Telos Corp (TLS) 2025 Q2 法說會逐字稿

Good day and thank you for standing by. Welcome to the Telos Corporation second-quarter 2025 earnings conference call.

您好，感謝您的支持。歡迎參加 Telos Corporation 2025 年第二季財報電話會議。

(Operator Instructions)

（操作員指示）

Please be advised that today's conference is being recorded.

請注意，今天的會議正在錄音。

I would now like to turn the conference over to your first speaker, Allison Phillipp. Please begin.

現在我想將會議交給第一位發言者艾莉森·菲利普 (Allison Phillipp)。請開始。

Good morning. Thank you for joining us to discuss Telos Corporation's second quarter 2025 financial results.

早安.感謝您加入我們討論 Telos Corporation 2025 年第二季的財務表現。

With me today is John Wood, Chairman and CEO of Telos; and Mark Bendza, Executive Vice President and CFO of Telos.

今天與我一起的有 Telos 董事長兼執行長 John Wood 和 Telos 執行副總裁兼財務長 Mark Bendza。

Let me quickly review the format of today's presentation. Mark will begin with remarks on our second quarter 2025 results. Next, John will discuss business highlights from the quarter. Then Mark will follow up with third quarter guidance before turning back to John to wrap up. We will then open the line for Q&A where Mark Griffin, Executive Vice President of Security Solutions, will also join us. The second quarter financial results were issued earlier today and are posted on the Telos Investor Relations website where this call is being simultaneously webcast. Additionally, we have provided presentation slides on our Investor Relations website. Before we begin, we want to emphasize that some of our statements on this call, including all of those relating to 2025 company performance, plans and operations, are forward-looking statements and are made under the Safe Harbor provisions of the federal securities laws. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could materially differ for various reasons, including the factors described in today's financial results summary and the comments made during this conference call, and in our SEC filing. We do not undertake any duty to update any forward-looking statement. In addition, during today's call, we will discuss non-GAAP financial measures which we believe are useful as supplemental and clarifying measures to help investors understand Telos' financial performance. These non-GAAP financial measures should be considered in addition to, and not as a substitute for, or in isolation from GAAP results. You can find additional disclosures regarding these non-GAAP measures, including reconciliations with comparable GAAP results in our second quarter results summary, and on the Investor Relations portion of our website. Please also note that financial comparisons are year over year, unless otherwise specified. The webcast replay of this call will be available on our company website under the Investor Relations link.

讓我快速回顧一下今天演講的形式。馬克將首先評論我們 2025 年第二季的業績。接下來，約翰將討論本季的業務亮點。然後，馬克將跟進第三季度的指導，然後再由約翰進行總結。然後我們將開啟問答環節，安全解決方案執行副總裁馬克‧格里芬 (Mark Griffin) 也將加入我們。第二季財務業績已於今天稍早發布，並發佈在 Telos 投資者關係網站上，本次電話會議也同步進行網路直播。此外，我們還在投資者關係網站上提供了簡報幻燈片。在開始之前，我們想強調的是，我們在本次電話會議上的某些聲明，包括所有與 2025 年公司業績、計劃和運營有關的聲明，都是前瞻性聲明，並且是根據聯邦證券法的安全港條款做出的。這些聲明是基於當前的預期和假設，但存在風險和不確定性。實際結果可能因各種原因而存在重大差異，包括今天的財務結果摘要中描述的因素以及本次電話會議和我們向美國證券交易委員會提交的文件中發表的評論。我們不承擔更新任何前瞻性聲明的義務。此外，在今天的電話會議中，我們將討論非公認會計準則財務指標，我們認為這些指標作為補充和澄清指標很有用，可以幫助投資者了解 Telos 的財務表現。這些非 GAAP 財務指標應作為 GAAP 結果的補充而非替代或孤立存在。您可以在我們的第二季度業績摘要和我們網站的投資者關係部分找到有關這些非 GAAP 指標的更多披露信息，包括與可比較 GAAP 結果的對帳。另請注意，除非另有說明，財務比較都是逐年進行的。本次電話會議的網路直播重播將在我們公司網站的「投資者關係」連結下提供。

With that, I'll turn the call over to Mark.

