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Telos Beats Q4 Targets, Sets 2026 Growth Goals as Shares Slip on GAAP Loss

A goodwill-impairment–driven GAAP loss cooled an early stock pop.

Overview

  • Q4 revenue rose 77% year over year to $46.8 million, topping guidance, with adjusted EBITDA of $7.3 million for a 15.6% margin.
  • Operating cash flow reached $8.0 million and free cash flow was $6.3 million in the quarter, capping a year with $21.3 million in free cash flow.
  • GAAP results reflected a $14.9 million non-cash goodwill impairment in Secure Networks and restructuring charges totaling a $16.4 million quarterly impact.
  • For 2026 the company guided revenue to $187–$200 million and adjusted EBITDA to $20.6–$28.0 million, signaling margin expansion despite anticipated cash gross margin pressure.
  • Management cited Telos ID and TSA PreCheck ramps, early Xacta.ai traction with 400 licenses, a pipeline above $4.2 billion, and an expanded $75 million share repurchase plan after buying back over 1 million shares for $6 million in the quarter.