Exclusive Interview with Cycurion (Nasdaq: CYCU) CEO L. Kevin Kelly Discussing the Company's Largest Contract Award and Expansion of Its Diversified Cybersecurity Growth Strategy
The completed Digital Ally acquisition brings Cycurion's pro-forma annual revenue run rate to approximately $30 million.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Cycurion (CYCU) detailed its $54.6 million contract award and cybersecurity expansion plans in an interview with CEO L. Kevin Kelly.
The 10-year award, through a global consulting firm, covers a state Health and Human Services system. Work starts in November 2026; Cycurion expects revenue in the fourth quarter, ramping through 2027 toward more than $5 million in annual recurring revenue. The completed Digital Ally Video Solutions acquisition adds approximately $5.5 million in annual revenue and more than $1.2 million in EBITDA, a measure of earnings before interest, taxes, depreciation and amortization.
Second-quarter gross margin rose to 29.1% from 6.1% a year earlier. Cycurion maintains its target of break-even and positive operating cash flow by the second quarter of 2027, while anticipating near-term dilution. Nasdaq confirmed minimum bid-price compliance on October 1, 2026; Panel monitoring continues through October 1, 2027.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point$54.6 million, 10-year contract secured through a global consulting firm for a state Health and Human Services system. 73% of market cap
- Moderate pointCompleted Digital Ally Video Solutions acquisition adds approximately $5.5 million annual revenue and more than $1.2 million EBITDA.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Secuvant expected to add approximately $3 million annualized revenue and $1.5 million EBITDA in 2026.
- Moderate pointApproximately $800,000 in annual contract spends secured across pharmaceutical, NACCHO, commercial and public-health engagements. 1.1% of market cap
- Moderate pointSecond-quarter gross margin rose to 29.1% from 6.1% a year earlier.
- Moderate pointSecond-quarter adjusted EBITDA loss narrowed to $1.4 million from $2.1 million a year earlier.
- Moderate pointMore than $2.2 million in annualized cost savings implemented.
- Moderate point2025 net debt fell more than 70%, from $10.5 million to just under $3 million.
8 minor points
- Minor point. Forward-looking: it has not happened yet and may not happen.Contract revenue expected from fourth-quarter 2026, ramping through 2027 toward more than $5 million annually recurring.
- Minor point41 new awards closed so far in 2026.
- Minor point. Forward-looking: it has not happened yet and may not happen.Public safety engagements, including Chicago support, forecast to generate approximately $843,028 in calendar 2026 revenue.
- Minor point. Forward-looking: it has not happened yet and may not happen.Break-even and positive operating cash flow remain company targets for second-quarter 2027.
- Minor pointNasdaq minimum bid-price compliance regained, confirmed October 1, 2026, against the $1.00 requirement.
- Minor point. Forward-looking: it has not happened yet and may not happen.Expansion plans include larger federal opportunities and new commercial offerings.
- Minor point. Forward-looking: it has not happened yet and may not happen.Offensive cybersecurity products and go-to-market details planned for disclosure in coming months.
- Minor point. Forward-looking: it has not happened yet and may not happen.Conventional bank financing expected to be pursued in the new year following positive bank discussions.
Negative
- Moderate point. Forward-looking: it has not happened yet and may not happen.Near-term dilution is likely, Cycurion says, because capital is needed to fund growth.
- Moderate pointAugust warrant deal raised about $4.5 million and helped fund the acquisition, involving dilutive securities. 6% of market cap
- Minor pointNasdaq Panel Monitor remains in place through October 1, 2027.
- Minor pointTwo reverse splits completed to maintain the Nasdaq listing.
- Minor point. Forward-looking: it has not happened yet and may not happen.Projected approximately $3.43 million CAD administration value depends on continuation at the current monthly rate for ten years.
News Explained
Bank financing remains prospective, and June 30 cash equaled 51.9 days of the latest reported operating cash use.
Kelly says Cycurion expects to pursue conventional bank financing in the new year after positive conversations with banks; this is a prospective funding path, not a completed financing with proceeds reported.
