Castellum Announces First Quarter 2026 Financial Results
Rhea-AI Summary
Castellum (NYSE-American: CTM) reported Q1 2026 results for the quarter ended March 31, 2026: revenue $14.3M (+23% YoY), gross profit $5.1M, adjusted EBITDA $0.4M, and net loss $0.4M. Cash was $15.8M and the company eliminated long-term debt. Backlog reached a record $273.3M and qualified pipeline was $938M.
The revenue increase reflects ramp-up of long-term contracts won in 2025; management expects ~16% of backlog to be recognized in the next 12 months and ~49% in 24 months.
AI-generated analysis. Not financial advice.
Positive
- Revenue +23% YoY to $14.3M
- Record backlog of $273.3M
- Qualified pipeline of $938M
- Debt-free balance sheet after payoff of long-term debt
- Cash of $15.8M as of March 31, 2026
- Adjusted EBITDA improved to $0.4M from $0.08M
Negative
- Net loss of $0.4M in Q1 2026
- Gross margin 35.4% affected by contract mix
- Stock-based compensation of $0.8M reduced non-GAAP earnings
- Revenue recognition timing: only ~16% of backlog expected in next 12 months
News Market Reaction – CTM
On the day this news was published, CTM gained 14.68%, reflecting a significant positive market reaction. Argus tracked a peak move of +16.9% during that session. Our momentum scanner triggered 18 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $8M to the company's valuation, bringing the market cap to $62.12M at that time. Trading volume was very high at 4.2x the daily average, suggesting strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
CTM fell 5.12% while peers like TTEC and WYY appeared in momentum scanners with declines of -9.48% and -3.89%, near a sector median move of about -6.7%, suggesting broader sector pressure.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 04 | Annual results 2025 | Positive | -2.4% | 2025 unaudited results with higher revenue, improved losses, and stronger cash. |
| Nov 07 | Q3 2025 earnings | Positive | +4.3% | First-ever quarterly GAAP net income and record Q3 2025 revenue. |
| Aug 08 | Q2 2025 earnings | Positive | +4.9% | Record Q2 2025 revenue, narrower losses, higher cash, and debt reduction. |
| May 09 | Q1 2025 earnings | Positive | +5.8% | First year-over-year organic revenue growth and stronger cash position. |
| Feb 28 | Annual results 2024 | Positive | +16.1% | 2024 results with improved operating loss, positive EBITDA and higher year-end cash. |
Earnings releases have generally been received positively, with four out of five prior events seeing shares rise, despite one recent annual results release trading down on otherwise improving metrics.
Over the past year, Castellum has used earnings events to highlight improving fundamentals: 2024 unaudited results showed revenue of $44.8M and a sharply lower operating loss, while 2025 unaudited results reported revenue of $52.9M and improved net loss and Adjusted EBITDA of $1.0M. Quarterly updates in 2025 delivered record revenues, first-ever GAAP net income, higher cash balances, and steady debt reduction. Today’s Q1 2026 report extends this trajectory with continued revenue growth and a stronger balance sheet.
Historical Comparison
Past earnings-related releases for CTM saw an average move of 5.77%, mostly positive. Today’s -5.12% reaction to Q1 2026 results contrasts with that generally favorable pattern.
Earnings events show a progression from 2024 revenue of $44.8M to 2025 revenue of $52.9M, alongside improving losses, rising cash, reduced debt, and now Q1 2026 growth driven by long-term contract ramp-up.
Market Pulse Summary
The stock surged +14.7% in the session following this news. A strong positive reaction aligns with Castellum’s pattern of favorable responses to earnings updates, where prior events around results saw an average move of 5.77%. The Q1 2026 report combined 23% revenue growth, a smaller net loss, debt elimination, and a record $273.3M backlog. Investors would have weighed contract-backed visibility against execution risks and contract-mix impacts on margins.
Key Terms
adjusted ebitda financial
c3pao regulatory
cmmc level 2 regulatory
cybersecurity maturity model certification regulatory
AI-generated analysis. Not financial advice.
