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分组1 - Telos Corporation reported quarterly earnings of $0.09 per share, exceeding the Zacks Consensus Estimate of $0.02 per share, compared to a loss of $0.1 per share a year ago, representing an earnings surprise of +350.00% [1] - The company achieved revenues of $51.44 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 13.06%, and showing a significant increase from year-ago revenues of $23.78 million [2] - Telos has consistently outperformed consensus EPS and revenue estimates over the last four quarters, indicating strong operational performance [2] 分组2 - The stock has gained approximately 86.6% since the beginning of the year, significantly outperforming the S&P 500's gain of 14.4% [3] - The current consensus EPS estimate for the upcoming quarter is $0.01 on revenues of $45.8 million, while for the current fiscal year, it is -$0.03 on revenues of $157.89 million [7] - The Computers - IT Services industry, to which Telos belongs, is currently ranked in the top 28% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8]

Financial Data and Key Metrics Changes - Revenue grew 116% in Q3 2025 to $51.4 million, exceeding guidance of $44-$47 million [7] - GAAP gross margin was 39.9%, and cash gross margin was 44.8%, both above guidance and previous quarter margins [7] - Adjusted EBITDA was $10.1 million, surpassing guidance of $4-$5.7 million, with an adjusted EBITDA margin of 19.6% [8][10] - Free cash flow was $6.6 million, representing a 12.8% free cash flow margin [8] Business Line Data and Key Metrics Changes - Telos ID was a significant driver of revenue growth, contributing to the overall performance [5][15] - Adjusted operating expenses were approximately $500,000 better than guidance due to cost discipline [7] Market Data and Key Metrics Changes - The company achieved a cumulative revenue growth of 44% in the first nine months of 2025 [9] - Cash gross margin expanded by 30 basis points to 43% year-over-year [9] Company Strategy and Development Direction - The company plans to continue evolving its Xacta platform with increased automation and new features [11] - The TSA PreCheck program has reached 504 enrollment locations, with plans for further evaluation and improvement [12][13] - The company forecasts existing programs will generate approximately $180 million in revenue for 2026, driven by growth in Telos ID [14] Management's Comments on Operating Environment and Future Outlook - Management noted that the government shutdown has caused delays in awards and administrative processes, but the impact on P&L has been modest [18][19] - The company maintains a robust pipeline of opportunities, with several tens of millions of revenue expected from new business in 2026 [21][41] - Management expressed confidence in continued year-over-year growth into the fourth quarter and 2026 [15][68] Other Important Information - The company has a multi-billion dollar pipeline of new business opportunities, with expectations for significant awards in the coming months [21][41] - The company has deployed $7.6 million to repurchase 2.1 million shares at a weighted average price of $3.69 per share [10] Q&A Session Summary Question: Impact of government shutdown on award decisions - Management indicated that awards are stalled and generally delayed due to the government shutdown, but the impact on P&L has been modest [18][19] Question: Initial feedback on Xacta AI product - Management reported strong initial traction with one major enterprise deployment and positive customer feedback [22][29] Question: Growth plans for TSA PreCheck program - Management stated that they will continue to evaluate and expand the network of enrollment locations to serve travelers better [36][38] Question: Revenue potential from the pipeline for 2026 - Management confirmed that the pipeline remains robust, with several tens of millions of revenue expected from new business opportunities [41][56] Question: Upsell potential for existing Xacta customers - Management noted significant excitement among existing customers for Xacta AI, with plans to target the installed base first [44][45]

Financial Performance - Q3 2025 - Revenue reached $51.4 million, exceeding guidance of $44.0 million to $47.0 million, representing a 116% year-over-year growth[9, 11] - GAAP Gross Margin was 39.9%, surpassing the assumed guidance of approximately 34.0% to 35.5%[9, 11] - Cash Gross Margin was 44.8%, exceeding the assumed guidance range due to strong performance across all business lines[9, 11] - Adjusted EBITDA reached $10.1 million with a 19.6% margin, exceeding the top end of the guidance range[9] - Cash Flow from Operations was $9.1 million, and Free Cash Flow was $6.6 million, marking a year-over-year growth of $16.5 million[9, 11] Financial Performance - 9 Months 2025 - Revenue increased by 44% to $118.0 million from $81.9 million in the same period of the previous year[15] - Adjusted EBITDA increased by $20.3 million to $10.8 million[15] - Free Cash Flow increased by $39.9 million[15] Business Segments - Security Solutions revenue increased by 154% year-over-year to $46.5 million for the nine months ended September 30, 2025, driven by expansion within the Telos ID portfolio[17] - Secure Networks revenue decreased by 9% year-over-year to $5.0 million for the nine months ended September 30, 2025, primarily due to the completion of certain programs[17] Future Outlook - Q4 2025 - The company forecasts revenue growth of 67% to 76% year-over-year, projecting revenue between $44.0 million and $46.3 million[20]

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Core Viewpoint - Telos Corporation has released its third quarter financial results for 2025, highlighting its position as a leading provider of cybersecurity, cloud, and enterprise security solutions for highly security-conscious organizations [1]. Financial Results - The financial results for the third quarter of 2025 are available on Telos' investor relations website [1]. - A live webcast to discuss these financial results is scheduled for November 10, 2025, at 9:30 a.m. ET [2]. Company Overview - Telos Corporation specializes in continuous security assurance for individuals, systems, and information, serving commercial enterprises, regulated industries, and government customers globally [3]. - The company's offerings include IT risk management, information security, cloud security solutions, identity and access management, secure mobility, organizational messaging, and network management and defense [3].

