Slide 1: Second Quarter 2025 Earnings
Second Quarter 2025 Earnings August 11, 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 $36.0M OF REVENUE, 33.2% GAAP GROSS MARGIN, 38.4% CASH GM1, AND $7.0M OF CASH FLOW FROM OPERATIONS 2Q 2025 2Q 2025 Summary 2Q 2025 Guidance / Actual • Delivered $36.0M of Revenue vs. guidance of $32.5M to $34.5M; YoY revenue growth of 26% Assumptions • Securit
Slide 4: Business Scaled Significantly Year to Date
FINANCIAL PERFORMANCE SUMMARY BUSINESS SCALED SIGNIFICANTLY YEAR TO DATE Revenue GAAP Gross Profit Adjusted EBITDA(1) Free Cash Flow(1) YoY Commentary • Revenue: Security Solutions up 82% to $32.5M primarily due to rapid scaling of the UP 26% UP 23% UP $3.3M UP $16.0M DMDC program and growth in TSA
Slide 5: Recent Business Updates
RECENT BUSINESS UPDATES TSA PRECHECK® EXPANSION OTHER UPDATES • Expanded network of enrollment centers to 415 locations. • Achieved FedRAMP High Authorization for Xacta® software. • Locations distributed across key markets in 40 states (including Puerto Rico). • Xacta formally recognized to meet hig
Slide 6: 2025 Outlook
2025 OUTLOOK GROWTH FORECASTED TO ACCELERATE IN 3Q Guidance 3Q Guidance Assumptions • Revenue forecasted to grow 85% to 98%, primarily due to rapidly scaling programs in SS 3Q 2025 3Q 2025 • SS expected to contribute approximately 90% of total Revenue Low End High End • GAAP Gross Margin approximate
Slide 7: Summary
SUMMARY Large Programs Continue to Rapidly Scale in Security Solutions Expense Discipline is Delivering Excellent Operating Leverage and Strong Incremental Adjusted EBITDA Margins Delivered Substantial Year-Over-Year Growth in Revenue, Adjusted EBITDA, and Cash Flow in 2Q and 1H Resumed Share Repurc
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 Loss, Adj
Slide 10: 2025 3Q Additional Modeling Assumptions
2025 OUTLOOK 2025 3Q ADDITIONAL MODELING ASSUMPTIONS 2024 2024 2025E 2025E 3Q Commentary Full Year 3Q 3Q • SS up primarily due to 3Q24 impairment and restructuring charges GAAP Gross Margin 31.8% 13.2% ~34.0% - 35.5% • See Cash GM commentary below • SS down YoY; SN up YoY Cash Gross Margin1 43.7% 44
Slide 11: GAAP and Adjusted 1H Results
2025 RESULTS GAAP AND ADJUSTED 1H RESULTS (Amounts in thousands, unaudited) 2025 2024 Three Months Ended March 31, 2025 Three Months Ended June 30, 2025 Six Months Ended June 30, 2025 Three Months Ended March 31, 2024 Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 GAAP SBC Other Inc
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 1H Results
2025 RESULTS CASH GROSS PROFIT & CASH GROSS MARGIN 1H RESULTS (Amounts in thousands, unaudited) 2025 2024 Three Months Ended Three Months Ended Six Months Ended Three Months Ended Three Months Ended Six Months Ended March 31, 2025 June 30, 2025 June 30, 2025 March 31, 2024 June 30, 2024 June 30, 202
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 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 For the Six Months Ended June 30, 2025 June 30, 2024 Year-over-Year Change June 30, 2025 Ju
Slide 16: Adjusted Net Loss and Adjusted EPS
RECONCILIATIONS ADJUSTED NET LOSS AND ADJUSTED EPS (Amounts in thousands, unaudited) For the Three Months Ended For the Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Adjusted Adjusted Adjusted Adjusted Adjusted Earnings Adjusted Earnings Adjusted Earnings Adjusted Earnings
Slide 17: Adjusted Gross Profit, Cash Gross Profit, 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 Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Amount Margin Amount Margin Amount Margin Amount Margin
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 Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net cash provided by (used in) operating activities $ 6,950 $ (7,990) $ 13,056 $ (8,340) Adjustments:
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 Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Operating expenses $ 21,815 $ 18,351 $ 43,019 $ 37,750 Adjustments: Stock-based compen
Slide 20: Solutions that empower and protect the enterprise.
Solutions that empower TM and protect the enterprise. Telos Confidential 20