Castellum (CTM) Q3 2025 earnings summary

Executive summary

• Revenue grew 26% year-over-year for Q3 2025, driven by a major contract award and labor growth, partially offset by a subsidiary sale.

• Achieved first-ever positive GAAP net income in Q3 2025, marking a significant milestone.

• Net income to common shareholders was $388,582 for Q3 2025, compared to a net loss of $1.3 million in Q3 2024.

• Operating expenses decreased 20% year-over-year due to healthcare cost reductions and lower stock-based compensation.

• Strengthened balance sheet with record cash and further debt reduction.

Financial highlights

• Q3 2025 revenue: $14.6 million (up 26% year-over-year); nine months ended revenue: $40.3 million (up 17%).

• Q3 2025 gross profit: $5.5 million (up 11% year-over-year); nine months gross profit: $15.1 million (up 7%).

• Q3 2025 net income to common shareholders: $388,582; nine months net loss: $1.16 million (improved from $7.3 million loss in 2024).

• Cash on hand at September 30, 2025: $17.8 million, up from $12.0 million at year-end 2024.

• Operating profit was $0.4 million, compared to a loss of $(0.4) million in Q2 2025 and $(7.3) million in Q3 2024.

Outlook and guidance

• Management expects continued revenue recognition from a $103.3 million contract and strong backlog conversion over the next 24 months.

• Management remains focused on long-term growth through organic expansion, product development, and strategic M&A.

• Emphasis on managing for positive cash flow rather than GAAP net income due to recurring non-cash charges.

• A prolonged government shutdown beyond December 1, 2025, could negatively impact business and financial results.

• Anticipates continued momentum and value creation for shareholders.