Kustom Entertainment Closes Sale of 51% Stake in Nobility Healthcare
Kustom Entertainment announced that it has closed the sale of its 51% ownership interest in Nobility Healthcare, its healthcare billing and revenue cycle management subsidiary. This step is in conjunction with its previously announced major corporate rebranding, by changing its name to Kustom Entertainment and its Nasdaq ticker symbol to "KUST". The Company sold its majority stake to the current 49% minority owner for total estimated proceeds of $1.45 million. The transaction closed on January 8, 2026, and was structured as follows: $100,000 in cash paid at closing; $209,501 in credits related to previous advances and net working capital; A promissory note in the principal amount of $1,140,499 bearing 6% interest, with quarterly payments commencing on the 20th business day of July 2026, subject to certain earn-out provisions
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- Earnings Beat: F5, Inc. reported Q1 earnings of $4.45 per share, exceeding analyst expectations of $3.65 by 21.88%, indicating a significant improvement in profitability that is likely to positively impact stock prices.
- Revenue Growth: The quarterly revenue reached $822.47 million, surpassing the Street estimate of $758.08 million, demonstrating enhanced competitiveness in the market that may attract more investor interest.
- Optimistic Outlook: The company provided second-quarter sales guidance above estimates and raised its FY26 guidance, reflecting management's confidence in future growth, which could further drive stock price increases.
- Positive Stock Reaction: F5 shares jumped 10.9% to $299.99 in pre-market trading, indicating strong market response to its earnings report, which may draw in more investors and bolster market confidence.
- 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.
- Earnings Beat: Baker Hughes reported adjusted earnings of 78 cents per share for Q4, surpassing market expectations of 67 cents, indicating strong performance in the oil and gas sector, which is likely to boost investor confidence.
- Sales Growth: The company's quarterly sales reached $7.386 billion, exceeding expectations of $7.068 billion, reflecting its competitive edge amid recovering market demand and potentially driving future business expansion.
- Stock Price Surge: Baker Hughes shares rose 3.7% to $55.81 in pre-market trading, indicating a positive market reaction to its financial performance, which may attract more investor interest.
- Industry Impact: This earnings improvement not only strengthens Baker Hughes' market position but could also positively influence the entire oil and gas industry, prompting other companies to increase investment and innovation efforts.

- 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 Restructuring: Kustom Entertainment's sale of its 51% stake in Nobility Healthcare for $1.45 million signifies a strategic pivot towards the rapidly growing live entertainment and online ticketing markets, expected to enhance its competitive positioning.
- Liquidity Assurance: The transaction includes $100,000 in cash, $209,501 in debt and working capital credits, and a long-term promissory note of $1,140,499, ensuring liquidity during the transition phase.
- Event Expansion: Kustom plans to leverage the successful model of the Country Stampede Music Festival to scale its live event and ticketing services nationwide, aiming to attract more top-tier talent and audiences, thereby enhancing brand influence.
- Market Outlook: The company will focus on the $100 billion live event market, with the CEO stating intentions to pursue a dominant market share through the Kustom Entertainment and TicketSmarter platforms, ensuring effective resource allocation for long-term growth.

- Strategic Restructuring: Kustom Entertainment has completed the sale of its 51% stake in Nobility Healthcare for $1.45 million, marking a significant strategic shift towards the rapidly growing live entertainment and online ticketing markets.
- Funding Structure: The transaction includes $100,000 in cash, $209,501 in debt and working capital credits, and a long-term promissory note of $1,140,499 at 6% interest, demonstrating a balance between liquidity and long-term value.
- Market Potential: By divesting healthcare assets, Kustom Entertainment aims to expand its footprint in the $100 billion global live event market, focusing on enhancing its ticketing platform's integration capabilities to improve customer experience.
- Event Expansion: The company plans to leverage the success of the Country Stampede Music Festival to promote its event production and ticketing services nationwide, attracting more top-tier artists and audiences to further solidify its market position.








