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 $271.7 million backlog anchored in cyber, electronic warfare, and C5ISR programs.

• Maintained a debt-free balance sheet with $16.9 million in cash at June 30, 2026, supporting organic and M&A growth.

• Net loss for the first half was $1.4 million, improved from $1.55 million year-over-year; Q2 net loss was $1.05 million.

• Achieved CMMC Level 2 certification and secured new Navy contracts, expanding the portfolio and pipeline.

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

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 (34.7% margin), up 2% year-over-year; Q2 gross profit was $4.7 million (34% margin), down from $5.1 million (36%) in the prior year.

• Net loss for the first half was $1.4 million ($0.02 per share); Q2 net loss was $1.05 million ($0.01 per share).

• Adjusted EBITDA for the first half was $0.4 million (1.5% margin), down from $0.6 million year-over-year, reflecting front-loaded investments.

• Cash and equivalents at June 30, 2026, totaled $16.9 million, up from $14.8 million at the end of H1 2025; operating cash flow for the first half was $2.4 million.

Outlook and guidance

• Management expects record full-year 2026 revenue, supported by backlog and expanding pipeline, with focus on converting backlog into higher-margin growth.

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

• Continued disciplined execution and investment in business development, M&A, and mission technologies to drive multi-year growth.

• Sufficient liquidity expected for at least the next 12 months, with no immediate plans for share buybacks.