Revenue Increase of
VIENNA, Va., May 08, 2026 (GLOBE NEWSWIRE) -- Castellum, Inc. (NYSE-American: CTM) (“Castellum” “CTM”, “we” or the “Company”), a cybersecurity, electronic warfare, and software services company focused on the federal government, today announced its financial results for the three-month period (“Q1”) ended March 31, 2026.
Q1 2026 Financial Highlights
- Revenues of
$14.3 million , up23% as compared to$11.7 million in Q1 2025. - Gross profit of
$5.1 million , up11% as compared to$4.6 million in Q1 2025. - Adjusted EBITDA* was
$0.4 million , compared to$0.08 million in Q1 2025. - Net loss was
$0.4 million (or$0.00 per basic and diluted share), improved from a net loss of$1.2 million (or$0.01 per basic and diluted share) in Q1 2025. - Cash and cash equivalents as of March 31, 2026 was
$15.8 million , as compared to$14.9 million at December 31, 2025. - No long-term debt; the remaining long-term obligations were paid off during the quarter.
* Q1 2026 Adjusted EBITDA excludes certain non-cash expenses, including stock-based compensation of
Q1 2026 Operational Highlights
- Total backlog reached a record
$273.3 million as of March 31, 2026, up from$265 million at December 31, 2025. - Qualified pipeline totaled
$938 million as of March 31, 2026, up from$817 million at December 31, 2025, reflecting a substantial increase in identified opportunities.
Glen Ives, President and Chief Executive Officer of Castellum, commented, “Our strong Q1 2026 results reflect the momentum we built throughout a standout 2025, when we secured over
David Bell, Chief Financial Officer of Castellum, noted, “Q1 2026 was our best first quarter ever and second best of any quarter on record in terms of revenue and delivered a significantly improved bottom line. Strong year-over-year revenue growth, combined with our ongoing efforts to improve production efficiencies, resulted in increased gross profit for the quarter, while our gross margin of
Discussing the go-forward strategy, Mr. Ives concluded, “We have entered Phase 3 of Castellum’s evolution, and our priorities are clear. We are focused on building on our strong organic growth momentum, fully leveraging our new CMMC Level 2 C3PAO certification as a key competitive differentiator in the DoD market, federal cyber and mission‑critical programs, and selectively exploring compelling M&A opportunities that meet our criteria. In parallel, we will continue investing in mission-critical technologies and capabilities which will enable us to further expand our markets, client base, and capture emerging growth opportunities. As we progress through 2026, we remain focused on disciplined execution to position Castellum for sustainable, long-term growth and enhanced shareholder value.”
About Castellum, Inc.
Castellum, Inc. (NYSE-American: CTM) is a technology company focused on leveraging the power of information technology to help solve our Nation's most pressing national security challenges. CTM provides U.S. government and commercial clients with Cybersecurity, Software Development, Systems Engineering, Information / Electronic Warfare, Program Support, and Data Analytics services. It also offers subject matter expertise in artificial intelligence / machine learning, 5G technologies, model-based systems engineering, program management, information assurance, intelligence analysis, and CMMC compliance. In addition to constantly innovating and enhancing its organic capabilities, Castellum is executing strategic acquisitions of firms that share our passionate commitment to U.S. national security and have a history of bringing exceptional value to their clients. For more information visit: https://castellumus.com.
Forward-Looking Statements:
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 2lE of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent the Company's expectations or beliefs concerning future events and can generally be identified by the use of statements that include words such as "estimate," "project," "believe," "anticipate," "shooting to," "intend," "in a position," "looking to," "pursue," "positioned," "will," "likely," "would," or similar words or phrases. Forward-looking statements include, but are not limited to, statements regarding the Company's expectations for revenue growth, new customer opportunities, improvements to cost structure, and profitability. These forward-looking statements are subject to risks, uncertainties, and other factors, many of which are outside of the Company's control, that could cause actual results to differ (sometimes materially) from the results expressed or implied in the forward-looking statements, including, among others: the Company's ability to continue to grow and execute on its total backlog and qualified pipeline and compete against new and existing competitors; its ability to effectively integrate and grow its acquired companies; its ability to identify additional acquisition targets and close additional acquisitions; and the Company's ability to maintain the listing of its common stock on the NYSE American LLC. For a more detailed description of these and other risk factors, please refer to the Company's Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission ("SEC") which can be viewed at www.sec.gov. All forward-looking statements are inherently uncertain, based on current expectations and assumptions concerning future events or the future performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. The Company expressly disclaims any intent or obligation to update any of the forward-looking statements made in this release or in any of its SEC filings except as may be otherwise stated by the Company.
