Slide 1: First Quarter 2026 Earnings
First Quarter 2026 Earnings May 11, 2026
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 $47.7M OF REVENUE, 36.4% GAAP GROSS MARGIN, 42.3% CASH GM1, AND $8.7M OF CASH FLOW FROM OPERATIONS 1Q 2026 1Q 2026 Summary 1Q 2026 Guidance / Actual • Delivered $47.7M of Revenue vs. guidance of $44.0M to $45.0M; YoY revenue Assumptions growth of 56% • Securit
Slide 4: 2Q and FY Guidance
2026 OUTLOOK 2Q AND FY GUIDANCE Guidance Guidance Assumptions 2Q Assumptions 2Q 2026 2Q 2026 • Revenue forecasted to grow 22% to 28%, primarily due to expansion within Telos ID Low End High End • Cash Gross Margin1 approximately 39.0% Revenue $44.0M $46.0M • Adjusted Operating Expenses1 approximatel
Slide 5: Summary
SUMMARY Exceeded 1Q Guidance for Revenue, Cash Gross Margin, Adjusted EBITDA and Adjusted EBITDA Margin Generated 13.4% Free Cash Flow Margin1 in 1Q, Continued to Return Capital to Shareholders via Share Repurchases Share Repurchases Expected to Accelerate in the Second Quarter Forecasting Double-Di
Slide 6: Appendix
Appendix Telos
Slide 7: 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, Incremental Adjusted EBITDA, Incremental Adjusted EBITDA Margin, Adjusted Net Income (L
Slide 8: 1Q Year-Over-Year Comparison
FINANCIAL PERFORMANCE SUMMARY 1Q YEAR-OVER-YEAR COMPARISON Revenue GAAP Gross Profit Adjusted EBITDA1 Free Cash Flow1 UP 56% UP 43% UP $7.5M UP $2.6M $47.7M $7.9M $17.4M $6.4M $30.6M $12.2M $3.8M $0.4M 39.8% GAAP GM 36.4% GAAP GM 1.2% Adjusted 16.5% Adjusted 12.3% Free Cash 13.4% Free Cash 45.3% Cas
Slide 9: 2026 2Q Additional Modeling Assumptions
2026 OUTLOOK 2026 2Q ADDITIONAL MODELING ASSUMPTIONS 2025 2026E 2026E 2Q Commentary 2Q 2Q GAAP Gross Margin 33.2% ~32.5% • See Cash GM1 commentary below • SS down YoY; SN up YoY Cash Gross Margin1 38.4% ~39.0% • More favorable revenue mix between SS and SN (SS 98% vs. 90% in 2Q25) Stock Based Compen
Slide 10: 2026 FY Additional Modeling Assumptions
2026 OUTLOOK 2026 FY ADDITIONAL MODELING ASSUMPTIONS 2025 2026E 2026E FY Commentary Full Year Full Year GAAP Gross Margin 37.0% ~31.7% - 33.5% • See Cash GM1 commentary below • SS down YoY; SN slightly down to up YoY Cash Gross Margin1 42.7% ~38.2% - 39.5% • More favorable revenue mix between SS and
Slide 11: GAAP and Adjusted 1Q Results
2026 RESULTS GAAP AND ADJUSTED 1Q RESULTS (Amounts in thousands, unaudited) 2026 2025 Three Months Ended March 31, 2026 Three Months Ended March 31, 2025 GAAP SBC Other Inc Adjusted GAAP SBC Other Inc Adjusted Revenue Security Solutions $ 45,970 $ - $ - $ 45,970 $ 25,818 $ - $ - $ 25,818 Secure Netw
Slide 12: GAAP and Adjusted Full Year Results
2025 RESULTS GAAP AND ADJUSTED FULL YEAR RESULTS (Amounts in thousands, unaudited) 2025 Three Months Ended March 31, 2025 Three Months Ended June 30, 2025 Three Months Ended September 30, 2025 Three Months Ended December 31, 2025 Twelve Months Ended December 31, 2025 GAAP SBC Other Inc Adjusted GAAP
Slide 13: Cash Gross Profit & Cash Gross Margin 1Q Results
2026 RESULTS CASH GROSS PROFIT & CASH GROSS MARGIN 1Q RESULTS (Amounts in thousands, unaudited) 2026 2025 Three Months Ended Three Months Ended March 31, 2026 March 31, 2025 Revenue Security Solutions $ 45,970 $ 25,818 Secure Networks 1,772 4,798 Total $ 47,742 $ 30,616 GAAP Gross Profit Security So
Slide 14: Cash Gross Profit & Cash Gross Margin Full Year Results
2025 RESULTS CASH GROSS PROFIT & CASH GROSS MARGIN FULL YEAR RESULTS (Amounts in thousands, unaudited) 2025 Three Months Ended Twelve Months Ended March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 December 31, 2025 Revenue Security Solutions $ 25,818 $ 32,474 $ 46,478 $ 44,830 $ 149,
Slide 15: Adjusted Operating Expenses and Cash Operating Expenses Full Year Results
2025 RESULTS ADJUSTED OPERATING EXPENSES AND CASH OPERATING EXPENSES FULL YEAR RESULTS (Amounts in thousands, unaudited) 2025 Three Months Ended Twelve Months Ended March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 December 31, 2025 Operating Expenses 21,204 21,815 23,014 34,865 100,
Slide 16: EBITDA, Adjusted EBITDA and Margin Reconciliations
RECONCILIATIONS EBITDA, ADJUSTED EBITDA, EBITDA MARGIN, ADJUSTED EBITDA MARGIN, INCREMENTAL ADJUSTED EBITDA, AND INCREMENTAL ADJUSTED EBITDA MARGIN (Amounts in thousands, unaudited) For the Three Months Ended March 31, 2026 March 31, 2025 Year-over-Year Change Amount Margin Amount Margin Amount Marg
Slide 17: Adjusted Net Income (Loss) and Adjusted EPS
RECONCILIATIONS ADJUSTED NET INCOME (LOSS) AND ADJUSTED EPS (Amounts in thousands, unaudited) For the Three Months Ended March 31, 2026 March 31, 2025 Net income (loss) $ 2,023 $ (8,604) Adjustments: Other income (697) (561) Stock-based compensation expense (1) 2,971 7,048 Adjusted net income (loss)
Slide 18: 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 March 31, 2026 March 31, 2025 Amount Margin Amount Margin Gross profit $ 17,375 36.4% $ 12,182 39.8% Adjustments: Stock-based compensati
Slide 19: Free Cash Flow and Free Cash Flow Margin
RECONCILIATIONS FREE CASH FLOW AND FREE CASH FLOW MARGIN (Amounts in thousands, unaudited) For the Three Months Ended March 31, 2026 March 31, 2025 Net cash provided by operating activities $ 8,656 $ 6,106 Adjustments: Purchases of property and equipment (145) (123) Capitalized software development
Slide 20: Adjusted Operating Expenses and Cash Operating Expenses
RECONCILIATIONS ADJUSTED OPERATING EXPENSES AND CASH OPERATING EXPENSES (Amounts in thousands, unaudited) For the Three Months Ended March 31, 2026 March 31, 2025 Operating expenses $ 15,920 $ 21,204 Adjustments: Stock-based compensation expense (2,755) (6,858) Adjusted operating expenses (Non-GAAP)
Slide 21: Solutions that empower and protect the enterprise.
Solutions that empower TM and protect the enterprise. Telos Confidential 21