AI Cybersecurity Stocks and the Battle Against Cybercriminals

Rhea-AI Summary

Cycurion (NASDAQ: CYCU) highlighted AI-driven growth on November 3, 2025, reporting a $73.6 million contracted backlog across multi-year (1–5 year) agreements and citing AI-enhanced ARx and Cyber Shield platforms as revenue drivers. The company noted $8 million in new Q2 2025 contracts, including a $6 million municipal transportation award, and $4.6 million in recent government, healthcare and public safety wins. Cycurion expects $2.9 million of new annualized revenue onboarded in Q4 2025 and states >18 months of revenue visibility. The company was also named an approved vendor on the Florida State Term Contract for IT staff augmentation. Management referenced a recent reverse stock split and ongoing IP valuation of ARx.

Positive

• Contracted backlog of $73.6 million
• $6.0 million municipal transportation contract
• $8.0 million new Q2 2025 contracts
• $2.9 million expected new annualized revenue starting Q4 2025
• Selected as approved vendor on Florida State Term Contract

Negative

• Recent reverse stock split executed (share consolidation risk)
• ARx IP valuation pending (value not yet realized)

Insights

Cybersecurity Growth Analyst

Cycurion shows clear revenue visibility from multi-year AI contracts and state procurement wins, supporting near-term growth.

Cycurion's business mechanism centers on selling AI-enhanced cybersecurity and IT services under multi-year agreements. The company reports a $73.6 million contracted backlog covering 1–5 year deals, including $8 million in new Q2 2025 awards and a $6 million municipal transportation contract; management says these awards begin onboarding in Q4 2025 and yield an expected $2.9 million of new annualized revenue. The Florida State Term Contract selection creates a pre-approved procurement channel across state agencies and eligible entities, enabling direct engagements without re-bidding.

Dependencies and risks include execution of stated onboarding and realization of contracted revenue, the valuation process for the ARx platform IP, and continued contract conversions across government, healthcare, and public safety clients. The company attributes backlog expansion to newly deployed AI platforms (ARx, Cyber Shield) and cites IP valuation work; those items materially affect balance-sheet presentation and investor perception but depend on completed valuations and successful platform rollouts.

Concrete items to watch: progress of onboarding in Q4 2025, recognition of the $73.6 million backlog into revenue across upcoming quarters, results of the ARx IP valuation, and any details released about the Florida State Term Contract deployments; monitor these over the next 3–12 months for confirmation of revenue recognition and margin expansion into 2026.

Vancouver, Kelowna, and Delta, British Columbia--(Newsfile Corp. - November 3, 2025) - Investorideas.com (www.investorideas.com) a leader in retail investor trading ideas for AI and cybersecurtiy stocks issues a snapshot of news from leaders in the sector, featuring Cycurion, Inc. (NASDAQ: CYCU), a leading cybersecurity solutions provider.

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AI, more than any other technology, has empowered both sides of an industry, from the criminals and bad actors to the companies leading the cybersecurity battle. There is a lot of money on the table for both sides and leading cybersecurity stocks like Cycurion (NASDAQ: CYCU), Crowdstrike Holdings (NASDAQ: CRWD), Check Point Software Technologies (NASDAQ: CHKP) and Fortinet (NASDAQ: FTNT) are embracing AI as their solution.

In 2024, the AI cybersecurity market reached a value of roughly $26.55 billion and is anticipated to expand substantially, with forecasts suggesting it could climb to anywhere from $93 billion to $234 billion by 2030-2032.

Crowdstrike Holdings Inc. (NASDAQ: CRWD), a global cybersecurity leader released what it calls the must read cybersecurity report of the year.

Highlights included:

• 150% increase in China-nexus activity across all sectors
• 442% growth in vishing operations between the first and second half of 2024
• 51 seconds was the fastest recorded eCrime breakout time
• 79% of detections were malware-free
• 26 newly named adversaries in 2024
• 52% of vulnerabilities observed by CrowdStrike in 2024 were related to initial access

Read full report

Cycurion Inc. (NASDAQ: CYCU) 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.

In a recent shareholder letter, the company stressed the role that AI is playing in its revenue growth and future potential.

