Castellum (CTM) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached a record $14.0 million, up 22% year-over-year, driven by a major contract award and growth on existing contracts.

• Net loss to common shareholders for Q2 2025 was $0.35 million, a significant improvement from a $1.88 million loss in Q2 2024, with operating loss narrowing to $(0.4) million.

• Operating expenses decreased 13% year-over-year due to cost-saving initiatives and reduced stock-based compensation.

• Ended Q2 2025 with a record cash balance of $14.7 million, up from $13.3 million in Q1.

• Two public offerings in March and June 2025 raised gross proceeds of $9.5 million for working capital and general corporate purposes.

Financial highlights

• Q2 2025 revenue: $14.0 million (up 22% YoY); six-month revenue: $25.7 million (up 12% YoY).

• Gross profit for Q2 2025: $5.1 million (up 8% YoY); gross margin declined due to higher subcontractor costs.

• Net loss for Q2 2025: $0.35 million; six-month net loss: $1.55 million (improved from $6.02 million loss in prior year period).

• Adjusted EBITDA for Q2 2025: $0.5 million, excluding non-cash and one-time items.

• Debt reduced by $3.7 million during the quarter.

Outlook and guidance

• Backlog as of June 30, 2025: $202.0 million, with 22% expected to be recognized as revenue in the next 12 months.

• Management expects continued revenue growth from recent contract wins and ongoing government demand for cybersecurity and IT services, with a focus on long-term value creation.