Contacts:
Castellum, Inc.
1934 Old Gallows Road, Suite 350
Vienna, VA 22182
Investor Relations:
The Equity Group
Lena Cati
(212) 836-9611
lcati@theequitygroup.com
Val Ferraro
(212) 836-9633
vferraro@theequitygroup.com
| Castellum, Inc. and Subsidiaries | |||||||
| Consolidated Balance Sheets | |||||||
| (Unaudited) | |||||||
| March 31, 2026 | December 31, 2025 | ||||||
| (unaudited) | |||||||
| Assets | |||||||
| Current Assets: | |||||||
| Cash | $ | 15,772,974 | $ | 14,884,778 | |||
| Accounts receivable, net | 7,714,969 | 8,180,180 | |||||
| Contract asset | 541,441 | 568,705 | |||||
| Due from buyer | 57,049 | 58,207 | |||||
| Prepaid income taxes | 146,245 | 153,153 | |||||
| Prepaid expenses and other current assets | 764,894 | 800,671 | |||||
| Total current assets | 24,997,572 | 24,645,694 | |||||
| Fixed assets, net | 220,419 | 231,136 | |||||
| Non-Current Assets: | |||||||
| Due from buyer, net of current portion | 44,371 | 77,259 | |||||
| Right of use asset - operating lease | 718,137 | 800,069 | |||||
| Investment in joint ventures/captive insurance entity | 100,250 | 100,250 | |||||
| Intangible assets, net | 5,067,056 | 5,371,602 | |||||
| Goodwill | 10,676,834 | 10,676,834 | |||||
| Total non-current assets | 16,827,067 | 17,257,150 | |||||
| Total Assets | $ | 41,824,639 | $ | 41,902,844 | |||
| Liabilities and Stockholders' Equity | |||||||
| Liabilities | |||||||
| Current Liabilities | |||||||
| Accounts payable and accrued expenses | $ | 1,981,584 | $ | 1,904,962 | |||
| Accrued payroll and payroll related expenses | 2,952,153 | 2,761,998 | |||||
| Current portion of lease liability – operating leases | 251,073 | 270,868 | |||||
| Derivative liability | 10,000 | 262,000 | |||||
| Notes payable, related party | — | 400,000 | |||||
| Total current liabilities | 5,194,810 | 5,599,828 | |||||
| Non-Current Liabilities | |||||||
| Lease liability – operating leases, net of current portion | 487,188 | 550,219 | |||||
| Total non-current liabilities | 487,188 | 550,219 | |||||
| Total Liabilities | $ | 5,681,998 | $ | 6,150,047 | |||
| Stockholders' Equity | |||||||
| Preferred stock, 50,000,000 shares authorized | |||||||
| Series A Preferred stock, par value | 588 | 588 | |||||
| Series C Preferred stock, par value | 57 | 57 | |||||
| Common stock, par value, | 9,461 | 9,461 | |||||
| Additional paid in capital | 93,098,846 | 92,330,909 | |||||
| Accumulated deficit | (56,966,311 | ) | (56,588,218 | ) | |||
| Total stockholders' equity | 36,142,641 | 35,752,797 | |||||
| Total Liabilities and Stockholders' Equity | $ | 41,824,639 | $ | 41,902,844 | |||
| Castellum, Inc. and Subsidiaries | |||||||
| Consolidated Statements of Operations | |||||||
| (Unaudited) | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Revenues | $ | 14,291,961 | $ | 11,664,365 | |||
| Cost of Revenues | 9,229,741 | 7,109,749 | |||||
| Gross Profit | 5,062,220 | 4,554,616 | |||||
| Operating Expenses | |||||||
| Indirect costs | 2,461,140 | 2,385,544 | |||||
| Overhead | 644,356 | 512,924 | |||||
| General and administrative | 2,654,722 | 3,142,155 | |||||
| Total operating expenses | 5,760,218 | 6,040,623 | |||||
| Loss From Operations Before Other Income | (697,998 | ) | (1,486,007 | ) | |||
| Other Income (Expense) | |||||||
| Gain from change in fair value of derivative liability | 252,000 | 501,000 | |||||
| Interest income (expense), net | 101,400 | (110,764 | ) | ||||
