Telos Corporation (TLS) Earnings Call Transcripts
Telos Corporation's Latest Earnings Call - Q1 FY2026
In the first quarter of fiscal year 2026, Telos Corporation (TLS:US) reported a remarkable 56% year-over-year revenue growth, reaching $47.7 million, exceeding guidance of $44 million to $45 million. Adjusted EBITDA also surpassed expectations at $7.9 million, indicating strong operational efficiency and profitability improvements. Management maintained its full-year guidance but raised the low end of cash gross margin expectations, reflecting confidence in ongoing momentum despite the CEO's medical leave.
Reported metrics
| Metric | Value |
|---|---|
| Revenue | $47.7 million (beat) |
| Adjusted EBITDA | $7.9 million (beat) |
| Adjusted EBITDA Margin | 16.5% (beat) |
| Operating Cash Flow | $8.7 million (null) |
| Free Cash Flow | $6.4 million (null) |
| Cash Gross Margin | 42.3% (null) |
Guidance from management
For Q2 2026, management expects revenue growth of 22% to 28% year-over-year, with adjusted EBITDA between $5 million and $6 million. Full-year guidance remains unchanged but reflects increased confidence in cash gross margin.
What management said
Yes. Erik, so on PreCheck, listen, your PreCheck is an important program for us. It's 1 of several large programs within the company. We expect it to be an important growth driver for us for the year as it was in the quarter. No, we haven't seen any impact from higher fuel prices. As a matter of fact, enrollments are performing very well year-over-year, both in the first quarter as well as so far here in the second q...
Sure. Yes. So seasonality typically we see enrollment as being seasonally lower in the second half. That's kind of the trend we've seen for the last couple of years. And our base case is we would expect that again this year.
What analysts pressed on
Analysts expressed concerns about the lack of guidance increase despite strong Q1 performance and the potential impact of the CEO's medical leave on operational continuity. There were inquiries about the likelihood of new business awards contributing to revenue in 2026 versus 2027.
Main topics on the call
- Strong Revenue Growth — Telos reported total revenue of $47.7 million for Q1 2026, a 56% increase year-over-year, surpassing guidance. Management noted, "Our outperformance was supported by strong TSA pre-check enrollment activity and continued...
- Adjusted EBITDA Performance — Adjusted EBITDA reached $7.9 million, significantly exceeding guidance of $4.5 million to $5 million, with a margin of 16.5%. This marks a substantial improvement from 1.2% in the prior year period, showcasing enhanced o...
- Cash Flow Generation — Operating cash flow was reported at $8.7 million, with free cash flow at $6.4 million, representing a 13.4% free cash flow margin. Management highlighted, "This was our fifth consecutive quarter with a free cash flow mar...
- Guidance Maintenance — Management reaffirmed full-year revenue and adjusted EBITDA guidance while raising the low end of cash gross margin expectations. They stated, "We believe an additional quarter of performance will provide even greater vi...
Read the full Telos Corporation transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.
About Telos Corporation
Telos Corporation (TLS) is a publicly listed company in the Software industry, within the Information Technology sector. It trades on NasdaqGM and is based in US. EarningsCalls.dev maintains a free, full-text archive of its earnings call transcripts — 57 calls on record spanning February 12, 2020 to May 11, 2026. Every transcript is split into speaker-by-speaker segments with headline metrics, free to read or available through our REST API.
Earnings Call History
EarningsCalls.dev has 57 Telos Corporation earnings call transcripts on record, spanning February 12, 2020 to May 11, 2026. Based on this history, Telos Corporation reports quarterly. The most recent call on file is dated May 11, 2026. The full list is below — each row opens the complete, free-to-read transcript.
- Ticker
- TLS
- Exchange
- NasdaqGM
- Country
- US
- Sector
- Information Technology
- Industry
- Software
- Calls on record
- 57
- First call
- February 12, 2020
- Most recent
- May 11, 2026
- Reporting cadence
- quarterly