說完這些，我會把電話轉給馬克。

Thank you, Allison, and good morning, everyone.

謝謝你，艾莉森，大家早安。

Before we get into the details on the slides, I'd like to provide a brief overview of the good news that you will hear today. Our business has been scaling in a very meaningful way year-to-date. Leading the way are major long-term programs in security solutions such as the Defense Manpower Data Center or DMDC program and TSA PreCheck, as well as additional confidential IT security work that we are now performing for the federal government.

在我們深入了解幻燈片上的細節之前，我想簡要概述您今天將聽到的好消息。今年迄今為止，我們的業務一直在以非常有意義的方式擴大規模。處於領先地位的是安全解決方案領域的重大長期計劃，例如國防人力資料中心或 DMDC 計劃和 TSA PreCheck，以及我們現在為聯邦政府執行的其他機密 IT 安全工作。

These growth drivers are layered on top of a strong base of recurring revenue streams from sophisticated government and commercial customers throughout our security solutions portfolio. Our operational and financial performance inflected in a very positive way in the first quarter of this year, with a return to revenue growth, profitable adjusted EBITDA, and strong cash flow.

這些成長動力建立在我們安全解決方案組合中來自成熟政府和商業客戶的強大經常性收入基礎之上。今年第一季度，我們的營運和財務表現表現非常積極，收入恢復成長，調整後 EBITDA 獲利，現金流強勁。

That trend accelerated in the second quarter and we're also forecasting a large sequential step up in revenue and adjusted EBITDA in the second half. In addition, given our confidence in the outlook for the business and our strong cash flow generation in the first half of this year, we have resumed share repurchases.

這一趨勢在第二季加速，我們也預測下半年營收和調整後 EBITDA 將較上季大幅成長。此外，鑑於我們對業務前景的信心以及今年上半年強勁的現金流，我們已恢復股票回購。

With that introduction, let's get into more detail beginning on slide 3. I'm pleased to report that Telos has again overdelivered on key financial metrics in the second quarter, exceeding both revenue and profit guidance.

介紹完畢，讓我們從第 3 張投影片開始進行更詳細的介紹。我很高興地報告，Telos 在第二季再次超額完成了關鍵財務指標，收入和利潤都超過了預期。

Revenue grew 26% in the quarter to $36 million, above our guidance range of $32.5 million to $34.5 million. Security solutions delivered approximately 90% of total company revenue and drove the outperformance above the top end of the guidance range.

本季營收成長 26%，達到 3,600 萬美元，高於我們預期的 3,250 萬美元至 3,450 萬美元的範圍。安全解決方案貢獻了公司總收入的約 90%，並推動業績超出了指導範圍的最高限度。

GAAP gross margin was 33.2% and cash gross margin was 38.4%, both within our guidance range. Although gross margins were lower year over year due to revenue mix in the quarter, they were representative of typical margins for our portfolio over the past five years.

GAAP 毛利率為 33.2%，現金毛利率為 38.4%，皆在我們的指引範圍內。儘管由於本季度的收入組合導致毛利率同比下降，但它們代表了過去五年我們投資組合的典型利潤率。

Given the breadth of revenue streams in our portfolio, gross margins will naturally fluctuate within our historical range from quarter to quarter based on revenue mix. As you'll see in our third quarter guidance, we expect margins to mix higher sequentially next quarter.

鑑於我們產品組合中收入來源的廣度，毛利率自然會根據收入組合在歷史範圍內逐季度波動。正如您在我們的第三季指引中所看到的，我們預計下個季度的利潤率將環比上升。

Adjusted operating expenses in the second quarter were approximately $900,000, better than guidance due to ongoing cost discipline throughout the company. As a result of better than forecasted revenue and operating expenses, adjusted EBITDA also exceeded the top end of our guidance range.

