Telos Corporation (NASDAQ:TLS) Q1 2022 Earnings Conference Call May 10, 2022 8:30 AM ET Company Participants Christina Mouzavires – Investor Relations John Wood – Chairman and Chief Executive Officer Mark Bendza – Executive Vice President and Chief Financial Officer Mark Griffin – Executive Vice President of Security Solutions Conference Call Participants Alex Henderson – Needham Zach Cummins – B. Riley Securities Brad Clark – BMO Nehal Chokshi – Northland Capital Markets Rudy Kessinger – D.A. Davidson Oper ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR o 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 incorporation or organization) (I ...

Financial Data and Key Metrics Changes - The company reported a 43% revenue growth in Q4 2021 and a 35% growth for the full year, or 59% for the year adjusted for the wind down of the 2020 Census program [8][9] - Gross profit increased by 38% for the year, totaling $86 million, with adjusted EBITDA of $8.8 million and a 13.8% adjusted EBITDA margin for Q4 [9][34] - Adjusted EPS for the year was $0.27, an increase of $0.42 year-over-year [9] Business Line Data and Key Metrics Changes - The Security Solutions segment generated $123.5 million in revenue for fiscal 2021, representing 51% of total revenues, with a compounded annual growth rate of approximately 13% over the last three years [13] - The Secure Networks segment generated approximately $118.9 million in revenue for fiscal 2021, or 49% of total revenues, with a remarkable 90% growth in 2021 alone [14] Market Data and Key Metrics Changes - The company ended 2021 with a cash balance of approximately $127 million and repaid all its debt, indicating strong financial flexibility [16] - The company has seen increased federal, state, and commercial market interest for secure, fully integrated, enterprise-class, hybrid, and multi-cloud environments [27] Company Strategy and Development Direction - The company has restructured its reporting business segments into Security Solutions and Secure Networks to better align with its strategic priorities [12] - The company is focused on expanding its sales channel and cloud partnerships, with significant investments in sales and marketing functions [17][20] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment over customer delays on large programs but remains optimistic about future growth opportunities, particularly in cybersecurity funding from federal agencies [25][68] - The company anticipates a strong finish to 2022, with a focus on balancing investments in growth while managing costs and cash flows [68] Other Important Information - The company has made two inorganic investments, acquiring the remaining equity interest in Telos ID and Diamond Fortress Technologies [18][19] - The company is undergoing a technical accounting review related to the TSA PreCheck program, which has implications for revenue recognition [54][56] Q&A Session Summary Question: Update on Security Solutions growth outlook - Management indicated that the growth outlook for Security Solutions has been adjusted due to ongoing delays in TSA PreCheck, affecting the expected growth rate [72][74] Question: Insights on Secure Networks guidance - The decline in Secure Networks revenue is primarily due to the wind down of two large programs, with new business expected to partially offset this in the second half of the year [78] Question: Free cash flow generation expectations - Management suggested that free cash flow could improve this year, potentially reaching positive levels, based on adjusted EBITDA guidance and capital expenditures [80] Question: Update on CMS contract - Management remains optimistic about the CMS contract's potential for expansion, despite it not being included in the 2022 plan [86] Question: Sales force expansion and market investment - The sales force has been rounded out, and the focus is now on execution and building a sales pipeline, with results expected in the second half of 2022 [90] Question: TSA PreCheck ATO timeline - Management expressed frustration over the delays in receiving the ATO for TSA PreCheck but remains optimistic about obtaining it in 2022 [95][96]

3Q 2021 Earnings Release Solutions that empower and protect the enterprise.TM November 15, 2021 2 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 suc ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ______________ FORM 10-Q (Address of principal executive offices) (Zip Code) (703) 724-3800 ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: September 30, 2021 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission file number: 001-08443 TELOS CORPORATION (Exact name of registrant as specified in its ...

Telos Investor Presentation Solutions that empower and protect the enterprise.TM August 2021 Disclaimer The information contained in this presentation does not constitute or form part of, and should not be construed as, any offer or 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 ...

