Cycurion Closes Transformative 2025 with $80 Million Contracted Backlog and Book Value of $2.00 Per Share – Accelerating into 2026

Rhea-AI Summary

Cycurion (NASDAQ: CYCU) closed 2025 with an $80 million contracted backlog, strengthened liquidity and multiple new government and commercial wins as it accelerates into 2026.

Key metrics include a Q3 2025 revenue of $3.83M (down 13.9% YoY), total assets of $32.31M (+26.4%), cash of $3.65M (vs $0.04M at end-2024), net financing inflows of $10.78M, and a forecasted Q1 2026 run-rate revenue of ~$4.17M (annualized ~$16.66M). Recent deals include a multi-year telecom deployment (> $1M potential), an SLG data-modernization ramp and a $1.1M county contract. A pro-rata share dividend at 0.0080 per share was payable ~Dec 30, 2025.

Positive

• Contracted backlog of $80 million
• Forecasted Q1 2026 run-rate revenue of ~$4.17M (annualized ~$16.66M)
• Total assets +26.4% to $32.31M
• Cash increased to $3.65M (from $0.04M at end-2024)
• Net financing inflow of $10.78M
• Awarded multi-year telecom contract and $1.1M SLG county contract

Negative

• Q3 2025 revenue down 13.9% YoY to $3.83M
• Nine-month revenue down 15.4% YoY to $11.59M
• Q3 2025 gross margin only 7.1% (gross profit $0.27M)
• Operating cash outflow of $8.77M for nine months
• Equity financing: 1,657,460 shares sold plus warrants, dilutive on a fully diluted basis

News Market Reaction

+6.02%

5 alerts

+6.02% News Effect

+6.4% Peak Tracked

-7.4% Trough Tracked

+$584K Valuation Impact

$10M Market Cap

0.9x Rel. Volume

On the day this news was published, CYCU gained 6.02%, reflecting a notable positive market reaction. Argus tracked a peak move of +6.4% during that session. Argus tracked a trough of -7.4% from its starting point during tracking. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $584K to the company's valuation, bringing the market cap to $10M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Contracted backlog: $80 million Book value per share: $2.00 per share Q1 2026 run-rate revenue: $4.17 million +5 more

8 metrics

Contracted backlog $80 million Company contracted backlog orders as of late 2025

Book value per share $2.00 per share Book value referenced in 2025 year-end shareholder letter

Q1 2026 run-rate revenue $4.17 million Forecasted first quarter 2026 run-rate revenue

Q3 2025 revenue $3.83 million Third quarter 2025 revenue, down 13.9% YoY from $4.45 million

9M 2025 revenue $11.59 million Nine months ended Sept 30, 2025, down 15.4% YoY from $13.69 million

Q3 2025 gross profit $0.27 million (7.1% margin) Gross profit for third quarter 2025

Total assets $32.31 million Total assets grew 26.4% as of Sept 30, 2025

Cash balance $3.65 million Cash as of Sept 30, 2025, up from $0.04 million at year-end 2024

Market Reality Check

Price: $1.69 Vol: Volume 119,111 is below t...

normal vol

$1.69 Last Close

Volume Volume 119,111 is below the 20-day average of 155,302, suggesting subdued trading interest ahead of this update. normal

Technical CYCU at $2.66 is trading below its 200-day moving average of $9.61, indicating a weak longer-term trend before this news.

Peers on Argus

CYCU was down 5% while peers showed mixed moves: ARBB up 0.34%, JDZG up 15.24%, ...

CYCU was down 5% while peers showed mixed moves: ARBB up 0.34%, JDZG up 15.24%, SAIH down 5.92%, JZ down 2.56%, DTST nearly flat. This points to stock-specific factors rather than a broad sector move.

Historical Context

5 past events · Latest: Dec 23 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 23	AI partnership update	Positive	+5.5%	Expanded AI-driven cybersecurity alliance and debut on 2025 MSSP 250 list.
Dec 16	Industry recognition	Positive	-6.6%	Named to MSSP Alert’s 2025 Top 250 list, ranking No. 116 globally.
Dec 11	Special dividend	Positive	-15.6%	Updated ratio for $500,000 stock dividend of 0.0180 shares per existing share.
Dec 09	CEO strategic review	Positive	+9.0%	CEO highlighted 2025 strategic achievements and outlook for 2026 growth.
Dec 05	Private placement	Neutral	+15.3%	Closed $6.0M private placement at $3.62 with additional warrants issued.

