Investorideas.com (www.investorideas.com) a leader in retail investor trading ideas for AI and cybersecurtiy stocks issues a news and trading alert for Cycurion, Inc. (NASDAQ: CYCU), a leading cybersecurity solutions provider.
The stock is gaining in early morning trading following a shareholder letter and update from the company,
News summary
Good morning! In its latest shareholder letter dated October 28, 2025, Cycurion highlights a transformative year, marked by a record-breaking $73.6 million contracted backlog of multi-year agreements, providing over 18 months of revenue visibility. The company secured over $8 million in new contracts during Q2 2025, including a $6 million deal with a major municipal transportation agency for AI-driven IT and cybersecurity solutions, alongside $4.6 million in awards across government, healthcare, and public safety sectors. These wins are set to add $2.9 million in annualized revenue, with onboarding starting in Q4 2025 to drive growth in the latter half of the year.
Looking ahead, Cycurion outlines a clear path to profitability by 2026 through the expansion of its proprietary AI-driven ARx platform, which promises significantly higher margins and a shift to recurring revenue models, while an ongoing IP valuation aims to bolster the balance sheet.
The letter emphasizes five years of AI development now rolling out via platforms like ARx and Cyber Shield for real-time threat detection, alongside an acquisition strategy to solidify leadership in AI-cybersecurity. Despite a recent reverse stock split to enhance long-term value, Chairman David W. Wulf expresses strong confidence in the company's "AI-powered path forward," positioning it for sustained growth and deeper client trust.
News
Dear Valued Shareholders,
As the Chairman and Chief Executive Officer of Cycurion, Inc. (Nasdaq: CYCU), I want our shareholders to know that we are committed to increasing shareholder value. I’d like to take this opportunity to reflect on the transformative progress we have achieved in the first 10 months of 2025, including our eight months as a public company since February 14, 2025. Our team has harnessed the power of artificial intelligence (AI) to redefine cybersecurity and IT solutions, offering proprietary solutions to meet our customers’ cybersecurity needs. Our AI-driven platforms, particularly ARx and Cyber Shield, have fueled our record-breaking backlog, deepened client trust, and powered a strategic acquisition strategy that positions us as a leader in the AI-cybersecurity revolution. Even as we address the recent reverse stock split—a proactive step to enhance long-term value—I am confident in Cycurion’s trajectory. Let me share these highlights and our AI-powered path forward.
A Record-Breaking Backlog Fueled by AI Innovation
Our $73.6 million contracted backlog, spanning multi-year agreements of 1-5 years, reflects the surging demand for our AI-enhanced ARx platform and managed security services. The backlog includes over $8 million in new contracts secured in the second quarter of 2025, such as a $6 million agreement with a major municipal transportation agency for AI-driven IT and cybersecurity solutions, plus an additional $4.6 million in recent awards across government, healthcare, and public safety sectors. These contracts leverage our proprietary AI algorithms to deliver real-time threat detection and response, driving higher margins and scalability. With these new contracts, we expect to add $2.9 million in new annualized revenue that has begun to be onboarded in the fourth quarter of 2025. This AI-powered pipeline provides over 18 months of revenue visibility, positioning us for increases in revenue in the third and fourth quarter of 2025.
One of the most important things I would like our shareholders to realize is that we are just now rolling out our proprietary AI software, that has been in development for over five years. As our ARx platform expands across our client base, it will significantly increase our margins and create a recurring revenue model, fundamentally enhancing our value proposition in 2026. We are currently having our ARx platform’s IP valued, which we believe will significantly enhance the Company’s value by strengthening our balance sheet and attracting investors seeking AI-driven growth.
