The EPS beat is largely mechanical from a tiny share base (4.6M shares) and prior-year one-time charges — the revenue miss and cash burn are the real story. Watch for closing of the Halo/HavenX acquisitions and whether the backlog converts to revenue as guided. With only $2M cash and negative operating cash flow, a dilutive capital raise is likely within 2-3 quarters.
Price Chart
Executive Summary
Cycurion reported Q1 2026 EPS of -$0.36, beating consensus of -$0.83 by 56.6%, on revenue of $3.3M (below $3.5M consensus and down 15.5% YoY). Gross margin nearly doubled to 21.1% from 12.1% QoQ, and net loss improved 51.5% to -$2.6M. The company highlighted binding agreements to acquire Halo Privacy and HavenX, adding ~$7M in annualized contracted revenue, and a $112M backlog expected to deliver $15-17M over 12 months. Despite the EPS beat, the revenue miss and ongoing cash burn (operating cash flow -$2.9M) temper the outlook.
Key Financial Metrics
Key Facts
- Q1 2026 EPS -$0.36 vs consensus -$0.83 (56.6% beat)
- Revenue $3.27M vs consensus $3.5M (miss) and down 15.5% YoY from $3.87M
- Gross margin expanded to 21.1% from 12.1% QoQ and 17.5% YoY
- Net loss improved 51.5% to -$2.6M from -$5.3M QoQ
- Operating cash flow -$2.9M, cash balance $2.0M down from $5.3M at year-end
- Binding agreements to acquire Halo Privacy and HavenX for ~$7M annualized revenue at ~55% gross margin
- $112M contracted backlog expected to deliver $15-17M over next 12 months
- Cost reduction initiatives targeting $2.2M in annualized savings
Financial Impact
EPS beat of $0.47 vs consensus ($0.36 vs -$0.83) is significant on a percentage basis but on a small absolute base; revenue miss of $0.23M vs consensus; cash burn of $2.9M in operating cash flow
Risk Factors
- Revenue declined 15.5% YoY due to legacy contract wind-down — replacement revenue ramp uncertain
- Cash burn of $2.9M/quarter with only $2.0M cash on hand implies need for financing within 2 quarters
- Acquisition integration risk for Halo Privacy and HavenX — deals not yet closed
- High debt load ($7.8M in total debt including convertible notes and promissory notes) relative to market cap of $5M
- Negative EBITDA and operating losses continue, albeit narrowing
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3294911 |
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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