Core Viewpoint - Telos Corporation will report its first quarter 2025 financial results on May 9, 2025, and will host a webcast to discuss these results and the business outlook [1][2]. Group 1: Financial Results Announcement - The financial results for the first quarter of 2025 will be reported on May 9, 2025 [1]. - A webcast will be held at 9:30 a.m. ET to discuss the financial results and business outlook [1][2]. - An on-demand replay of the webcast will be available on the company's investor relations website [2]. Group 2: Company Overview - Telos Corporation provides cybersecurity, cloud, and enterprise security solutions for security-conscious organizations [3]. - The company's offerings include IT risk management, information security, cloud security, identity and access management, secure mobility, organizational messaging, and network management [3]. - Telos serves commercial enterprises, regulated industries, and government customers globally [3].

Core Viewpoint - Telos Corporation has been awarded a $5.8 million contract to provide Field Service Representative support for the U.S. Department of Defense's Microwave Line of Sight program, emphasizing its commitment to delivering secure communication solutions for military operations [1][3]. Group 1: Contract Details - The contract includes a six-month base period from April 2, 2025, to September 30, 2025, with an option for an additional three months extending to December 31, 2025 [1]. - The MLoS program aims to provide high-bandwidth, low-latency communication infrastructure for warfighters, ensuring critical connectivity across the battlefield [2]. Group 2: Technical Capabilities - Telos' MLoS solutions offer high bandwidth of up to 300 Mbps full duplex and support both point-to-point and point-to-multi-point functionality [4]. - The contract allows for up to 95% repurposing of MLoS equipment costs, providing a cost-effective alternative to traditional fiber solutions [3]. Group 3: Company Expertise - Telos has successfully deployed over 500 systems in the Middle East, providing 24/7 global field support in high-threat environments [4]. - The company boasts a diverse team with 75% prior military service and extensive experience in contingency operations, enhancing its operational readiness [6]. Group 4: Industry Position - This contract reinforces Telos Corporation's position as a trusted leader in secure communication solutions, aligning with U.S. national security objectives [4]. - The company offers a range of cybersecurity solutions, cloud security, and enterprise security services to various sectors, including government and regulated industries [5].

Core Points - Telos Corporation has opened a new permanent TSA PreCheck enrollment center at Eastern Iowa Airport (CID) to enhance convenience for travelers in Cedar Rapids, Iowa [1][2] - The new center will serve both airport employees needing identification badges and travelers enrolling in TSA PreCheck [3] - TSA PreCheck offers expedited security screening, allowing members to keep shoes, belts, and light jackets on, with 99% of members waiting less than 10 minutes at checkpoints [6] Company Overview - Telos Corporation (NASDAQ: TLS) specializes in security solutions, including cybersecurity, cloud security, and identity management [10] - The company operates 228 TSA PreCheck enrollment centers across the U.S., with the CID center being a relocation from a temporary site established in July 2024 [2][5] - Telos aims to improve travel efficiency and reduce stress for passengers through its TSA PreCheck services [5] Enrollment Process - New TSA PreCheck applicants can pre-enroll and schedule appointments via the Telos TSA PreCheck website, with existing members able to renew their enrollment online [7] - The enrollment process includes a 10-minute in-person appointment for identity verification, photo capture, and payment collection [8] - Most applicants receive their Known Traveler Number (KTN) within 3-5 days, although some may take up to 60 days for processing [8][9] Airport Information - Eastern Iowa Airport (CID) offers nonstop service to 18 destinations with five airlines and is served by three air cargo carriers [11] - The airport is undergoing modernization, which includes the new TSA PreCheck enrollment center located in the terminal lobby for increased visibility [4][2]

Core Points - Government Acquisitions, Inc. (GAI) and Telos Corporation have been awarded a contract for the third phase of the Wi-Fi network expansion program at the United States Air Force Academy (USAFA) to enhance academic and operational connectivity [1][2] - The project aims to modernize campus connectivity and improve mission-critical digital capabilities by upgrading and expanding the Wi-Fi system across six locations at the academy in Colorado Springs, Colorado [2][3] - Telos has successfully completed the first two phases of the Wi-Fi network expansion program from 2020 to 2023, demonstrating a strong commitment to enhancing the academy's digital infrastructure [3] Company Overview - Telos Corporation specializes in cybersecurity, cloud security, and enterprise security solutions, serving security-conscious organizations globally [5] - Government Acquisitions, Inc. (GAI) focuses on empowering federal agencies through cutting-edge technologies and collaborative partnerships, with expertise in cybersecurity, infrastructure, analytics, automation, and artificial intelligence [6]

