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Cycurion, Inc. Reports Financial Results for the Second Quarter of 2025

MCLEAN, Va., Aug. 14, 2025 (GLOBE NEWSWIRE) -- Cycurion, Inc. (NASDAQ: CYCU) (鈥淐ycurion鈥� or the 鈥淐ompany鈥�), a premier cybersecurity and IT solutions provider, today announced its financial results for the second quarter and first half of 2025. Amid headwinds from Department of Government Efficiency (DOGE) budget reductions and postponed government contracts, Cycurion is prioritizing the conversion of its expanding contract pipeline, advancing its digital currency initiatives, and capitalizing on partnerships with NACCHO, LSV-TECH, and IQSTEL, among others, to fuel future growth.

Key Financial Results for the Second Quarter Ended June 30, 2025

• Net Revenues: $3.9 million, a 22.3% decrease from $5.0 million in Q2 2024
  
  
• Gross Profit: $0.2 million, a 77.0% decrease from $1.0 million in Q2 2024
  
  
• Adjusted EBITDA: $(1.0) million, compared to $0.7 million in Q2 2024
  
  
• Net Loss: $(5.3) million, or $(0.15) per basic and diluted share, compared to net income of $0.3 million, or $0.02 per basic share and $0.01 per diluted share, in Q2 2024
  
  
• Cash and Cash Equivalents: $1.0 million at June 30, 2025 compared to $0.04 million at December 31, 2024

Key Financial Results for the Six Months Ended June 30, 2025

• Net Revenues: $7.8 million, a 16.1% decrease from $9.2 million in the prior-year period
  
  
• Gross Profit: $0.9 million, a 33.3% decrease from $1.4 million in the first half of 2024
  
  
• Adjusted EBITDA: $(0.5) million, compared to $0.7 million in the prior-year period
  
  
• Net Loss: $(15.5) million, or $(0.58) per basic share and $(0.57) per diluted share, versus a net loss of $(0.01) million, or $0.02 per basic share and $0.01 per diluted share, in the prior-year period

Management Commentary

鈥淎lthough DOGE budget constraints and deferred contracts impacted our results in the first half of 2025, our third and fourth quarters have traditionally been robust, and we are encouraged by the potential to accelerate revenue from our expanding backlog,鈥� stated Kevin Kelly, CEO and Chairman of Cycurion, Inc. 鈥淭hrough Cycurion Digital Currency鈥檚 innovative approach, alongside collaborations with NACCHO, LSV-TECH, and IQSTEL, we are well-equipped to meet rising cybersecurity needs and deliver sustained shareholder value.鈥�

Business and Strategic Developments

• Second-Half Expectations: Cycurion鈥檚 Q3 and Q4 have historically driven stronger results from seasonal contract cycles. The Company is actively pursuing conversions from its backlog, which has swelled amid DOGE delays, with anticipated advancements as federal funding stabilizes鈥攖hough timelines are variable
  
  
• Expanding Pipeline: DOGE cuts have contributed to a larger contract backlog; leadership is committed to realizing these opportunities in the latter half of 2025, contingent on easing government fiscal pressures
  
  
• Digital Currency Initiative: The launch of Cycurion Digital Currency, a fully owned subsidiary, includes a $10 million commitment to Bitcoin and Ethereum investments, prioritizing long-term holdings, clear reporting, and adherence to regulations. This move broadens the Company鈥檚 portfolio in the dynamic digital economy
  
  
• Key Collaborations:
  
  
  • NACCHO Collaboration: Teaming with the National Association of County and City Health Officials (NACCHO) enables Cycurion to offer premium cybersecurity services to public health entities, tackling urgent online risks
    
    
  • LSV-TECH Collaboration: Partnering with LSV-TECH International Consortium extends Cycurion鈥檚 MSSP Cyber Shield platform into Latin America, tapping into LSV-TECH鈥檚 ties with Colombian academic institutions and its Nokia-backed network spanning 135 nations
    
    
  • IQSTEL Collaboration: A $1 million stock-swap MOU with IQSTEL establishes an equity alliance to build an AI-enhanced cybersecurity solution for telecom worldwide. Merging Cycurion鈥檚 security prowess with IQSTEL鈥檚 access to 600+ operators unlocks mutual sales channels and innovative advancements
    
    
• SLG Integration: Cycurion secured a 51% stake in SLG Innovation, Inc. on March 31, 2025, for about $13.5 million, bolstering its tech services lineup and growth trajectory
  
  
• Balance Sheet Enhancement: In the first half of 2025, Cycurion secured $0.3 million via an equity line and $3.7 million from warrant exercises, while transforming convertible notes and promissory notes into equity for improved financial health

Balance Sheet Overview: June 30, 2025

• Cash: Cash and cash equivalents totaled $1.0 million, up 2,516.9% from $0.04 million at December 31, 2024, driven by financing activities including warrant exercises and note proceeds.
  