AI-Driven Client Relationships Building Sustainable Partnerships
Our growth is anchored in trusted partnerships with Fortune 500 corporations, government agencies, and healthcare organizations like those affiliated with the National Association of County and City Health Officials (NACCHO). NACCHO itself will be implementing Cyber Shield, powered by our AI driven ARx platform, while helping expand its availability to its’ 3000+ member organizations nationwide. The Cyber Shield product projects $1.8 million in contracted revenue in its first year, positioning us to capture a share of the $3 billion+ cybersecurity market. Securing over 30 new agreements in 2025, we have achieved high client retention by delivering AI-powered solutions that go beyond traditional cybersecurity. These AI-driven engagements—backed by real-time monitoring and seamless integration—have transformed one-time contracts into enduring, high-margin partnerships, driving recurring revenue and fostering referrals that amplify our market reach. The increased demand from our current clients, driven by this expanding backlog, has prompted us to hire two salespeople with extensive experience selling to the federal government, and we are in the process of hiring four to five more to ensure we meet these needs effectively.
Strategic Acquisitions Amplifying AI Leadership
We will continue to grow our business by building on the strong foundation in federal, state, and local governments and also by acquiring companies in the corporate and product side, which will give higher margins and higher shareholder returns. Our disciplined acquisition strategy has accelerated our AI innovation and global presence. Our March 31, 2025, MSA/Evergreen contract in SLG Innovation, Inc., enhances our AI-driven program management and disaster recovery capabilities. Integration of subsidiaries like Axxum Technologies LLC, Cloudburst Security LLC, and Cycurion Innovation, Inc., has enriched our portfolio with advanced AI algorithms for threat detection and quantum-resistant cybersecurity. Strategic alliances, such as our LSV-TECH partnership to expand our AI-powered MSSP Cyber Shield into Latin America, and our $1 million stock-for-stock exchange with iQSTEL, Inc., for AI-cybersecurity synergies, ensure cultural alignment and scalable, high-margin growth. These moves cement Cycurion as an AI trailblazer, driving superior shareholder returns.
The Reverse Stock Split: Positioning for Institutional Support and Growth
The recent one-for-thirty reverse stock split, effective with the commencement of business on October 27, 2025, is a deliberate, positive step to realign our share structure, enhance liquidity, and broaden access to institutional investors—unlocking capital for our AI-driven growth. It aligns us with the Nasdaq listing standards, improves our investment profile, and positions us to attract the institutional support we know our fundamentals warrant. In fact, we have now met with over 15 financial institutions who expressed interest in our story, most of whom require a stock price in the $3-5 range to invest, reflecting the strong appeal of our AI-powered backlog and partnerships. We are also excited to see a significant increase in investors from the Asia-Pacific region, including Japan, Korea, Singapore, China, and Australia, drawn to our leadership in AI-cybersecurity and our global expansion potential. We are currently in compliance with key Nasdaq listing standards, including the $10 million stockholders’ equity threshold (with $10.4 million reported in the second quarter of 2025) and the $5 million market value of publicly held shares. The reverse stock split is not a setback but a catalyst, intended to ensure that we remain listed on Nasdaq while our AI innovations drive organic uplift.
Strengthening Our Balance Sheet for 2026 and Beyond
We have continued to strengthen our balance sheet, which has been a huge focal point of ours this year as we plan on going into 2026 much better positioned. Through a strategic debt-for-equity exchange, we have reduced our debt by $3.2 million with the issuance of Series G Convertible Preferred Stock in August 2025. These actions, detailed in our recent SEC filings, have improved our financial flexibility, reduced interest obligations, and enhanced our equity position. With approximately $54 million of availability remaining on our $60 million Equity Line of Credit, we maintain significant flexibility for funding growth without relying solely on debt. This prudent approach supports our execution on the $73.6 million backlog and positions us for sustainable, high-margin growth.
In closing, the first eight months as a public company have solidified Cycurion as a leader in AI-powered cybersecurity. Our $73.6 million in contracted backlog, AI-driven client partnerships, and strategic acquisitions are proof of our vision and resilience. As we leverage the reverse stock split’s benefits and growing global investor interest, we remain focused on converting our AI-powered pipeline into revenue, expanding globally, and delivering substantial value to you, our shareholders. Thank you for your steadfast support; together, we are securing a safer, AI-driven digital future. I look forward to sharing our third quarter of 2025 results soon.
Full news
https://finance.yahoo.com/news/cycurion-shareholder-letter-explains-path-145200190.html
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