Cycurion Q1 Gross Margin Up 900bps, Net Loss Halved to $2.6M
Cycurion posted Q1 revenue of $3.3 million, lifted gross margin by 900 basis points to 21.1%, and reduced net loss by 51.5% to $2.6 million. Binding acquisitions of Halo Privacy and HavenX are set to add $7 million in contracted revenue at a 55% margin, boosting backlog conversion to $21M–$22M.
1. Q1 Financial Performance
Cycurion reported revenue of $3.3 million for the quarter, reflecting the planned wind-down of lower-margin legacy contracts. Gross margin rose 900 basis points to 21.1%, while net loss narrowed by 51.5% to $2.6 million and EBITDA loss improved 60.2% to $1.9 million.
2. Margin Expansion and Cost Savings
The company reduced SG&A expenses by $1.3 million, a 31.6% decrease, driven by organizational realignment designed to generate over $2.2 million in annualized savings. This cost discipline underpinned the margin improvement and supports the path to profitability.
3. Acquisitions and Backlog Outlook
Binding agreements to acquire Halo Privacy and HavenX will add approximately $7 million in contracted revenue at a 55% gross margin. Combined with an existing $112 million backlog expected to convert $21 million–$22 million in the next year, the deals bolster annual revenue visibility.