Pattern Detected

Recent news has produced mixed reactions: some strategic and AI-focused updates aligned with positive price moves, while recognition and dividend announcements coincided with notable selloffs.

Recent Company History

Over the last month, Cycurion issued several updates, including AI-focused partnerships (Dec 23), industry recognition in the 2025 MSSP 250 list (No. 116 on Dec 16), a special $500,000 share dividend (Dec 11), a strategic year-end CEO interview (Dec 9), and a $6.0M private placement (Dec 5). Price reactions alternated between gains and declines, suggesting investors are still calibrating growth prospects, capital needs, and dilution against expanding contracts and AI‑driven positioning highlighted again in today’s shareholder letter.

Market Pulse Summary

The stock moved +6.0% in the session following this news. A strong positive reaction aligns with the...

Analysis

The stock moved +6.0% in the session following this news. A strong positive reaction aligns with the shareholder letter’s emphasis on an $80 million contracted backlog, improving cash to $3.65 million, and a forecast Q1 2026 run-rate revenue of about $4.17 million. Historically, some strategic updates have produced gains, but prior dilutive financings and ongoing losses highlight execution and funding risks that could cap follow-through if growth or margins underwhelm in future quarters.

Key Terms

pre-funded warrants, common warrants, variable interest entity, run-rate revenue

4 terms

pre-funded warrants financial

"securities purchase agreement with a single institutional investor for the purchase and sale of 1,657,460 shares of common stock underlying pre-funded warrants"

Pre-funded warrants are financial instruments that give investors the right to purchase a company's stock at a set price, but with most or all of the purchase price paid upfront. They function like a coupon or gift card for stock, allowing investors to buy shares later at a fixed price, which can be beneficial if they want to avoid future price increases. This makes them important for investors seeking flexibility and certainty in their investment plans.

common warrants financial

"as well as common warrants to purchase up to 3,314,920 shares of common stock"

A common warrant is a tradable instrument that gives its holder the right to buy a company’s common shares at a fixed price within a set time period, similar to a coupon that can be redeemed later to purchase stock. Investors care because exercising warrants can boost potential gains if the stock rises, but it can also dilute existing shareholders by increasing the number of shares outstanding, which can lower per-share value.

variable interest entity financial

"SLG Innovation, Inc., an entity controlled by Cycurion through a variable interest entity structure"

A variable interest entity (VIE) is a company structure where one party controls another company’s operations and economic outcomes through contracts or special arrangements instead of owning a majority of its voting shares. For investors, VIEs matter because the controlling party’s financial results, debts and risks can appear in the controller’s reports even though ownership looks separate, so understanding VIEs helps assess true exposure, governance limits and transparency—like spotting a puppet controlled by strings rather than direct ownership.

run-rate revenue financial

"forecasted first quarter of 2026 run-rate revenue of $4.2 million"

Run-rate revenue is an estimate of a company’s future sales calculated by taking current revenue over a short period (like a month or quarter) and projecting it forward over a year. Investors use it like checking a car’s current speed to guess how far it will travel in an hour — it provides a quick snapshot of growth or decline, but can be misleading if seasonal swings, one-time events, or recent changes aren’t considered.

AI-generated analysis. Not financial advice.

Review of Accomplishment Rich 2025 Year with High Value Projections for 2026 as Cybersecurity Protection Becomes Increasingly Vital to Everyone

MCLEAN, Va., Dec. 30, 2025 (GLOBE NEWSWIRE) -- Cycurion, Inc. (NASDAQ: CYCU) (“Cycurion” or the “Company”), a leading AI driven, tech-enabled cybersecurity solutions provider, today releases the following Letter to Shareholders from Kevin Kelly, Chairman and Chief Executive Officer.