第二季調整後的營運費用約為 90 萬美元，由於整個公司持續實施成本控制，數字好於預期。由於收入和營運費用優於預期，調整後的 EBITDA 也超出了我們預期範圍的最高值。

Adjusted EBITDA was approximately a $400,000 profit compared to our guidance range of a $2.1 million loss to a $600,000 loss. Lastly, we delivered another quarter of robust cash flow. Operating cash flow in the quarter was $7 million.

調整後的 EBITDA 利潤約為 40 萬美元，而我們的預期範圍是虧損 210 萬美元至 60 萬美元。最後，我們又實現了一個季度的強勁現金流。本季經營現金流為 700 萬美元。

Free cash flow was $4.6 million or a 12.9% free cash flow margin. Free cash flow in the first half was $8.4 million or a 12.6% margin. As a result of our strong cash generation in the first half and our confidence in the outlook for the business, we resumed share repurchases in the second quarter.

自由現金流為 460 萬美元，自由現金流利潤率為 12.9%。上半年自由現金流為 840 萬美元，利潤率為 12.6%。由於我們上半年強勁的現金創造能力以及對業務前景的信心，我們在第二季度恢復了股票回購。

We deployed $4 million to repurchase approximately 1.5 million shares at a weighted average price of $2.69 per share. Since our fourth quarter of 2024 earnings call, we've been saying that we expect significant year over year improvements in revenue, profit, and cash flow for the full year 2025.

我們投入 400 萬美元以每股 2.69 美元的加權平均價格回購了約 150 萬股。自 2024 年第四季財報電話會議以來，我們一直在說，預計 2025 年全年收入、利潤和現金流將比去年同期大幅改善。

So let's turn to slide 4 for a brief review of our year over year performance in the second quarter and first half of the year. Year over year revenue growth was primarily driven by 82% growth in security solutions, partially offset by contraction in secure networks.

讓我們翻到第 4 張投影片，簡單回顧一下我們第二季和上半年的年比表現。營收年增率主要得益於安全解決方案 82% 的成長，但安全網路的萎縮部分抵消了這一成長。

Growth in security solutions was primarily driven by the successful transition of the DMDC program in the fourth quarter of 2024 and the ramp of TSA PreCheck enrollment volume. GAAP gross profit grew 23% and adjusted EBITDA improved $3.3 million, returning to a profit.

安全解決方案的成長主要得益於 2024 年第四季 DMDC 計畫的成功過渡以及 TSA PreCheck 註冊量的增加。GAAP 毛利成長 23%，調整後 EBITDA 增加 330 萬美元，恢復獲利。

It is worth noting that adjusted EBITDA improved by $3.3 million on a $7.5 million increase in revenue. That implies a 44% incremental adjusted EBITDA margin due to a combination of revenue growth and lower operating expenses.

值得注意的是，調整後的 EBITDA 在收入增加 750 萬美元的基礎上增加了 330 萬美元。這意味著，由於收入成長和營運費用降低，調整後的 EBITDA 利潤率將增加 44%。

Cash flow performance was equally as encouraging. Free cash flow improved by $16 million to a positive $4.6 million. The significant year over year improvement in free cash flow was due to higher adjusted EBITDA, lower capitalized software development cost and an intensive companywide focus on working capital management.

現金流表現同樣令人鼓舞。自由現金流增加了 1,600 萬美元，達到正 460 萬美元。自由現金流量較去年同期顯著改善是由於調整後的 EBITDA 增加、資本化軟體開發成本降低以及全公司對營運資本管理的高度重視。

The same year over year revenue, profit, and cash flow trends apply to the entire first half. Notably, incremental adjusted EBITDA margin was 71%. Free cash flow improved by over $23 million to a positive $8.4 million.

整個上半年的收入、利潤和現金流趨勢與去年同期相同。值得注意的是，增量調整後的 EBITDA 利潤率為 71%。自由現金流增加了 2,300 多萬美元，達到正 840 萬美元。

Overall, we expect the trend of year over year growth in revenue and adjusted EBITDA to accelerate in the second half, and we expect to generate positive free cash flow for the full year.

