Telos Corporation filed its Form 10-Q for the quarterly period ended September 30, 2026 with the Securities and Exchange Commission on November 9, 2026, reporting a return to profitability in both the third quarter and the nine-month period compared with the same periods in 2025.

Key Highlights

  • Third-quarter revenue: Total revenue was $55,198 thousand for the three months ended September 30, 2026, up from $51,444 thousand in the same period of 2025, according to the filing.
  • Quarterly net income: Telos reported net income of $4,436 thousand for Q3 2026, compared with a net loss of $2,114 thousand in Q3 2025.
  • Nine-month net income: For the nine months ended September 30, 2026, net income was $7,119 thousand, against a net loss of $20,235 thousand for the same period in 2025.
  • Operating income shift: Third-quarter operating income was $4,090 thousand versus an operating loss of $2,468 thousand in the prior-year quarter, with nine-month operating income of $5,855 thousand compared with a loss of $21,373 thousand.
  • Shares outstanding: As of November 2, 2026, the registrant had 73,532,971 shares of common stock outstanding.
  • Cash position: Cash and cash equivalents were $51,761 thousand as of September 30, 2026, compared with $53,180 thousand at December 31, 2025.
  • Selling, general and administrative expenses: SG&A for the nine months ended September 30, 2026 was $44,998 thousand, down from $61,051 thousand in the same period of 2025.

Telos Corporation Revenue Mix and Cost Trends in the Third Quarter of 2026

According to the filing, Telos Corporation (NASDAQ:TLS), a Maryland-incorporated cybersecurity and information technology company headquartered in Ashburn, Virginia, generates revenue across two categories: services and products. Services revenue was $44,948 thousand for Q3 2026, up from $43,486 thousand in Q3 2025. Products revenue rose to $10,250 thousand from $7,958 thousand in the prior-year quarter. Combined, total revenue reached $55,198 thousand for the quarter, with gross profit of $20,940 thousand, compared with $20,546 thousand in Q3 2025.

The filing shows that total cost of sales for the third quarter of 2026 was $34,258 thousand, including depreciation and amortization of $2,637 thousand. Research and development expenses declined to $1,452 thousand from $1,899 thousand in the same quarter of 2025. The more pronounced year-over-year change was in SG&A expenses, which the filing records at $15,398 thousand for Q3 2026 versus $21,115 thousand for Q3 2025, contributing to the swing from an operating loss to operating income.

For the nine months ended September 30, 2026, net cash provided by operating activities was $26,933 thousand, compared with $22,202 thousand in the same period of 2025, according to the cash flow statement. Net cash used in financing activities was $21,799 thousand, which included $12,637 thousand in repurchases of common stock and $7,632 thousand in tax withholding payments related to net share settlement of equity awards. Stock-based compensation, a non-cash item, totaled $9,195 thousand for the nine-month period, down from $24,193 thousand in the comparable 2025 period. The accumulated deficit on the balance sheet was $356,774 thousand as of September 30, 2026, improved from $363,893 thousand at December 31, 2025.

What Was Disclosed

Telos Corporation's 10-Q for the quarter ended September 30, 2026 disclosed total revenue of $55,198 thousand, net income of $4,436 thousand for the quarter, an accumulated deficit of $356,774 thousand, and cash and cash equivalents of $51,761 thousand at period end.