*Sponsored by Cycurion Inc
Clients and Partners Include: US Dept. of Defense, Defense Intelligence Agency, Homeland Security, US Navy and Many Other Major Private Sector Companies
CYCU has approximately $112 million in contracted backlog, providing multi-year revenue visibility
Every 11 Seconds, a Ransomware Attack Hits. Schools, Hospitals, and Police Departments Are the Targets
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Hello Everyone,
Cybercrime has quietly become one of the largest economic forces in the world, now costing more than $10.5 trillion annually — a figure that would rank it behind only the United States and China if it were its own economy. Unlike traditional warfare, this battle isn’t fought with weapons you can see. It’s carried out through code, targeting the systems that keep everyday life running. Hospitals, schools, police departments, and small businesses — institutions that form the backbone of communities — are increasingly under attack, often with minimal defenses in place. In 2025 alone, ransomware damages reached an estimated $57 billion globally, breaking down to roughly $156 million per day or about $2,400 every second. These attacks aren’t just financial; when hospitals are compromised, surgeries can be delayed and emergency services disrupted, while sensitive data is exposed or sold.
Healthcare organizations have become especially attractive targets, with the average data breach costing nearly $10 million per incident and the majority of providers reporting ransomware attacks. Educational institutions face similar challenges, holding vast amounts of personal and financial data while operating on limited IT budgets. Local governments and law enforcement agencies are also vulnerable, often relying on outdated systems while managing critical infrastructure and sensitive information. As these threats escalate, the cybersecurity industry is expanding rapidly, with projections estimating the market could reach between $500 billion and nearly $700 billion over the next decade. However, many of the organizations most at risk lack the resources to afford solutions from major enterprise-focused firms, leaving a significant gap in the market.
This gap is where Cycurion, Inc. enters the picture. The company traces part of its origins to Emmit McHenry, a pioneer of the early internet who helped build the domain name system through Network Solutions, laying the groundwork for the modern web. Now serving on Cycurion’s board, McHenry has turned his attention to cybersecurity, aiming to protect the same digital ecosystem he helped create. Led by CEO Kevin Kelly and headquartered in McLean, Virginia, Cycurion focuses on delivering cybersecurity services to government agencies, educational institutions, and healthcare organizations. Its client list includes major federal entities such as the Department of Defense, the Department of Homeland Security, and the U.S. Navy, alongside large corporate clients.
Since going public on the Nasdaq in early 2025 through a SPAC merger, Cycurion has rapidly expanded its contract base, building a backlog that has reached approximately $80 million — several times its annual revenue. The company has secured a range of deals, including a $22 million criminal justice system contract, a $33 million renewal with a higher education group, and multiple healthcare agreements that add recurring monthly revenue. It has also taken on a large-scale federal project involving the modernization of an emergency warning network across more than 1,300 locations nationwide. Additional contracts through its subsidiary have further strengthened its position, contributing to steady growth in both backlog and operational reach.
Beyond individual contracts, Cycurion has pursued strategic partnerships to scale its access to customers. Agreements with organizations representing thousands of local health departments and numerous colleges have opened pathways to large networks of potential clients. Partnerships with other technology providers have expanded its service offerings, including AI-driven cybersecurity solutions delivered under its own platform. Internationally, the company has extended its reach through collaborations that provide entry into global markets, including Latin America and the telecommunications sector. This approach allows Cycurion to embed itself within broader ecosystems rather than relying solely on one-off sales.
Cycurion (NASDAQ: CYCU) has expanded its contracted backlog to more than $112 million, fueled by a mix of multi-year federal agreements, wins in the public health sector, and enterprise-level cybersecurity deployments. This growing backlog represents committed future revenue, offering a clearer line of sight into the company’s forward growth. It also reinforces confidence that demand for its services is holding up across key sectors, while creating a foundation for expanding recurring revenue streams. Taken together, this positions the company toward a more predictable and stable revenue model often associated with institutional-grade businesses.
At the same time, Cycurion has accelerated its growth strategy through acquisition. Its purchase of a Department of Defense-focused cybersecurity firm marks a significant inflection point, adding approximately $18 million in annual recurring revenue and contributing immediately to earnings. The deal also strengthens the company’s presence within the federal market, deepening its relationships and reach. Rather than relying solely on gradual organic expansion, Cycurion is using targeted mergers and acquisitions to rapidly scale its operations, effectively condensing what might otherwise take years of growth into a much shorter timeframe.
Cycurion is also targeting the video technology division of Kustom Entertainment, a move that would broaden its capabilities while extending its reach across multiple sectors. By integrating video and digital evidence solutions with its cybersecurity offerings, the company can create additional cross-selling opportunities, particularly within law enforcement and public safety markets. This approach reflects a broader roll-up strategy, where the company aims to consolidate complementary businesses in a fragmented but high-demand industry to accelerate scale and deepen its service portfolio. The transaction is expected to contribute approximately $5.1 million in annual revenue and an estimated $8.0 million backlog comprised of established contracts and recurring subscription revenue.
