Telos beats Q4 estimates as cybersecurity and TSA contracts drive 2026 outlook

Telos (NASDAQ:TLS) reported its fourth-quarter and full-year 2025 financial results on March 16, 2026, delivering a "beat and raise" performance that underscores the company’s successful pivot toward higher-margin security software.

The Ashburn, Virginia-based firm posted fourth-quarter revenue of $46.777 million, surpassing the consensus analyst estimate of $45.22 million.

On a profitability basis, Telos reported an adjusted earnings per share (EPS) of $0.06, triple the $0.02 projected by Wall Street.

The year was characterized by a consistent upward trajectory in operational execution.

Following a standout second quarter that saw revenue grow 26% year-over-year, the company maintained momentum through the second half of 2025.

In the third quarter, Telos reported $51.44 million in revenue and $0.09 adjusted EPS, significantly clearing the conservative estimates set earlier in the fiscal year.

Management attributed the growth to a two-pronged strategy focusing on cybersecurity solutions and secure identity services.

The company’s Xacta platform, used for cyber risk management and compliance, and the Telos Ghost platform, which provides anonymous network protection, saw increased adoption across federal and commercial sectors.

Additionally, the continued expansion of Telos’ enrollment services for TSA PreCheck® contributed to steady, recurring revenue streams throughout the year.

Looking ahead to fiscal 2026, Telos provided an optimistic outlook, projecting full-year revenue between $187 million and $200 million.