Telos Corporation Sees Record-Breaking Q4 2025 Performance with Double-Digit Revenue Growth and Strong Operating Leverage
The Telos Corporation has reported a record-breaking fourth quarter 2025 performance, exceeding its guidance across key financial metrics. The company's revenue increased by 77% year-over-year to $46.8 million, driven primarily by strong execution in Telos ID and the ramp of large programs.
Mark Bendza, Executive Vice President and CFO of Telos, highlighted three key takeaways for the quarter and the year during the conference call. Firstly, the company delivered significant revenue growth and exceeded its guidance across key financial metrics every quarter, including the fourth quarter. Secondly, Telos' continued focus on disciplined program execution, rigorous operating expense management, and working capital efficiency drove strong operating leverage, excellent incremental adjusted EBITDA margins, and robust cash flow. Thirdly, the company returned capital to shareholders through share repurchases.
Looking ahead, Telos remains well-positioned for another year of double-digit revenue growth, adjusted EBITDA margin expansion, strong cash flow, and additional share repurchases in 2026. The company's board of directors recently increased its share repurchase authorization from $50 million to $75 million to support its capital deployment activity.
The Telos ID segment continued to drive the company's growth, with large programs ramping up and expected to continue growing into 2026. As a result, Telos' focus remains on program execution combined with operating expense management. In fact, the company recently approved a company-wide restructuring plan designed to further streamline operations and position the company for additional growth and adjusted EBITDA margin expansion in 2026.
John B. Wood, Chairman and CEO of Telos, emphasized that the company's performance is a testament to its commitment to disciplined program execution and rigorous operating expense management. He noted that the strong results are expected to continue into 2026, with the company well-positioned for another year of double-digit revenue growth.
Mark Bendza also highlighted the importance of Telos' non-GAAP financial measures, which provide a more complete understanding of the company's financial performance. These measures should be considered in addition to and not as a substitute for or in isolation from GAAP results.
The webcast replay of the conference call will be available on Telos' website under the Investor Relations link. Investors can find additional disclosures regarding non-GAAP measures, including reconciliations with comparable GAAP results, in the company's fourth quarter results summary and on the investor relations portion of its website.