| Total other income | 353,400 | 390,236 | |||||
| Loss Before Income Taxes and Preferred Stock Dividends | (344,598 | ) | (1,095,771 | ) | |||
| Income tax benefit (expense) | (6,676 | ) | (74,276 | ) | |||
| Net Loss | (351,274 | ) | (1,170,047 | ) | |||
| Less: preferred stock dividends | 26,819 | 26,984 | |||||
| Net Loss To Common Shareholders | $ | (378,093 | ) | $ | (1,197,031 | ) | |
| Net Loss Per Share - Basic And Diluted | $ | 0.00 | $ | (0.01 | ) | ||
| Weighted Average Shares Outstanding - Basic And Diluted | 94,612,750 | 80,953,373 | |||||
Non-GAAP Financial Measures and Key Performance Metrics
This press release contains Non-GAAP Adjusted EBITDA, which is a Non-GAAP financial measure that is used by management to measure the Company's operating performance. A reconciliation of this measure to the most directly comparable GAAP financial measure is contained herein. To the extent required, statements disclosing this measure's definition, utility, and purpose are also set forth herein.
Definition:
Adjusted EBITDA is a Non-GAAP measure, calculated as the Company’s earnings before (not including expenses related to) interest, taxes, depreciation, and amortization, also adjusted for other non-cash items such as stock-based compensation, and other non-recurring cash items, such as expenses for a one-time policy change.
Utility and Purpose:
The Company discloses Non-GAAP Adjusted EBITDA because this Non-GAAP measure is used by management to evaluate our business, measure its operating performance, and make strategic decisions. We believe Non-GAAP Adjusted EBITDA is useful for investors and others in understanding and evaluating our operating results in the same manner as its management. However, Non-GAAP Adjusted EBITDA is not a financial measure calculated in accordance with GAAP and should not be considered as a substitute for GAAP operating loss or any other operating performance measure calculated in accordance with GAAP. Using this Non-GAAP measure to analyze our business would have material limitations because the calculations are based on the subjective determination of management regarding the nature and classification of events and circumstances that investors may find significant. In addition, although other companies in our industry may report a measure titled Non-GAAP Adjusted EBITDA, this measure may be calculated differently from how we calculate this Non-GAAP financial measure, which reduces its overall usefulness as a comparative measure. Because of these inherent limitations, you should consider Non-GAAP Adjusted EBITDA alongside other financial performance measures, including net loss and our other financial results presented in accordance with GAAP.
| Reconciliation of Unaudited Non-GAAP Adjusted EBITDA to Operating Income/ (Loss) | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Revenues | $ | 14,291,961 | $ | 11,664,365 | |||
| Gross profit | 5,062,221 | 4,554,616 | |||||
| Loss from operations before other income (expense) | (697,998 | ) | (1,482,366 | ) | |||
| Add Back: | |||||||
| Depreciation and amortization | 324,991 | 378,187 | |||||
| Adjust for non-cash and one-time charges | |||||||
| Stock based compensation | 767,937 | 1,179,209 | |||||
| Non-recurring charges | - | - | |||||
| Total non-cash charges | 767,937 | 1,179,209 | |||||
| Non-GAAP Adjusted EBITDA | $ | 394,930 | $ | 75,030 | |||
