Q1 2025 Telos Corp Earnings Call Transcript
Key Points
- Telos Corp (TLSRP.PFD) exceeded both revenue and profit guidance for the first quarter of 2025.
- Total company revenue grew 16% sequentially to $30.6 million, with significant contributions from Security Solutions and Secure Networks.
- The TSA PreCheck program is expanding, with 73 new enrollment centers added, targeting 500 locations by the end of 2025.
- The DMDC program is ramping on schedule and is expected to be a major source of revenue growth.
- Positive cash flow from operations was reported at $6.1 million, with free cash flow at $3.8 million, indicating strong financial health.
- Secure Networks revenue contracted due to the completion and ramp down of multiple programs.
- The DMDC program, while a revenue driver, is expected to be dilutive to overall margins.
- Cash gross margins are expected to decline by approximately 600 basis points in the second half of 2025.
- The TSA PreCheck rollout pace has been slower than anticipated, affecting short-term revenue expectations.
- The renewal market is contracting, which could impact future revenue streams.
Good day, and thank you for standing by. Welcome to the Telos Corporation first quarter 2025 earnings call. Please be advised that today's conference is being recorded. After the speaker's presentation, there will be a question-and-answer session. (Operator Instructions) I would now like to hand the conference over to your speaker today, Allison Phillipp, Director of Corporate Communications.
Good morning. Thank you for joining us to discuss Telos Corporation's first 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 first quarter 2025 results.
Next, John will discuss business highlights from the quarter. Then Mark will follow up with second 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
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
