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Sep 30
Telos Q3 2025 Earnings Report
Telos reported a year-over-year revenue growth of 116% in Q3 2025 and exceeded guidance expectations.
Key Takeaways
Telos delivered $51.4 million in revenue for Q3 2025, marking a 116% year-over-year growth, driven by a surge in Security Solutions. Despite a GAAP net loss, the company posted positive adjusted EPS and free cash flow, and raised guidance for the second half of 2025.
Q3 2025 revenue reached $51.4 million, exceeding guidance and up 116% year-over-year
Security Solutions revenue grew 154% YoY, contributing the majority of total revenue
GAAP net loss was $2.1 million, while adjusted EPS was $0.09
Free cash flow was $6.6 million, with a margin of 12.8%
Telos
Telos
Telos Revenue by Segment
Revenue by Segment
Security Solutions Revenue
CapyFin.comSecure Networks Revenue
CapyFin.com Forward Guidance
Telos raised its outlook for the second half of 2025, forecasting continued strong revenue performance in Q4, while accounting for possible short-term delays from federal government shutdowns.
Positive Outlook
- Q4 revenue expected between $44.0M and $46.3M
- Full-year 2025 revenue expected between $162.0M and $164.3M
- Q4 adjusted EBITDA expected between $4.0M and $5.7M
- Adjusted EBITDA margin for Q4 projected between 9.1% and 12.3%
- Raised guidance based on strong Telos ID performance and revenue weighting to Q3
Challenges Ahead
- Potential for short-term administrative delays due to federal government shutdown
- Q4 revenue range implies sequential decline from Q3 peak
- GAAP net income guidance not provided
- Adjusted EBITDA margin guidance reflects narrower range compared to Q3
- Uncertainty remains around timing of certain government contracts
Revenue & Expenses
Visualization of income flow from segment revenue to net income