Core Insights - Cycurion, Inc. reported financial results for Q2 and the first half of 2025, highlighting challenges due to budget cuts from the Department of Government Efficiency (DOGE) and delayed government contracts, while focusing on expanding its contract pipeline and digital currency initiatives [1][4] Financial Results - **Q2 2025 Financials**: - Net Revenues: $3.9 million, a 22.3% decrease from $5.0 million in Q2 2024 [7] - Gross Profit: $0.2 million, a 77.0% decrease from $1.0 million in Q2 2024 [7] - Adjusted EBITDA: $(1.0) million, compared to $0.7 million in Q2 2024 [7] - Net Loss: $(5.3) million, or $(0.15) per share, compared to net income of $0.3 million in Q2 2024 [7] - **First Half 2025 Financials**: - Net Revenues: $7.8 million, a 16.1% decrease from $9.2 million in the prior-year period [7] - Gross Profit: $0.9 million, a 33.3% decrease from $1.4 million in the first half of 2024 [7] - Adjusted EBITDA: $(0.5) million, compared to $0.7 million in the prior-year period [7] - Net Loss: $(15.5) million, or $(0.58) per share, versus a net loss of $(0.01) million in the prior-year period [7] Business and Strategic Developments - Cycurion is focusing on converting its backlog into revenue, especially in Q3 and Q4, which have historically been strong periods for the company [8] - The company is launching Cycurion Digital Currency, committing $10 million to Bitcoin and Ethereum investments, aiming for long-term holdings and regulatory compliance [8] - Collaborations with NACCHO, LSV-TECH, and IQSTEL are expected to enhance service offerings and market reach [6][11] Balance Sheet Overview - Cash and Cash Equivalents: $1.0 million at June 30, 2025, up from $0.04 million at December 31, 2024 [7] - Total Assets: $30.7 million, an increase from $25.6 million at year-end 2024, primarily due to goodwill from the SLG acquisition [7] - Total Liabilities: $20.3 million, reflecting a slight increase from $20.2 million at year-end 2024 [7] Forward Outlook - The company is optimistic about overcoming DOGE-related challenges and leveraging its backlog for revenue growth in the latter half of 2025 [11] - Continued investments in core areas such as advisory consulting, managed security, and SaaS are planned, supported by the recent acquisition of SLG Innovation, Inc. [11]