總體而言，我們預計下半年營收和調整後 EBITDA 年成長趨勢將加速，並且我們預計全年將產生正的自由現金流。

I will now turn over to John for an overview of recent business highlights. John?

現在我將請約翰概述最近的業務亮點。約翰？

Thanks, Mark, and good morning, everyone.

謝謝，馬克，大家早安。

Let's turn to slide 5. First I'll provide an update on our TSA PreCheck program. We have successfully expanded our nationwide network of enrollment centers to 415 locations across 40 states including Puerto Rico.

讓我們翻到幻燈片 5。首先，我將提供有關我們的 TSA PreCheck 計劃的最新資訊。我們已成功將全國招生中心網路擴展到包括波多黎各在內的 40 個州的 415 個地點。

This represents a 43% increase in locations since our last earnings call in May. We continue to target achieving 500 enrollment locations in 2025. We are pleased with the progress we have made on this rollout as we strive to provide a convenient solution for travelers across the country and be a trusted partner in this important national security program.

這意味著自從我們 5 月上次收益電話會議以來，門市數量增加了 43%。我們繼續設定目標，在 2025 年實現 500 個招生地點。我們對此次推出所取得的進展感到滿意，我們致力於為全國各地的旅客提供便利的解決方案，並成為這項重要國家安全計畫中值得信賴的合作夥伴。

In fact, as Mark has previously mentioned, we've made progress in several of the key areas of the security solutions portfolio, as we're presently seeing several large programs ramp and scale. Additionally, we're very excited about the recent Federal Risk and Authorization Management Program, or FedRAMP, High Authorization for our Xacta software solution.

事實上，正如馬克之前提到的，我們在安全解決方案組合的幾個關鍵領域取得了進展，因為我們目前看到幾個大型專案正在擴大和擴展。此外，我們對最近的聯邦風險和授權管理計劃（FedRAMP）以及我們的 Xacta 軟體解決方案的高授權感到非常興奮。

This is a formal recognition that Telos' Xacta platform meets the most stringent standards for protecting highly sensitive government data in cloud environments. This milestone reinforces our role as a trusted partner in an increasingly complex and rapidly evolving security environment.

這是對 Telos 的 Xacta 平台符合保護雲端環境中高度敏感的政府資料的最嚴格標準的正式認可。這一里程碑鞏固了我們在日益複雜且快速發展的安全環境中作為值得信賴的合作夥伴的地位。

We are proud to deliver solutions that help our customers accomplish their missions with the highest level of safety and security. Finally, I will summarize the latest news on other business outcomes since our last earnings call.

我們很自豪能夠提供解決方案，幫助我們的客戶以最高等級的安全性完成他們的任務。最後，我將總結自上次財報電話會議以來其他業務成果的最新消息。

Our executive business has achieved new orders or renewals with several key customers including the US Department of the Treasury, the US Air Force, The Defense Intelligence Agency, a New Zealand government agency, The Virginia Department of Education, The National Archives and Records Administration, and several other US federal government customers.

我們的行政業務已與幾家主要客戶達成新訂單或續約，包括美國財政部、美國空軍、國防情報局、紐西蘭政府機構、維吉尼亞州教育部、國家檔案和記錄管理局以及其他幾家美國聯邦政府客戶。

We also received a new order for cyber services from a Fortune 100 company in the technology sector, as well as renewals from the US Department of Homeland Security, The General Services Administration, and several other US federal government customers.

我們也收到了來自科技領域財富 100 強公司的網路服務新訂單，以及來自美國國土安全部、美國總務管理局和其他幾家美國聯邦政府客戶的續約訂單。

I'll now turn the call over to Mark who will discuss third quarter guidance. Mark?

現在我將電話轉給馬克，他將討論第三季的指導。標記？

Thanks, John.

謝謝，約翰。

Let's turn to slide 6. For the third quarter, we forecast revenue to grow 85% to 98% year over year to a range of $44 million to $47 million. We forecast adjusted EBITDA of $4 million to $5.7 million or an adjusted EBITDA margin of 9.1% to 12.1%.

