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Cycurion Acquires Halo Privacy and Integrates HavenX, Creating a Powerful New AI-Driven Platform for Government-Grade Privacy, Secure Communications, and Active Defense

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Cycurion (NASDAQ: CYCU) announced a strategic acquisition of Halo Privacy and full integration of HavenX, expected to close by end of June 2026. The deal adds government-grade secure communications, privacy, and AI-driven active defense capabilities.

Halo Privacy generated $7 million 2025 revenue, including $5.5 million ARR, largely from long-term U.S. government contracts. The combined, AI-augmented platform targets both government and private-sector clients needing mission-critical security.

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Positive

  • Acquisition of Halo Privacy adds $7 million 2025 revenue
  • $5.5 million in 2025 ARR with strong gross margins
  • Approximately 95% of Halo revenue from long-term U.S. government contracts
  • Multi-year, multimillion-dollar government contract awarded in March 2026
  • Integration of HavenX adds OSINT and threat identification expertise
  • Expansion of AI-driven secure communications into corporate and high-net-worth markets

Negative

  • None.

News Market Reaction – CYCU

+12.10%
5 alerts
+12.10% Session close to close
+5.9% Peak in 7 hr 57 min
$7.80M Market Cap
0.4x Rel. Volume

In the May 20 session, CYCU gained 12.10%, reflecting a significant positive market reaction. Argus tracked a peak move of +5.9% during that session. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock surged +12.1% in the session following this news. A strong positive reaction aligns with m...
Analysis

The stock surged +12.1% in the session following this news. A strong positive reaction aligns with management’s multi‑month narrative around building a higher‑margin, recurring revenue base. Prior releases on Halo, HavenX, and backlog growth often met mixed price responses, so a move of 5%+ would have signaled improving investor confidence in execution. However, with shares still far below the 52-week high of 16.032, investors would likely remain focused on integration progress and contract durability.

Key Figures

Halo 2025 revenue: $7 million Halo ARR: $5.5 million Govt revenue mix: 95% +4 more
7 metrics
Halo 2025 revenue $7 million Halo Privacy total revenue in 2025
Halo ARR $5.5 million High-quality annual recurring revenue in 2025
Govt revenue mix 95% Approximate share of Halo business from U.S. government agencies
Halo founding year 2015 Halo Privacy operating as secure communications leader since 2015
Close date target End of June 2026 Expected closing timing for Halo Privacy acquisition and HavenX integration
Govt contract share 95% Long-term U.S. government contracts anchoring Halo’s recurring model
Multi-year contract Multi-year, multimillion-dollar Government contract awarded in March 2026 to Halo Privacy

Historical Context

5 past events · Latest: May 14 (Positive)
Pattern 5 events
Date Event Sentiment 24h Move Catalyst
May 14 Q1 2026 earnings Positive +0.8% Reported Q1 results with margin improvement, smaller losses, and large contracted backlog.
May 07 Halo/HavenX deal Positive -3.1% Announced binding agreement to acquire Halo Privacy and integrate HavenX with strong ARR.
Apr 27 AI contract win Positive -7.5% Disclosed $6M municipal AI services win, lifting backlog to $112M with multi‑year revenue.
Apr 21 Kustom acquisition Positive -3.5% Updated plan to acquire Kustom’s legacy video unit, adding revenue and backlog at $5.5M price.
Apr 20 CEO interview Positive +1.8% CEO outlined $2.2M cost savings, new Fortune 500 engagement, and 2026 growth priorities.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent history shows multiple positive contract and acquisition updates often met with negative price reactions, indicating a pattern of selling into good news.

