Cycurion, Inc. Reports Financial Results for the Second Quarter of 2025
Financial Performance: Cycurion, Inc. reported a significant decline in net revenues and gross profit for Q2 and the first half of 2025, with net revenues dropping by 22.3% to $3.9 million in Q2 compared to the previous year, resulting in a net loss of $5.3 million.
Strategic Initiatives: The company is focusing on converting its contract backlog, advancing digital currency initiatives, and leveraging partnerships with organizations like NACCHO and LSV-TECH to enhance growth prospects despite challenges from budget cuts and deferred contracts.
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- Expansion in Public Health: CYCURION continues to expand its presence in the public health sector.
- New Multi-Year Awards: The company has secured new multi-year awards totaling approximately $1.35 million in annual recurring revenue.

Financial Performance: Cycurion reported a revenue of $3.83 million for Q3 2025, a 13.9% decrease year-over-year, with a net loss of $3.24 million, attributed to merger-related costs and a strategic shift towards higher-margin government contracts.
Contract Backlog and Growth Strategy: The company has a contract backlog exceeding $80 million and is focusing on strategic hires and technology investments to enhance profitability and expand its market presence, particularly in identity-centric cybersecurity.
Future Revenue Projections: Cycurion anticipates a significant increase in revenue, forecasting a run-rate of approximately $4.17 million for Q1 2026, driven by new contracts and a ramp-up in branded revenue.
Balance Sheet Strength: The company has strengthened its balance sheet with total assets growing by 26.4% to $32.31 million and cash reserves increasing to $3.65 million, positioning itself for future growth and operational execution.

Contract Award: Cycurion's subsidiary, SLG Innovation, has secured a $1.1 million contract to modernize legacy data systems for a major county-level public guardian office, enhancing data integrity and operational continuity.
Project Scope: The four-month initiative involves migrating sensitive data from outdated systems to a secure Microsoft SQL Server platform, ensuring real-time accessibility and long-term scalability for the agency's mission.
Company Growth: This project adds to Cycurion's expanding portfolio, which includes over 30 major wins in 2025 and a 98% client retention rate, highlighting its role in mission-critical modernization services.
Operational Resilience: As a designated mission-critical provider, Cycurion guarantees uninterrupted delivery of essential IT services, maintaining public safety and operational stability even during budget impasses.

Cybersecurity Education Initiative: Cycurion, in collaboration with NACCHO, has launched a three-part webinar series aimed at enhancing cybersecurity awareness and strategies for healthcare organizations, focusing on critical threat intelligence and defensive measures.
Webinar Sessions Overview: The series includes sessions on cyber survival tactics, strengthening defenses during high-risk periods like holidays, and addressing emerging cybersecurity challenges in the public health sector, led by industry expert Eric Singleton.
Practical Frameworks for Cybersecurity: Participants will receive actionable insights and protocols to improve their cybersecurity posture, including zero-trust principles, incident response planning, and threat intelligence specific to healthcare vulnerabilities.
Commitment to Public Sector Resilience: Cycurion emphasizes the importance of cybersecurity as a leadership imperative, equipping public sector leaders with the necessary tools and knowledge to anticipate and defend against evolving digital threats.

AI-Enhanced Cybersecurity Development: IQSTEL's AI subsidiary, Reality Border, has completed Phase One of a collaboration with Cycurion to create a new generation of AI-enhanced cybersecurity, integrating a secure Model Context Protocol (MCP) for their AI agents, Airweb.ai and IQ2Call.ai, protected by Cycurion's ARx platform.
Proactive Threat Management: The integration allows for proactive threat hunting and real-time anomaly detection, moving from reactive defense to intercepting and analyzing threats before they impact core assets, thereby enhancing operational security.
MCP Implementation: The MCP standardizes how AI agents interact with external systems, enforcing permissions and policies, while the ARx platform provides a multi-layer defense system that includes geo-gating, bot detection, and dynamic threat intelligence.
Future Growth and Vision: Both companies aim to build a robust AI-enhanced cybersecurity ecosystem, with plans for future phases that will leverage AI to predict and neutralize threats, positioning IQSTEL towards significant revenue growth and technological advancement by 2027.
Delisting Determination: Cycurion, Inc. received a Delisting Determination Letter from Nasdaq due to its common stock price falling below the $1.00 minimum required for continued listing, with trading set to be delisted on October 23, 2025, unless an appeal is filed.
Reverse Stock Split: The company's board approved a 30:1 reverse stock split to regain compliance with Nasdaq's Bid Price Rule, effective October 27, 2025, following prior approval from shareholders for a range of reverse stock split ratios.
Appeal Process: Cycurion has submitted a request to appeal the delisting determination, which will stay the suspension of its securities pending a decision from a Hearings Panel, typically scheduled 30-45 days after the request.
Potential Market Impact: If the appeal fails or compliance is not regained, Cycurion may seek to list its shares on the over-the-counter market, which could lead to reduced liquidity and lower trading prices for its stock.