讓我們翻到第 6 張投影片。對於第三季度，我們預測營收將年增 85% 至 98%，達到 4,400 萬美元至 4,700 萬美元。我們預測調整後的 EBITDA 為 400 萬美元至 570 萬美元，或調整後的 EBITDA 利潤率為 9.1% 至 12.1%。

We expect security solutions to generate approximately 90% of total company revenue. We forecast cash gross margin to be approximately 40% to 41%, up sequentially from 38.4% in the second quarter due to normal quarterly fluctuations in revenue mix as described earlier.

我們預計安全解決方案將產生公司總收入的約 90%。我們預測現金毛利率約為 40% 至 41%，較第二季的 38.4% 環比上升，原因是如前所述，收入結構出現正常的季度波動。

Adjusted operating expenses are expected to be approximately $14.3 million, representing a $1.6 million reduction year over year. Lastly, we expect the fourth quarter to be similar to the third quarter.

調整後的營運費用預計約為 1,430 萬美元，年減 160 萬美元。最後，我們預計第四季的情況將與第三季相似。

With that, I'll turn it back to John.

說完這些，我就把話題轉回給約翰。

Thanks, Mark.

謝謝，馬克。

Let's turn to slide 7. To review, our return to growth plan has taken hold, and we are exhibiting significant gains as large programs within our security solutions segment continue to rapidly scale. Our companywide commitment to expense discipline is driving outstanding operating leverage and as a result, in the second quarter and first half of 2025, the company delivered substantial year over year growth in revenue, adjusted EBITDA and cash flow.

讓我們翻到第 7 張投影片。回顧一下，我們的恢復成長計畫已經生效，並且隨著我們安全解決方案部門內的大型專案繼續快速擴展，我們正在取得顯著的收益。我們全公司上下致力於嚴格費用管控，這推動了卓越的經營槓桿，因此，在 2025 年第二季度和上半年，公司的收入、調整後 EBITDA 和現金流均實現了同比大幅增長。

We've achieved free cash flow through the first two quarters of the year at 12.6% of revenue. This has enabled us to return cash to shareholders through share repurchases in the second quarter. We also expect the upward trajectory in revenue and adjusted EBITDA to accelerate in the third quarter of the year.

今年前兩個季度，我們的自由現金流達到營收的 12.6%。這使我們能夠在第二季透過股票回購向股東返還現金。我們也預計，今年第三季營收和調整後 EBITDA 的上升趨勢將加速。

With that, we're happy to take questions.

我們很樂意回答您的問題。

Operator, please open the line for Q&A.

接線員，請開通問答專線。

(Operator Instructions)

（操作員指示）

Nehal Chokshi, Northland Capital Markets.

Nehal Chokshi，北國資本市場。

Congratulations on spectacular results and guidance.

恭喜您取得的出色成果和指導。

It's great to hear that you're seeing increasing TSA PreCheck enrollments despite what should be declining renewal volume due to the five year anniversary of the COVID falloff. So can you talk about how our enrollments per score that are currently open are going relative to the expectations to achieve the 33% targeted market share of TSAP check enrollments?

很高興聽到您看到 TSA 預檢註冊人數增加，儘管由於新冠疫情衰退五週年，續檢數量應該會下降。那麼，您能否談談我們目前開放的每個分數的註冊情況相對於實現 TSAP 檢查註冊 33% 目標市場份額的預期如何？

Yeah. It's Mark Bendza here.

是的。我是馬克‧本札 (Mark Bendza)。

So listen, at the beginning of the year, we said we were targeting 500 locations by the end of the year. We've been ramping really well towards that target. We ended last year with 203 locations. We're at 415 today. So we're on a really good trajectory there.

所以聽著，在年初，我們說過我們的目標是到年底達到 500 個地點。我們一直在朝著這個目標穩步前進。截至去年年底，我們的門市總數已達 203 家。今天我們到了 415。因此，我們的發展軌跡非常好。

You're right. On renewals, overall market renewals are down this year due to the five year anniversary of COVID. However, with the ramp in locations, new enrollments are a big driver of the year over year performance you're seeing for the entire company.

