Q1 2026 Telos Corp Earnings Call Transcript
Key Points
- Telos Corp (TLS) reported a 56% year-over-year increase in total company revenue, surpassing their guidance range.
- The company achieved a GAAP gross margin of 36.4% and a cash gross margin of 42.3%, both exceeding expectations.
- Adjusted EBITDA reached $7.9 million, significantly higher than the guidance of $4.5 million to $5 million.
- Telos Corp (TLS) maintained a strong free cash flow margin of 13.4%, marking the fifth consecutive quarter above 12%.
- The company repurchased $2.2 million of stock, demonstrating confidence in long-term business value and plans to accelerate repurchases in the second quarter.
- The CEO, John Wood, is on medical leave, which could potentially impact leadership continuity.
- Despite strong first-quarter performance, Telos Corp (TLS) chose not to revise its full-year guidance, indicating a cautious approach.
- There is a potential risk of seasonality affecting TSA PreCheck enrollments, typically lower in the second half of the year.
- The timing of government contract awards, which are expected in the second half of 2026, remains uncertain and could impact revenue projections.
- Xacta AI's contribution was flat year-over-year, suggesting limited growth in that segment for the quarter.
Good day, and thank you for standing by. Welcome to the Telos Corporation first-quarter 2026 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 speaker for today, Allison Phillipp. Please go ahead.
Good morning. Thank you for joining us to discuss Telos Corporation's first-quarter 2026 financial results. With me today is Mark Bendza, Executive Vice President and CFO of Telos, and Mark Griffin, Executive Vice President of Security Solutions. Let me quickly review the format of today's presentation. Mark Bendza will begin with remarks on our first-quarter results and full year outlook.
We will then open the line for Q&A, where Mark Griffin, Executive .Vice President of Security Solutions, will also join us.
The first-quarter financial results were issued earlier today and are posted on the Telos Investor Relations website, where this call is
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