Castellum (CTM) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue increased 23% year-over-year to $14.3 million, driven by new and expanded government contracts and ramp-up of long-term contracts secured in 2025.

• Gross profit rose 11% to $5.1 million, with gross margin at 35.4%, impacted by higher subcontractor costs and contract mix.

• Net loss to common shareholders narrowed to $378,093 (or $0.00 per share) from $1.2 million in Q1 2025, reflecting improved operating performance.

• Operating expenses decreased 5% due to lower noncash stock-based compensation.

• Ended the quarter debt-free with $15.8 million in cash, enhancing financial flexibility.

Financial highlights

• Revenue: $14.3 million (Q1 2026) vs. $11.7 million (Q1 2025), up 23%.

• Gross profit: $5.1 million, up 11% year-over-year.

• Adjusted EBITDA improved to $0.4 million from $0.08 million in Q1 2025.

• Net loss: $378,093, improved from $1.2 million loss in prior year.

• Cash on hand: $15.8 million as of March 31, 2026; no long-term debt.

Outlook and guidance

• Record backlog of $273.3 million as of March 31, 2026, with 16% expected to be recognized as revenue in the next 12 months.

• Qualified pipeline reached $938 million, up from $817 million at year-end.

• Management expects sufficient liquidity for at least the next 12 months, supported by cash, operations, and recent equity raises.

• Focused on organic growth, leveraging CMMC Level 2 C3PAO certification, and selective M&A.