The PennZone

MCLEAN, Va. - PennZone -- Contracted Backlog Exceeding $150 Million Provides Significant Revenue Visibility

Strategic Acquisitions Expand Federal Government, AI Security, And Recurring Revenue Opportunities

Gross Margin Expansion, Reduced Losses, And Cost Efficiencies Support Profitability Goals

Growing Presence Across Government, Healthcare, Enterprise, And Critical Infrastructure Markets

Cycurion, Inc. (N A S D A Q: CYCU) $CYCU continues executing on a strategy designed to build a diversified cybersecurity platform serving government agencies, public sector organizations, healthcare providers, critical infrastructure operators, and enterprise customers.

As cybersecurity threats continue increasing worldwide, organizations are allocating larger portions of their technology budgets toward cyber defense, compliance, cloud security, privacy protection, and managed security services. Cycurion has positioned itself within several of these rapidly growing markets while simultaneously strengthening its financial foundation through strategic acquisitions, recurring revenue growth, and operational improvements.

Recent company developments suggest management is executing on a plan focused on expanding scale, increasing profitability, and building long-term shareholder value.

Acquisition Strategy Accelerates Revenue Growth And Recurring Cash Flow

One of the most significant developments at Cycurion during 2026 has been the company's aggressive acquisition strategy designed to expand recurring revenue, strengthen cybersecurity capabilities, and accelerate its path toward profitability.

The company's acquisition of Halo Privacy and HavenX adds approximately $7 million in annual revenue, including roughly $5.5 million of high-quality annual recurring revenue. Management has emphasized Halo's recurring subscription model as a key contributor to future revenue stability while also creating opportunities for operational synergies and cross-selling across the combined platform.

Halo's technology expands Cycurion's capabilities into secure communications, privacy protection, digital investigations, and active cyber defense while strengthening relationships across government and enterprise customers.

Cycurion also completed the acquisition of Secuvant and its Panoptic cybersecurity platform. Management expects the transaction to contribute approximately $3 million in annualized revenue and approximately $1.5 million in EBITDA while expanding the company's managed detection and response, compliance management, cyber risk assessment, and threat intelligence capabilities.

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Most recently, the company announced a definitive agreement to acquire a Washington, D.C.-based federal cybersecurity firm specializing in Department of Defense compliance, cloud security, and federal risk management. Management expects the acquisition to contribute approximately $18 million in annual recurring revenue while significantly strengthening Cycurion's presence within the federal government marketplace.

Collectively, these acquisitions have the potential to substantially increase recurring revenue, expand margins, strengthen customer relationships, and accelerate future earnings growth.

Financial Health Continues Improving

While acquisitions have expanded the company's growth opportunities, Cycurion has simultaneously demonstrated meaningful improvements in operational performance and financial health.

The company's first quarter 2026 results highlighted significant progress as management continued executing its profitability-focused strategy.

Recent financial highlights included:

• Gross margin expansion of approximately 900 basis points
• Net loss reduction of more than 50%
• EBITDA loss improvement exceeding 60%
• Revenue visibility of approximately $21 million to $22 million annually
• More than $2.2 million in anticipated annualized cost savings

These improvements reflect management's focus on higher-margin revenue opportunities, operational efficiency initiatives, and disciplined cost management.

As recurring revenue from acquisitions and managed cybersecurity services becomes a larger percentage of total revenue, management expects profitability metrics to continue improving.

Record Contracted Backlog Provides Long-Term Revenue Visibility

Another major milestone for the company has been the rapid growth of its contracted backlog.

Cycurion recently reported contracted backlog exceeding $150 million, providing substantial revenue visibility and demonstrating growing demand for the company's cybersecurity, cloud security, compliance, managed detection, and AI-powered defense solutions.

Management has indicated that a significant portion of this backlog is expected to convert into future revenue through existing government, healthcare, public sector, and enterprise contracts.

The growing backlog not only strengthens future revenue visibility but also demonstrates the company's ability to win and retain large customers in highly competitive cybersecurity markets.

Government And Public Sector Growth Continues Expanding

Cycurion continues strengthening its position within government and public sector markets, which remain among the largest and most attractive segments of the cybersecurity industry.

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Recent contract wins include public health sector engagements expected to generate approximately $1.35 million in annual revenue, including more than $1.1 million in recurring revenue.

The company also secured a multi-year engagement supporting a major government agency through a Fortune 500 partner, creating additional opportunities for future contract expansion.

Additionally, management recently announced a $6 million contract award that further contributed to backlog growth and reinforced customer demand for Cycurion's cybersecurity and AI-enabled solutions.

As government agencies continue modernizing infrastructure and increasing cybersecurity spending, Cycurion appears well positioned to benefit from long-term sector growth.

Artificial Intelligence Enhances The Cybersecurity Platform

Artificial intelligence remains an important component of Cycurion's broader cybersecurity strategy.

The company continues integrating AI-powered technologies across threat detection, vulnerability management, compliance monitoring, digital investigations, secure communications, and incident response.

The integration of HavenX, Panoptic, and Cycurion's existing cybersecurity solutions creates a broader security ecosystem capable of addressing increasingly sophisticated cyber threats facing both government and commercial customers.

Management believes AI-enhanced automation can improve detection speed, increase operational efficiency, and create competitive advantages as cybersecurity requirements continue evolving.

Positioned For Continued Expansion

The global cybersecurity market continues experiencing rapid growth as organizations face escalating cyber threats, stricter compliance requirements, and increasingly complex digital environments.

With more than $150 million in contracted backlog, expanding recurring revenue streams, multiple strategic acquisitions, improving margins, strengthening financial performance, growing government relationships, and a rapidly expanding cybersecurity platform, Cycurion appears increasingly positioned to capitalize on opportunities across one of the world's fastest-growing technology sectors.

As management continues integrating acquisitions, expanding recurring revenue, improving profitability metrics, and pursuing additional growth opportunities, Cycurion may be entering what could become the most significant expansion phase in company history.

Investors seeking exposure to a growing cybersecurity company with strong government relationships, acquisition-driven growth, expanding recurring revenue, and improving financial fundamentals may find Cycurion increasingly worthy of attention as management executes on its long-term vision for sustainable growth and shareholder value creation.

For more information on $CYCU visit: www.cycurion.com

Media Contact:
Cycurion, Inc.
Kevin Kelly, Chairman & CEO
📧 info@cycurion.com
📞 888-341-6680

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