At the same time, recent developments highlight the strength of Cycurion’s government and healthcare pipeline. Company updates point to a Fortune 500 partnership connected to a U.S. government agency, along with public health contracts expected to generate more than $1.35 million in revenue in 2026. Many of these engagements span multiple years, with some extending up to a decade, which is significant for long-term planning. These types of contracts tend to provide steady revenue visibility, carry a higher likelihood of renewal, and open the door for additional services over time. Because cybersecurity spending in government and healthcare is often considered essential rather than optional, this positioning gives the company exposure to a segment with durable demand and relatively strong funding stability.
In the interview, Mr. Kelly reflects on developments over the past several months, including financial reporting, new contract awards, and operational initiatives aimed at strengthening efficiency and scalability. He emphasizes CYCU management focus on transitioning from restructuring to disciplined execution following the company’s strategic reorganization, which is expected to generate more than $2.2 million in annual cost savings.The discussion also addresses CYCU performance following a challenging 2025, when delayed government spending and contract timing created near-term headwinds. Mr. Kelly outlines early indicators in 2026 that he believes support management’s view that those pressures were transitory, pointing to renewed customer engagement, improving demand signals, and improved visibility across the company’s pipeline.
Looking ahead, several developments could shape the company’s trajectory. A planned acquisition of a video-solutions division specializing in law enforcement technology could expand its footprint and create cross-selling opportunities, particularly in securing sensitive digital evidence. At the same time, internal restructuring efforts are expected to reduce costs and improve operational efficiency, while new leadership aims to accelerate revenue growth. The company is also shifting its focus toward recurring, subscription-based services through its proprietary platforms, emphasizing predictable and higher-margin revenue streams.
Analysts have begun to take notice, with at least one firm assigning a price target significantly above current trading levels and pointing to the company’s backlog and growth strategy as key drivers. Despite this, the stock trades at a relatively low valuation compared to industry peers, reflecting both its early-stage status and the risks associated with scaling its business. As a micro-cap company, Cycurion faces the challenges of execution, competition, and market volatility, even as it operates in a sector with strong long-term demand.
Ultimately, Cycurion represents a company attempting to position itself at the intersection of a rapidly growing global threat and an underserved segment of the cybersecurity market. Its success will depend on its ability to convert contracts into sustained revenue, expand its customer base through partnerships, and deliver effective solutions in a highly competitive industry.
CYCU is committed to surpassing expectations and delivering incomparable value to its clients and partners. CYCU achieves this goal by providing Network Communications and Information Technology Security services and solutions that are custom-tailored to the client’s environment, as well as level of need. CYCU is built on a foundation of experts in Network Communications and Information Technology who possess unrivaled security expertise and experience.
The flagship Cycurion ARx platform is a unified cybersecurity solution for protecting critical digital assets. Multi-layer protection is focused on inspecting requests to and responses from a digital asset. This non-invasive approach wraps around a digital asset — without hardware requirements or cloud installations — while keeping the client’s IP completely private. With every request inspected, malicious threats are logged and blocked in real-time before reaching the asset. This CYCU multi-layer model of cybersecurity is intended to thwart potential attackers via an expanding set of protective layers.
For more than a decade, Cycurion has provided expansive, capable and adaptive IT solutions to major government agencies, including the U.S. Department of Defense, the Department of Homeland Security, the U.S. Navy and the Defense Intelligence Agency, among others. In the private sector, it protects the IT infrastructures, digital assets and networks of a slew of Fortune 100 and 500 companies. In the healthcare space, it recently inked a deal with the National Association of County and City Health Officials (NACCHO), the voice of the over 3,300 local health departments across the country.
Through its partnership with NACCHO, Cycurion will make available its Managed Security Services Platform (MSSP), Cyber Shield, to NACCHO members. This collaboration addresses key challenges in the healthcare industry and could be the framework for future partnerships in a market that is forecast to reach more than $878 billion by 2034.
Cycurion also supports our government’s federal and state agencies, including the Department of Justice, the Department of Defense, and others. In addition to their federal engagements, they have actively partnering with state and local governments, currently in Texas and Illinois, and expanding into several additional states as part of their national growth strategy.
NEWS
4 days ago
5 days ago
Apr 17, 2026
Apr 16, 2026
2026: A Breakout Year for Cycurion – Building Momentum and Shareholder Value
Apr 15, 2026
Apr 10, 2026
Apr 8, 2026
Apr 7, 2026
Apr 2, 2026
Apr 1, 2026
Mar 25, 2026
Mar 17, 2026
Mar 16, 2026
Cycurion, Inc. Adjourns Special Meeting of Stockholders Until March 19, 2026
Feb 26, 2026
Feb 3, 2026
Jan 22, 2026
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