Cycurion CEO Releases Shareholder Letter, $80M Contracted Backlog for 2025
Cycurion released a Letter to Shareholders from Kevin Kelly, CEO, which read in part, "As we close out this productive and successful year of 2025 with an impressive $80M company contracted backlog orders on our books, we now look forward to significantly expanding our AI powered cybersecurity business plan for 2026 and beyond. At this moment, I would like to review for you some of our most significant milestones and reflect upon the Cycurion vision in the increasingly important global cybersecurity landscape. We started this long and arduous journey almost four years ago to list our company on NASDAQ and create lasting value for our business and shareholders. We are proud to continue building on the strong groundwork that all of our team members have laid in 2025 as we launch into 2026 with unprecedented company-wide commitment...Cycurion today is an AI-driven cybersecurity company. We employ cutting-edge artificial intelligence technologies to lock down and secure organizations, protecting them from ever more sophisticated and persistent threats. Nefarious actors are coming at us from every angle, making cybersecurity more critical than ever, whether it's safeguarding individuals or defending large corporations. Cycurion also supports our government's federal and state agencies, including the Department of Justice, the Department of Defense, and others. In addition to our federal engagements, we're actively partnering with state and local governments, currently in Texas and Illinois, and expanding into several additional states as part of our national growth strategy. Cycurion delivers pinpoint intelligence, including the exact geographic location of the breach, the specific department affected, and whether containment measures are required across other areas of the organization. We are serving the underserved and protecting businesses of all sizes, including small and medium enterprises in an unforgiving digital landscape. We intend to give our utmost in defense of our clients at every level because nothing matters more than their security and peace of mind."
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- Stock Surge: Kustom Entertainment Inc. shares jumped 40.28% in after-hours trading to $2.96, reflecting strong market sentiment following the announcement of its video solutions division divestiture.
- Video Division Sale Agreement: The company entered a non-binding Memorandum of Understanding with Virginia-based Cycurion Inc. for a transaction valued between $6 million and $8.5 million, with $1 million to $1.4 million in cash and the remainder in Cycurion preferred stock.
- Strategic Shift to Live Events: This divestiture allows Kustom to sharpen its focus on live event production and proprietary online ticketing, aligning with its Nasdaq rebranding strategy, as CEO Stanton E. Ross emphasized the significant opportunities in the entertainment sector.
- Market Performance Analysis: Kustom's Relative Strength Index (RSI) stands at 43.19, with a market capitalization of $1.69 million; the stock has a 52-week high of $4.48 and a low of $1.80, indicating that its recovery potential needs further confirmation given its proximity to the low end of its range.

- Acquisition Agreement: Cycurion has signed a memorandum of understanding to acquire Kustom Entertainment's video solutions division, with a transaction value between $6.0M and $8.4M, including $1.0M to $1.4M in cash and the remainder in preferred stock, reflecting the company's confidence in future growth.
- Revenue Growth Projection: The acquisition is expected to boost 2026 revenue by approximately $5.1M and add around $8.0M in backlog, providing strong visibility into future revenues and further solidifying the company's market position.
- Customer Base Expansion: This transaction will broaden Cycurion's customer reach and enhance its integrated capabilities in the public safety and cybersecurity ecosystem, increasing its competitive edge in the market.
- Strategic Implications: The acquisition not only serves as a robust addition to the company's operations but also propels its strategic positioning in the rapidly evolving cybersecurity sector, aiding in the achievement of long-term growth objectives.

- Transaction Overview: Cycurion has signed a Memorandum of Understanding to acquire Kustom Entertainment's video solutions division for $6-8.4 million, with $1-1.4 million in cash and the remainder in preferred stock, indicating strong confidence in future growth.
- Revenue Growth Expectations: The acquisition is expected to increase Cycurion's revenues by approximately $5.1 million, or 35%, in 2026 compared to 2025, while adding $8 million in backlog from established contracts, further solidifying its market position and enhancing recurring revenue capabilities.
- Customer Base Expansion: This acquisition will provide Cycurion access to Kustom's extensive client footprint across all 50 U.S. states and over 30 countries, significantly enhancing its competitiveness in the public safety and enterprise markets and unlocking substantial cross-selling potential.
- Market Reaction: Following the announcement, Cycurion's shares rose 3.89% to $2.60, reflecting positive market sentiment towards the acquisition, while Kustom's shares fell 3.26% to $2.08, indicating investor concerns about its future performance.
- Strategic Shift: Kustom Entertainment has signed a non-binding MOU with Cycurion to divest its video solutions division for an estimated $6 million to $8.5 million, allowing the company to focus on its rapidly growing live event production and online ticketing operations, thereby enhancing its competitiveness in the $100 billion entertainment market.
- Liquidity Enhancement: The transaction is expected to provide cash consideration of $1 million to $1.4 million, with the remainder paid in Cycurion preferred stock, a structure that not only offers immediate liquidity but also sets the stage for long-term equity appreciation.
- Event Management Expansion: By offloading its video solutions division, Kustom aims to aggressively expand its footprint in the live event management and online ticketing sectors, controlling the entire fan experience from ticket purchase to the final encore, thus increasing market share.
- Country Stampede Blueprint: Kustom's flagship event, the Country Stampede Music Festival, will celebrate its 30th anniversary in 2026, and the company plans to leverage this successful model to expand nationwide event production and integrated ticketing services, further solidifying its position in the entertainment industry.
- Profitability Target: IQSTEL aims to achieve a $15 million adjusted EBITDA run rate by 2026, a milestone that will pave the way for the company to reach a $1 billion revenue run rate by 2027, indicating a significant enhancement in its profitability.
- Global Expansion: The company plans to expand its telecom licenses into at least three new countries in 2026 and complete acquisitions of several strategic telecom subsidiaries, which is expected to extend its commercial footprint to approximately 30 countries, thereby enhancing its competitiveness in the global market.
- Cost Consolidation: IQSTEL will migrate most of its telecom subsidiaries to a unified technological platform, which is anticipated to significantly reduce operating costs and improve scalability, providing support for future business growth.
- Shareholder Engagement: IQSTEL plans to enhance shareholder interaction through quarterly live earnings calls, aiming to increase institutional and long-term holdings from 5% to 10%, thereby boosting shareholder confidence and attracting more investment.
- Contract Backlog Growth: Cycurion's current contracted backlog has reached $80 million, indicating strong demand in the cybersecurity sector and laying a solid foundation for business expansion in 2026.
- Shareholder Reward Plan: The company plans to distribute $500,000 worth of CYCU common shares to each shareholder at a ratio of 0.0080 per share, aimed at enhancing shareholder confidence and improving market perception.
- New Contract Approval: Cycurion has been awarded a management consulting services contract by the State of Florida, positioning the company as an eligible vendor and expected to generate new revenue streams while enhancing its competitiveness in the government market.
- Revenue Growth Momentum: The forecasted annual run-rate revenue for Q1 2026 is projected to reach approximately $16.66 million, reflecting the company's strategic pivot towards high-margin SLED contracts and sustained market demand.









