MCLEAN, Va., Aug. 14, 2026 (GLOBE NEWSWIRE) -- Cycurion, Inc. (NASDAQ: CYCU) ("Cycurion" or the "Company"), a leader in AI-driven cybersecurity, national security, and public safety technology solutions, today announced financial results for the second quarter ended June 30, 2026.
Second Quarter 2026 Highlights
- Revenue of $3.8 million, exceeding Wall Street consensus of $3.62 million (essentially flat versus $3.9 million in the second quarter of 2025)
- Gross profit of $1.1 million (29.1% gross margin), a nearly five-fold increase from $0.2 million (6.1% margin) in the prior-year period
- EPS of $(0.41), beating consensus of $(0.56); net loss of $(4.0) million, improved from $(5.3) million in the second quarter of 2025
- Adjusted EBITDA of $(1.4) million, improved from $(2.1) million in the prior-year quarter
- Net debt dropped 28% to $5.8 million from $8.1 million year-over-year
"The second quarter represents a historic turning point for Cycurion," said Kevin Kelly, Chairman and Chief Executive Officer. "We beat Wall Street estimates on both revenue and earnings, gross margins expanded dramatically and we secured the largest contract in Company history while closing transformative acquisitions. Reaching an estimated $30 million revenue run rate validates our strategic vision. Our new $54.6 million, 10-year contract with a global consulting firm, together with the acquisitions of Secuvant and Kustom's video solutions, provide strong, visible cash flows. We are deliberately shifting toward higher-margin cybersecurity, managed services, and strategic consulting across federal, state, and local government markets."
Strategic and Operational Momentum
Largest Contract in Company History
In July 2026, Cycurion secured a $54.6 million, 10-year award with a global consulting firm to modernize and securely operate a major Health and Human Services system for a state government agency. The agreement is expected to generate more than $5 million in annual recurring revenue, with work scheduled to commence in November 2026.
Transformative Acquisitions
The acquisitions of Secuvant, LLC and Kustom Entertainment Inc.'s video solutions business significantly expand Cycurion's capabilities, customer base, and addressable market. These transactions create meaningful cross-selling opportunities across government, enterprise, and public safety customers and contribute to the Company's estimated $30 million revenue run rate.
Accelerating Government Momentum
Cycurion continues to expand aggressively across federal, state, and local government markets:
- State & Local Government: Pursuing multi-year awards representing approximately $5 million in potential contract revenue (including ~$1.8 million in potential first-year revenue). Key initiatives include AI-enhanced CAD/911 public safety systems, cybersecurity assessments for a major tollway authority, and health and human services modernization.
- Federal Government: Generated more than $500,000 in network infrastructure services revenue year-to-date and expects to reach approximately $1 million for full-year 2026. Current work includes VoIP implementation for a large federal agency and ongoing networking and cybersecurity infrastructure support across multiple federal customers.
- Statewide Term Contracts & MSAs: Actively pursuing Master Services Agreements and IDIQ vehicles with a major U.S. municipality and the states of Florida, Illinois, Vermont, and North Carolina. These multi-year vehicles position Cycurion to deliver organizational management, cybersecurity, internal audit, data analytics, and IT solutions on an as-needed basis.
Robust Sales Pipeline
As of early August 2026, Cycurion is actively pursuing 122 open opportunities representing approximately $34 million in potential additional first-year contract value, including approximately $11 million in late-stage pursuits. The Company has already closed 41 new awards year-to-date in 2026, building a growing base of long-term contracts and expanding relationships within existing customers.
Cost Discipline and Balance Sheet Strength
Cycurion continues to execute cost-reduction initiatives expected to generate more than $2.2 million in annualized savings, with meaningful benefits already reflected in first-half 2026 results. Combined with a 28% reduction in net debt, the Company enters the second half of 2026 with improved operating leverage and a strengthened balance sheet.
Outlook
Cycurion enters the second half of 2026 from a position of strength, with significantly increased revenue visibility and a clear path to higher contribution from recent wins. The third quarter is already off to a strong start, supported by record-breaking new contracts that commenced late in the second quarter of 2026 or are scheduled to begin throughout the remainder of 2026. The Company’s landmark $54.6 million contract is set to commence in November, providing visible recurring revenue in the fourth quarter, while the acquisitions of Secuvant, LLC and Kustom Entertainment Inc.'s video solutions business continue to expand the customer base and contribute to the estimated $30 million revenue run rate. Combined with ongoing cost controls and a robust pipeline of 122 opportunities, management expects these factors to support improved operating performance in the second half of 2026 and into 2027. The Company remains focused on disciplined execution, profitable growth, and delivering long-term value for shareholders.