From the news: 
As the Chairman and Chief Executive Officer of Cycurion, Inc., I want our shareholders to know that we are committed to increasing shareholder value. I'd like to take this opportunity to reflect on the transformative progress we have achieved in the first 10 months of 2025, including our eight months as a public company since February 14, 2025. Our team has harnessed the power of artificial intelligence (AI) to redefine cybersecurity and IT solutions, offering proprietary solutions to meet our customers' cybersecurity needs. Our AI-driven platforms, particularly ARx and Cyber Shield, have fueled our record-breaking backlog, deepened client trust, and powered a strategic acquisition strategy that positions us as a leader in the AI-cybersecurity revolution. Even as we address the recent reverse stock split-a proactive step to enhance long-term value-I am confident in Cycurion's trajectory. Let me share these highlights and our AI-powered path forward.

A Record-Breaking Backlog Fueled by AI Innovation 
Our $73.6 million contracted backlog, spanning multi-year agreements of 1-5 years, reflects the surging demand for our AI-enhanced ARx platform and managed security services. The backlog includes over $8 million in new contracts secured in the second quarter of 2025, such as a $6 million agreement with a major municipal transportation agency for AI-driven IT and cybersecurity solutions, plus an additional $4.6 million in recent awards across government, healthcare, and public safety sectors. These contracts leverage our proprietary AI algorithms to deliver real-time threat detection and response, driving higher margins and scalability. With these new contracts, we expect to add $2.9 million in new annualized revenue that has begun to be onboarded in the fourth quarter of 2025. This AI-powered pipeline provides over 18 months of revenue visibility, positioning us for increases in revenue in the third and fourth quarter of 2025.

One of the most important things I would like our shareholders to realize is that we are just now rolling out our proprietary AI software, that has been in development for over five years. As our ARx platform expands across our client base, it will significantly increase our margins and create a recurring revenue model, fundamentally enhancing our value proposition in 2026. We are currently having our ARx platform's IP valued, which we believe will significantly enhance the Company's value by strengthening our balance sheet and attracting investors seeking AI-driven growth.

The Company also just announced its selection as an approved vendor under the Florida State Term Contract for Information Technology (IT) Staff Augmentation Services. This multi-year contract positions Cycurion at the forefront of Florida's ambitious digital modernization agenda, enabling the Company to deploy elite IT talent across state agencies, municipalities and eligible public entities.

From the news: 
The multi-year contract enables any Florida state agency, county, municipality, or eligible entity to engage Cycurion directly-without competitive bidding-for mission-critical IT staff augmentation across software development, cybersecurity, data analytics, cloud engineering, AI integration, project management, and systems architecture. Under the agreement, Cycurion will provide qualified professionals on a time-and-materials or statement-of-work basis, with pricing pre-negotiated and approved by the Florida Department of Management Services, ensuring cost transparency and streamlined procurement for the state's next wave of digital innovation and citizen-centric services.

"This statewide contract is a launchpad for transformative impact," said Ed Burns, President of State and Local Government at Cycurion. "We're not just filling roles-we're building the technical backbone for Florida's future. From securing critical infrastructure to accelerating AI-driven public services, Cycurion is positioned to support the state's most strategic IT initiatives."

Full news
https://finance.yahoo.com/news/cycurion-secures-florida-state-term-180100046.html

Crowdstrike Holdings Inc. (NASDAQ: CRWD) recently announced a strategic partnership with BT to launch BT Business Antivirus Detect and Respond, a new cybersecurity service powered by CrowdStrike Falcon® Go. Designed for small and medium-sized businesses (SMBs) in the UK, the solution combines CrowdStrike's industry-leading AI-native protection with BT's around-the-clock expert services to stop breaches.

From the news: 
According to CrowdStrike's State of SMB Cybersecurity Survey, while most SMBs increasingly understand today's growing cyber risks, limited resources prevent them from adopting advanced technology - only 11% currently use AI-powered defenses. Combined with a lack of in-house security expertise, many SMBs remain vulnerable to modern cyber threats.

To help bridge this gap, BT Business Antivirus Detect and Respond, powered by CrowdStrike Falcon Go, delivers award-winning, AI-powered protection for SMBs, built to stop ransomware and breaches. Tailored for smaller businesses, the service can be deployed quickly and easily, with ongoing support from BT's security experts for installation, protection, and incident response. Together, CrowdStrike and BT are making cybersecurity simple, accessible, and effective - empowering UK SMBs to stop breaches and grow with confidence.

