10-K · June 8, 2026
Cycurion reports ongoing financial challenges with a revenue of $3 million and a diluted EPS of -$0.47 for Q1 2026, falling short of analyst expectations. The company has initiated a restructuring of its debt and is in…
Earnings analysis · 10-Q
CYCU earnings analysis
Filed August 14, 2026 · Our reading of the company's report
The latest report
Cycurion delivered a mixed quarter: revenue declined 3.4% year over year to $3.8 million, but gross margin improved substantially to 29.1% and EPS of $(0.41) exceeded the $(0.56) consensus estimate. Losses remain…
Read full summary
Cycurion delivered a mixed quarter: revenue declined 3.4% year over year to $3.8 million, but gross margin improved substantially to 29.1% and EPS of $(0.41) exceeded the $(0.56) consensus estimate. Losses remain significant, with a $1.9 million operating loss in the quarter and $6.2 million of operating cash usage in the first half. The $13.6 million working-capital deficit, $1.9 million of unrestricted cash, explicit going-concern uncertainty, and pending Nasdaq delisting hearing outweigh the margin and EPS improvements.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.41
What stood out
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Revenue pressured by contract-start delay
Second-quarter revenue was $3,757,076, down 3.4% from $3.9 million in the prior-year quarter, primarily due to a delay in the start of a large contract.
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Gross margin expanded sharply
Gross profit increased to $1,093,337 from $235,937, while gross margin expanded to 29.1% from 6.1%, a 23.0 percentage-point improvement driven by cost-saving efforts.
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Operating loss narrowed year over year
Operating loss improved to $(1,884,705) from $(3,766,077), despite SG&A increasing to $2,641,320 from $2,313,343. The operating margin improved to approximately negative 50.2% from negative 96.9%.
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EPS beat consensus and prior year
Diluted EPS was $(0.41), better than the $(0.56) consensus estimate and improved from $(4.42) in the prior-year quarter.
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Lower interest burden
Interest expense declined to $227,941 from $615,392 as the company reduced debt through cash payments and conversions to equity.
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Secuvant expanded the asset base
The Secuvant acquisition completed on June 3, 2026, contributing to total assets increasing to approximately $38.4 million from approximately $33.5 million at December 31, 2025, primarily through higher goodwill and intangible assets.
What to watch
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Material going-concern and funding risk
The company reported substantial doubt about its ability to continue as a going concern, including a $13.6 million working-capital deficit, a $32.8 million accumulated deficit, and $6.2 million of operating cash outflows during the six months ended June 30, 2026. Management stated it needs additional capital to fund operations for a minimum of 12 months.
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Nasdaq delisting remains possible
Nasdaq issued a delisting determination related to the $1.00 minimum closing bid-price requirement under Listing Rule 5550(a)(1). The company requested a hearing on July 22, 2026, scheduled for August 20, 2026; delisting could impair liquidity and access to equity financing.
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Acquisition integration and cash burden
The company may not realize the anticipated benefits of pending acquisitions, and integration could require significant management resources and create unforeseen expenses. Following the June 3, 2026 Secuvant acquisition, approximately $0.5 million of remaining cash disbursements are expected by December 31, 2026.
Management's outlook
No numeric revenue or EPS guidance was provided. Management stated it expects continued significant operating losses for the next few years and anticipates needing to raise additional capital to continue operations for a minimum of 12 months.
Earlier filings 4
10-Q · May 14, 2026
Cycurion's Q4 results show a revenue decline to $3.3 million, a 15.4% drop from the prior period, but an improvement in gross margins to 21.1%. Despite this, the company reported a net loss of $2.6 million, highlighting…
10-K · March 31, 2026
Cycurion completed its business combination and Nasdaq listing in 2025 and reported a large increase in committed backlog to approximately $80.0 million as of December 31, 2025 (up from $16.0 million at December 31,…
10-Q · September 30, 2024
Western Acquisition Ventures Corp. reported a three-month net loss of $703,701 for the quarter ended June 30, 2024 (versus $332,537 in Q2 2023) while six‑month net loss improved to $295,321 (versus $504,148 in the six…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.