Castellum (CTM) Q1 2025 earnings summary

Executive summary

• Revenue increased 3% year-over-year to $11.7 million for Q1 2025, marking the first year-over-year organic revenue growth as a listed company, driven by a major contract award and labor growth on existing contracts, partially offset by a subsidiary sale.

• Net loss narrowed to $1.2 million from $4.1 million in Q1 2024, reflecting improved operating efficiency and lower noncash stock-based compensation.

• Gross profit margin remained stable at 39%, with gross profit of $4.6 million.

• Operating loss narrowed to $(1.1) million, compared to $(1.6) million in Q4 2024 and $(4.0) million in Q1 2024.

• Ended the quarter with a record cash balance of $13.3 million, up from $12.3 million at year-end 2024.

Financial highlights

• Revenue: $11.7 million (up 3% year-over-year and 13.6% sequentially).

• Gross profit: $4.6 million (up 1% year-over-year).

• Net loss: $1.2 million (improved from $4.1 million loss in Q1 2024).

• Cash and equivalents: $13.3 million as of March 31, 2025.

• Operating cash flow: $(2.5) million, primarily due to increased accounts receivable.

Outlook and guidance

• Backlog at $203.4 million, with 21% expected to be recognized as revenue in the next 12 months.

• Management expects continued revenue growth from new and existing contracts, with optimism for operational improvement, but notes risks from government budget delays, competition, and spending reductions.