Financial Data and Key Metrics Changes - Revenue increased 77% year-over-year to $46.8 million, exceeding guidance of $44 million-$46.3 million [7] - Adjusted EBITDA was $7.3 million, surpassing guidance of $4-$5.7 million, with an Adjusted EBITDA margin of 15.6% [10] - Full year 2025 revenue increased 52% to $164.8 million, with Adjusted EBITDA of $18.1 million, representing a $27.8 million improvement year-over-year [11] - Free cash flow was $21.3 million, a $61 million improvement year-over-year, with a free cash flow margin of 12.9% [12] Business Line Data and Key Metrics Changes - The Telos ID business drove significant revenue growth, particularly from the TSA PreCheck program [17] - Secure Networks segment experienced a $14.9 million non-cash goodwill impairment due to a decline in contract backlog [8] - Cash gross margin for the quarter was 35%, improving to 36% when excluding certain charges, while cash gross margin was 41.9% [9] Market Data and Key Metrics Changes - Over 90% of revenue comes from government contracts, including the Department of Defense and other federal agencies [18] - The company’s pipeline remains strong at over $4.2 billion, with 20% of that value expected to be awarded in the first half of 2026 [20] Company Strategy and Development Direction - The company plans to continue focusing on disciplined program execution and operating expense management to drive growth and margin expansion [6] - A company-wide restructuring plan was approved to streamline operations and position for growth in 2026 [8] - The board increased share repurchase authorization from $50 million to $75 million to support capital deployment [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of revenue due to well-funded government programs tied to national security and compliance [19] - The company expects another year of double-digit revenue growth in 2026, forecasting revenue growth of 14%-21% year-over-year [13] - Management acknowledged heightened scrutiny in federal spending but noted that the programs supported remain operationally essential [19] Other Important Information - The company returned $13.6 million to shareholders through share repurchases in 2025 [12] - Adjusted operating expenses are expected to decline in 2026, even as revenue continues to grow [8] Q&A Session Summary Question: Initial guidance for the year and pipeline opportunities - Management noted that existing programs are driving growth, with the confidential IT security work expanding and the IT GEMS program ramping up [26][27] Question: Gross margin assumptions for the year - Management explained that gross margin compression is due to the growth of lower-margin revenue streams and the recognition of prepaid expenses [31][33] Question: Contribution of Xacta to revenue and renewal rates - Renewal rates for Xacta are excellent, with minimal revenue loss typically experienced [39] Question: Pipeline and large contract contributions - A significant portion of the revenue growth is tied to a large DMDC contract, contributing roughly a third of the improvement from previous outlooks [45] Question: Strategies to maintain cash gross margin - Management indicated that gross margins will fluctuate based on revenue mix, but they expect to maintain a solid cash gross margin profile [50][51]

Fourth Quarter and Full Year 2025 Earnings March 16, 2026 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 ...