - Management indicated that DMDC will generate substantial revenue but will be dilutive to overall margins as lower margin revenue streams ramp up [25][26] Question: What is the expected cash gross margin by year-end? - Management suggested a potential step down of approximately 600 basis points in cash gross margin from the first half to the second half of the year [37] Question: Performance of existing TSA PreCheck footprint and rollout visibility? - Management expressed confidence in TSA PreCheck as a key driver of financial performance, with significant cash flow expected [31] Question: Expectations for free cash flow in Q2 and full year? - Management did not provide specific guidance for Q2 free cash flow but indicated a significant improvement year over year compared to the previous year [42][48] Question: Which business line was the bigger outperformer in Q1? - Management confirmed that Security Solutions was the bigger outperformer, driven by both TSA PreCheck and DMDC [49][50]

Telos (TLS) Q1 2025 Earnings Call May 09, 2025 09:30 AM ET Company Participants Allison Phillipp - Director of Corporate CommunicationsMark Bendza - Executive VP & CFOJohn Wood - Chairman & CEOMark Griffin - Executive Vice President of Security SolutionsNehal Chokshi - Managing Director Conference Call Participants Zach Cummins - Senior Research AnalystRudy Kessinger - Managing Director - Senior Equity Research Analyst Operator Good day, and thank you for standing by. Welcome to the Telos Corporation First ...