AcquisitionsMay 14, 2026, 08:31 AM
Cycurion Q1 Gross Margin Doubles to 21.1%; Acquisitions Add $7M Revenue
AI Summary
Cycurion, Inc. announced Q1 2026 results, highlighting a clear inflection point in its transformation. The company executed binding agreements to acquire Halo Privacy and HavenX, which are expected to add approximately $7 million in annualized contracted revenues at a 55% gross margin. This increases the estimated one-year contracted backlog to $21 million - $22 million. While Q1 revenue was $3.3 million due to the wind-down of legacy contracts, gross margin nearly doubled to 21.1%, and net loss improved by 51.5% to $2.6 million, driven by a shift to higher-margin work and significant cost reductions.
Key Highlights
- Binding agreements to acquire Halo Privacy and HavenX, adding $7M in annualized contracted revenue at 55% gross margin.
- Contracted backlog expected to convert to revenue in one year increased to $21M-$22M from $15M-$17M with acquisitions.
- Q1 2026 revenue was $3.3M, reflecting planned wind-down of lower-margin legacy contracts.
- Gross margin expanded 900 basis points to 21.1% in Q1 2026 from 12.1% in Q4 2025.
- Net loss improved 51.5% to $2.6M in Q1 2026 from $5.3M in Q4 2025.
- EBITDA loss improved 60.2% to $1.9M in Q1 2026 from $4.9M in Q4 2025.
- Selling, general and administrative expenses decreased $1.3M, or 31.6%, to $2.7M.
- Organizational realignment on track to generate over $2.2M in annualized savings.