你說得對。在續約方面，由於新冠疫情爆發五週年，今年整體市場續約量有所下降。然而，隨著地點的增加，新註冊人數將成為整個公司同比業績成長的重要推動力。

I won't get into that granular detail on the program around exact number of transactions per location, but needless to say, enrollments are up along with the ramp in locations.

我不會詳細討論每個地點的具體交易數量，但毋庸置疑，隨著地點數量的增加，註冊人數也在增加。

Enrollments are up consistent with the number of locations or enrollments are up per location? Just wanted to get that clarification.

入學人數是否與地點數量一致增加，或每個地點的入學人數是否增加？只是想得到澄清。

Enrollments, overall are ramping with locations.

總體而言，入學人數隨著地點的不同而增加。

And then you talked about how gross margin will be going up sequentially. What's the -- and I understand that there's variability from quarter to quarter and likely, it's mixed, but what is that mixed driver there that will be driving that gross margin up sequentially?

然後您談到毛利率將如何連續上升。我知道每個季度都會有變化，而且可能是混合的，但是，是什麼混合驅動因素會推動毛利率連續上升？

Yeah. So we've talked about in the past, we have -- we really have a breadth of revenue streams across our portfolio, and each of those revenue streams come with different margin profiles. We have a really wide range of margin profiles depending on the revenue stream.

是的。所以我們在過去討論過，我們的投資組合中確實有廣泛的收入來源，而且每一種收入來源都有不同的利潤率。根據收入來源，我們擁有各種各樣的利潤分佈。

So it can fluctuate quarter to quarter, and I would expect it to fluctuate from quarter to quarter. If you look back over the last five years, our weighted average cash gross margin is somewhere around 38%. That ramped pretty high last year as our lower margin revenue streams came down.

因此它可能每個季度都會波動，而且我預計它每個季度都會波動。如果回顧過去五年，我們的加權平均現金毛利率約為 38%。由於利潤較低的收入流下降，去年這數字大幅上升。

We're looking at 40% and higher in the third quarter and the fourth quarter as well. So full year should look really good relative to history, but yeah, it will fluctuate quarter to quarter. I mean, next -- in the third quarter, it's a combination of the different growth drivers that we have going on right now in Telos ID, so those key programs and the different revenue streams within those key programs.

我們預計第三季和第四季的成長率將達到 40% 甚至更高。因此，相對於歷史而言，全年的表現應該會非常好，但是，每個季度都會有波動。我的意思是，接下來——在第三季度，它是我們目前在 Telos ID 中運行的不同成長動力的組合，因此這些關鍵項目以及這些關鍵項目中的不同收入流。

And is it fair to say that it's largely due to mix shift within the DMDC contract?

是否可以說這主要是由於 DMDC 合約中的混合轉變造成的？

That is part of it, but that's not all of it.

這是其中的一部分，但不是全部。

Rudy Kessinger, D.A. Davidson.

魯迪凱辛格、地方檢察官戴維森。

In the prepared remarks, I think you'd mentioned additional confidential IT security work, the federal government as contributing to some of the security solutions driving the growth. Any additional commentary you could provide on that in regards to size and scale and what kind of revenue generation you're seeing today versus what you can see in the future and then also any large deals in the pipeline that you're expecting to close in the second half this year that could contribute meaningful revenue for next year?

在準備好的發言中，我認為您提到了額外的機密 IT 安全工作，聯邦政府為推動成長的一些安全解決方案做出了貢獻。您能否針對規模、目前的收入狀況以及未來收入狀況提供一些補充評論？此外，您預計今年下半年將完成哪些大型交易，為明年帶來可觀的收入？

It's Mark Bendza here. So on the confidential work, unfortunately, we're not at liberty to say too much about that. In terms of the size, I would say, it's a nice additional revenue stream for the portfolio. I can't quantify it for you, unfortunately, but it's relatively meaningful.

