Castellum, Inc. Issues Letter to Shareholders

Core Viewpoint - Castellum, Inc. aims for significant organic growth and improved financial health under the leadership of newly appointed CEO Glen Ives, targeting a 25% growth over the next two years and a return to selective acquisitions as the balance sheet strengthens [3][7][8]. Company Overview - Castellum, Inc. is a cybersecurity, electronic warfare, and software services company focused on serving the federal government [3][12]. - The company currently employs 254 individuals and has established strong relationships with government customers, which are crucial for national security [6]. Leadership Background - Glen Ives, the new CEO, has a 34-year Navy career and extensive experience in government contracting, having previously served as President of Sabre Systems [5][4]. - Ives emphasizes the importance of teamwork and commitment to building a winning culture within Castellum [10][11]. Growth Strategy - The company plans to achieve a minimum of 25% organic growth over the next two years, aiming for annualized revenue of over $56 million by mid-2026 and $63 million by mid-2027 [7]. - Castellum seeks to reach $5 million in adjusted EBITDA and positive net income during this period [7]. Financial Management - Castellum has recently retired its Live Oak Banking Company term loan and plans to pay off a $2.4 million note by August 2026, aiming to reduce overall debt [8]. - The goal is to lower debt to below 15% of revenue and maintain a ratio of 2.5x adjusted EBITDA, which could be achieved within a year with growth and debt reduction [8]. Shareholder Communication - The CEO acknowledges past stock performance issues but expresses confidence that executing the growth plan will lead to improved results for shareholders in the coming months [9].