Castellum (CTM) Q2 2026 earnings summary

Executive summary

• Achieved record first-half 2026 revenue of $28.2 million, up 10% year-over-year, driven by ramp-up of major Navy contracts and a robust backlog anchored in AI-enabled cyber, electronic warfare, and C5ISR programs.

• Maintained a debt-free balance sheet with strong cash reserves, funding all growth investments internally and supporting both organic and M&A growth strategies.

• Strategic focus on organic growth, disciplined M&A, and investment in business development and technology.

• Seven acquisitions since 2019 have expanded capabilities and market reach.

• Achieved CMMC Level 2 certification, enhancing eligibility for federal contracts.

Financial highlights

• First-half 2026 revenue grew 10% year-over-year to $28.2 million; Q2 revenue was $13.9 million, nearly flat year-over-year.

• Gross profit for the first half was $9.8 million (up 2%), with gross margin at 34.7% versus 37.4% prior year; Q2 gross margin was 34%.

• Adjusted EBITDA for the first half was $0.4 million, down from $0.6 million, reflecting planned investments.

• Net loss for the first half was $1.4 million ($0.02/share), a slight improvement from $1.5 million loss prior year; Q2 net loss was $1.1 million.

• Cash and equivalents at June 30, 2026, totaled $16.9 million, up from $14.9 million at year-end 2025; no long-term debt.

Outlook and guidance

• Management expects record full-year 2026 revenue, supported by backlog and expanding pipeline.

• Approximately 16% of backlog expected to be recognized as revenue over the next 12 months, and 48% over the next 24 months.

• Focus for the second half is on converting backlog into higher-margin, durable growth and disciplined execution.

• Ongoing focus on organic growth and strategic acquisitions.