Castellum Reports 3% Revenue Growth to $11.7 Million in Q1 2025

Castellum, Inc. reported a revenue increase of 3% for the first quarter of 2025, generating $11.7 million compared to $11.3 million in the same period of 2024. The growth was primarily attributed to a significant contract awarded to its subsidiary, Global Technology and Management Resources, Inc., valued at $103.3 million for services supporting the Naval Air Systems Command. Despite the revenue growth, the company experienced a net loss of $1.2 million, a substantial improvement from the $4.1 million loss reported in the prior year, reflecting a 71% reduction in losses.

The company's cost of revenues rose by 4% to $7.1 million, aligning with the revenue increase and additional labor costs associated with the new contract. Gross profit for the quarter was $4.6 million, slightly up from $4.5 million in the previous year. Operating expenses decreased significantly by 16% to $6.0 million, driven by strategic cost-saving measures and a reduction in general and administrative expenses. This operational efficiency contributed to a loss from operations of $1.5 million, down from $2.7 million in the prior year.

In terms of strategic developments, Castellum completed a public offering on March 19, 2025, raising approximately $4.5 million through the sale of 4.5 million units, each consisting of one share of common stock and a warrant. As of March 31, 2025, the company had $13.3 million in cash and cash equivalents, reflecting a strong liquidity position. The company also reported a backlog of $203.4 million, which includes funded, unfunded, and priced options, indicating a solid pipeline for future revenue.

Operationally, Castellum's workforce has expanded, with the company reporting an increase in employee headcount as it continues to pursue growth in cybersecurity and IT services. The company has also been active in managing its debt, having fully repaid a revolving credit facility in February 2025, which enhances its financial flexibility. The filing noted that the company is focused on maintaining its competitive edge in a challenging market environment, characterized by budgetary constraints and evolving government spending priorities.

Looking ahead, Castellum anticipates continued challenges due to potential reductions in government spending and the impact of inflation on operational costs. The company remains committed to leveraging its existing contracts and pursuing new opportunities to drive growth. Management expressed optimism about the future, citing the importance of strategic acquisitions and operational efficiencies in navigating the current economic landscape.