Telos Corporation ( (TLS) ) has released its Q3 earnings. Here is a breakdown of the information Telos Corporation presented to its investors.
Telos Corporation, listed on NASDAQ under the ticker TLS, is a provider of security solutions aimed at assuring the security of individuals, systems, and information across various sectors, including cybersecurity and cloud security for government and commercial enterprises.
In its third-quarter 2024 earnings report, Telos Corporation announced revenues of $23.8 million, highlighting a 13.2% GAAP gross margin and a notable cash gross margin of 44.0%. The company also forecasted sequential revenue growth in the fourth quarter and significant year-over-year growth in 2025.
A key highlight from the report is that Telos generated 77% of its revenue from Security Solutions, driven by the expansion of TSA PreCheck enrollment centers, which is expected to reach 500 locations by 2025. The company also implemented a restructuring plan to optimize its cost structure and focus on high-growth programs while discontinuing non-performing solutions, leading to an $11.7 million non-cash impairment charge.
Despite a GAAP net loss of $28.1 million, Telos managed to achieve an adjusted EBITDA loss of $4.1 million, exceeding its guidance expectations. Furthermore, the company’s cash flow from operations showed improvement from previous quarters.
Looking forward, Telos anticipates continued growth, particularly through its Security Solutions segment, driven by large program ramp-ups expected to contribute significantly to revenue growth in 2025. The company’s restructuring efforts and strategic focus on high-growth areas position it well for future performance improvements.