The raised full-year profit guidance and continued strong cash flow margins are positive signals, but the narrowed revenue range suggests growth may be decelerating. Monitor Q3 revenue guidance of $49.2M-$50.6M (implying a potential YoY decline of 4%-2%) for signs of a slowdown in the Security Solutions segment.
Price Chart
Executive Summary
Telos Corp reported Q2 2026 revenue of $47.7M (+33% YoY), exceeding its own guidance, and GAAP net income of $0.7M vs a -$9.5M loss a year ago. The company raised its full-year Adjusted EBITDA guidance to $23.6M-$28.6M (from $20.6M-$28.0M) while slightly narrowing the revenue range to $187M-$195M. The strong operational performance and profit guidance raise are positive, but the narrowed revenue outlook tempers the bullish signal.
Key Financial Metrics
Key Facts
- Revenue grew 33% YoY to $47.7M, exceeding guidance.
- GAAP Net Income was $0.7M, compared to a net loss of -$9.5M in Q2 2025.
- Adjusted EBITDA was $6.9M, exceeding guidance, with Adjusted EBITDA Margin expanding from 1.1% to 14.4% YoY.
- Full-year Adjusted EBITDA guidance raised to $23.6M-$28.6M (from $20.6M-$28.0M).
- Full-year revenue guidance narrowed to $187M-$195M (from $187M-$200M).
- Free Cash Flow increased 43% YoY to $6.6M, with FCF Margin at 13.9% (sixth consecutive quarter above 12.0%).
- Deployed $4.7M to repurchase over 1.0 million shares at an average price of $4.50 per share.
- Cash Flow from Operations was $8.8M, or 18.5% of revenue.
Financial Impact
Revenue $47.7M (+33% YoY), GAAP Net Income $0.7M, Adjusted EBITDA $6.9M, Free Cash Flow $6.6M
Risk Factors
- Q3 revenue guidance implies a potential YoY decline of 4%-2%, signaling a possible growth deceleration.
- Narrowed full-year revenue guidance range suggests management is being more cautious on top-line expectations.
- Dependence on large Telos ID programs for growth creates concentration risk.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000320121-26-000034 |
| Document: tls-20260810.htm | 0000320121-26-000034 |
| Document: q22026earningspressrelease.htm | 0000320121-26-000034 |
| Document: 0000320121-26-000034-index-headers.html | 0000320121-26-000034 |
| Document: 0000320121-26-000034-index.html | 0000320121-26-000034 |
| Document: 0000320121-26-000034.txt | 0000320121-26-000034 |
| 8-K Data (Synthetic) | 0000320121-26-000034 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 5, 2026 21d ago | Press Release | $4.43 $4.38 | ▼ −1.13% | ▼ −1.55% | $5.22 (+17.83%) |
Oct 1, 2026 25d ago | Press Release | $4.23 $4.37 | ▲ +3.31% | ▲ +2.01% | $5.22 (+23.40%) |
Sep 28, 2026 28d ago | Press Release | $4.06 $4.43 | ▲ +9.11% | ▲ +7.91% | $5.22 (+28.57%) |
Sep 21, 2026 5w ago | Insider Cluster | $4.10 $4.04 | ▲ +1.46% | ▲ +0.28% | $5.22 (−27.32%) |
Sep 10, 2026 6w ago | Insider Cluster | $4.68 $4.18 | ▲ +10.68% | ▲ +10.19% | $5.22 (−11.54%) |
Aug 10, 2026 11w ago | Press Release | $4.03 $4.39 | ▲ +8.93% | ▲ +8.98% | $5.22 (+29.53%) |
Aug 10, 2026 11w ago | 8-K | $4.03 $4.39 | ▲ +8.93% | ▲ +8.98% | $5.22 (+29.53%) |
Jul 14, 2026 14w ago | Press Release | $4.91 $4.57 | ▼ −6.92% | ▼ −5.63% | $5.22 (+6.31%) |
Jun 26, 2026 17w ago | Insider Cluster | $4.51 $4.94 | ▲ +9.53% | ▲ +8.15% | $5.22 (+15.74%) |
Jun 12, 2026 19w ago | Institutional Cluster | $4.57 $4.52 | ▲ +1.09% | ▲ +1.77% | $5.22 (−14.22%) |
US Market Status
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