Slide 1: Fourth Quarter and Full Year 2024 Earnings
Fourth Quarter and Full Year 2024 Earnings March 10, 2025
Slide 2: Disclaimers
DISCLAIMERS The information contained in this presentation does not constitute or form part of, and should not be construed as, any offer, sale or subscription of, or any invitation to offer, buy or subscribe for, any securities, nor shall there be any offer, solicitation or sale in any jurisdiction
Slide 3: Financial Performance Summary
FINANCIAL PERFORMANCE SUMMARY DELIVERED $26.4M OF REVENUE, 40.3% GAAP GROSS MARGIN, AND 47.0% CASH GROSS MARGIN1 4Q 2024 4Q 2024 Summary FY 2024 4Q 2024 Guidance / Actual Actual • Delivered $26.4M of revenue vs. guidance of $24.5M to $26.5M Assumptions • Security Solutions (“SS”) up 20% sequentially
Slide 4: Recent Business Updates
RECENT BUSINESS UPDATES TSA PreCheck® EXPANSION OTHER UPDATES • Expanded network of enrollment centers to 218 locations. • Program with the Defense Manpower Data Center (DMDC) successfully transitioned during 4Q24 and is now generating revenue. • Locations distributed across key markets in 30 states
Slide 5: 2025 Outlook: 1Q 2025 Guidance Assumptions
2025 OUTLOOK 1Q 2025 Guidance Assumptions • SS revenue assumptions: 1Q 2025 1Q 2025 • Up HSD % to mid-teens % sequentially (up high 20% to mid 30% YoY) Low End High End • Primarily driven by the successful transition of the DMDC program in 4Q 2024 and ongoing growth in TSA PreCheck® enrollments Reve
Slide 6: Summary
SUMMARY 4Q Revenue at Top End of Guidance Range with 11% Sequential Growth; Adjusted EBITDA Exceeded Guidance Highest Cash Gross Margin for Full Year 2024 Since 2000 Successfully Transitioned DMDC Program, a Key Source of Revenue Growth in 2025 Expanded Network of TSA PreCheck® Enrollment Centers to
Slide 7: Appendix
Appendix Telos
Slide 8: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES In addition to Telos' results determined in accordance with U.S. GAAP, Telos believes the non-GAAP financial measures of EBITDA, Adjusted EBITDA, EBITDA Margin, Adjusted EBITDA Margin, Adjusted Net Income/(Loss), Adjusted Earnings Per Share ("EPS"), Adjusted Gross Profit,
Slide 9: 4Q and FY 2024 Year-Over-Year Comparison
FINANCIAL PERFORMANCE SUMMARY 4Q AND FY 2024 YEAR-OVER-YEAR COMPARISON Revenue GAAP Gross Profit Adjusted EBITDA(1) Free Cash Flow(1) 4Q YoY Commentary • Revenue: Security Solutions up 6% to $21.9M due to the successful transition of the DMDC program and growth in TSA PreCheck® enrollments, partiall
Slide 10: 2025 1Q Additional Modeling Assumptions
2025 OUTLOOK 2025 1Q ADDITIONAL MODELING ASSUMPTIONS 2024 2024 2025E Full Year 1Q 1Q 2025E 1Q Commentary • SS and SN down YoY GAAP Gross Margin 31.8% 37.0% ~38.5% - 39.2% • More favorable revenue mix between SS and SN • Cash gross margin1 up YoY Stock Based $21.4M $3.0M ~$7.5M - $8.0M • ~$0.2M in CO
Slide 11: GAAP and Adjusted Full Year Results 2024
2024 RESULTS GAAP AND ADJUSTED FULL YEAR RESULTS (Amounts in thousands, unaudited) 2024 Three Months Ended March 31, 2024 Three Months Ended June 30, 2024 Three Months Ended September 30, 2024 Three Months Ended December 31, 2024 Twelve Months Ended December 31, 2024 GAAP SBC Other Inc Restructure A
Slide 12: GAAP and Adjusted Full Year Results 2023
2023 RESULTS GAAP AND ADJUSTED FULL YEAR RESULTS (Amounts in thousands, unaudited) 2023 Three Months Ended March 31, 2023 Three Months Ended June 30, 2023 Three Months Ended September 30, 2023 Three Months Ended December 31, 2023 Twelve Months Ended December 31, 2023 GAAP SBC Other Inc Restructure A
Slide 13: Cash Gross Profit & Cash Gross Margin Full Year Results 2024
2024 RESULTS CASH GROSS PROFIT & CASH GROSS MARGIN FULL YEAR RESULTS (Amounts in thousands, unaudited) 2024 Three Months Ended Twelve Months Ended March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 December 31, 2024 Revenue Security Solutions $ 18,640 $ 17,867 $ 18,332 $ 21,921 $ 76,7
Slide 14: Cash Gross Profit & Cash Gross Margin Full Year Results 2023
2023 RESULTS CASH GROSS PROFIT & CASH GROSS MARGIN FULL YEAR RESULTS (Amounts in thousands, unaudited) 2023 Three Months Ended Twelve Months Ended March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 December 31, 2023 Revenue Security Solutions $ 19,773 $ 17,196 $ 19,795 $ 20,652 $ 77,4
Slide 15: EBITDA, Adjusted EBITDA, and Margins Reconciliation
RECONCILIATIONS EBITDA, ADJUSTED EBITDA, EBITDA MARGIN, AND ADJUSTED EBITDA MARGIN (Amounts in thousands, unaudited) For the Three Months Ended December 31, For the Year Ended December 31, 2024 2023 2024 2023 Amount Margin Amount Margin Amount Margin Amount Margin Net loss $ (9,330) (35.4)% $ (6,980
Slide 16: Adjusted Net Loss and Adjusted EPS
RECONCILIATIONS ADJUSTED NET LOSS AND ADJUSTED EPS (Amounts in thousands, unaudited) For the Three Months Ended December 31, For the Year Ended December 31, 2024 2023 2024 2023 Adjusted Adjusted Adjusted Adjusted Adjusted Net Earnings Per Adjusted Net Earnings Per Adjusted Net Earnings Per Adjusted
Slide 17: Adjusted Gross Profit, Cash Gross Profit and Margins
RECONCILIATIONS ADJUSTED GROSS PROFIT, CASH GROSS PROFIT, ADJUSTED GROSS MARGIN, AND CASH GROSS MARGIN (Amounts in thousands, unaudited) For the Three Months Ended December 31, For the Year Ended December 31, 2024 2023 2024 2023 Amount Margin Amount Margin Amount Margin Amount Margin Gross profit $
Slide 18: Free Cash Flow
RECONCILIATIONS FREE CASH FLOW (Amounts in thousands, unaudited) For the Three Months Ended For the Year Ended December 31, December 31, 2024 2023 2024 2023 Net cash flows (used in) provided by operating activities $ (10,518) $ 4,954 $ (25,938) $ 1,587 Adjustments: Purchases of property and equipmen
Slide 19: Adjusted Operating Expenses and Cash Operating Expenses
RECONCILIATIONS ADJUSTED OPERATING EXPENSES AND CASH OPERATING EXPENSES (Amounts in thousands, unaudited) For the Three Months Ended For the Year Ended December 31, December 31, 2024 2023 2024 2023 Operating expenses $ 20,545 $ 22,273 $ 90,302 $ 93,257 Adjustments: Stock-based compensation expense (
Slide 20: Solutions that empower and protect the enterprise.
Solutions that empower TM and protect the enterprise. 20