  
• Liquidity: The Company is advancing efficiency measures and funding strategies to enhance liquidity, supported by $5.6 million in net cash from financing activities in the first half of 2025, despite $6.3 million in cash used in operating activities.
  
  
• Working Capital: A working capital shortfall of $14.3 million persists, reflecting a 23.2% increase in current liabilities to $20.0 million from $18.7 million at year-end 2024, primarily due to factoring liabilities and accounts payable growth.
  
  
• Debt: Gross debt totaled $9.9 million, including $3.2 million in revolving credit, $0.6 million in current bank loans, $0.9 million in current loans payable, $2.3 million in factoring liability, $2.7 million in promissory notes, $0.2 million in related-party loans, and $0.3 million in non-current loans, relatively stable compared to $10.5 million at December 31, 2024.Total assets reached $30.7 million, up from $25.6 million at year-end 2024, largely from SLG-related goodwill

Nasdaq Update

Cycurion is addressing compliance notifications from Nasdaq concerning bid price minimums, market value thresholds, and filing timelines, aiming for resolution by October 2025.

Forward Outlook

Cycurion is dedicated to overcoming DOGE hurdles and harnessing its backlog for H2 2025 revenue gains, especially in peak Q3 and Q4 periods. With Cycurion Digital Currency and alliances like NACCHO, LSV-TECH, and IQSTEL, the Company is primed to seize cybersecurity and digital innovation prospects. Investments continue in core areas such as advisory consulting, managed security, and SaaS, amplified by the SLG acquisition for broader market reach.

Full details are available in Cycurion鈥檚 Form 10-Q for the quarter ended June 30, 2025, submitted to the U.S. Securities and Exchange Commission on August 14, 2025.

About Cycurion, Inc.

Based in McLean, Virginia, Cycurion (NASDAQ: CYCU) is a forward-thinking provider of IT cybersecurity solutions and AI, committed to delivering secure, reliable, and innovative services to clients worldwide. Specializing in cybersecurity, program management, and business continuity, Cycurion harnesses its AI-enhanced ARx platform and expert team to empower clients and safeguard their operations. Along with its subsidiaries, Axxum Technologies, Cloudburst Security, and Cycurion Innovation, Inc., Cycurion serves government, healthcare, and corporate clients committed to securing the digital future.

More info: www.cycurion.com

Forward-Looking Statements

This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to the operations and prospective growth of Cycurion鈥檚 business.

Many factors could cause Cycurion鈥檚 actual results, performance, or achievements to be materially different from any future results, performance, or achievements described in this press release, including words such as 鈥渃ontinue鈥�, 鈥渆xpect鈥�, 鈥渋ntend鈥�, 鈥渨ill鈥�, 鈥渉ope鈥�, 鈥渟hould鈥�, 鈥渨ould鈥�, 鈥渕ay鈥�, 鈥減otential鈥�, and other similar expressions. Such factors could include, among others, those detailed in its Registration Statement on Form S-1 and in its Annual Report on Form 10-K, each as filed with the Securities and Exchange Commission (the 鈥淪EC鈥�). Should one or more of these risks or uncertainties materialize, or should the assumptions set out in the section entitled 鈥淩isk Factors鈥� in those filings with the SEC underlying those forward-looking statements prove incorrect, actual results may vary materially from those described herein. These forward-looking statements are made as of the date of this press release and Cycurion does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by law. Cycurion cannot assure that such statements will prove to be accurate as actual results, and future events could differ materially from those anticipated in such statements. Individuals are cautioned that forward-looking statements are not guarantees of future performance and, accordingly, investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.

These statements, including expectations for revenue conversion from the backlog, the benefits of the IQSTEL alliance and stock exchange, and the success of the digital currency strategy, are based on management鈥檚 current expectations and are subject to risks and uncertainties, including economic conditions, regulatory changes, and the Company鈥檚 ability to address liquidity concerns. For a discussion of these risks, please refer to Cycurion鈥檚 filings with the SEC.

Investor Relations Contact: Cycurion Investor Relations
[email protected]
(888) 341-6680

Media Relations Contact: Cycurion Communications
[email protected]
(888) 341-6680