The PennZone

MCLEAN, Va. - PennZone -- Cycurion, Inc. (NAS DAQ: CYCU) is a tech-enabled cybersecurity firm that serves some of the most complex government agencies and corporations in the world including Fortune 100 and 500 Companies. Founded by internet pioneer Emmit McHenry — who directly oversaw the first internet protocols and the creation of .com domains — CYCU brings an unparalleled blend of vision, technology, and experience to every project. More than just an MSSP or strategic advisor, CYCU is a full-service security partner capable of guiding any organization through the modern cyber threat landscape.

Patent Protection Extended on VuLink®, Cross-Activation Technology That Automatically Records and Syncs Every Camera on Scene

CYCU announced that the U.S. Patent and Trademark Office has granted U.S. Patent No. 12,711,989, "Computer Program, Method, and System for Managing Multiple Data Recording Devices," adding to the intellectual property portfolio acquired with the Digital Ally video solutions business. The grant follows the recently announced CYCU fleet-driver-analytics patent covering the same platform.

The newly granted patent extends the CYCU VuLink® auto-activation family — originally covered by U.S. Patent No. 8,781,292 and continuation No. 10,885,937 — with a system for managing data across multiple recording devices. When any device, such as a body camera, vehicle camera, or microphone, is triggered to record, it signals every other compatible device to start simultaneously, time-stamps each stream for precise synchronization, and links the files together once recording ends.

New Fleet Driver Analytics Patent, Opening a $100 Billion+ Telematics Market While Expanding Customer Base and Deepening Client Retention

CYCU announced the addition of U.S. Patent No. 12,705,983, titled "Tracking and analysis of drivers within a fleet of vehicles," to the intellectual property portfolio acquired with the Digital Ally video solutions business.

The newly granted patent extends the CYCU video and evidence management platform into fleet driver analytics — a category that opens the Company to the global vehicle telematics market, which Fortune Business Insights estimates at approximately $102 billion in 2026 and projects will reach approximately $199 billion by 2034.

The patented CYCU technology enables fleet operators to track vehicles, map incidents with linked video evidence, and generate comparative driver performance profiles and scores. Its addition brings CYCU total related patent assets to more than 50.

$500,000 Share Repurchase Program, Citing Meaningful Undervaluation

The CYCU announced Board of Directors has authorized a share repurchase program of up to $500,000 over the next 12 months.

Under the program, the Company may repurchase shares of its CYCU common stock in open-market transactions or through other lawful methods. No repurchase may be effected without the prior approval of the Chief Financial Officer, who may withhold approval in the CFO's sole discretion based on liquidity, projected cash requirements, financing restrictions, or other financial considerations.

"We believe Cycurion is meaningfully undervalued relative to the business we have built and the trajectory we are on," said L. Kevin Kelly, Chairman and Chief Executive Officer of CYCU. "The recent closing of the Kustom Entertainment video-solutions acquisition is expected to contribute more than $5 million in annual revenue and over $1.2 million in EBITDA. Together with the Secuvant, LLC acquisition and our $54.6 million contract, these milestones are expected to increase our annualized revenue run rate to approximately $30 million. With strengthened liquidity from our recent warrant inducement transaction and a growing pipeline of federal and public-sector opportunities, the Board has authorized this program as a clear expression of our confidence in the long-term value of the Company."

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Consensus Beat on Revenue and EPS; Gross Margin Improves Nearly 5X

CYCU has announced financial results for the second quarter ended June 30, 2026.

Highlights:

Revenue of $3.8 million, exceeding Wall Street consensus of $3.62 million (essentially flat versus $3.9 million in the second quarter of 2025).

Gross profit of $1.1 million (29.1% gross margin), a nearly five-fold increase from $0.2 million (6.1% margin) in the prior-year period.

EPS of $(0.41), beating consensus of $(0.56); net loss of $(4.0) million, improved from $(5.3) million in the second quarter of 2025.

Adjusted EBITDA of $(1.4) million, improved from $(2.1) million in the prior-year quarter.

Net debt dropped 28% to $5.8 million from $8.1 million year-over-year.

"The second quarter represents a historic turning point for Cycurion," said Kevin Kelly, Chairman and Chief Executive Officer of CYCU. "We beat Wall Street estimates on both revenue and earnings, gross margins expanded dramatically and we secured the largest contract in Company history while closing transformative acquisitions. Reaching an estimated $30 million revenue run rate validates our strategic vision. Our new $54.6 million, 10-year contract with a global consulting firm, together with the acquisitions of Secuvant and Kustom's video solutions, provide strong, visible cash flows. We are deliberately shifting toward higher-margin cybersecurity, managed services, and strategic consulting across federal, state, and local government markets."

