Slide 1: Third Quarter 2025 Earnings
Third Quarter 2025 Earnings November 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 $51.4M OF REVENUE, 39.9% GAAP GROSS MARGIN, 44.8% CASH GM1, AND $9.1M OF CASH FLOW FROM OPERATIONS 3Q 2025 3Q 2025 Summary 3Q 2025 Guidance / Actual • Delivered $51.4M of Revenue vs. guidance of $44.0M to $47.0M; YoY revenue growth of Assumptions 116% • Securi
Slide 4: Significant Year-Over-Year Business Expansion Continues
FINANCIAL PERFORMANCE SUMMARY SIGNIFICANT YEAR-OVER-YEAR BUSINESS EXPANSION CONTINUES Revenue GAAP Gross Profit Adjusted EBITDA(1) Free Cash Flow(1) YoY Commentary • Revenue: Security Solutions up 154% to $46.5M primarily due to expansion UP 116% UP 554% UP $14.2M UP $16.5M within the Telos ID portf
Slide 5: Recent Business Updates
RECENT BUSINESS UPDATES XACTA.AI LAUNCH TSA PRECHECK EXPANSION • Telos releases Xacta.ai™: An enterprise AI software capability added to the Xacta® platform, already the proven • Expanded network of TSA PreCheck® enrollment solution for cyber risk management compliance for the world’s most security
Slide 6: 2025 Outlook
2025 OUTLOOK FORECASTING 67% To 76% YEAR-OVER-YEAR REVENUE GROWTH IN 4Q Guidance 4Q Guidance Assumptions • Revenue forecasted to grow 67% to 76%, primarily due to rapidly scaling programs in Telos ID 4Q 2025 4Q 2025 • GAAP Gross Margin approximately 34.0% – 34.5% Low End High End • Cash Gross Margin
Slide 7: Summary
SUMMARY 116% Year-Over-Year Revenue Growth in 3Q; Significantly Exceeded 3Q Revenue and Adjusted EBITDA Guidance Robust Cash Flow Funded Continued Share Repurchases in 3Q Launched Xacta.ai with Enhanced Capability to Dramatically Improve Efficiency and Effectiveness of Customer Compliance Activities
Slide 8: Appendix
Appendix Telos
Slide 9: 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 10: 2025 Outlook: 4Q Additional Modeling Assumptions
2025 OUTLOOK 2025 4Q ADDITIONAL MODELING ASSUMPTIONS 2024 2024 2025E 2025E 4Q Commentary Full Year 4Q 4Q GAAP Gross Margin 31.8% 40.3% ~34.0% – 34.5% • See Cash GM commentary below • SS down YoY due to mix and non-cash infrastructure costs; SN up YoY Cash Gross Margin1 43.7% 47.0% ~40.0% – 41.0% • M
Slide 11: GAAP and Adjusted 9M Results
2025 RESULTS GAAP AND ADJUSTED 9M RESULTS (Amounts in thousands, unaudited) 2025 2024 Three Months Ended March 31, 2025 Three Months Ended June 30, 2025 Three Months Ended September 30, 2025 Nine Months Ended September 30, 2025 Three Months Ended September 30, 2024 Nine Months Ended September 30, 20
Slide 12: GAAP and Adjusted Full Year Results
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 13: Cash Gross Profit & Cash Gross Margin 9M Results
2025 RESULTS CASH GROSS PROFIT & CASH GROSS MARGIN 9M RESULTS (Amounts in thousands, unaudited) 2025 2024 Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended March 31, 2025 June 30, 2025 September 30, 2025 September 30, 2025 September 30, 2024 September 30, 2024 Revenue Securit
Slide 14: Cash Gross Profit & Cash Gross Margin Full Year Results
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 15: EBITDA, Adjusted EBITDA and Incremental Adjusted EBITDA 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 For the Nine Months Ended September 30, 2025 September 30, 2024 Year-over-Year Change Septe
Slide 16: Adjusted Net Income (Loss) and Adjusted EPS
RECONCILIATIONS ADJUSTED NET INCOME (LOSS) AND ADJUSTED EPS (Amounts in thousands, unaudited) For the Three Months Ended For the Nine Months Ended September 30, September 30, 2025 September 30, 2024 September 30, 2025 2024 Net loss $ (2,114) $ (28,055) $ (20,235) $ (43,190) Adjustments: Other income
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 For the Nine Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Amount Margin Amount Margin Amount
Slide 18: 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 For the Nine Months Ended September 30, September 30, September 30, September 30, 2025 2024 2025 2024 Net cash provided by (used in) operating activities $ 9,146 $ (7,080) $ 22,202 $
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 Nine Months Ended September 30, September 30, September 30, September 30, 2025 2024 2025 2024 Operating expenses $ 23,014 $ 32,007 $ 66,033 $ 69,757 Adjustment
Slide 20: Solutions that empower and protect the enterprise.
Solutions that empower TM and protect the enterprise. Telos Confidential 20