我是馬克‧本札 (Mark Bendza)。因此，不幸的是，對於機密工作，我們不能透露太多。就規模而言，我想說，這對投資組合來說是一個不錯的額外收入來源。不幸的是，我無法為你量化它，但它相對有意義。

On the pipeline, I'll pass it over to Mark Griffin.

關於管道，我將把它交給馬克·格里芬 (Mark Griffin)。

Telos has a strong pipeline with over 200 unique opportunities representing an estimated contract value of over $4 billion. 69 of these opportunities are new within the last quarter, and we feel award pace will be weighted toward Q4 this year and Q1 of next for many of the more significant opportunities.

Telos 擁有強大的管道，擁有超過 200 個獨特機會，估計合約價值超過 40 億美元。其中 69 個機會是上個季度的新機會，我們認為，對於許多更重要的機會而言，授予速度將集中在今年第四季和明年第一季。

Our growth opportunities are driven by strategic positioning and well funded national security priorities, including the ever-changing cybersecurity threat environments, digital enterprise solutions, and modernization of core infrastructures.

我們的成長機會由策略定位和資金充足的國家安全優先事項所驅動，包括不斷變化的網路安全威脅環境、數位企業解決方案和核心基礎設施的現代化。

The majority and total contract value is weighted toward our security solutions business, which is exactly where we want our future growth to be centered. We believe we have the right ingredients for success, are very confident in our growth trajectory, and are laser focused on our future profitability and sustainability.

大部分和總合約價值都集中在我們的安全解決方案業務上，這正是我們希望未來成長的中心。我們相信我們擁有成功的正確要素，對我們的成長軌跡非常有信心，並專注於我們未來的獲利能力和永續性。

And then maybe just one quick follow up if I could, you had some strong positive net working capital changes in the first half. Just that led to significant free cash flow outperformance related to EBITDA. How should those dynamics trend in the second half?

如果可以的話，我再快速跟進一下，你們上半年的淨營運資本有一些強勁的正向變化。僅此一點就導致與 EBITDA 相關的自由現金流表現顯著優異。下半年這些動態趨勢將如何？

Yeah. So overall, free cash flow I expect to be robust in the second half as well. In terms of net working capital, over the next, I don't know, number of quarters, I would expect the working capital tailwind to moderate and more of the cash flow coming from higher adjusted EBITDA. But the net effect of all that is I would expect continued robust free cash flow.

是的。所以總體而言，我預計下半年的自由現金流也將保持強勁。就淨營運資本而言，在接下來的幾個季度裡，我預計營運資本順風將會緩和，更多的現金流來自更高的調整後 EBITDA。但總體而言，我預計自由現金流將持續保持強勁。

Zach Cummins, B. Riley Securities.

康明斯 (Zach Cummins)，B. Riley 證券。

Congrats on the strong results here.

恭喜您取得的優異成績。

First question is just on TSA PreCheck. With the changes from the DHS that allowing just a regular security line to maintain -- keeping their shoes on throughout the process, do you imagine that having any sort of impact to the appetite for new renewals or anything along that line? Just curious on your insight there.

第一個問題是關於 TSA PreCheck 的。國土安全部做出的改變是，只允許常規安檢隊伍在整個過程中穿著鞋子，您是否認為這會對新續約的興趣或類似的事情產生任何影響？只是好奇你的見解。

Mark Griffin. No, we don't feel as though that will have any negative effect on enrollment at this point. In fact, in some ways, it's increasing visibility of the program, and remember, the speed through the line is still their most critical component which TSA PreCheck offers.

馬克·格里芬。不，我們認為這目前不會對入學產生任何負面影響。事實上，從某種程度上來說，它提高了該計劃的可見性，請記住，通過速度仍然是 TSA PreCheck 提供的最關鍵的組成部分。

And then just in terms of DMDC, Mark, I know it could really fluctuate in terms of mix around software products versus hardware products that are being purchased. I mean, now that you've had the program and ramped it for going on a year now, are you starting to get a better sense of visibility into those orders on the third party side?

