---
title: "EXCLUSIVE: Cycurion Net Loss Shrinks As AI Strategy Takes Flight"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286413351.md"
description: "Cycurion (CYCU) reported a 75% reduction in net losses for Q1 2026, with losses improving to $2.56 million from $10.25 million year-over-year. Revenue fell 15.54% to $3.27 million, missing estimates due to exiting lower-margin contracts. The gross margin increased to 21.1%. The company is focusing on AI-driven platforms and restructuring for profitability, targeting annual revenue of $21 million to $22 million. Cycurion shares rose 4.40% to $0.93 in premarket trading, close to its 52-week low of $0.76."
datetime: "2026-05-14T12:01:09.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286413351.md)
  - [en](https://longbridge.com/en/news/286413351.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286413351.md)
---

# EXCLUSIVE: Cycurion Net Loss Shrinks As AI Strategy Takes Flight

**Cycurion, Inc** (NASDAQ:CYCU) reported first-quarter 2026 results on Thursday, as the company continued restructuring operations, improving margins, and expanding through acquisitions focused on cybersecurity and AI-driven platforms.

## Revenue Declines As Cycurion Exits Lower-Margin Contracts

The quarterly revenue declined 15.54% year-over-year to $3.27 million, missing the analyst consensus estimate of $3.52 million.

The results reflect the planned wind-down of certain legacy contracts ahead of the ramp of higher-margin replacement work.

The gross margin for the quarter rose to 21.1% from 17.5% Y/Y, through a deliberate shift to higher-margin contracts and disciplined cost management.

The quarterly net loss improved to $2.56 million from $10.25 million Y/Y. EPS loss of 40 cents topped the analyst consensus loss estimate of 83 cents.

The EBITDA loss for the quarter improved to $1.94 million from $9.88 million Y/Y.

The company held $2.03 million in cash and equivalents as of March 31, 2026. It used $2.89 million in operating cash flow during the quarter.

## Management Targets Profitability Through Cost Cuts And AI Investments

The company said its previously disclosed $112 million contracted backlog should generate between $15 million and $17 million in annual revenue recognition, supporting near-term annualized revenue visibility of about $21 million to $22 million.

Cycurion also continued executing organizational restructuring initiatives expected to deliver more than $2.2 million in annualized savings, with benefits already reflected in first-quarter SG&A performance.

Chairman and CEO Kevin Kelly described the quarter as a major turning point in Cycurion's transformation strategy.

Kelly said the company nearly doubled gross margins, reduced unnecessary costs, exited lower-margin legacy operations, and redirected investments toward AI-driven platforms to support profitability and long-term shareholder value creation.

**CYCU Price Action:** Cycurion shares were up 4.40% at $0.93 during premarket trading on Thursday. The stock is trading near its 52-week low of $0.76, according to Benzinga Pro data.

_Photo: Shutterstock_

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