Telos Corporation reported significant financial growth in its fiscal year 2025, with total revenues reaching $164.8 million, a 52.2% increase from $108.3 million in 2024. The growth was primarily driven by a 94.9% surge in the Security Solutions segment, which accounted for approximately 90.8% of total revenues, up from 70.9% the previous year. The company’s gross profit also improved, rising to $61.0 million, resulting in a gross margin of 37.0%, compared to 31.8% in the prior year. Despite these gains, Telos recorded a net loss of $36.5 million, an improvement from a net loss of $52.5 million in 2024.
The company undertook several strategic initiatives during the year, including the launch of Xacta.ai, an artificial intelligence capability integrated into its Xacta platform, aimed at enhancing compliance and risk management processes. Additionally, Telos executed a restructuring plan that resulted in a goodwill impairment of $14.9 million related to its Secure Networks segment, which saw a revenue decline of 51.7% due to the ramp-down of several programs without new business to replace them. The restructuring efforts also included workforce reductions and a focus on optimizing operational efficiency.
Operationally, Telos reported a significant increase in its backlog, which rose to $126.1 million as of December 31, 2025, compared to $76.5 million in the previous year. This increase was attributed to new contract awards and the renewal of existing contracts. The company’s workforce consisted of 525 employees, with approximately 90.1% based in the United States, and 23% identifying as veterans. The company emphasized its commitment to employee satisfaction and retention, implementing various programs to support its workforce.
Looking ahead, Telos remains focused on expanding its market presence, particularly in the cybersecurity and identity verification sectors, which are expected to benefit from increased federal government spending. The company anticipates that its strategic alignment with government priorities, particularly in defense and national security, will provide growth opportunities. However, management acknowledged the potential risks associated with federal budget uncertainties and the competitive landscape for government contracts, which could impact future revenue and profitability.
About TELOS CORP
Telos Corporation provides advanced cybersecurity, cloud security, and enterprise network solutions primarily for government agencies and large commercial clients. Its core offerings include risk management platforms, secure messaging, digital identity services, and network defense. Serving the U.S. federal government, defense, and critical infrastructure sectors, Telos leverages proprietary technology and strategic partnerships to deliver trusted, innovative security solutions that protect sensitive information and ensure compliance.
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