Here’s What Driving Telos Corporation (TLS) Higher

Telos Corporation (NASDAQ:TLS) is one of the Best Small-Cap Growth Stocks to Invest In Now. Telos Corporation (NASDAQ:TLS) has gained roughly 6% since the release of its fiscal Q1 2026 earnings.

​The gains were driven by a significant earnings beat as revenue of $47.7 million came ahead of the expectation of $44.6 million, and the EPS of $0.06 also topped the consensus of $0.02.

​During the quarter, the revenue jumped 56% year-over-year, driven by a 78% growth in Security Solutions, largely from strong TSA PreCheck enrollment activity and the expansion of large Telos ID programs. Moreover, profitability also improved sharply as GAAP gross margins came in at 36.4%.

​Looking ahead, management reaffirmed its full-year 2026 guidance and expects double-digit year-over-year revenue growth, lower operating expenses, and expansion in adjusted EBITDA margins and free cash flow. This outlook is supported by a healthy $500 million contract pipeline. Moreover, some recent wins for the company include a Missile Defense Agency SHIELD contract and a $5.4 million cybersecurity renewal with a Fortune 100 firm.

Telos Corporation (NASDAQ:TLS) is a cybersecurity and cloud solutions company that provides security services for government agencies and other security-conscious organizations.

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