NASDAQ$TLS

Telos Corporation · Q4 2024 earnings

Q4 2024 earnings · · Before market open · Investor relations

Briefing

Telos reported a revenue decline in Q4 2024 while improving gross margins and reducing adjusted EBITDA loss.

Telos' Q4 2024 revenue fell 35.8% year-over-year to $26.4 million, mainly due to a reduction in Secure Networks revenue. The company achieved a gross margin of 40.3%, a 6 percentage-point increase from Q4 2023. Despite a GAAP net loss of $9.3 million, adjusted EBITDA improved to a $0.2 million loss from a $3.2 million loss in Q4 2023, reflecting cost optimization efforts. Free cash flow was negative $14.8 million due to increased working capital needs.

  • Revenue decreased 35.8% year-over-year to $26.4 million.
  • GAAP net loss widened to $9.3 million from $7.0 million in Q4 2023.
  • Adjusted EBITDA improved to a loss of $0.2 million from a $3.2 million loss in Q4 2023.
  • Free cash flow was negative $14.8 million due to working capital investments.

Headline financials

Total Revenue

$26.4M

Previous: $41.1M-35.7%
EPS (adj)

-$0.04

Previous: -$0.09+55.6%
Capital Expenditures

-$4.27M

Previous: -$15.1M+71.8%
Free Cash Flow

-$14.8M

No prior period
Net Income

-$9.33M

Previous: -$6.98M-33.7%
Operating Income

-$9.93M

Previous: -$8.19M-21.3%
Gross Profit

$10.6M

Previous: $14.1M-24.6%
R&D Expense

$1.4M

Previous: $3.61M-61.2%

Revenue & EPS history

Telos · Revenue · Quarterly

$26.4M

Q4 2024-35.7%vs Q4 2023
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Forward guidance

Telos expects sequential revenue growth of 7-15% in Q1 2025, with improving profitability and positive cash flow.

Tailwinds

  • Q1 2025 revenue forecasted between $28.2 million and $30.2 million.
  • Sequential revenue growth expected between 7-15%.
  • Adjusted EBITDA loss expected to improve to a range of $1.8 million to $0.8 million.
  • Positive cash flow anticipated in Q1 2025.
  • Continued expansion of TSA PreCheck enrollment locations.

Headwinds

  • Revenue remains significantly lower than Q4 2023 levels.
  • Free cash flow remains negative due to working capital investments.
  • Secure Networks segment revenue declined sharply.
  • Stock-based compensation remains a high expense item.
  • Continued net losses expected in the near term.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

-4.3%

Avg return

Earnings day

-0.2%

Avg return

5 days after

+1.5%

Avg return

30 days after

36%

8 / 22 earnings

Positive

+24.8%

Q3 2023

Best reaction

-68.4%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.4%-6.7%
Q4 2025-3.7%+1.2%+3.7%
Q3 2025+21.5%-8.3%-5.0%
Q1 2025-19.6%+6.9%+12.2%
Q4 2024-9.1%-7.0%-15.7%
Q3 2024-12.7%-22.3%-17.1%
Q2 2024-30.2%-41.8%-15.6%
Q1 2024-11.2%+16.6%+18.6%
Q4 2023+24.8%+38.7%+14.3%
Q3 2023+24.8%+38.9%+45.1%
Q2 2023+12.2%-3.5%-7.4%
Q1 2023+22.7%+55.2%+43.1%
Q4 2022-24.4%-22.2%-20.9%
Q3 2022-68.4%-55.8%-60.4%
Q2 2022+3.9%+9.9%+17.1%
Q1 2022-0.7%+7.7%+30.3%
Q4 2021-2.2%-2.1%-6.8%
Q3 2021-27.9%-22.8%-36.5%
Q2 2021-0.5%+12.7%+27.0%
Q1 2021-16.5%-14.2%+0.3%
Q4 2020+14.0%+7.3%+2.4%
Q2 2020+14.0%+7.3%+2.4%
Q3 2020
Q1 2020
Q2 2019
Q4 2019
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Q1 2019
Q4 2018
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Q2 2018
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Q4 2017
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Q1 2017
Q4 2016
Q3 2016
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Q4 2015
Q3 2015
Q2 2015
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Q4 2014
Q3 2014
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Q1 2014
Q4 2013
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Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011
Q2 2011
Q1 2011
Q4 2010
Q3 2010
Q2 2010
Q1 2010

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