Telos(US:TLS)2025-11-10 13:59Revenue 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]