State and Local Government: CYCU is pursuing multi-year awards representing approximately $5 million in potential contract revenue (including ~$1.8 million in potential first-year revenue). Key initiatives include AI-enhanced CAD/911 public safety systems, cybersecurity assessments for a major tollway authority, and health and human services modernization.

Federal Government: CYCU generated more than $500,000 in network infrastructure services revenue year-to-date and expects to reach approximately $1 million for full-year 2026. Current work includes VoIP implementation for a large federal agency and ongoing networking and cybersecurity infrastructure support across multiple federal customers.

Statewide Term Contracts & MSAs: CYCU is actively pursuing Master Services Agreements and IDIQ vehicles with a major U.S. municipality and the states of Florida, Illinois, Vermont, and North Carolina. These multi-year vehicles position CYCU to deliver organizational management, cybersecurity, internal audit, data analytics, and IT solutions on an as-needed basis.

CYCU is actively pursuing 122 open opportunities representing approximately $34 million in potential additional first-year contract value, including approximately $11 million in late-stage pursuits. CYCU has already closed 41 new awards year-to-date in 2026, building a growing base of long-term contracts and expanding relationships within existing customers.

Acquisition of Digital Ally Video Solutions Adds More Than $5 Million Revenue and Over $1.2 Million EBITDA — Bringing Annual Revenue Run Rate to $30 Million

CYCU successfully closed its acquisition of substantially all assets of Kustom Entertainment, Inc.'s (N a s d a q: KUST) legacy video solutions segment.

This strategic acquisition brings together Kustom's established Digital Ally-branded portfolio — including in-car video systems, body-worn cameras, digital evidence management solutions, hardware, software platforms, and related services — with CYCU advanced AI cybersecurity capabilities. The deal is expected to add more than $5 million in annual revenue and over $1.2 million in EBITDA, and provides immediate access to more than 800 new clients, many of which are law enforcement agencies, municipalities, and public safety organizations that align closely with the CYCU existing customer base, creating substantial cross-selling opportunities.

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The acquired portfolio includes a robust intellectual property portfolio of over 50 patents, strengthening CYCU technology moat in video surveillance, evidence management, and public safety solutions. These patents complement CYCU AI innovations, enabling the development of next-generation integrated platforms that combine real-time video analytics, predictive threat intelligence, and cybersecurity protections.

Largest Contract in Company History: $54.6 Million 10-Year Award with Top-5 Global Consulting Firm

CYCU has announced a major 10-year contract award secured through a partnership with a top-5 global consulting firm — one of the most significant contracts in the Company's history. The agreement supports the modernization and secure operation of a major Health and Human Services System for a state government agency.

The CYCU contract carries a total value of approximately $54.6 million, with expected annual revenue exceeding $5 million. Work is scheduled to commence in November 2026.

The award reinforces The CYCU strategy of focusing its revenue mix on higher-margin, long-term government engagements, and adds a decade-long, recurring-revenue anchor to the Company's public sector portfolio. Beyond its direct value, the engagement establishes a foundation for CYCU to pursue additional opportunities — both within the state's broader health and human services modernization efforts and through its expanding relationship with its consulting partner.

New Fleet Driver Analytics Patent, Opening a $100 Billion+ Telematics Market.

Patent Protection Extended on VuLink®, Cross-Activation Technology That Automatically Records and Syncs Every Camera on Scene.

Authorized $500,000 Share Repurchase Program Over Next 12 Months.

Revenue and EPS Beat Consensus - Gross Margin Improves Nearly 5X.

Acquisition of Digital Ally Video Solutions Adds More Than $5 Million Revenue and Over $1.2 Million EBITDA Bringing Annual Revenue Run Rate to $30 Million.

Secured Largest Contract in Company History: $54.6 Million 10-Year Award with Top-5 Global Consulting Firm.

About Cycurion, Inc. (NAS DAQ: CYCU)

Cycurion, Inc. (NAS DAQ: CYCU) is a technology-enabled cybersecurity and IT services company focused on protecting organizations against increasingly sophisticated cyber threats. The company provides cybersecurity, managed services, information assurance, systems engineering, risk management, IT infrastructure and other technology solutions to government agencies and corporate clients. Cycurion also combines AI-driven technologies with cybersecurity, secure communications, digital investigations and public-safety technologies to create a broader, integrated security platform.

Mission

Cycurion's mission is to develop and deliver world-class, cutting-edge IT and cybersecurity solutions that optimize clients' technology environments, strengthen security and help organizations operate securely, efficiently and reliably. The company's current strategy is increasingly centered on AI-enhanced cybersecurity, higher-margin managed services and mission-critical solutions for federal, state and local government and enterprise customers.

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

Media Contact:
Company Name:  Cycurion, Inc. (NAS DAQ: CYCU)
Contact: Kevin Kelly, Chairman & CEO
Email: info@cycurion.com
Phone: 888-341-6680
Country: United States

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