Dear Cycurion Shareholders:

As we close out this productive and successful year of 2025 with an impressive $80 million company contracted backlog orders on our books, we now look forward to significantly expanding our AI powered cybersecurity business plan for 2026 and beyond. At this moment, I would like to review for you some of our most significant milestones and reflect upon the Cycurion vision in the increasingly important global cybersecurity landscape.

We started this long and arduous journey almost four years ago to list our company on NASDAQ and create lasting value for our business and shareholders.

We are proud to continue building on the strong groundwork that all of our team members have laid in 2025 as we launch into 2026 with unprecedented company-wide commitment.

We are also quite proud that, on December 16^th, Cycurion announced its selection to the MSSP Alert’s 2025 Top 250 MSSPs List and Earning Top-Tier Industry Recognition. Cycurion now stands among the world’s top leading managed security services providers, according to MSSP Alert, a CyberRisk Alliance resource. Cycurion earned a placement in the top 50%, with its listing at No. 116. This marks the Company’s first year being evaluated for this prestigious ranking of global cybersecurity leaders.

The complete 2025 MSSP 250 list is available here: https://www.msspalert.com/top-250-2025?page=10

To directly reward our loyal shareholders, as previously announced, we plan to pay a pro-rata dividend of $500,000 CYCU common shares for every existing CYCU common share (on a fully diluted basis) at a distribution ratio of 0.0080 per share to holders of record on December 15, 2025. The dividend is payable on or about December 30, 2025. As of today’s date, there are 3,608,277 shares of common stock issued and outstanding and approximately 9,864,025 shares of common stock outstanding on a fully diluted basis, which is the basis on which the dividend distribution ratio is calculated.

Reflecting the growing investor value and future prospects for our Company, on December 4^th, Cycurion announced that it had entered into a securities purchase agreement with a single institutional investor for the purchase and sale of 1,657,460 shares of common stock underlying pre-funded warrants at a purchase price of $3.62 per share, for gross proceeds of approximately $6 million, before deducting the placement agent’s fees and other estimated offering expenses, as well as common warrants to purchase up to 3,314,920 shares of common stock, at an exercise price of $3.62 per share.

Another milestone we are proud to have gained is that, on December 2^nd, Cycurion announced that it has been officially awarded a position on the State of Florida’s Management Consulting Services State Term Contract. This award positions Cycurion as an approved vendor eligible to provide expert management consulting services to state agencies and all Eligible Users across Florida. Through this award, Cycurion has the opportunity to bring its extensive government consulting expertise, operational insight, and commitment to service delivery excellence to support Florida agencies statewide.

Q3 2025 Results and Strong Momentum Into Q4 2025 with Run-Rate Revenue Climbing to $4.2 Million in Q1 2026

Cycurion has announced and filed its financial results for the third quarter ended September 30, 2025, alongside continued revenue acceleration into the fourth quarter of 2025. Cycurion has strategically invested in high-caliber talent and technology and is delivering compounding returns with a contracted backlog exceeding $80 million, a new data modernization contract for SLG Innovation, Inc., an entity controlled by Cycurion through a variable interest entity structure (“SLG”), and a forecasted first quarter of 2026 run-rate revenue of $4.2 million.

Q3 2025 Financial Highlights:

Revenue: $3.83 million for third quarter 2025 (down 13.9% YoY from $4.45 million), and $11.59 million for the nine months ended September 30, 2025 (down 15.4% YoY from $13.69 million), reflecting a deliberate pivot to more profitable State, Local and Education (SLED) contracts amid merger-related disruptions.

Gross Profit: $0.27 million for the third quarter 2025 (7.1% margin), and $1.18 million for the nine months ended September 30, 2025 (10.2% margin).

Balance Sheet Strength: Total assets grew 26.4% to $32.31 million, with cash increasing significantly to $3.65 million (from $0.04 million at year-end 2024).

Cash Flows: Net financing inflow of $10.78 million for the nine months ended September 30, 2025 (capital raises of $5.87 million and warrant exercises of $3.66 million) enabling $8.77 million operating cash outflow, positioning Cycurion for growth execution.