就 DMDC 而言，馬克，我知道在購買的軟體產品和硬體產品組合方面可能會有所波動。我的意思是，現在您已經有了這個程序，並且已經運行了一年，您是否開始更好地了解第三方方面的訂單？

Yeah, generally, yes. I'd like to get the full calendar year under our belt to really get a feel for what the mix looks like. Overall, I'd say the mix is more weighted to software than hardware. But overall, this is a really good program for us and along with a couple of other drivers, one of the really important drivers behind the year over year improvement in the financials.

是的，一般來說，是的。我希望能夠利用全年的時間來真正了解這種組合是什麼樣的。總的來說，我認為軟體比硬體更重要。但總體而言，這對我們來說是一個非常好的計劃，並且與其他幾個驅動因素一起，是財務狀況逐年改善背後真正重要的驅動因素之一。

And final question for me is just given the strong free cash flow in the first half of this year and expect to be that sustained going forward, how should we think about your capital allocation strategy and maybe specifically to M&A.

對我來說，最後一個問題是，鑑於今年上半年強勁的自由現金流，並且預計未來將持續保持這種勢頭，我們應該如何看待您的資本配置策略，特別是併購策略。

Yeah. So a good question. Listen, I'd say organically, we're in a great spot right now. Things are going really well. As we've been talking about here on the call and then in our materials, top line growth is excellent this year.

是的。這是個好問題。聽著，我想說，我們現在處於一個很好的位置。事情進展得很順利。正如我們在電話會議和材料中所討論的那樣，今年的營收成長非常出色。

Cash gross margins are healthy. Our flow through to adjusted EBITDA is working very well due to OpEx discipline. And we're converting profit to cash at very high rates and then we're returning that capital to shareholders through buybacks.

現金毛利率健康。由於營運支出紀律，我們調整後的 EBITDA 流程運作良好。我們以非常高的利率將利潤轉換為現金，然後透過回購將資本返還給股東。

So I'd say the priority is to use free cash flow to drive additional buybacks over time. That being said, we'll continue to look at, say, more opportunistic tuck in acquisitions that they come across our desk, but we'll be very disciplined on that front.

因此我認為當務之急是利用自由現金流來推動長期的額外回購。話雖如此，我們將繼續關注他們遇到的更多機會性收購，但在這方面我們會非常自律。

And then lastly, if a more transformational M&A opportunity or say a change of control transaction would lock in the most value for our shareholders in a very obvious way, we'd take a serious look at that as well.

最後，如果更具變革性的併購機會或控制權變更交易能夠以非常明顯的方式為我們的股東鎖定最大價值，我們也會認真考慮這一點。

Best of luck with the rest of the quarter.

祝福本季剩餘時間一切順利。

This will conclude today's question-and-answer session, and I would like to hand the conference back over to John Wood for any further remarks.

今天的問答環節到此結束，我想將會議交還給約翰·伍德，請他發表進一步的評論。

Well, thank you.

好的，謝謝你。

I want to thank our shareholders for your ongoing support and we're going to continue to be intensely focused on executing our plan and are pleased our efforts have enabled positive outcomes for the company and our shareholders during the first half of the year.

我要感謝股東們一直以來的支持，我們將繼續全力以赴地執行我們的計劃，並很高興我們的努力在上半年為公司和股東帶來了積極的成果。

We look forward to continuing the trend of year over year growth throughout the remainder of 2025. And I'll just end with we have robust and recession resistant markets, well funded customers, and decades-long track record of serving the world's most security conscious organizations.

我們期待在 2025 年剩餘時間內繼續保持逐年成長的趨勢。最後我想說的是，我們擁有強勁且抗衰退的市場、資金充足的客戶，以及數十年來為世界上最注重安全的組織提供服務的記錄。

As a result, we believe Telos has a strong foundation for the future.

因此，我們相信 Telos 的未來擁有堅實的基礎。

Thank you.

謝謝。

This concludes today's conference call.

今天的電話會議到此結束。

Thank you for participating and you may now disconnect. Everyone, have a great day.

感謝您的參與，您現在可以斷開連接。祝大家有個愉快的一天。

Thank you.

謝謝。