Cycurion Shareholder Letter Explains Path to Expanded Margins and Recurring Revenue for 2026

Core Insights - Cycurion, Inc. is focused on enhancing shareholder value through AI-driven cybersecurity solutions and strategic growth initiatives [1][9] Group 1: Financial Performance and Backlog - The company reported a record-breaking contracted backlog of $73.6 million, driven by demand for its AI-enhanced ARx platform and managed security services [2] - New contracts worth over $8 million were secured in Q2 2025, including a $6 million agreement with a municipal transportation agency [2] - The company anticipates adding $2.9 million in new annualized revenue from these contracts, with onboarding beginning in Q4 2025 [2] Group 2: AI Innovation and Product Development - Cycurion is rolling out its proprietary AI software, ARx, which has been in development for over five years, expected to significantly increase margins and create a recurring revenue model [3] - The Cyber Shield product, powered by ARx, is projected to generate $1.8 million in contracted revenue in its first year, targeting the $3 billion+ cybersecurity market [4] Group 3: Client Relationships and Market Expansion - The company has secured over 30 new agreements in 2025, achieving high client retention through AI-powered solutions that foster long-term partnerships [4] - Cycurion is expanding its sales team to meet increased demand, particularly in federal government sectors [4] Group 4: Strategic Acquisitions - The company is pursuing a disciplined acquisition strategy to enhance its AI capabilities and global presence, integrating subsidiaries that enrich its portfolio with advanced AI algorithms [5][6] - Partnerships, such as with LSV-TECH, aim to expand the Cyber Shield service into Latin America, further solidifying Cycurion's market position [6] Group 5: Stock and Financial Strategy - A recent one-for-thirty reverse stock split is intended to enhance liquidity and attract institutional investors, aligning with Nasdaq listing standards [7] - The company has reduced its debt by $3.2 million through a strategic debt-for-equity exchange, improving financial flexibility and supporting growth initiatives [8] Group 6: Future Outlook - Cycurion aims to leverage its AI-driven backlog and partnerships to convert its pipeline into revenue, focusing on global expansion and delivering value to shareholders [9]