Recent Company History

Over the last few months, Cycurion reported Q1 2026 revenue of $3.3 million with improved margins and highlighted a contracted backlog of $112 million, including planned Halo and HavenX contributions. It announced binding agreements to acquire Halo Privacy and HavenX, a $6 million AI-driven municipal win, and a planned Kustom Entertainment segment acquisition adding $5.1 million annual revenue and an $8.0 million backlog. A CEO interview emphasized $2.2 million in targeted annual cost savings and multi‑year contract momentum. Today’s closing update on the Halo/HavenX combination builds directly on those prior acquisition announcements.

Key Terms

annual recurring revenue, ARR, OSINT, military-grade cryptography, +1 more
5 terms
annual recurring revenue financial
"including $5.5 million in high-quality annual recurring revenue (ARR) and strong gross margins"
Annual recurring revenue is the predictable amount of money a company expects to earn each year from ongoing customer subscriptions or contracts. It helps businesses understand how much steady income they can count on, much like a subscription service that charges customers every month or year. This figure is important because it shows the company's stability and growth potential.
ARR financial
"including $5.5 million in high-quality annual recurring revenue (ARR) and strong gross margins"
ARR, or Annual Recurring Revenue, is the predictable income a business expects to earn each year from ongoing customer subscriptions or contracts. It’s like a steady paycheck that shows the company's ability to generate consistent revenue over time, helping investors assess its stability and growth potential. ARR provides a clear picture of how well a company is performing in building long-term customer relationships.
OSINT technical
"HavenX brings world-class digital investigations, OSINT, attribution, cyber-harassment tracking"
Open-source intelligence (OSINT) is the practice of collecting and analyzing information that is publicly available—such as news reports, regulatory filings, social media posts, industry blogs, and satellite images—to build a clearer picture of a company’s operations, market position, or risks. For investors, OSINT is useful for fact-checking claims, spotting early trends or red flags, and supplementing formal disclosures, like putting together a puzzle from pieces anyone can find but few have organized.
military-grade cryptography technical
"combine commercial off-the-shelf components, military-grade cryptography, proprietary technology"
Military-grade cryptography describes very strong methods for scrambling and protecting digital information that meet or exceed standards used by armed forces and government agencies. For investors it signals a high level of data protection—like a reinforced safe for sensitive information—which can reduce cyber risk, legal exposure, and reputational damage, but may also imply higher implementation costs or regulatory scrutiny depending on industry and use.
AI-augmented technical
"Together, they create a seamless, AI-augmented platform that protects users from link analysis"
AI-augmented describes tools, products, or workflows where artificial intelligence is used together with human judgment to improve performance—like power steering that helps a driver handle a car more precisely and with less effort. For investors, AI augmentation can mean faster decision-making, lower operating costs, new product features and potentially higher growth, but it also brings execution, ethical and regulatory risks that can affect returns.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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MCLEAN, Va., May 20, 2026 (GLOBE NEWSWIRE) -- Cycurion, Inc. (NASDAQ: CYCU) (“Cycurion” or the “Company”), a leader in AI-driven cybersecurity and national security solutions with trusted relationships across the U.S. Government, numerous leading corporations, and high-profile individuals across all industries, today announced the strategic acquisition of Halo Privacy and the full integration of HavenX, which is expected to close at the end of June 2026, significantly expanding its portfolio of elite, mission-critical security capabilities. This combination unites two highly respected teams and their complementary technologies to deliver an end-to-end integrated solution for high-stakes government and private-sector clients operating in hostile digital environments.

Halo Privacy, a trusted leader in secure communications since 2015, generated $7 million in total revenue in 2025, including $5.5 million in high-quality annual recurring revenue (ARR) and strong gross margins. The company’s predictable, high-margin recurring revenue model is anchored by long-term contracts with U.S. government agencies, which represent approximately 95% of its business, along with preferred vendor status and an exceptional track record of renewals. Momentum is accelerating following the award of a multi-year, multimillion-dollar government contract entered into in March 2026.

HavenX brings world-class digital investigations, OSINT, attribution, cyber-harassment tracking, and threat actor identification expertise that complements Halo Privacy’s advanced privacy and secure communications infrastructure. Together, they create a seamless, AI-augmented platform that protects users from link analysis and data compromise while enabling proactive intelligence and decisive active defense capabilities.