Core Points - ItsEasy.com Passport & Visa Services and Telos Corporation have announced pop-up TSA PreCheck enrollment events in New York City from March 25 to March 29, 2025 [1][2] - The events will take place at the MetLife Building and Rockefeller Center, providing convenient access for travelers [2][4] - This partnership aims to enhance customer travel experiences by simplifying the enrollment process for TSA PreCheck [2][4] Company Overview - ItsEasy.com has processed over 2 million passport and visa applications and has been a trusted agent of the US Department of State since 1976 [8] - The company specializes in expediting passport and visa processes, ensuring compliance with governmental requirements [8] - Telos Corporation (NASDAQ:TLS) provides cybersecurity solutions and is an authorized TSA PreCheck enrollment provider [9] Event Details - The TSA PreCheck enrollment event hours are as follows: - March 25: 7:30 a.m. – 5:30 p.m. - March 26: 9:30 a.m. – 7:30 p.m. - March 27: 9:30 a.m. – 7:30 p.m. - March 28: 7:30 a.m. – 5:30 p.m. - March 29: 8:00 a.m. – 5:00 p.m. [2] TSA PreCheck Program - TSA PreCheck is a Trusted Traveler program that allows expedited screening for enrolled travelers at over 200 airports with participation from 90+ airlines [6] - Since its launch in December 2013, the program has grown to over 19 million active members [6]

Company Overview - Telos (TLS) is a US-based company that has been operating for approximately 56 years, specializing in IT and cybersecurity solutions primarily for enterprise and government clients [1]. Clientele - One of the notable clients of Telos is the US Department of Defense (DOD), indicating the company's involvement in high-security and critical infrastructure projects [1].

Revenue Performance - Revenue for the year ended December 31, 2024, was $108,272,000, a decrease of $37,106,000 compared to $145,378,000 in 2023, representing a decline of approximately 25.5%[205] - Revenue for the Security Solutions segment decreased by 1% in 2024 to $76.76 million, while gross profit decreased by 30% to $27.68 million, resulting in a gross margin decline from 51.2% to 36.1%[209][210] - Revenue for the Secure Networks segment decreased by 54% in 2024 to $31.51 million, with gross profit decreasing by 49% to $6.75 million, although gross margin improved from 19.6% to 21.4%[211][212] - Revenue from the federal government was $94,951,000 in 2024, making up 88% of total revenue, compared to $131,143,000 and 90% in 2023[379] - Revenue from state and local government and commercial customers was $13,321,000 in 2024, representing 12% of total revenue, compared to $14,235,000 and 10% in 2023[379] Profitability and Losses - Gross profit for 2024 was $34,429,000, down from $52,942,000 in 2023, resulting in a gross margin of 31.8%, compared to 36.4% in the previous year[205] - The company’s operating loss for 2024 was $55,873,000, compared to a loss of $40,315,000 in 2023, indicating increased operational challenges[205] - The net loss for 2024 was $52.52 million, with a net loss margin of 48.5%, compared to a net loss of $34.42 million and a margin of 23.7% in 2023[218] - Adjusted net loss for 2024 was $22.16 million, with an adjusted earnings per share of $(0.31), compared to an adjusted net loss of $15.61 million and an adjusted earnings per share of $(0.23) in 2023[221] - The company’s EBITDA for 2024 was $(44.01) million, representing an EBITDA margin of (40.6)%, compared to $(30.89) million and (21.3)% in 2023[218] Operating Expenses and Efficiency - The company’s operating expenses as a percentage of revenue increased to 83.4% in 2024 from 64.1% in 2023, indicating a rise in operational inefficiency[205] - Operating expenses decreased by 3% in 2024 compared to 2023, with research and development expenses down by $3.3 million and selling, general and administrative expenses down by $5.5 million[206] - Selling, general and administrative expenses were $75.5 million in 2024, slightly down from $81.0 million in 2023[276] Cash Flow and Liquidity - Net cash used in operating activities for 2024 was $(25.9) million, a decrease of $27.5 million compared to a net cash provided of $1.6 million in 2023[231] - Free cash flow for 2024 was $(39.7) million, compared to $(13.9) million in 2023[227] - As of December 31, 2024, the company had cash and cash equivalents of $54.6 million and working capital of $69.3 million[229] - Cash and cash equivalents dropped from $99,260,000 in 2023 to $54,578,000 in 2024, a decrease of about 45%[282] Backlog and Future Business - The company's backlog as of December 31, 2024, totaled $76,489,000, a decrease from $118,102,000 in 2023, with funded backlog at $51,197,000 and unfunded backlog at $25,292,000[203] - The company continues to face competitive bidding pressures for government contracts, with a majority of future business expected to be awarded through competitive processes[183] Restructuring and Impairments - The company incurred a restructuring charge of $1.3 million and a non-cash impairment of software development costs totaling $11.7 million in 2024[207] - An impairment loss of $6.4 million was recorded due to the abandonment of selected solutions, reported under operating expenses[353] - Total restructuring expenses and impairment loss for the year ended December 31, 2024, amounted to $7.643 million, compared to $1.132 million in 2023[354] Budget and Government Contracts - The proposed FY2025 budget includes $850 billion for the Department of Defense (DoD) base budget, with a focus on cyber investments and modernization of legacy technology[186] - The proposed FY2025 budget allocates $455 million for advancements in artificial intelligence, which aligns with the company's focus on cybersecurity and technology solutions[198] Accounting and Financial Reporting - The Company follows ASC Topic 606 for revenue recognition, utilizing a five-step model to determine performance obligations and transaction prices[361] - The company evaluates goodwill for impairment at least annually, with no significant adverse changes reported that would affect the fair value[319] - The company follows ASC 740 for income tax accounting, recognizing deferred tax assets and liabilities based on enacted statutory tax rates[334]

