Telos Corporation (NASDAQ:TLS) reported strong revenue growth in the fourth quarter of 2025, supported by expanding demand for its security solutions, though the company remained in a GAAP loss position.
Revenue for the quarter reached $46.8 million, representing a 77% increase year over year, driven largely by a 105% surge in the Security Solutions segment as major Telos ID programs continued to scale.
The company reported a GAAP net loss of $16.3 million for the quarter. The result included a $14.9 million goodwill impairment and a $1.5 million restructuring charge. However, profitability improved significantly on an adjusted basis.
Adjusted EBITDA climbed to $7.3 million, compared with a small loss in the same period a year earlier, while adjusted earnings per share rose to $0.06 from a loss of $(0.04).
Cash generation also strengthened. Telos reported operating cash flow of $8.0 million and free cash flow of $6.3 million in the fourth quarter, a sharp improvement from negative levels recorded in the prior-year period.
For the full year 2025, the company generated $164.8 million in revenue and $21.3 million in free cash flow. During the year, Telos also repurchased 3.1 million shares for $13.6 million as part of its capital return program.
Looking ahead, the company issued 2026 guidance projecting revenue between $187 million and $200 million, representing growth of 14% to 21%. Telos also expects adjusted EBITDA of $20.6 million to $28.0 million, implying an adjusted EBITDA margin of 11% to 14%, signaling another year of double-digit growth and continued margin expansion.