Telos expanded its TSA PreCheck enrollment centers to 415 locations across 40 states, including Puerto Rico, representing a 43% increase since May 2025.
The company aims to reach 500 enrollment locations in 2025, indicating aggressive growth in the program.
Despite COVID-related decline in renewal volume, new enrollments are increasing due to the expanded network, supporting the company's growth trajectory.
Adjusted EBITDA was a $400,000 profit, outperforming guidance which forecasted a loss between $2.1 million and $600,000.
GAAP gross margin was 33.2%, and cash gross margin was 38.4%, both within guidance ranges but lower year-over-year due to revenue mix.
Operating cash flow was $7 million, and free cash flow was $4.6 million, representing a 12.9% free cash flow margin for the quarter.
Security Solutions accounted for approximately 90% of total revenue and was the primary driver of growth.
Telos reported second quarter 2025 revenue of $36 million, a 26% year-over-year increase, exceeding guidance of $32.5 million to $34.5 million.
Year-to-date free cash flow was $8.4 million or 12.6% margin, with significant improvements driven by revenue growth, cost discipline, and working capital management.
The sale involved extensive negotiations over several years, highlighting a major strategic pivot for the company.
The transaction included spectrum assets, which are expected to be monetized further through upcoming sales to AT&T and Verizon, projected to generate $2 billion in proceeds.
The completion of this sale is seen as a key milestone in the company's transformation and focus on infrastructure assets.
Array's third-party tower revenues increased by 12% year-over-year, with third-party colocations up 6%.
Capital expenditures increased primarily due to spending on the E-ACAM fiber program.
Cash expenses increased 1% year-over-year, aligned with 2025 priorities including sales, marketing, and transformation efforts.
Distributions from noncontrolling investment interests increased from $58 million to $77 million year-over-year, including $23 million from Verizon wireless partnerships.
S&P upgraded TDS credit rating to BBB- from BB, removing it from credit watch.
TDS closed the $4.3 billion sale of UScellular wireless business and certain spectrum assets to T-Mobile, significantly strengthening balance sheets.
TDS Telecom delivered 27,000 new fiber service addresses in Q2, with 10,300 fiber net additions, representing 19% growth in total fiber connections year-over-year.
Total operating revenues were down 1% year-over-year, but excluding divestitures, revenue increased 1%, driven by fiber subscriber growth and higher residential revenue per connection.
Dafinchi