Revenue Performance - Revenue for Q3 2025 was $51.4 million, exceeding guidance due to stronger performance in Telos ID, representing a 116% year-over-year growth [3] - Total revenue for Q3 2025 reached $51.444 million, a significant increase of 116.5% compared to $23.783 million in Q3 2024 [15] - Revenue from Security Solutions was $46.478 million, up 153.1% from $18.332 million in the same quarter last year [15] - Fourth quarter revenue guidance is projected between $44.0 million and $46.3 million, indicating a year-over-year growth of 67% to 76% [2] - Full-year revenue guidance for 2025 is estimated at $162.0 million to $164.3 million, reflecting a growth of 50% to 52% [2] Profitability Metrics - GAAP Gross Margin improved to 39.9%, an increase of 2,672 basis points year-over-year, while Cash Gross Margin was 44.8%, up 78 basis points [3] - Adjusted EBITDA for Q3 2025 was $10.1 million, an increase of $14.2 million year-over-year, with an Incremental Adjusted EBITDA Margin of 51.5% [3] - Adjusted EBITDA margin for Q3 2025 was 19.6%, compared to a negative margin of 17.4% in Q3 2024 [4] - Gross profit for Q3 2025 was $20.546 million, compared to $3.143 million in Q3 2024, reflecting a gross margin improvement [15] - Adjusted net income for the three months ended September 30, 2025, was $6,763, compared to an adjusted net loss of $7,071 for the same period in 2024, reflecting a positive shift in financial performance [25] Cash Flow and Financial Position - Cash Flow from Operations was $9.1 million, representing 17.8% of revenue, and Free Cash Flow was $6.6 million, or 12.8% of revenue [3] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $22.202 million, compared to a cash used of $15.420 million in the same period last year [19] - Free cash flow for the three months ended September 30, 2025, was $6,599, compared to a negative free cash flow of $9,918 for the same period in 2024, marking a positive shift in cash generation [27] - Cash and cash equivalents increased to $59.050 million as of September 30, 2025, up from $54.578 million at the end of 2024 [17] - Total assets grew to $164.281 million as of September 30, 2025, compared to $158.235 million at the end of 2024 [17] Operating Expenses and Efficiency - Operating expenses for the three months ended September 30, 2025, were $23,014, down from $32,007 in the same period of 2024, showing effective cost management [29] - The company achieved an operating cash flow margin of 17.8% for the three months ended September 30, 2025, compared to a negative margin of (29.8)% for the same period in 2024, indicating improved operational efficiency [27] - Stock-based compensation expense for the three months ended September 30, 2025, was $9,388, up from $8,814 in the same period of 2024, indicating increased investment in employee incentives [25] Loss Reduction - Operating loss narrowed to $2.468 million in Q3 2025 from $28.864 million in Q3 2024 [15] - Net loss for Q3 2025 was $2.114 million, significantly reduced from $28.055 million in Q3 2024 [15] - For the three months ended September 30, 2025, the net loss was $2,114, a significant improvement from a net loss of $28,055 for the same period in 2024, representing a year-over-year change of 92.5% [21]

Core Insights - Telos Corporation has secured a significant federal contract for its AI-driven governance, risk, and compliance platform, Xacta.ai, marking the first full-scale deployment of this solution within a U.S. federal agency [1][3] Group 1: Company Overview - Telos Corporation is headquartered in Ashburn, Virginia, and specializes in cybersecurity, cloud security, and enterprise identity/defense solutions for government and regulated industries globally [4] Group 2: Product and Technology - The Xacta.ai platform will be integrated across the operations of the federal agency, utilizing intelligent workflows, real-time insights, and automated compliance mapping [2] - In pilot testing, Xacta.ai significantly reduced compliance task durations from months to days and enabled the generation of implementation statements in minutes instead of hours [2][3] - The system aims to automate risk assessments, streamline authorization processes, and enhance security compliance at scale, contributing to the modernization of federal compliance operations through AI and automated workflows [3]

Core Points - Telos Corporation has surpassed 500 TSA PreCheck enrollment locations across the United States, enhancing accessibility for travelers [2][4] - The TSA PreCheck program allows for expedited screening, with 99% of members waiting less than 10 minutes at security checkpoints [3][5] - Telos plans to continue expanding its enrollment locations to meet increasing traveler demand [4] Company Overview - Telos Corporation (NASDAQ: TLS) provides TSA PreCheck enrollment services and focuses on security solutions for various sectors, including cybersecurity and identity management [6] - The company aims to empower organizations with continuous security assurance and compliance with industry standards [6] TSA PreCheck Program Details - TSA PreCheck is a Trusted Traveler program by the Department of Homeland Security, allowing enrolled travelers to experience faster airport security [5] - The program has grown to over 23 million active members since its launch in December 2013 [5]

Core Viewpoint - Telos Corporation is set to report its third quarter 2025 financial results on November 10, 2025, and will host a webcast to discuss these results and the business outlook [1][2]. Company Overview - Telos Corporation (NASDAQ: TLS) provides cybersecurity, cloud, and enterprise security solutions aimed at the world's most 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 and defense [3]. - Telos serves a diverse clientele, including commercial enterprises, regulated industries, and government customers globally [3].