At
Sources and calculations
- Cycurion CEO interview release (2026-10-13)
- Cycurion second-quarter 2026 fundamentals (2026-06-30)
- Available liquidity against the last reported quarterly operating outflow, in days at that rate $1,873,287 / ($3,284,342 / 91) = 51.9 days
Key Figures
- HHS contract value
- $54.6 million
- 10-year contract to modernize and securely operate a state Health and Human Services system
- Annual recurring revenue target
- More than $5 million
- HHS contract; revenue expected to build through 2027
- Digital Ally annual revenue
- Approximately $5.5 million
- Video Solutions business acquired by Cycurion
- Digital Ally EBITDA
- More than $1.2 million
- Video Solutions business acquired by Cycurion
- Pro forma annual revenue run rate
- Approximately $30 million
- After the Digital Ally Video Solutions acquisition
- Gross margin
- 29.1% vs. 6.1%
- Second quarter compared with the year-earlier quarter
- Adjusted EBITDA loss
- $1.4 million vs. $2.1 million
- Second quarter compared with the year-earlier quarter
- Annualized cost savings
- More than $2.2 million
- Savings management said were in place
Historical Context
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Cycurion regained the $1.00 bid-price requirement and remained under a panel monitor through October 2027.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
annual recurring revenue financial
ebitda financial
warrant financial
convertible security financial
reverse splits financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
CYCU is Delivering Increasingly Important Cyber Protective Services in Both the Public and Private Sectors
MCLEAN, Va., Oct. 13, 2026 (GLOBE NEWSWIRE) -- Cycurion, Inc. (NASDAQ: CYCU) ("Cycurion" or the "Company"), a leading provider of AI-driven cybersecurity and public safety technology solutions, today announced the release of an exclusive CEO Interview with Kevin Kelly. Cycurion, Inc. is a tech-enabled cybersecurity firm that serves some of the most complex government agencies and corporations in the world, including Fortune 100 and Fortune 500 companies. Cycurion brings an unparalleled blend of vision, technology, and experience to every project.
On October 8, 2026 CYCU CEO L. Kevin Kelly sat down with Corporate Ads to conduct the following interview for CYCU shareholders and other investors. This transcript is exclusive to the distribution of the Corporate Ads investor awareness program.
Corporate Ads:
Mr. Kelly, thank you for meeting with us today for the benefit of our audience. CYCU shareholders have been seeing a lot of important developments from your company in 2026 so we would like to cover and detail some of the key news that CYCU has been issuing recently.
To begin with, CYCU has announced a
L. Kevin Kelly:
This is the largest award in Cycurion’s history, and we’re proud of it. It’s a 10-year,
And this didn’t happen by accident. A state agency trusted us with a decade-long, mission-critical program. That says a lot about our team, our cybersecurity depth, and the client relationships we’ve built over many years. It proves we can deliver at scale.
Corporate Ads:
Another high-profile accomplishment has been the CYCU acquisition of Digital Ally's Video Solutions business. What value do you feel this adds to your asset base?
L. Kevin Kelly:
It’s a great fit. Digital Ally’s Video Solutions business gives us an established public safety technology portfolio with approximately
Corporate Ads:
And this acquisition moves CYCU more solidly into the increasingly important public safety sector, yes?
L. Kevin Kelly:
Absolutely. This deal brings recurring revenue, attractive margins, real technology, and a big cross-selling opportunity. Think abneedt: more than 800 agencies already trust these products, and every one of them needs cybersecurity. Law enforcement, emergency services, transportation, critical infrastructure. The need has never been greater, and we’re right in the middle of it.
Corporate Ads:
CYCU has announced recent municipal and state-level engagements. So this sector does seem to be an area where the company can further its growth. But are you also pursuing higher level government contracts?
L. Kevin Kelly:
Yes, and that’s exactly the plan. Public safety is a strategic foundation for us. It gives us long-term relationships, recurring revenue, and a platform for more of our cybersecurity and technology solutions. From there, we’re going after larger federal opportunities and building new commercial offerings that accelerate growth and improve margins. We are not standing still.
Corporate Ads:
Does CYCU intend to expand its offensive cybersecurity capabilities through new technologies to identify vulnerabilities before organizations are breached?
L. Kevin Kelly:
This is the part of our strategy I’m most excited about. Several of our technology and product leaders were at Black Hat in Las Vegas this summer, and they came back with one clear message: we’re on the right track. The market is moving to the offensive side, and that’s exactly where we’ve been building. We call it digital intelligence: finding vulnerabilities and threats before the attackers do, instead of cleaning up after a breach. I believe this is going to be a game changer for Cycurion and for the market. You’ll be hearing more from us about our products and go-to-market in the coming months. Stay tuned.
Corporate Ads:
Along those lines, another high value development CYCU has announced recently was for public safety engagements, including work supporting the City of Chicago forecast to generate approximately
L. Kevin Kelly:
Chicago is a great example of how our public safety business works. The 2026 forecast includes approximately
Corporate Ads:
CYCU has also made its first public announcement of a pharmaceutical AI Center of Excellence engagement, a NACCHO award, and additional commercial and public-health work. Can you give us some details on what is involved here and its value to the company’s diversification goals?
