Cycurion Inc. (NASDAQ: CYCU), a provider of IT cybersecurity solutions and AI for government agencies and Fortune 100/500 companies, reported a record contracted backlog of $73.6 million as it closes out 2025. The backlog includes multi-year agreements reflecting surging demand for its AI-enhanced ARx platform and managed security services. The company believes its new AI platform positions it for high-margin growth.
The ARx platform is a unified cybersecurity solution that inspects requests and responses to digital assets without hardware or cloud installations, keeping client IP private. It logs and blocks malicious threats in real time using multiple protective layers. Cycurion’s backlog includes over $8 million in new contracts signed in the second quarter alone, such as a $6 million deal with a municipal transportation agency for AI-driven IT and cybersecurity solutions and $4.6 million across government, healthcare, and public safety sectors. The company expects to add $2.9 million in new annualized revenue starting in the fourth quarter.
Cycurion has secured more than 30 new agreements in 2025, including a multi-year contract with Florida making it an approved IT vendor for the state, allowing any state agency or eligible entity to engage directly for IT staff augmentation. Another partnership with the National Association of County and City Health Officials (NACCHO) will implement Cyber Shield, powered by ARx, with projected first-year revenue of $1.8 million. High client retention is attributed to AI-powered solutions that transform one-time contracts into enduring partnerships.
CEO L. Kevin Kelly stated in a letter to shareholders that these AI-driven engagements have created high-margin partnerships driving recurring revenue and referrals. He emphasized that the ARx platform, developed over five years, is just rolling out and will significantly increase margins and create a recurring revenue model in 2026. The company is currently having its ARx platform’s IP valued, which it believes will strengthen its balance sheet and attract investors.
Cycurion recently executed a one-for-thirty reverse stock split to align with Nasdaq listing standards and improve its investment profile. The CEO noted that over 15 financial institutions have expressed interest, with most requiring a stock price in the $3-5 range. The company is seeing interest from the Asia-Pacific region, including Japan, Korea, Singapore, China, and Australia. Cycurion is Nasdaq-compliant and reduced its debt by $3.2 million through a preferred stock offering. With $54 million of its $60 million Equity Line of Credit remaining, the company has significant flexibility for funding growth.
