Core Insights - Cycurion, Inc. reported a strategic focus on investments in talent and technology, resulting in a contract backlog exceeding $80 million and a forecasted revenue run-rate of $4.2 million for Q1 2026 [1][2] Financial Performance - Revenue for Q3 2025 was $3.83 million, a decrease of 13.9% year-over-year from $4.45 million, and $11.59 million for the nine months ended September 30, 2025, down 15.4% from $13.69 million [5] - Gross profit for Q3 2025 was $0.27 million, representing a 7.1% margin, while for the nine months it was $1.18 million with a 10.2% margin [5] - The net loss for Q3 2025 was $3.24 million, or $1.59 per basic share, and for the nine months, it was $18.78 million, or $14.82 per basic share [5] - Total assets increased by 26.4% to $32.31 million, with cash rising to $3.65 million from $0.04 million at year-end 2024 [5] Strategic Investments - Over the past 18 months, Cycurion has made significant strategic hires in various roles, contributing to elevated operating expenses of $19.58 million for the first nine months of 2025 [3] - The company is focusing on higher-margin government contracts, resulting in a robust contract backlog of over $80 million with agencies such as the Department of Homeland Security and the U.S. Department of Defense [3] Research and Development - Cycurion has accelerated R&D into AI-driven identity threat detection and response platforms, with capitalized software costs at $4.42 million as of Q3 2025 [4] - These R&D efforts are expected to enhance gross profit margins as utilization scales and integrations mature [4] Future Outlook - The company anticipates a significant increase in revenue from new contracts, with a forecasted contribution of $26,500 in November 2025, scaling to $283,042 monthly by January 2026 [11] - Total forecasted revenue for Q1 2026 is expected to be approximately $4.17 million, translating to an annual run rate of about $16.66 million [11]