Cycurion (CYCU) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 2026 was $3.8M, nearly flat year-over-year and exceeding consensus, with gross margin improving to 29.1% from 6.1% in Q2 2025 due to cost-saving initiatives.

• Net loss attributable to shareholders narrowed to $3.8M for Q2 2026 from $5.2M in Q2 2025; EPS of $(0.41) beat consensus.

• The company completed acquisitions of Secuvant LLC and Kustom Entertainment's video solutions business, adding $6.4M in goodwill and expanding managed security services.

• Secured a landmark $54.6M, 10-year contract, with expected annual revenue exceeding $5M and estimated $30M revenue run rate achieved.

• As of June 30, 2026, cash and equivalents were $1.87M, with a working capital deficit of $13.6M and accumulated deficit of $32.8M, raising substantial doubt about going concern.

Financial highlights

• Q2 2026 revenue: $3.8M (down 3.4% YoY); six-month revenue: $7.0M (down from $7.8M YoY).

• Gross profit rose to $1.1M from $0.2M year-over-year; gross margin: 29.1% for Q2 2026, up from 6.1% in Q2 2025.

• Net loss Q2 2026: $3.8M; six-month net loss: $5.9M.

• Adjusted EBITDA improved to $(1.4)M from $(2.1)M year-over-year.

• Cash used in operations for six months: $6.17M; cash provided by financing: $5.58M.

Outlook and guidance

• Management plans to improve operations, generate positive cash flows, and raise additional capital through equity and other financing.

• $54.6M contract to commence in November 2026, providing recurring revenue and increased revenue visibility.

• Management expects improved operating performance in H2 2026 and into 2027, supported by cost controls and a robust pipeline.

• Continued significant operating losses are expected for the next few years; additional capital is needed to sustain operations.