Telos Q1 Revenue Climbs 56% to $47.7M as EBITDA Margin Hits 16.5%
Telos reported Q1 2026 revenue of $47.7 million, up 56% year-over-year, with a 16.5% adjusted EBITDA margin and 13.4% free cash flow margin. Management reaffirmed full-year guidance, raised cash gross margin targets, and highlighted a $500 million government proposal pipeline with award decisions expected in 2026.
1. First Quarter Results
Telos delivered Q1 2026 revenue of $47.7 million, a 56% increase year-over-year, achieving an adjusted EBITDA margin of 16.5% and a free cash flow margin of 13.4%. Earnings per share were $0.06, compared with a $0.03 loss in the prior-year quarter.
2. Pipeline and Guidance
Management reaffirmed full-year revenue and profitability guidance following the strong Q1 performance and raised expectations for cash gross margin. The company maintains a government proposal pipeline of $500 million, with award decisions anticipated throughout 2026.
3. Capital Allocation
Telos plans to accelerate its share repurchase program to return capital to shareholders, complementing ongoing investments in margin expansion and free cash flow generation.