L. Kevin Kelly:
Yes, and this is a market we’re very excited about. We’ve secured several engagements totaling approximately
Healthcare and life sciences is a primary growth market for us, right alongside our government and public safety franchise. The work spans business continuity and disaster recovery, technology and cybersecurity assessments, program management, organizational change management, and AI operating capability. These clients need what we do, and we’re just getting started.
Corporate Ads:
Concerning the stock itself, CYCU is Nasdaq listed, and you recently confirmed that the stock has regained compliance with Nasdaq’s bid price requirement. This is good news for shareholders. Can you give us the details?
L. Kevin Kelly:
It’s a big milestone, and our team worked hard for it. On September 9, 2026, the Nasdaq Hearings Panel issued a decision setting a bid price condition, and we met it. On October 1, 2026, the Nasdaq Hearings Office confirmed by letter that Cycurion has regained compliance with the
Corporate Ads:
And what is the present share structure on CYCU in the public markets?
L. Kevin Kelly:
We have approximately 3.2 million common shares outstanding, and every warrant and convertible security we have is detailed in our 10-Q for anyone who wants to check.
Corporate Ads:
What can you tell CYCU shareholders about dilution going forward?
L. Kevin Kelly:
I’ll be straight with you. We need capital to fund our growth, so some dilution in the near term is likely. Zero dilution isn’t realistic for a company at our stage, and I’m not going to pretend otherwise. We’re doing everything we can to keep it to a minimum and have turned down most offers because the terms weren’t right for shareholders. Our August warrant deal brought in about
Corporate Ads:
CYCU has completed two reverse splits to maintain its Nasdaq listing. What can you say about investor speculation that another may be needed?
L. Kevin Kelly:
I get it. Nobody wants another one, including me. We regained compliance on October 1, and we’re under a Panel Monitor through October 1, 2027. Our plan is to stay compliant the right way, by growing the business. Based on our current plans, we do not anticipate needing another reverse split.
Corporate Ads:
Regarding the CYCU financial position, you have already told shareholders you expect to reach break-even and cash-positive operations by the second quarter of 2027. What can you add at this time on this prediction?
L. Kevin Kelly:
Let me be clear: we said we would be at break-even and have positive operating cash flow by the second quarter of 2027, and that is still our target. We’re already moving in the right direction. Our second-quarter gross margin rose to
Corporate Ads:
The short-term trading pattern of CYCU stock is sometimes erratic and prone to significant moves in both directions. This can be frustrating for some investors, even considering the overall positive growth story for the company. What can you comment on about this pattern?
L. Kevin Kelly:
I share that frustration. But let’s be realistic: no company, not Cycurion and not IBM, can distribute a press release every day. We release news when we have news, and we file an 8-K whenever one is required. We can’t control day-to-day trading, but we can control how we communicate. When we announce a contract, we’ll say where we’re permitted to, when revenue is expected to start and whether it’s already in our backlog, so you can match our announcements to our results.
Corporate Ads:
The bull case for CYCU is the
L. Kevin Kelly:
Let’s talk about whether the revenue is real, because it is. You’ll see these contracts show up in our reported results, which are subject to federal securities laws and reviewed by an independent accounting firm. Digital Ally Video Solutions adds more than
Corporate Ads:
In the big picture, to enhance CYCU shareholder value, what accomplishments do you feel are contributing the most that investors should appreciate?
L. Kevin Kelly:
Honestly, I don’t think people realize how much we’ve already done. When we went public, we inherited a lot: legacy debt, expensive financing arrangements, and the interest that came with them. In 2025 alone, we cut net debt by more than
Corporate Ads:
Any final message for CYCU shareholders?
L. Kevin Kelly:
First, thank you. To everyone who has stuck with us: I know it hasn’t been easy. It’s been choppy, and it will probably stay choppy in the near term. But I’m confident in the company we’re building, and I believe our long-term shareholders will be glad they invested in Cycurion and stayed with us. Many of you reach out to share your thoughts and what you’re hearing, and that matters to me. As I said on a podcast a couple of weeks ago: do your own work. Read our filings, not the message boards. And if you’re looking for a miracle stock that goes up 1,
Corporate Ads:
Thank you, L. Kevin Kelly, CEO of Cycurion, Inc., for your time and valuable insights today. We always appreciate the opportunity to learn more about a strong developing growth story like CYCU direct from the CEO who is always the best source of investor information. Many investors should benefit from the discussions of everything we covered here today.
About Cycurion, Inc.
