$TLS

TELOS CORP

CIK:0000320121|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Total revenue	$ 47,745	$ 35,968	$ 95,487	$ 66,584
Depreciation and amortization	2,514	1,715	5,110	3,218
Total cost of sales	31,053	24,036	61,420	42,470
Gross profit	16,692	11,932	34,067	24,114
Operating expenses:
Research and development expenses	1,345	1,512	2,702	3,083
Selling, general and administrative expenses	15,037	20,303	29,600	39,936
Total operating expenses	16,382	21,815	32,302	43,019
Operating income (loss)	310	(9,883)	1,765	(18,905)
Other income	501	553	1,198	1,114
Interest expense	(107)	(141)	(218)	(288)
Income (loss) before income taxes	704	(9,471)	2,745	(18,079)
Provision for income taxes	(44)	(46)	(62)	(42)
Net income (loss)	$ 660	$ (9,517)	$ 2,683	$ (18,121)
Net income (loss) per share:
Basic (in dollars per share)	$ 0.01	$ (0.13)	$ 0.04	$ (0.25)
Diluted (in dollars per share)	$ 0.01	$ (0.13)	$ 0.03	$ (0.25)
Weighted-average shares outstanding:
Basic weighted-average number of shares outstanding	74,895	73,163	74,361	72,940
Diluted weighted-average number of shares outstanding	77,547	73,163	77,576	72,940
Service
Total revenue	$ 40,594	$ 29,301	$ 82,655	$ 58,146
Cost of sales	22,537	16,605	45,776	32,096
Product
Total revenue	7,151	6,667	12,832	8,438
Cost of sales	$ 6,002	$ 5,716	$ 10,534	$ 7,156

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income (loss)	$ 2,683	$ (18,121)
Adjustments to reconcile net income (loss) to cash flows from operations:
Stock-based compensation	6,184	14,805
Depreciation and amortization	6,776	4,845
Loss on disposal of fixed assets	52	0
Provision for inventory obsolescence	42	0
Amortization of debt issuance costs	17	35
Deferred income taxes	4	27
Provision for (recovery from) doubtful accounts	1	(20)
Changes in operating assets and liabilities:
Accounts receivable	(1,001)	86
Inventories	(1,942)	(1,079)
Prepaid expenses, deferred program expenses, other current assets and other assets	4,445	(1,933)
Accounts payable	(2,158)	9,540
Accrued compensation and benefits	(208)	601
Contract liabilities	5,746	6,114
Accrued liabilities and other liabilities	(3,152)	(1,844)
Net cash provided by operating activities	17,489	13,056
Cash flows from investing activities:
Capitalized software development costs	(4,102)	(4,401)
Purchases of property and equipment	(391)	(257)
Net cash used in investing activities	(4,493)	(4,658)
Cash flows from financing activities:
Payment of tax withholding related to net share settlement of equity awards	(7,626)	(1,062)
Repurchases of common stock	(6,889)	(4,002)
Payments under finance lease obligations	(992)	(914)
Payments for debt issuance costs	(21)	0
Net cash used in financing activities	(15,528)	(5,978)
Net change in cash, cash equivalents, and restricted cash	(2,532)	2,420
Cash, cash equivalents, and restricted cash, beginning of period	53,320	54,717
Cash, cash equivalents, and restricted cash, end of period	$ 50,788	$ 57,137

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Assets:
Cash and cash equivalents	$ 50,647	$ 53,180
Accounts receivable, net	18,000	17,000
Inventories, net	4,917	996
Prepaid expenses	7,562	10,565
Deferred program expenses	13,920	10,006
Other current assets	1,779	2,666
Total current assets	96,825	94,413
Property and equipment, net	2,490	3,071
Finance lease right-of-use assets, net	3,560	4,170
Operating lease right-of-use assets, net	298	410
Goodwill	3,006	3,006
Intangible assets, net	29,213	30,281
Other assets	4,357	4,513
Total assets	139,749	139,864
Liabilities:
Accounts payable	6,390	4,087
Accrued liabilities	5,673	6,900
Accrued compensation and benefits	8,985	12,309
Contract liabilities – current portion	17,220	11,223
Finance lease obligations – current portion	2,113	2,033
Operating lease obligations – current portion	255	232
Total current liabilities	40,636	36,784
Contract liabilities – non-current	874	1,124
Finance lease obligations – non-current portion	4,536	5,608
Operating lease obligations – non-current portion	62	186
Deferred income taxes	57	53
Other liabilities	171	159
Total liabilities	46,336	43,914
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.001 par value, 250,000,000 shares authorized, 74,736,789 shares and 72,773,272 shares issued and outstanding as of June 30, 2026, and December 31, 2025, respectively	113	111
Additional paid-in capital	454,611	459,828
Accumulated other comprehensive loss	(101)	(96)
Accumulated deficit	(361,210)	(363,893)
Total stockholders’ equity	93,413	95,950
Total liabilities and stockholders’ equity	$ 139,749	$ 139,864