“We are thrilled to welcome the Halo Privacy and HavenX teams to the Cycurion family,” said Kevin Kelly, CEO of Cycurion. “Their operational tradecraft, battle-tested expertise, and relentless focus on defeating sophisticated adversaries align perfectly with our mission. This is more than an acquisition — it’s the creation of something far more powerful: a unified platform that delivers privacy, secure communications, and active defense at the highest levels. We also see tremendous opportunity on the corporate side to expand this business, as secure communications are paramount in today’s business world when conducting sensitive operations. With AI-powered applications like Halo Link, we are bringing the same government-grade protection to investment banks, healthcare organizations, R&D-intensive enterprises, law firms, and C-suite executives who demand the highest levels of privacy and security.”

Halo Privacy’s solutions — built from an attacker’s perspective by former U.S. government field operators and communications specialists — combine commercial off-the-shelf components, military-grade cryptography, proprietary technology, and advanced operational methods to deliver total data control, managed attribution, link-breaking capabilities, and resilient private networks. These state-of-the-art capabilities have earned the enduring trust of federal law enforcement, military, and special operations communities.

With this integration, Cycurion is now accelerating its expansion into the private sector, bringing the same government-proven privacy and security technologies — enhanced by AI-powered applications including the Halo Link secure messaging app — to high-net-worth individuals, investment banks, healthcare organizations, R&D-intensive enterprises, law firms, C-suite executives, and other organizations that require the highest levels of protection.

About Halo Privacy
Halo Privacy, with more than 10 years of expertise, develops cutting-edge, privacy-first secure communication tools engineered for the highest security standards, including the revolutionary Halo Link app.

About HavenX
HavenX is a leading digital investigations and attribution firm focused on cyber-harassment, defamation tracking, OSINT, IP geolocation, breach intelligence, and high-confidence threat actor identification.

About Cycurion, Inc.

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.

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.

Cycurion Investor Relations:
(888) 341-6680
investors@cycurion.com

Cycurion Media Relations:
(888) 341-6680
media@cycurion.com


FAQ

What did Cycurion (NASDAQ: CYCU) announce about acquiring Halo Privacy and integrating HavenX on May 20, 2026?

Cycurion announced it will acquire Halo Privacy and fully integrate HavenX, forming an AI-driven platform for privacy, secure communications, and active defense. According to Cycurion, closing is expected by the end of June 2026, pending completion of customary conditions.

How much revenue and ARR did Halo Privacy generate before the Cycurion (CYCU) acquisition?

Halo Privacy generated $7 million in total revenue in 2025, including $5.5 million in annual recurring revenue. According to Cycurion, this high-margin ARR is largely backed by long-term U.S. government contracts, which account for about 95% of Halo’s business.

What new capabilities does the Halo Privacy and HavenX deal bring to Cycurion (CYCU) investors?

The deal adds government-grade secure communications, privacy, OSINT, and threat actor identification to Cycurion’s portfolio. According to Cycurion, the combined AI-augmented platform supports proactive intelligence, active defense, and protection from link analysis for government and private-sector clients.

How does the Halo Privacy acquisition affect Cycurion’s government business and contracts?

The acquisition strengthens Cycurion’s government footprint through Halo’s long-term U.S. agency contracts and preferred vendor status. According to Cycurion, Halo’s business is about 95% government, including a multi-year, multimillion-dollar contract awarded in March 2026.

What private-sector growth opportunities does Cycurion (CYCU) see from the Halo Privacy and HavenX integration?

Cycurion expects to expand into corporate and high-net-worth markets using Halo’s AI-powered secure tools. According to Cycurion, targets include investment banks, healthcare organizations, R&D-intensive firms, law firms, and C-suite executives needing government-grade privacy and secure communications.