Revenue: As of FY2026 Q1, the actual value is USD 3.269 M.EPS: As of FY2026 Q1, the actual value is USD -0.47.EBIT: As of FY2026 Q1, the actual value is USD -2.181 M.<h3>Financial Overview</h3>For the three months ended March 31, 2026, Cycurion, Inc. reported a total revenue of $3,268,620, a decrease from $3,870,050 for the same period in 2025, primarily due to the planned wind-down of certain legacy contracts and delayed start dates for new federal, state, and local contracts . Cost of revenue was $2,580,262, down from $3,192,287 in the prior year . Gross profit improved to $688,358 (21.1% gross margin) in Q1 2026 from $677,763 (17.5% gross margin) in Q1 2025 .<h4>Segment Revenue</h4><ul><li>Advisory Consulting: Revenue was $3,244,770 for Q1 2026, a decrease from $3,835,414 in Q1 2025 .</li><li>Managed Security Service Practice (MSSP): Revenue was $22,500 for Q1 2026, down from $31,513 in Q1 2025 .</li><li>Software as a Service (SaaS): Revenue was $1,350 for Q1 2026, a decrease from $3,123 in Q1 2025 .</li></ul><h4>Operating Performance</h4>Total operating expenses significantly decreased to $3,059,528 in Q1 2026 from $10,775,268 in Q1 2025, largely due to the absence of business combination expenses in 2026, which were $10,437,894 in 2025 . Selling, general, and administrative expenses increased to $2,743,695 in Q1 2026 from $337,374 in Q1 2025, attributed to public company costs and full consolidation of SLG expenses . Stock compensation expenses were $315,833 in Q1 2026, compared to zero in Q1 2025 . The operating loss narrowed to - $2,371,170 in Q1 2026 from - $10,097,505 in Q1 2025 . Interest income was $14,236 in Q1 2026, while interest expense was - $204,852, compared to - $178,890 in Q1 2025 . There was no gain on debt settlement in Q1 2026, contrasting with a gain of $141,653 in Q1 2025 . The net loss attributable to Cycurion, Inc. was - $2,128,462 for Q1 2026, an improvement from - $10,248,486 in Q1 2025 .<h4>Cash Flow</h4>Net cash used in operating activities was - $2,889,834 for Q1 2026, a slight increase from - $2,745,109 in the prior year . Net cash used in investing activities was - $129,000, compared to $1,799,523 provided by investing activities in Q1 2025 . Net cash used in financing activities was - $207,683, primarily due to repayments on the revolving line of credit, contrasting with $3,173,991 provided by financing activities in Q1 2025 . Cash and cash equivalents decreased by - $3,226,517 during Q1 2026, ending the period at $2,028,718 .<h4>Other Key Financial Metrics</h4><ul><li>Software Development Costs: Capitalized software development costs were $129,000 for Q1 2026, compared to $70,000 for Q1 2025, with total net software development costs at $4,735,981 as of March 31, 2026 .</li><li>Goodwill: Total goodwill was $21,238,450 as of March 31, 2026, an increase from $20,842,508 as of December 31, 2025, including goodwill from Axxum ($5,153,266), Cloudburst ($1,439,038), and SLG ($14,646,146) .</li><li>Accounts Receivable, Net: Increased to $3,336,047 as of March 31, 2026, from $2,687,479 as of December 31, 2025 .</li><li>Working Capital Deficit: The Company had a working capital deficit of - $12.0 million as of March 31, 2026 .</li><li>Accumulated Deficit: The accumulated deficit increased to - $29.0 million as of March 31, 2026 .</li></ul><h4>Customer Concentration</h4>For Q1 2026, significant revenue concentration was observed with Customer A (33.8%), Customer B (22.2%), Customer C (9.6%), and Customer D (7.0%) .<h4>Outlook and Strategy</h4>As of March 31, 2026, Cycurion, Inc. faced substantial doubt about its ability to continue as a going concern due to a net working capital deficit and accumulated losses . Management plans to improve operations to generate positive cash flows and undertake a public offering to raise additional capital, aiming to provide liquidity and reduce leverage . Subsequent events include raising approximately $2.3 million through common stock sales, an update on a non-binding MOU to acquire Kustom Entertainment, Inc.’s legacy video solutions segment expected to contribute $5.1 million in annual revenue and an $8.0 million backlog, and the execution of a binding agreement to acquire Halo Privacy and integrate HavenX .

Cycurion | 10-Q: FY2026 Q1 Revenue: USD 3.269 M