"This partnership brings together two leaders with a shared mission to transform cybersecurity for a nation - bringing the United Kingdom's small and medium-sized businesses the same AI-powered protection once reserved for the world's largest enterprises," said Daniel Bernard, chief business officer at CrowdStrike. "Together, CrowdStrike and BT are redefining what's possible for SMBs: turning cybersecurity from a barrier into a business advantage so they can innovate, grow, and compete with confidence."

Check Point Software Technologies Ltd. (NASDAQ: CHKP), a pioneer and global leader of cyber security solutions last week announced it is working with NVIDIA to deliver an integrated security solution built for AI factories. AI Cloud Protect is now available for on-premises enterprise deployments to secure AI model development, agentic AI applications, and inference workloads with zero impact on performance. The solution has been validated on NVIDIA RTX PRO Servers, enabling enterprises to deploy AI securely-from data center to cloud-built on NVIDIA BlueField technology.

From the news: 
"As enterprises race to build AI-driven innovation, they can't afford blind spots," said Nataly Kremer, Chief Product Officer at Check Point. "With NVIDIA, we're making AI factories secure by design-protecting models, data, and infrastructure without slowing innovation."

Today's AI systems face unprecedented security challenges. More than half of enterprise networks now use AI tools, making them prime targets for cyber attacks. Check Point data shows that 1 in every 80 GenAI prompts exposes sensitive data. Meanwhile, a recent Gartner report found that 32% of organizations experienced an AI attack involving prompt manipulation, and 29% faced attacks on their GenAI infrastructure in the past year. As businesses race to deploy AI, protecting the entire AI pipeline-from development to production-has become an urgent imperative.

AI Cloud Protect secures AI factories - protecting the cloud infrastructure that powers AI model development, training and commercial deployment. Running on NVIDIA BlueField-3 DPUs, AI Cloud Protect delivers full-stack security without consuming CPU or GPU resources - eliminating the performance trade-offs of traditional security solutions. Using network-level protection, AI Cloud Protect secures AI infrastructure from unauthorized access to reduce risk for data poisoning and model exfiltration. At the host level, AI Cloud Protect leverages the unique direct memory access of NVIDIA DOCA Argus to provide visibility into all running processes on the AI node. This enables Check Point to detect and prevent host-level malicious processes and workloads including those in publicly downloaded Large Language Models (LLMs).

Last month, Fortinet (NASDAQ: FTNT), a global cybersecurity leader driving the convergence of networking and security released its 2025 Global Cybersecurity Skills Gap Report, shedding light on the new and persistent challenges organizations face due to the cybersecurity skills gap. The global survey's key findings include:

From the news:

• As organizations are turning increasingly to AI to strengthen their security postures and fill gaps, they also acknowledge that AI may be used against them as an engine of new or improved cyberattacks, especially given the lack of AI skillsets across teams.
• Lack of cybersecurity awareness and training remains the top cause of breaches.
• Boards lack cyber knowledge, despite it being a priority.
• Organizations want cybersecurity personnel with certifications.

"This year's survey further underscores the urgent need to invest in cybersecurity talent," said Carl Windsor, CISO at Fortinet. "Without closing the skills gap, organizations will continue to face rising breach rates and escalating costs. The findings highlight an inflection point for both public and private sectors: Without bold action to build and retain cybersecurity expertise, the risks and costs will only continue to grow for our society."

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FAQ

What is Cycurion's contracted backlog reported on November 3, 2025 (NASDAQ: CYCU)?

Cycurion reported a $73.6 million contracted backlog across multi-year (1–5 year) agreements.

How much new business did Cycurion announce in Q2 2025 and what key contract is included?

Cycurion secured $8.0 million in new Q2 2025 contracts, including a $6.0 million municipal transportation agreement.

How much annualized revenue did Cycurion expect to add starting Q4 2025 (CYCU)?

The company expects approximately $2.9 million in new annualized revenue that began onboarding in Q4 2025.

What does Cycurion's Florida State Term Contract approval mean for CYCU?

It allows Florida state agencies and eligible entities to engage Cycurion directly on pre-negotiated terms for multi-year IT staff augmentation.

What AI products did Cycurion cite as growth drivers in 2025 (CYCU)?

Management cited its AI-enhanced ARx platform and Cyber Shield managed services as primary growth drivers.

Has Cycurion completed an IP valuation for ARx as of November 3, 2025 (CYCU)?

No; the company stated ARx IP is currently being valued but did not disclose a finalized valuation.