Financial Data and Key Metrics Changes - Total company revenue grew 11% sequentially to $26.4 million in Q4 2024, near the top end of the guidance range [9] - Adjusted EBITDA improved sequentially from a $4.2 million loss in Q3 to a $200,000 loss in Q4 [13][34] - GAAP gross margin expanded nearly 600 basis points year-over-year to 40.3%, while cash gross margin expanded nearly 900 basis points year-over-year to 47% [11] Business Line Data and Key Metrics Changes - Security solutions revenue grew 20% sequentially to $21.9 million, representing 83% of total company revenue [9] - Revenue from TSA PreCheck enrollments grew over 30% sequentially [9] - Secure Networks delivered $4.5 million of revenue, representing 17% of total company revenue, but declined sequentially as expected [10] Market Data and Key Metrics Changes - The TSA PreCheck program became the single largest program by revenue during 2024, with significant growth expected in 2025 [18] - The company increased its enrollment centers from 26 to 218 locations across the U.S. in 2024 [16] Company Strategy and Development Direction - The company is focusing on optimizing performance for customers and prioritizing task orders from existing contract vehicles due to delays in single awards [40] - The company aims to achieve a pro rata share of the TSA PreCheck enrollment market, targeting 500 locations by the end of 2025 [32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the new administration being generally positive for the company, despite delays in single awards [40] - The company expects to generate positive cash flow in Q1 2025 and significant improvements in revenue, profit, and cash flow for the full year [36][61] Other Important Information - The company anticipates revenue for the full year 2025 to be driven by existing business, TSA PreCheck, and new programs with DMDC and DHS [29][30] - The company is experiencing delays in government awards due to changes in administration but is not seeing similar delays on task orders [23] Q&A Session Summary Question: Impact of the change in administration on single award programs - Management noted that while the new administration is generally positive, single awards are being held back for review, leading to a focus on task orders from existing contracts [40] Question: Details on revenue recognition for DMDC and DHS programs - Management clarified that the mix of third-party content is shifting towards software, affecting revenue recognition timing, with a partial year of revenue expected in the first year [44][45] Question: TSA PreCheck revenue projections based on current rollout - Management confirmed that the framework for TSA PreCheck revenue is correct, with expectations for revenue to ramp as more locations open [51] Question: Cash flow expectations for Q1 and the full year - Management indicated that Q1 cash flow will benefit from working capital liquidation and expects positive free cash flow for the year, with breakeven adjusted EBITDA around $155 million to $160 million in revenue [54][55]

Telos Corporation (NASDAQ:TLS) Q4 2024 Earnings Conference Call March 10, 2025 9:00 AM ET Company Participants Allison Phillipp - Director Coporate Communications John Wood - Chairman and CEO Mark Benza - Executive Vice President and CFO Mark Griffin - Executive Vice President of Security Solutions Conference Call Participants Zach Cummins - B. Riley Securities Rudy Kessinger - D.A. Davidson Operator Good day and thank you for standing by. Welcome to the Telos Corporation Fourth Quarter 2024 Financial Resul ...

Fourth Quarter and Full Year 2024 Earnings March 10, 2025 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 ...