Telos Q2 Revenue Jumps 33%, Raises Profit Outlook on Strong Cash Flow

summarizeSummary

Telos reported Q2 2026 revenue of $47.7M (up 33% YoY), swung to a GAAP profit, and raised full-year Adjusted EBITDA guidance to $23.6M–$28.6M. Strong cash flow and ongoing buybacks support the stock, but the revenue outlook was trimmed slightly.

check_boxKey Events · Earnings and Guidance · TLS

• Q2 Revenue +33% to $47.7M

  Revenue grew 33% year-over-year to $47.7 million, exceeding guidance, driven by 44% growth in Security Solutions from expansion of large Telos ID programs.

• Swung to GAAP Profitability

  GAAP net income was $0.7 million ($0.01 per share) versus a $9.5 million loss a year ago; Adjusted EBITDA surged to $6.9 million (14.4% margin) from $0.4 million.

• Raised Full-Year Profit Guidance

  Full-year Adjusted EBITDA guidance raised to $23.6–$28.6 million (from $20.6–$28.0 million), while revenue outlook trimmed to $187–$195 million (from $187–$200 million).

• Strong Free Cash Flow Continues

  Free cash flow was $6.6 million (13.9% margin), the sixth consecutive quarter above 12%, with operating cash flow of $8.8 million.

auto_awesomeAnalysis · TLS · Technology

Telos delivered a beat-and-raise quarter: revenue grew 33% to $47.7M, driven by 44% growth in Security Solutions, while GAAP net income swung to a $0.7M profit from a $9.5M loss a year ago. Adjusted EBITDA of $6.9M (14.4% margin) handily exceeded guidance, and the company raised its full-year profit outlook despite trimming the top end of revenue guidance. Free cash flow remained robust at $6.6M, marking the sixth straight quarter above 12% margin. The company also continued buying back stock, repurchasing 1M shares for $4.7M. The results reinforce the turnaround narrative, though the slight revenue guide-down tempers the enthusiasm.