Revenue and Financial Performance - Revenue increased by 8.1% to $52.6 million for Q2 2021, compared to $48.6 million in Q2 2020[140]. - Security Solutions revenue decreased by approximately 8.8% to $31.2 million, primarily due to a $4.6 million decrease in sales related to the U.S. Census Bureau contract[140]. - Secure Networks revenue increased by approximately 48.6% to $21.4 million, driven by contracts with the DoD[140]. - Gross profit increased by 17.0% to $20.6 million for Q2 2021, with a gross margin increase to 39.1% from 36.2% in Q2 2020[142]. - SG&A expenses increased by 212.7% to $39.1 million for Q2 2021, primarily due to stock-based compensation[143]. - Operating loss was $18.6 million for Q2 2021, compared to an operating income of $5.1 million in Q2 2020[144]. - Net loss attributable to Telos Corporation was $18.7 million for Q2 2021, compared to a net income of $0.3 million in Q2 2020[147]. - Total assets increased to $220.1 million as of June 30, 2021, from $183.8 million as of December 31, 2020[156]. - Total liabilities decreased to $55.4 million as of June 30, 2021, from $56.7 million as of December 31, 2020[157]. - Net loss attributable to Telos Corporation for the six months ended June 30, 2021, was $33.5 million, compared to $2.0 million for the same period in 2020[155]. - For the three months ended June 30, 2021, Telos Corporation reported a net loss of $18.7 million, compared to a net income of $0.3 million for the same period in 2020[162]. - Adjusted EBITDA for the six months ended June 30, 2021, was $5.7 million, a decrease from $8.2 million for the same period in 2020[162]. - Adjusted Net Income for the three months ended June 30, 2021, was $2.6 million, resulting in an Adjusted EPS of $0.04[164]. - The company does not anticipate paying any cash dividends on its common stock in the foreseeable future[167]. Backlog and Revenue Composition - Recurring revenue has exceeded 85% of the company's annual revenue for the past three years[125]. - Total backlog consists of contract revenues remaining to be earned, with funded backlog expected to be earned within one year[126]. Government and Cybersecurity Initiatives - President Biden's FY 2022 budget request includes $715 billion for the Department of Defense, a 1.6% increase from FY 2021[132]. - The company offers a premier platform for enterprise cyber risk management, Xacta, which is widely used across the U.S. federal government[122]. - The company has developed Telos Ghost, a virtual obfuscation network-as-a-service aimed at enhancing security and privacy[126]. - The company maintains government certifications that distinguish its identity services, including TSA PreCheck enrollment provider and FBI-approved Channeler[126]. - The company anticipates increased demand for its solutions due to intensified efforts to defend against ransomware and cyberattacks[136]. - Federal agencies are enhancing cybersecurity measures, which may lead to increased need for the company's services[138]. - The company is positioned to benefit from the government's shift towards secure cloud services and zero trust architecture[137]. - The company's solutions are critical for maintaining continuity of services during the ongoing shift to teleworking by federal employees[135]. Cash Flow and Capital Management - Cash used in operating activities was $5.8 million for the six months ended June 30, 2021, compared to cash provided of $0.8 million for the same period in 2020[169]. - Cash provided by financing activities was $35.5 million for the six months ended June 30, 2021, primarily due to proceeds from the follow-on offering[171]. - The company intends to use remaining net proceeds from the IPO and follow-on offering for general corporate purposes and potential acquisitions[167]. - As of June 30, 2021, working capital was $139.7 million, an increase from $105.2 million as of December 31, 2020[168]. - Cash used in investing activities was approximately $4.7 million for the six months ended June 30, 2021, primarily due to software development costs[170].

Financial Performance & Guidance - Q1 2021 revenue reached $55.8 million[25] - Q1 2021 Adjusted EBITDA was $1.5 million[25] - Full year 2021 revenue is projected to be in the range of $283 million to $295 million, representing a 57%-64% increase compared to 2020[25] - Full year 2021 Adjusted EBITDA is expected to be in the range of $33 million to $36 million, a 190%-216% improvement compared to 2020[25] Key Business Highlights - Telos was named as one of the awardees for the 2nd Generation Information Technology (2GIT) blanket purchase agreement[25] - The company secured a 5-year U S Army contract valued at approximately $35 million[25] - Telos' Xacta is now available on Microsoft Azure across all U S Government cloud instances[25] - The company won TSA PreCheck & Center for Medicare & Medicaid Services contract wins (10-year contracts)[31] Market Position & Growth - Telos estimates a large and fast-growing total addressable market (TAM) exceeding $80 billion[26] - The company reports clear visibility into rapidly accelerating, 85%+ recurring revenue growth[26] - The company estimates TSA PreCheck will have 2 million new members per year over a 10-year contract[65]

Telos Corporation (NASDAQ:TLS) Q1 2021 Earnings Conference Call May 17, 2021 4:30 PM ET Company Participants Brinlea Johnson – Investor Relations, The Blueshirt Group John Wood – Chairman and Chief Executive Officer Michele Nakazawa – Chief Financial Officer Ed Williams – Executive Vice President and Chief Operating Officer Rick Tracy – Senior Vice President and Chief Security Officer Conference Call Participants Alex Henderson – Needham Andrew Nowinski – D.A. Davidson Dan Ives – Wedbush Keith Bachman – Ban ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: March 31, 2021 ◻ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission file number: 001-08443 TELOS CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification ...