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.
Adjusted EBITDA was approximately $28 million or 14% of revenue, marking a 1,100 basis point year-over-year expansion and 14th consecutive quarter exceeding expectations.
Consumer segment revenue was $71 million, down 4% year-over-year, impacted by FX and a one-time $2.5 million breakage revenue benefit.
Free cash flow generated was $39 million or 20% of revenue, with a strong balance sheet holding $393 million in cash and marketable securities.
Gross margin improved 300 basis points year-over-year to 67%.
Operating expenses were $112 million or 56% of revenue, an 800 basis point improvement compared to Q2 2024.
Positive GAAP net income of approximately $6 million was achieved, the first since IPO, compared to a loss of $32 million in Q2 last year.
Udemy Business segment revenue increased 7% year-over-year to $129 million with ARR reaching $520 million, a 6% year-over-year growth.
Udemy reported Q2 revenues of $200 million, up 3% year-over-year and above the high end of guidance.
Adjusted EBITDA rose to $31.9 million with a margin of 31%, up from $26.3 million in the prior year quarter.
Certara reported second quarter 2025 revenue of $104.6 million, a 12% year-over-year increase on a reported basis and 10% on a constant currency basis.
Diluted loss per share improved to $0.01 from a loss of $0.08, with adjusted diluted EPS steady at $0.07.
Net loss narrowed to $2 million from $12.6 million in the prior year quarter, while adjusted net income was $11.6 million, slightly up from $11.4 million.
Services revenue increased 5% to $57.9 million, supported by strong bookings growth in QSP and Simcyp services.
Software revenue grew 22% to $46.7 million, driven by strong growth from Simcyp and a $5.1 million contribution from Chemaxon.
Total bookings for the quarter were $112 million, up 13% year-over-year, with trailing 12-month bookings reaching $470.8 million, a 15% increase.
Dafinchi