About Cycurion
Based in McLean, Virginia, Cycurion (NASDAQ: CYCU) is a forward-thinking provider of IT cybersecurity solutions and AI, committed to delivering secure, reliable, and innovative services to clients worldwide. Specializing in cybersecurity, program management, and business continuity, Cycurion harnesses its AI-enhanced ARx platform and expert team to empower clients and safeguard their operations. Along with its subsidiaries, Axxum Technologies LLC, Cloudburst Security LLC, and Cycurion Innovation, Inc., Cycurion serves government, healthcare, and corporate clients committed to securing the digital future. For more information, visit www.cycurion.com.
About Secuvant
Secuvant is an independent IT security firm providing enterprise-grade cybersecurity services, risk management, and managed solutions to mid-market organizations. Founded in 2014, it specializes in managed security services, threat and vulnerability management and compliance using its Cyber7™ framework. For more information, visit www.secuvant.com.
Forward-Looking Statements
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to the operations and prospective growth of Cycurion's business.
Certain statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1934, as amended. Any statements contained in this press release that are not statements of historical fact may be deemed forward-looking statements. Such statements include, but are not limited to, statements regarding the proposed transaction contemplated by the binding agreement, including the likelihood, timing, structure or consummation of the transaction; the anticipated benefits of the transaction; the acceleration of the Company's inorganic growth strategy; the continued execution on the Company's backlog; and other statements that are not historical facts, including statements which may be accompanied by words such as "continue," "will," "may," "could," "should," "expect," "expected," "plans," "intend," "anticipate," "believe," "estimate," "predict," "potential," and similar expressions are intended to identify such forward-looking statements. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Cycurion and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to, risks related to customer performance and satisfaction, contract modifications, delays or terminations, and the Company’s ability to fulfill contractual obligations, the outcomes of the Company's investigations, any potential legal proceedings, or the future performance of the Company's stock. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in the most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K filed by Cycurion with the U.S. Securities and Exchange Commission. Cycurion anticipates that subsequent events and developments may cause its plans, intentions, and expectations to change. Cycurion assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing Cycurion's plans and expectations as of any subsequent date.
Non-GAAP Financial Measures
This release includes non-GAAP financial measures (EBITDA and Adjusted EBITDA). These measures are provided for supplemental informational purposes only and should not be considered substitutes for GAAP results. A reconciliation of net loss to EBITDA and Adjusted EBITDA is included in the Company’s full earnings materials filed with the SEC.
In addition to our results determined in accordance with U.S. GAAP, we believe the non-GAAP financial measures of EBITDA, and Adjusted EBITDA are useful in evaluating our operating performance. We believe that this non-GAAP financial information, when taken collectively with our GAAP results, may be helpful to readers of our financial statements because it provides consistency and comparability with past financial performance and assists in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results. The non-GAAP financial information is presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly-titled non-GAAP measures used by other companies. A reconciliation is provided below for each of these non-GAAP financial measures to the most directly comparable financial measure stated in accordance with GAAP. Cycurion believes that EBITDA and Adjusted EBITDA provide the Board of Directors, management and investors with a clear representation of the Company's core operating performance and trends, provide greater visibility into the long-term financial performance of the Company, and eliminate the impact of items that do not relate to the ongoing operating performance of the business. Cycurion believes these non-GAAP financial measures facilitate the comparison of the Company's operating performance on a consistent basis between periods by excluding certain items that may, or could, have a disproportionately positive or negative impact on the Company's results of operations in any particular period. When viewed in combination with the Company's results prepared in accordance with GAAP, these non-GAAP financial measures help provide a broader picture of factors and trends affecting the Company's results of operations. EBITDA and Adjusted EBITDA are supplemental measures of operating performance that are not made under GAAP and do not represent, and should not be considered as an alternative to net (loss)/income, earnings per share or operating expenses, as determined by GAAP. The Company defines EBITDA as net (loss)/income, adjusted for interest expense, provision for/(benefit from) income taxes, and depreciation and amortization. The Company defines Adjusted EBITDA as EBITDA, adjusted for stock-based compensation expense, gain/(loss) on debt settlement, acquisition and transaction costs and other one-time expenses that are not part of the normal operating activities.
