Castellum, Inc. Reports Record Quarterly Revenue, Improving Profitability, and Additional Debt Reduction with Q2 2025 Results

Rhea-AI Summary

Castellum (NYSE-American: CTM), a cybersecurity and electronic warfare services provider, reported strong Q2 2025 financial results with several notable achievements. The company posted record quarterly revenue of $14.0 million, representing a 19.7% increase from Q1 2025 and a 21.7% rise year-over-year.

Key highlights include a significant debt reduction of $3.7 million, improved operating performance with losses narrowing to $(0.4) million from $(6.0) million in Q2 2024, and a record cash balance of $14.7 million. The company also generated $0.5 million in adjusted EBITDA, excluding non-cash and one-time items.

Positive

• None.

Negative

• Company still operating at a loss of $(0.4) million in Q2 2025

Insights

Financial Analyst

Castellum shows promising turnaround with record revenue, narrowing losses, debt reduction, and improved cash position.

Castellum's Q2 2025 results demonstrate meaningful operational improvement across multiple financial metrics. Revenue reached a record $14.0 million, growing 19.7% sequentially from Q1 and 21.7% year-over-year. This marks their second consecutive quarter of organic revenue growth since their 2022 uplisting – a significant milestone.

The company's operating loss narrowed substantially to $(0.4) million from $(1.1) million in Q1 and $(6.0) million in Q2 2024, representing a 93% year-over-year improvement. When excluding non-cash and one-time items, Castellum generated positive adjusted EBITDA of $0.5 million, indicating underlying operational profitability.

Balance sheet improvements are equally impressive. The company reduced total debt by $3.7 million during the quarter while simultaneously growing its cash position to a record $14.7 million, up from $13.3 million at the end of Q1. This dual achievement of debt reduction and cash growth demonstrates efficient capital management and strengthens financial flexibility.

The results reflect both top-line growth momentum in Castellum's cybersecurity and electronic warfare government services and improved operational efficiency. The enhanced financial position provides greater stability as the company continues its recovery trajectory in the federal contracting space.

VIENNA, Va., Aug. 08, 2025 (GLOBE NEWSWIRE) -- Castellum, Inc. (NYSE-American: CTM) ("Castellum" or the "Company"), a cybersecurity, electronic warfare, and software services company focused on the federal government, announces its financial results for the second quarter ended June 30, 2025, featuring record revenue, improved operating performance, record cash, and a meaningful debt reduction.

Revenue for Q2 2025 totaled $14.0 million, a record quarter reflecting a 19.7% increase from $11.7 million in Q1 2025 and a 21.7% increase from $11.5 million in Q2 2024. These results reflect the second consecutive quarter of year-over-year organic revenue growth, the only two times the Company has achieved that milestone since the Company’s 2022 uplisting.

The Company reduced total debt by $3.7 million during the quarter, a key step in strengthening its balance sheet and enhancing financial flexibility. This strategic deleveraging effort reflects management’s ongoing focus on capital discipline and long-term shareholder value.

Operating loss for the quarter narrowed significantly to $(0.4) million, compared to $(1.1) million in Q1 2025 and $(6.0) million in Q2 2024. The improvement reflects continued cost discipline and increasing operating leverage, even with non-cash and one-time charges included in results. Additionally, excluding non-cash and one-time items, Castellum generated $0.5 million of adjusted EBITDA.

Castellum ended the quarter with a record cash balance of $14.7 million, up from $13.3 million at the end of Q1, further reinforcing its commitment to liquidity and prudent capital management.

“In addition to record revenue and solid margin improvement, we reduced our debt by $3.7 million this quarter - a major achievement in strengthening our financial foundation,” said Glen Ives, Chief Executive Officer of Castellum. “Our continued strong performance and steady progress are a direct reflection of our world-class CTM team and their 'best in industry' skills, talent, knowledge, and experience directly supporting our mission customers to achieve their vital national security missions and objectives. We’re building meaningful momentum, and we believe these results position us well to continue creating long-term value for our shareholders.”

Castellum's full financial results for the three and six months ending June 30, 2025, are expected to be filed later today on Form 10-Q, which will be available at http://www.sec.gov.

About Castellum, Inc. (NYSE-American: CTM):

Castellum, Inc. (NYSE-American: CTM) is a cybersecurity, electronic warfare, and software engineering services company focused on the federal government - 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 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; the impact on the Company's revenue due to a delay in the U.S. Congress approving a federal budget, operating under a prolonged continuing resolution, government shutdown, or breach of the debt ceiling, as well as the imposition by the U.S. government of sequestration in the absence of an approved budget; the ability of the U.S. federal government to unilaterally cancel a contract with or without cause, and more specifically, the potential impact of the U.S. DOGE Service Temporary Organization on government spending and terminating contracts for convenience. 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.

Non-GAAP Financial Measures and Key Performance Metrics:

This press release contains Non-GAAP Adjusted EBITDA, a Non-GAAP financial measure 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 Non­GAAP 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 Non-GAAP Adjusted EBITDA measure, this measure may be calculated differently from how we calculate this Non-GAAP financial measure, reducing 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.

Castellum, Inc.
Reconciliation of unaudited Non-GAAP Recurring Cash Operating Profit to Operating Loss
Three Months Ended June 30, 2025
Revenues	$	14,024,090
Gross profit		5,060,447
Net Loss		(322,107	)
Add back:
Interest expense		30,357
Taxes		(75,773	)
Depreciation and amortization		372,026
Adjust for non-cash and one-time charges:
Change in derivative liability		(16,000	)
Stock based compensation		511,814
Total non-cash charges		822,424
Non-GAAP Adjusted EBITDA	$	500,317

Contact:

Glen Ives
President and Chief Executive Officer
Phone: (703) 752-6157
info@castellumus.com
https://castellumus.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a5f4b2f3-e49d-4366-a766-6004bf0873b1

FAQ

What was Castellum's (CTM) revenue in Q2 2025?

Castellum reported record quarterly revenue of $14.0 million, representing a 19.7% increase from Q1 2025 and a 21.7% increase from Q2 2024.

How much debt did Castellum (CTM) reduce in Q2 2025?

Castellum reduced its total debt by $3.7 million during Q2 2025, strengthening its balance sheet and enhancing financial flexibility.

What was Castellum's (CTM) operating loss in Q2 2025?

Castellum's operating loss narrowed to $(0.4) million, compared to $(1.1) million in Q1 2025 and $(6.0) million in Q2 2024.

How much cash did Castellum (CTM) have at the end of Q2 2025?

Castellum ended Q2 2025 with a record cash balance of $14.7 million, up from $13.3 million at the end of Q1 2025.

What was Castellum's (CTM) adjusted EBITDA in Q2 2025?

Excluding non-cash and one-time items, Castellum generated $0.5 million of adjusted EBITDA in Q2 2025.