The beat vs low expectations and the large contract win provide a positive narrative, but the YoY revenue decline and continued cash burn warrant caution. Monitor the start of the $54.6M contract in November 2026 and any guidance updates on cash flow or recurring revenue visibility.
Price Chart
Executive Summary
Cycurion reported Q2 2026 results that beat consensus estimates on both revenue ($3.76M vs $3.62M) and EPS (-$0.41 vs -$0.56), while gross margin expanded to 29.1% from 6.1% a year ago. The company also announced a $54.6M, 10-year contract and acquisitions, but revenue declined 3.4% YoY and the company remains deeply net-loss-making, with significant cash burn.
Key Financial Metrics
Key Facts
- Revenue of $3.76M beat consensus of $3.62M but declined 3.4% YoY from $3.89M.
- EPS of -$0.41 beat consensus of -$0.56 by 26.8%.
- Gross margin surged to 29.1% from 6.1% in Q2 2025, a nearly five-fold increase.
- Net loss improved to -$4.04M from -$5.29M in the prior-year quarter.
- Secured a $54.6M, 10-year contract with a global consulting firm, set to start in November 2026.
- Net debt reduced 28% to $5.8M from $8.1M YoY.
- Cash burn remains high: operating cash flow used -$6.17M in H1 2026.
Financial Impact
Revenue beat by ~$140K (3.8%) and EPS beat by $0.15 (26.8%) vs consensus, but top-line declined YoY.
Risk Factors
- Revenue declining YoY despite strong beat vs consensus.
- High cash burn: operating cash flow -$6.17M in H1 2026 vs cash balance of $1.87M.
- Execution risk on large contract and acquisitions; integration may dilute near-term margins.
- Micro-cap liquidity and volatility risk.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3345327 |
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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