EBITDA and Adjusted EBITDA each has limitations as an analytical tool, and you should not consider any of them in isolation, or as a substitute for analysis of results as reported under GAAP. Other companies in the Company's industry may calculate Adjusted EBITDA differently than Cycurion does, which limits its usefulness as a comparative measure. Because of these limitations, neither EBITDA or Adjusted EBITDA should be considered as a replacement for net (loss)/income, or as a measure of profitability. Cycurion compensates for these limitations by relying primarily on the Company’s GAAP results and using non-GAAP measures only for supplemental purposes.
Cycurion Investor Relations:
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Cycurion Media Relations:
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Quarterly Results of Operations and Non-GAAP Financial Measures(Unaudited) Quarterly Consolidated Results of Operations For the Three Months Ended June 30, 2026 March 31, 2026 June 30, 2025Revenue$3,757,076 $3,268,620 $3,887,915 Cost of revenue 2,663,739 2,580,262 3,651,978 Gross profit 1,093,337 688,358 235,937 Gross margin 29.1% 21.1% 6.1%Operating expenses: Selling, general and administrative expenses 2,641,320 2,743,695 2,313,343 Stock compensation expenses 336,722 315,833 1,012,443 Business combination expenses — — 676,228 Total operating expenses 2,978,042 3,059,528 4,002,014 Operating loss (1,884,705) (2,371,170) (3,766,077)Interest income 3,506 14,236 — Interest expense (227,941) (204,852) (615,392)Loss on debt settlement, net (1,930,427) — (907,983)Other expense — — (962)Other expense, net (2,154,862) (190,616) (1,524,337)Loss before income taxes (4,039,567) (2,561,786) (5,290,414)Provision for income tax — — — Net loss (4,039,567) (2,561,786) (5,290,414)Less: Net loss attributable to non-controlling interest 283,793 433,324 101,659 Net loss attributable to Cycurion$(3,755,774) $(2,128,462) $(5,188,755)
2026 December 31,
2025Assets:
Cash and cash equivalents$1,873,287 $5,255,235 Accounts receivable, net 3,721,520 2,687,479 Prepaid expenses and other current assets 222,886 60,133 Other receivables 133,058 — Total current assets 5,950,751 8,002,847 Software development costs, net 4,798,981 4,606,981 Goodwill and intangibles 27,617,398 20,842,508 Total non-current assets 32,416,379 25,449,489 Total assets$38,367,130 $33,452,336 Liabilities and Stockholders' Equity:
Liabilities:
Bank loan-revolving credit line$2,421,305 $2,933,396 Loans payable - current portion 269,068 669,693 Factoring liability 1,300,470 1,511,678 Convertible notes 2,686,748 192,897 Promissory notes 1,161,960 2,499,662 Loans payable - related parties 123,650 123,650 Accounts payable 1,290,801 1,314,772 Accrued liabilities 7,613,943 4,228,337 Accrued compensation and benefits 1,063,856 919,825 Accrued interest payable 432,748 1,347,787 Excise tax payable 1,167,173 1,167,173 Total current liabilities 19,531,722 16,908,870 Loans payable - non-current portion 627,010 300,000 Total non-current liabilities 627,010 300,000 Total liabilities 20,158,732 17,208,870 Stockholders' Equity:
Preferred stock ($0.0001 par value, 20,000,000 shares authorized)
Series A convertible preferred stock ($0.0001 par value, 110,000 shares designated, 0 and 0 issued and outstanding, respectively) — — Series B convertible preferred stock ($0.0001 par value, 3,000 shares designated, 0 and 1 issued and outstanding, respectively) — — Series C convertible preferred stock ($0.0001 par value, 5,000 shares designated, 2,547 and 4,851 issued and outstanding, respectively) — — Series D convertible preferred stock ($0.0001 par value, 6,666,700 shares designated, 150,000 and 150,000 issued and outstanding, respectively) 15 15 Series E convertible preferred stock ($0.0001 par value, 100 shares designated, 51 and 51 issued and outstanding, respectively) — — Series F convertible preferred stock ($0.0001 par value, 10,000 shares designated, 0 and 0 issued and outstanding, respectively) — — Series G convertible preferred stock ($0.0001 par value, 10,000 shares designated, 143 and 143 issued and outstanding, respectively) — — Series H convertible preferred stock ($0.0001 par value, 10,000 shares designated, 1,900 and 0 issued and