Telos Raises 2026 Revenue Outlook to $187M-$200M, Sees 11%-14% EBITDA Margin
Telos forecasts 2026 revenue of $187M to $200M driven by expansion of federal IT security programs and TSA PreCheck gains, forecasting adjusted EBITDA margins of 11%-14% despite gross margin compression from lower-margin hardware/software sales and prepaid expenses. The pipeline holds $4.2B in 64 opportunities, with 20% likely awarded in H1 2026.
1. 2026 Revenue and Program Expansion
Telos projects 2026 revenue of $187 million to $200 million, backed by expansions of federal IT security programs and rising TSA PreCheck enrollments, alongside continued ramp-up of the IT GEMS initiative.
2. Margin Expectations and Expense Management
Gross margins are expected to contract due to a higher mix of lower-margin hardware/software content and the recognition of prepaid TSA PreCheck expenses, while adjusted EBITDA margins are forecast to improve to 11%-14% through top-line growth and reduced operating expenses.
3. Xacta Platform Growth
The Xacta platform maintains high renewal rates year-over-year, and the newly launched Xacta AI module is positioned to accelerate sales by automating authority-to-operate processes and improving customer outcomes.
4. Robust Business Development Pipeline
The company’s business development pipeline totals $4.2 billion across 64 opportunities, with approximately 20% of that value anticipated to be awarded in the first half of 2026, offering clear visibility into future contract inflows.