Filing Flows › Telos (TLS) › Q1 2026
Telos (TLS) Q1 2026 earnings results (first quarter 2026)
10-Q filed May 11, 2026
Telos (TLS) reported revenue of $47.7M for the first quarter 2026 (Q1 2026), +56% from a year earlier and +2% from the quarter before. Operating margin was 3.0%, net earnings $2.0M (4.2% of revenue).
Telos, Q1 2026: revenue $47.7M (+56% year over year), operating margin 3.0%, net earnings $2.0M, operating cash flow $8.7M. The chart follows the revenue to costs, profit and cash.
| Q1 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $47.7M | +2% | +56% |
| Gross profit | $17.4M | +6% | +43% |
| Operating profit | $1.5M | — | — |
| Net earnings | $2.0M | — | — |
| Operating cash flow | $8.7M | +8% | +42% |
| Free cash flow | $8.5M | +7% | +42% |
What changed
Revenue was $47.7M in Q1 2026, up 56% year over year and up 2% from the previous quarter. Service was the largest line at 88% of revenue. Service added $13.2M year over year (up 46%), 77% of the total change.
Gross margin was 36.4%, down 3.4 points from Q1 2025. Operating profit was $1.5M, a 3.0% margin (up 32.5 points year over year). Operating expenses fell 25% while revenue rose 56%. Net earnings were $2.0M. The effective tax rate was 0.9%. Non-operating items added $586K, 29% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $8.7M (up 42% year over year), 428% of net earnings. Non-cash charges added back $3.4M of depreciation and amortization and $3.0M of share-based compensation. Capital expenditures of $145K left free cash flow of $8.5M.
Questions
What was Telos' revenue in the first quarter 2026?
Telos (TLS) reported revenue of $47.7M for the first quarter 2026 (Q1 2026), +56% from a year earlier and +2% from the quarter before.
Was Telos profitable in the first quarter 2026?
Operating profit was $1.5M (3.0% of revenue) and net earnings $2.0M.
Source: Telos 10-Q on SEC EDGAR.