Cycurion (CYCU) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was $3.27 million, down 15.5% year-over-year due to planned wind-down of legacy contracts and transition to higher-margin work.

• Gross margin improved to 21.1%, a 900 basis point expansion year-over-year, reflecting cost-saving initiatives and a shift to higher-margin contracts.

• Net loss attributable to common stockholders was $2.13 million, a significant improvement from $10.25 million in Q1 2025 and $5.11 million in Q4 2025.

• The company is pursuing organic growth and strategic acquisitions, including the integration of SLG Innovation and binding agreements to acquire Halo Privacy and HavenX.

• Contracted backlog and acquisitions are expected to deliver $21–$22 million in annual revenue over the next year.

Financial highlights

• Revenue: $3.27 million for Q1 2026, down from $3.87 million in Q1 2025 and $3.54 million in Q4 2025.

• Gross profit: $0.69 million for Q1 2026, up slightly from $0.68 million in Q1 2025.

• Operating loss: $2.37 million for Q1 2026, improved from $10.10 million in Q1 2025.

• EBITDA loss improved to $1.94 million from $4.87 million in Q4 2025.

• Cash and cash equivalents: $2.03 million as of March 31, 2026, down from $5.26 million at year-end 2025.

Outlook and guidance

• Management expects continued operating losses in the near term and is focused on improving cash flows and raising additional capital.

• Annual revenue visibility of $21–$22 million over the next twelve months, including new acquisitions.

• Cost reduction initiatives are on track to generate over $2.2 million in annualized savings.

• The company plans to leverage public offerings to reduce leverage and support growth.

• Recent acquisitions are expected to contribute to revenue growth and expand service offerings.