Revenue decline and cash burn are concerning, but the sharp improvement in net loss, gross margin expansion, and pending accretive acquisitions signal a turnaround in progress. Monitor the closing of Halo Privacy/HavenX deals and next quarter's revenue trajectory to confirm the inflection point. The $112M backlog provides visibility but conversion pace is key.
Price Chart
Executive Summary
Cycurion reported Q1 2026 revenue of $3.27M, down 15.5% YoY from $3.87M, with a net loss of $2.13M (improved 79% YoY from a $10.25M loss). Gross margin expanded 900 bps QoQ to 21.1%, and the company announced binding agreements to acquire Halo Privacy and HavenX, adding ~$7M in annualized contracted revenue at ~55% gross margin. Cash burn continues, with cash dropping to $2.03M from $5.26M at year-end 2025.
Key Facts
- Q1 2026 revenue of $3,268,620, down from $3,870,050 in Q1 2025 (YoY decline of ~15.5%)
- Net loss attributable to Cycurion improved to $2,128,462 from $10,248,486 in Q1 2025
- Gross margin expanded to 21.1% from 12.1% in Q4 2025 and 17.5% in Q1 2025
- Cash and cash equivalents fell to $2,028,718 from $5,255,235 at December 31, 2025
- Binding agreements to acquire Halo Privacy and HavenX, adding ~$7M in annualized contracted revenue at ~55% gross margin
- Contracted backlog of $112M, with ~$15-17M expected to convert to revenue over next twelve months
- Organizational realignment expected to generate over $2.2M in annualized savings
Financial Impact
Revenue declined ~$601K YoY; net loss improved ~$8.1M YoY; cash burn of ~$3.2M in Q1; pending acquisitions add ~$7M annualized revenue at ~55% gross margin
Risk Factors
- Continued revenue decline from legacy contract wind-down without sufficient replacement ramp
- Cash burn rate may require additional financing before acquisitions close or revenue materializes
- Acquisition integration risk and execution on cost reduction targets
- Warrant overhang with exercise price of $345 per share (far out of the money)
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-034832 |
| Document: cycu-20260514.htm | 0001628280-26-034832 |
| Document: 0001628280-26-034832-index-headers.html | 0001628280-26-034832 |
| Document: 0001628280-26-034832-index.html | 0001628280-26-034832 |
| Document: 0001628280-26-034832.txt | 0001628280-26-034832 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jun 9, 2026 16w ago | 8-K | $0.0212 $0.0220 | ▲ +3.77% | ▲ +0.15% | — |
Jun 8, 2026 16w ago | 10-K/A | $0.0239 $0.0220 | ▼ −7.95% | ▼ −9.40% | — |
Jun 4, 2026 17w ago | 8-K | $0.0212 $0.0221 | ▼ −4.25% | ▼ −2.38% | — |
Jun 2, 2026 17w ago | 8-K | $0.0212 $0.0208 | ▼ −1.89% | ▼ −0.89% | — |
May 29, 2026 18w ago | 8-K | $0.0212 $0.0190 | ▼ −10.38% | ▼ −8.58% | — |
May 26, 2026 18w ago | 8-K | $0.0212 $0.0209 | ▼ −1.42% | ▲ +0.49% | — |
May 14, 2026 20w ago | 8-K | $0.0212 $0.0212 | · 0.00% | ▲ +0.86% | — |
May 8, 2026 21w ago | 8-K | $0.0212 $0.0212 | · 0.00% | ▼ −0.02% | — |
Apr 14, 2026 24w ago | 8-K | $0.0212 $0.0212 | · 0.00% | ▲ +6.30% | — |
Apr 8, 2026 25w ago | 8-K | $0.0212 $0.0212 | · 0.00% | ▼ −8.54% | — |
US Market Status
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