Telos reported third-quarter revenue of $55.2 million and adjusted EPS of $0.09, beating analyst estimates of $50.004 million and $0.04. It raised its FY26 revenue outlook to $198.2 million-$200.7 million and adjusted EBITDA outlook to $32.3 million-$34.1 million.
Telos reported third-quarter revenue of $55.2 million, above the $50.004 million analyst estimate, and adjusted EPS of $0.09, above the $0.04 estimate. Security Solutions revenue grew 16.6%, primarily driven by expansion of large Telos ID programs.
The company raised its FY26 revenue outlook to $198.2 million-$200.7 million from $187 million-$195 million. It lifted its adjusted EBITDA outlook to $32.3 million-$34.1 million from $23.6 million-$28.6 million.
Telos said Information Assurance's $58 million in new orders are forecast to generate about $20 million of revenue in 2027. GAAP and cash gross margins exceeded guidance assumptions, primarily due to Telos ID performance, while GAAP operating expenses fell 26.8% year over year due to lower stock-based compensation expense.
