v3.26.1
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
We operate our business in two reportable and operating segments: Security Solutions and Secure Networks.
•Our Security Solutions segment is primarily focused on cybersecurity, cloud and identity solutions, and secure messaging through Xacta®, Telos Automated Message Handling System ("AMHS") and Telos ID offerings.
•Our Secure Networks segment provides secure networking architectures and solutions to our customers through secure mobility solutions, and network management and defense services.
We measure each segment's profitability based on gross profit. Our Chief Executive Officer ("CEO"), whom we identified as the chief operating decision maker ("CODM"), evaluates the segment's performance based on metrics, such as segment revenue and gross profit, that align with our strategies and objectives, and provide a framework for the timely and rational allocation of resources between the segments.
We account for inter-segment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices, if any. There were no inter-segment sales and transfers during the three and six months ended June 30, 2026, and 2025. Interest income, interest expense, other income and expense items, and income taxes, as reported in the consolidated financial statements, are not part of the segment profitability measure and are primarily recorded at the corporate level.
Management does not utilize total assets by segment to evaluate segment performance or allocate resources. As a result, assets are not tracked by segment, and therefore, total assets by segment are not disclosed.
Table 15.1: Results of Operations by Business Segment (Quarter)
For the Three Months Ended
June 30, 2026June 30, 2025
Security SolutionsSecure NetworksTotalSecurity SolutionsSecure NetworksTotal
(in thousands)
Revenues$46,662 $1,083 $47,745 $32,474 $3,494 $35,968 
Cost of Sales
Depreciation and amortization (1)
2,511 3 2,514 1,714 1 1,715 
Stock-based compensation expense (1)
184 18 202 139 10 149 
Other segment items (2)
27,467 870 28,337 19,323 2,849 22,172 
Total cost of sales30,162 891 31,053 21,176 2,860 24,036 
Gross profit$16,500 $192 16,692 $11,298 $634 11,932 
Operating expenses
Research and development expenses1,345 1,512 
Selling, general and administrative expenses15,037 20,303 
Total operating expenses16,382 21,815 
Operating income (loss)310 (9,883)
Other income501 553 
Interest expense(107)(141)
Income (loss) before income taxes704 (9,471)
Provision for income taxes(44)(46)
Net income (loss)$660 $(9,517)
(1) The significant segment expense categories and amounts align with the segment-level information regularly provided to the CODM.
(2) Other segment items for each reportable segment include direct labor, direct subcontractor costs, direct materials and inventory, other direct non-labor costs, fringes, overhead, and facility costs.
Table 15.2: Results of Operations by Business Segment (Year-to-Date)
For the Six Months Ended
June 30, 2026June 30, 2025
Security SolutionsSecure NetworksTotalSecurity SolutionsSecure NetworksTotal
(in thousands)
Revenues$92,632 $2,855 $95,487 $58,292 $8,292 $66,584 
Cost of Sales
Depreciation and amortization (1)
5,104 6 5,110 3,215 3 3,218 
Stock-based compensation expense (1)
378 40 418 308 31 339 
Other segment items (2)
53,787 2,105 55,892 32,411 6,502 38,913 
Total cost of sales59,269 2,151 61,420 35,934 6,536 42,470 
Gross profit$33,363 $704 34,067 $22,358 $1,756 24,114 
Operating expenses
Research and development expenses2,702 3,083 
Selling, general and administrative expenses29,600 39,936 
Total operating expenses32,302 43,019 
Operating income (loss)1,765 (18,905)
Other income1,198 1,114 
Interest expense(218)(288)
Income (loss) before income taxes2,745 (18,079)
Provision for income taxes(62)(42)
Net income (loss)$2,683 $(18,121)
(1) The significant segment expense categories and amounts align with the segment-level information regularly provided to the CODM.
(2) Other segment items for each reportable segment include direct labor, direct subcontractor costs, direct materials and inventory, other direct non-labor costs, fringes, overhead, and facility costs.