Slide 1: First Quarter 2025 Earnings
First Quarter 2025 Earnings May 9, 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 $30.6M OF REVENUE, 39.8% GAAP GROSS MARGIN, 45.3% CASH GM1, AND $6.1M OF CASH FLOW FROM OPERATIONS 1Q 2025 1Q 2025 Summary 1Q 2025 Guidance / Actual • Delivered $30.6M of revenue vs. guidance of $28.2M to $30.2M Assumptions • Security Solutions (“SS”) up 18% s
Slide 4: 1Q Year-Over-Year Comparison
FINANCIAL PERFORMANCE SUMMARY 1Q YEAR-OVER-YEAR COMPARISON Revenue GAAP Gross Profit Adjusted EBITDA1 Free Cash Flow1 $29.6M $30.6M Up $2.7M $11.0M $12.2M $3.8M Up $7.4M 37.0% GAAP GM 39.8% GAAP GM $6.1M Cash Flow 42.2% Cash GM1 45.3% Cash GM1 $0.4M from Operations ($0.4M) Cash Flow from Operations
Slide 5: Recent Business Updates
RECENT BUSINESS UPDATES TSA PreCheck® EXPANSION OTHER UPDATES • Expanded network of enrollment centers to 291 locations. • New Xacta® orders include Infor and a U.S. federal government customer, as well as renewals from the U.S. 16th Air Force, the Office of Naval Intelligence, • Locations distribut
Slide 6: 2Q 2025 Assumptions Guidance
2025 OUTLOOK 2Q 2025 Guidance Assumptions • SS revenue assumptions: 2Q 2025 2Q 2025 • Up low 60% to low 70% YoY Low End High End • Primarily driven by the continued ramp of the DMDC program and ongoing growth in TSA PreCheck® enrollments Revenue $32.5M $34.5M +14% YoY +21% YoY • SN revenue assumptio
Slide 7: Summary
SUMMARY Generated 16% Sequential Revenue Growth, Positive Adjusted EBITDA, and Positive Cash Flow in 1Q DMDC Program Continues to Ramp Successfully and Remains a Key Source of Revenue Growth in 2025 Expanded Network of TSA PreCheck® Enrollment Centers to 291 Locations Forecasting 14% to 21% Year-Ove
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, Adjusted Net Loss, Adjusted Earnings Per Share ("EPS"), Adjusted Gross Profit, Adjusted
Slide 10: 2025 2Q Additional Modeling Assumptions
2025 OUTLOOK 2025 2Q ADDITIONAL MODELING ASSUMPTIONS 2024 2024 2025E 2025E 2Q Commentary Full Year 2Q 2Q • More favorable revenue mix between SS and SN GAAP Gross Margin 31.8% 34.1% ~32% - 33.5% • SS and SN down YoY • More favorable revenue mix between SS and SN Cash Gross Margin1 43.7% 42.0% ~38% -
Slide 11: GAAP and Adjusted 1Q Results
2025 RESULTS GAAP AND ADJUSTED 1Q RESULTS (Amounts in thousands, unaudited) 2025 2024 Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 GAAP SBC Other Inc Adjusted GAAP SBC Other Inc Restructure Adjusted Revenue Security Solutions $ 25,818 $ - $ - $ 25,818 $ 18,640 $ - $ - $ - $ 18
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 1Q Results
2025 RESULTS CASH GROSS PROFIT & CASH GROSS MARGIN 1Q RESULTS (Amounts in thousands, unaudited) 2025 2024 Three Months Ended Three Months Ended March 31, 2025 March 31, 2024 Revenue Security Solutions $ 25,818 $ 18,640 Secure Networks 4,798 10,979 Total $ 30,616 $ 29,619 GAAP Gross Profit Security S
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, EBITDA Margin, and Adjusted EBITDA Margin
RECONCILIATIONS EBITDA, ADJUSTED EBITDA, EBITDA MARGIN, AND ADJUSTED EBITDA MARGIN (Amounts in thousands, unaudited) Reconciliation of Net Loss to EBITDA and Adjusted EBITDA; Net Loss Margin to EBITDA Margin and Adjusted EBITDA Margin For the Three Months Ended March 31, 2025 March 31, 2024 Amount M
Slide 16: Adjusted Net Loss and Adjusted EPS
RECONCILIATIONS ADJUSTED NET LOSS AND ADJUSTED EPS (Amounts in thousands, unaudited) Reconciliation of Net Loss to Adjusted Net Loss; EPS to Adjusted EPS For the Three Months Ended March 31, 2025 March 31, 2024 Adjusted Adjusted Adjusted Earnings Per Adjusted Earnings Per Net Loss Share Net Loss Sha
Slide 17: Adjusted Gross Profit, Cash Gross Profit, Adjusted Gross Margin, and Cash Gross Margin
RECONCILIATIONS ADJUSTED GROSS PROFIT, CASH GROSS PROFIT, ADJUSTED GROSS MARGIN, AND CASH GROSS MARGIN (Amounts in thousands, unaudited) Reconciliation of Gross Profit to Adjusted Gross Profit and Cash Gross Profit; Gross Margin to Adjusted Gross Margin and Cash Gross Margin For the Three Months End
Slide 18: Free Cash Flow
RECONCILIATIONS FREE CASH FLOW (Amounts in thousands, unaudited) Reconciliation of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow For the Three Months Ended March 31, 2025 March 31, 2024 Net cash provided by (used in) operating activities $ 6,106 $ (350) Adjustments: Capitaliz
Slide 19: Adjusted Operating Expenses and Cash Operating Expenses
RECONCILIATIONS ADJUSTED OPERATING EXPENSES AND CASH OPERATING EXPENSES (Amounts in thousands, unaudited) Reconciliation of Operating Expenses to Adjusted Operating Expenses and Cash Operating Expenses For the Three Months Ended March 31, 2025 March 31, 2024 Operating expenses $ 21,204 $ 19,399 Adju
Slide 20: Solutions that empower and protect the enterprise.
Solutions that empower TM and protect the enterprise. Telos Confidential 20