Q4 2025 and Q1 2026 Momentum: Run-Rate Acceleration Underway

New SLG Contract: Forecasted to contribute $26,500 in November 2025, scaling to $283,042 monthly by January 2026, which is a 10x increase in just 60 days, bolstering the state, local and education revenue base.

Cycurion Branded Revenue: Kicks off in December 2025 at $12,500, ramping to $58,333 monthly by January 2026, which demonstrates channel and co-sell strategies with high-margin Cyber Shield solutions.

Total Forecasted Revenue: Given the factors mentioned above, Cycurion expects first quarter 2026 run-rate revenue to be approximately $4.17 million, translating to an annual run rate of approximately $16.66 million.

On November 10^th, Cycurion announced it has been awarded a contract by one of the country’s largest telecommunications companies to deliver network deployment services supporting a critical modernization initiative for one of the federal government’s largest agencies.

The multi-year project focuses on replacing decades-old infrastructure with a resilient, secure, and flexible communication network designed to enhance emergency warning capabilities. The rollout encompasses more than 1,300 sites across all 50 states and U.S. territories, with an expected duration of 24 to 36 months and a potential total value exceeding $1 million.

On November 5^th, Cycurion announced that SLG has been awarded a $1.1 million contract to modernize legacy data systems for one of America’s largest county-level public guardian offices. This high-impact engagement—delivered in partnership with a leading national provider of case management technology—adds another marquee win to the rapidly expanding Cycurion portfolio and reinforces its indispensable role in ensuring operational continuity, even during government shutdowns.

Cycurion today is an AI-driven cybersecurity company. We employ cutting-edge artificial intelligence technologies to lock down and secure organizations, protecting them from ever more sophisticated and persistent threats. Nefarious actors are coming at us from every angle, making cybersecurity more critical than ever, whether it’s safeguarding individuals or defending large corporations.

Cycurion also supports our government’s federal and state agencies, including the Department of Justice, the Department of Defense, and others. In addition to our federal engagements, we’re actively partnering with state and local governments, currently in Texas and Illinois, and expanding into several additional states as part of our national growth strategy.

Cycurion delivers pinpoint intelligence, including the exact geographic location of the breach, the specific department affected, and whether containment measures are required across other areas of the organization. We are serving the underserved and protecting businesses of all sizes, including small and medium enterprises in an unforgiving digital landscape. We intend to give our utmost in defense of our clients at every level because nothing matters more than their security and peace of mind.

We look forward to keeping all of our Cycurion investors well informed with further updates as we go forward into the future together. Happy Holidays and Best Wishes to all.

Sincerely,

Kevin Kelly, Chairman and Chief Executive Officer

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. More info: www.cycurion.com.

Forward-Looking Statements
This press release contains statements that are forward-looking statements as defined within 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 anticipated closing of the offering; the Company’s anticipated use of proceeds from the offering; the acceleration of the Company’s inorganic growth strategy through potential acquisitions and strategic transactions; the continued execution of the Company’s contracted 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 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, 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 does Cycurion's $80 million contracted backlog mean for CYCU shareholders in 2026?

An $80 million contracted backlog indicates secured future work that supports the company's revenue runway and the company's stated Q1 2026 run-rate target.

What run-rate revenue did Cycurion forecast for Q1 2026 for CYCU?

Cycurion forecasted a Q1 2026 run-rate revenue of approximately $4.17M, equivalent to an annualized run rate of about $16.66M.

How much cash did Cycurion report at year-end 2025 and how does that compare to 2024 for CYCU?

Cash increased to $3.65M at the report date, up from $0.04M at the end of 2024.

Did Cycurion issue shares or warrants in December 2025 that affect CYCU dilution?

Yes; Cycurion entered a securities purchase for 1,657,460 shares underlying pre-funded warrants and accompanying warrants to buy up to 3,314,920 shares.

What material contracts did Cycurion announce in late 2025 for CYCU?

Notable wins include a multi-year telecom network deployment (> $1M potential across 1,300+ sites) and a $1.1M SLG data modernization county contract.

What shareholder distribution did Cycurion pay in December 2025 for CYCU?

Cycurion paid a pro-rata share dividend at a distribution ratio of 0.0080 per common share to holders of record on December 15, 2025, payable on or about December 30, 2025.