outstanding, respectively) — — Series I convertible preferred stock ($0.0001 par value, 888,888 shares designated, 888,888 and 0 issued and outstanding, respectively) 89 — Common stock ($0.0001 par value, 300,000,000 shares authorized, 11,889,767 and 3,642,501 shares issued and outstanding, respectively) 1,189 364 Additional paid in capital 55,545,133 46,979,762 Accumulated deficit (32,763,317) (26,879,081)Total stockholders' equity attributable to Cycurion 22,783,109 20,101,060 Deficit attributable to noncontrolling interests (4,574,711) (3,857,594)Total stockholders' equity 18,208,398 16,243,466 Total liabilities and stockholders’ equity$38,367,130 $33,452,336
CYCURION, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS(Unaudited) For the Three Months Ended June 30, For the Six Months Ended June 30, 2026
2025
2026
2025
Revenue$3,757,076 $3,887,915 $7,025,696 $7,757,965 Cost of revenue 2,663,739 3,651,978 5,244,001 6,844,265 Gross profit 1,093,337 235,937 1,781,695 913,700 Operating expenses:
Selling, general and administrative expenses 2,641,320 2,313,343 5,385,015 2,650,716 Stock compensation expenses 336,722 1,012,443 652,555 1,012,443 Business combination expenses — 676,228 — 11,114,122 Total operating expenses 2,978,042 4,002,014 6,037,570 14,777,281 Operating loss (1,884,705) (3,766,077) (4,255,875) (13,863,581)Other income/(expenses):
Interest income 3,506 — 17,742 — Interest expense (227,941) (615,392) (432,793) (794,283)Loss on debt settlement, net (1,930,427) (907,983) (1,930,427) (766,330)Other expense, net — (962) — (114,706)Other expenses, net (2,154,862) (1,524,337) (2,345,478) (1,675,319)Loss before income taxes (4,039,567) (5,290,414) (6,601,353) (15,538,900)Provision for income tax — — — — Net loss (4,039,567) (5,290,414) (6,601,353) (15,538,900)Less: Net loss attributable to non-controlling interest 283,793 101,659 717,117 101,659 Net loss attributable to Cycurion$(3,755,774) $(5,188,755) $(5,884,236) $(15,437,241) Comprehensive loss$(3,755,774) $(5,188,755) $(5,884,236) $(15,437,241) Loss per share:
Basic$(0.41) $(4.31) $(0.86) $(16.55)Diluted$(0.41) $(3.38) $(0.86) $(16.45)Weighted average shares outstanding:
Basic 9,065,675 1,204,462 6,826,267 932,849 Diluted 9,065,675 1,532,549 6,826,267 936,209
CYCURION, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited) For the Six Months Ended June 30, 2026
2025
Cash flows from operating activities:
Net loss$(6,601,353) $(15,538,900)Adjustments to reconcile net loss to net cash used in operating activities:
Stock compensation expenses 652,555 1,284,777 Stock-based compensation - business combination related - 9,250,000 Amortization of debt discount 1,187 213,036 Depreciation of property and equipment - 3,489 Amortization of software development costs - 17,083 Loss on debt settlement, net 1,930,427 766,330 Finance expense - 100,000 Changes in assets and liabilities:
Accounts receivable, net and other receivables (1,010,583) (1,478,433)Prepaid expenses and other current assets (61,498) 45,204 Accounts payable and accrued liabilities (1,221,050) (738,998)Accrued compensation and benefits (111,386) (17,042)Accrued interest payable 247,525 (209,668)Net cash used in operating activities (6,174,176) (6,303,122)Cash flows from investing activities:
Net cash acquired on business combination 208,014 34,983 Capitalized software development costs (192,000) (174,000)Cash withdrawn from Trust Account in connection with redemption - 1,001,216 Release of Trust Account to Company's bank account - 833,324 Net cash provided by investing activities 16,014 1,695,523 Cash flows from financing activities:
Proceeds from exercise of warrants 167 3,664,671 Redemption of common stock subject to redemption - (1,001,216)Proceeds from capital raise 3,288,138 265,504 Repayments of revolving line of credit (512,091) (12,900)Repayment of bank borrowings - (155,114)Proceeds from convertible notes payable - 2,376,500 Proceeds from notes payable - 513,200 Repayments of notes payable - (70,000)Net cash provided by financing activities 2,776,214 5,580,645 Net (decrease)/increase in cash and cash equivalents (3,381,948) 973,046 Cash and cash equivalents, beginning of period 5,255,235 40,790 Cash and cash equivalents, end of period$1,873,287 $1,013,836