The Q2 beat and major contract win provide a positive narrative, but the YoY revenue decline and ongoing losses keep the risk profile elevated. Monitor Q3 2026 for the commencement of the $54.6M contract in November and whether gross margin expansion sustains. Given the micro-cap status and poor historical stock performance, traders should watch for potential dilution from the convertible notes and preferred stock overhang.
Price Chart
Executive Summary
Cycurion reported Q2 2026 results that beat consensus on both revenue ($3.76M vs $3.62M) and EPS (-$0.41 vs -$0.56), with gross margin expanding nearly 5x to 29.1%. The company also announced a landmark $54.6M, 10-year contract and transformative acquisitions, driving an estimated $30M revenue run rate. However, revenue declined slightly YoY and the company remains unprofitable, tempering the positive operational momentum.
Key Facts
- Q2 2026 revenue of $3.76M beat consensus of $3.62M but declined from $3.89M in Q2 2025 (-3.3% YoY)
- EPS of -$0.41 beat consensus of -$0.56; net loss improved to -$4.0M from -$5.3M YoY
- Gross margin surged to 29.1% from 6.1% in the prior-year period
- Adjusted EBITDA improved to -$1.4M from -$2.1M YoY
- Net debt reduced 28% to $5.8M from $8.1M YoY
- Secured a $54.6M, 10-year contract with a global consulting firm, expected to generate >$5M annual recurring revenue starting November 2026
- Acquired Secuvant and Kustom's video solutions; estimated $30M revenue run rate
- Pursuing 122 open opportunities representing ~$34M in potential first-year contract value
Financial Impact
Revenue beat consensus by ~4% ($3.76M vs $3.62M); gross profit increased ~4.6x to $1.1M; net loss narrowed by 24% YoY to -$4.0M
Risk Factors
- Revenue declined YoY despite the beat, indicating underlying business contraction
- Cash and cash equivalents of $1.87M are low relative to $19.5M in current liabilities
- Significant convertible notes ($2.69M) and preferred stock (multiple series) create dilution risk
- The $54.6M contract does not commence until November 2026, with no guarantee of execution
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-056952 |
| Document: cycu-20260814.htm | 0001628280-26-056952 |
| Document: 0001628280-26-056952-index-headers.html | 0001628280-26-056952 |
| Document: 0001628280-26-056952-index.html | 0001628280-26-056952 |
| Document: 0001628280-26-056952.txt | 0001628280-26-056952 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 8, 2026 24d ago | 8-K | $3.51 $3.36 | ▼ −4.27% | ▼ −3.61% | $3.82 (+8.83%) |
Aug 28, 2026 5w ago | 8-K | $3.85 $3.54 | ▼ −8.05% | ▼ −8.16% | $3.82 (−0.78%) |
Aug 28, 2026 5w ago | 8-K | $3.85 $3.54 | ▼ −8.05% | ▼ −8.16% | $3.82 (−0.78%) |
Aug 26, 2026 5w ago | Press Release | $0.4586 $3.03 | ▼ −560.71% | ▼ −560.83% | $3.82 (−732.97%) |
Aug 26, 2026 5w ago | Press Release | $0.4586 $3.03 | ▲ +560.71% | ▲ +560.83% | $3.82 (+732.97%) |
Aug 19, 2026 6w ago | 8-K | $5.54 $3.67 | ▼ −33.67% | ▼ −33.28% | $3.82 (−31.00%) |
Aug 18, 2026 6w ago | 8-K | $5.54 $3.67 | ▼ −33.67% | ▼ −33.28% | $3.82 (−31.00%) |
Aug 14, 2026 7w ago | 8-K | $0.6850 $0.6539 | ▼ −4.54% | ▼ −3.17% | $3.82 (+457.66%) |
Aug 14, 2026 7w ago | Press Release | $0.6850 $0.6539 | ▼ −4.54% | ▼ −3.17% | $3.82 (+457.66%) |
Aug 12, 2026 7w ago | 8-K | $4.96 $5.54 | ▲ +11.61% | ▲ +12.06% | $3.82 (−22.98%) |
US Market Status
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