Q2 2025 Telos Corp Earnings Call Transcript
Key Points
- Revenue grew 26% in the second quarter to $36 million, exceeding guidance.
- Security solutions delivered approximately 90% of total company revenue, driving outperformance.
- Adjusted EBITDA improved significantly, returning to a profit with a $400,000 gain.
- Free cash flow was robust, improving by $16 million year over year to $4.6 million.
- The company resumed share repurchases, deploying $4 million to buy back shares.
- Gross margins were lower year over year due to revenue mix changes.
- Secure networks segment experienced contraction, partially offsetting growth in security solutions.
- The company faces variability in gross margins due to fluctuating revenue streams.
- The TSA PreCheck program's renewals are down due to the five-year anniversary of COVID.
- Confidential IT security work details are limited, providing less transparency on growth drivers.
Good day and thank you for standing by. Welcome to the Telos Corporation second-quarter 2025 earnings conference call.
(Operator Instructions)
Please be advised that today's conference is being recorded.
I would now like to turn the conference over to your first speaker, Allison Phillipp. Please begin.
Good morning. Thank you for joining us to discuss Telos Corporation's second quarter 2025 financial results.
With me today is John Wood, Chairman and CEO of Telos; and Mark Bendza, Executive Vice President and CFO of Telos.
Let me quickly review the format of today's presentation. Mark will begin with remarks on our second quarter 2025 results. Next, John will discuss business highlights from the quarter. Then Mark will follow up with third quarter guidance before turning back to John to wrap up. We will then open the line for Q&A where Mark Griffin, Executive Vice President of Security Solutions, will also join us. The second quarter financial results were
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