Cycurion, Inc. (Nasdaq: CYCU) is a technology-enabled cybersecurity and IT services company focused on protecting organizations against increasingly sophisticated cyber threats. The company provides cybersecurity, managed services, information assurance, systems engineering, risk management, IT infrastructure and other technology solutions to government agencies and corporate clients. Cycurion also combines AI-driven technologies with cybersecurity, secure communications, digital investigations and public-safety technologies to create a broader, integrated security platform.
Mission
Cycurion's mission is to develop and deliver world-class, cutting-edge IT and cybersecurity solutions that optimize clients' technology environments, strengthen security and help organizations operate securely, efficiently and reliably. The company's current strategy is increasingly centered on AI-enhanced cybersecurity, higher-margin managed services and mission-critical solutions for federal, state and local government and enterprise customers.
Cycurion was incorporated on October 12, 2017, in Delaware.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All 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, the expected revenue, EBITDA and other anticipated financial and operational benefits arising from the acquisition of the Digital Ally video solutions business (the "Business"); statements regarding the anticipated commercial benefits of the Company's patents, including expected expansion of the Company's customer base and expected effects on customer retention; statements regarding the scope, validity, enforceability, and remaining term of the Company's issued patents; statements regarding the availability of the patented functionality across the Company's installed base of deployed systems; statements regarding the number of client relationships acquired in the Business; statements regarding the Company's pro forma gross revenue run rate; statements regarding the Company's execution of its strategic plan; the anticipated benefits, timing, and integration of pending or completed acquisitions; the performance of and revenue expected from government and commercial contracts; the development and commercialization of the Company's AI-enabled cybersecurity platforms, including ARx; the Company's expectations regarding its path to profitability; the Company's ability to regain or maintain compliance with the continued listing standards of the Nasdaq Stock Market; and the conduct, timing, and outcome of the Company's investigations and any related legal proceedings. Forward-looking statements may be accompanied by words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "should," "will," and similar expressions.
Forward-looking statements are based on management's current expectations and assumptions and involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied, many of which are outside the Company's control and difficult to predict. These risks include, but are not limited to: the Company's ability to develop, market, and sell products incorporating the patented technology; the possibility that the patented technology does not increase customer retention or expand the Company's customer base as anticipated; the outcome of the Company's investigations and any legal proceedings the Company may initiate or become subject to, and the costs, time, and resources associated with such matters; the Company's ability to identify, finance, complete, and integrate acquisitions; risks relating to the Company's intellectual property, including that issued patents may be challenged, narrowed, invalidated, or designed around, that they may not provide meaningful competitive advantage or barriers to entry, and that third parties may assert infringement claims against the Company; the Company's ability to win, retain, and perform under government and commercial contracts; the Company's need for additional capital and the terms on which it may be available; the Company's ability to satisfy Nasdaq's continued listing requirements; competitive conditions and technological change in the cybersecurity market; and volatility in the trading price and volume of the Company's common stock, which may occur for reasons unrelated to the Company's operating performance. Additional risks and uncertainties are described in the Company's most recent Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K filed with the U.S. Securities and Exchange Commission, which are available at www.sec.gov.
Forward-looking statements speak only as of the date of this press release. Except as required by law, the Company undertakes no obligation to update any forward-looking statement.
For more information on $CYCU visit: www.cycurion.com
Media Contact:
Company Name: Cycurion, Inc. (Nasdaq: CYCU)
Contact: L. Kevin Kelly, Chairman & CEO
Email: info@cycurion.com
Phone: 888-341-6680
Country: United States
DISCLAIMER: https://corporateads.com/disclaimer/ -- Disclosure listed on the Corporate Ads website.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
When does Cycurion expect revenue from its $54.6 million contract?
Cycurion expects revenue to begin in fourth-quarter 2026, with work starting in November. Revenue is expected to ramp gradually through 2027 toward more than $5 million in annual recurring revenue. The 10-year contract supports modernization and secure operation of a state Health and Human Services system through a global consulting firm.
When does Cycurion target break-even and positive operating cash flow?
Cycurion maintains its target of break-even and positive operating cash flow by second-quarter 2027. This remains a target rather than an achieved result.
Does Cycurion expect another reverse stock split?
Cycurion does not anticipate another reverse split based on its current plans. It has completed two reverse splits to maintain its Nasdaq listing and remains under a Panel Monitor through October 1, 2027.
What work makes up Cycurion's 2026 Chicago revenue forecast?
The 2026 forecast includes approximately $763,256 for Chicago go-live support, $22,645 for Chicago fire training and $57,127 for a computer-aided dispatch administration position. If that administration position continues at the current monthly rate for ten years, its projected aggregate value would be approximately $3.43 million.