Cycurion Reports 22% Revenue Decline and $5.19 Million Net Loss in Q2 2025

Cycurion, Inc. reported a significant decline in financial performance for the second quarter of 2025, with net revenues of $3.89 million, down 22% from $5.00 million in the same period last year. For the first half of 2025, revenues totaled $7.76 million, a decrease of 16% compared to $9.24 million in the first half of 2024. The company attributed this decline to delayed start dates for new contracts and a strategic shift towards more profitable business segments. The gross profit margin also fell sharply to 6.1% from 20.5% year-over-year, reflecting increased costs associated with delivering services.

Operating expenses surged to $4.00 million for the quarter, compared to $294,790 in the prior year, primarily due to costs related to merger and acquisition activities. This contributed to an operating loss of $3.77 million, compared to an operating income of $729,372 in the same quarter of 2024. The net loss attributable to Cycurion was $5.19 million for the quarter, a stark contrast to a net income of $306,094 in the previous year. The company’s accumulated deficit increased to approximately $18.65 million as of June 30, 2025.

Cycurion's balance sheet showed total assets of $30.74 million, up from $25.56 million at the end of 2024, largely due to an increase in goodwill following the acquisition of SLG Innovation, Inc. The company reported cash and cash equivalents of $1.01 million, a significant increase from $38,742 at the end of 2024. However, the company also faced a working capital deficit of $14.4 million, raising concerns about its ability to continue as a going concern without additional financing.

In terms of operational developments, Cycurion completed the acquisition of SLG Innovation in March 2025, which is expected to enhance its service offerings and revenue potential. The company also reported a significant increase in its employee headcount, reflecting its growth strategy. As of June 30, 2025, Cycurion had 51,426,037 shares of common stock outstanding, a substantial increase from previous periods, indicating a dilution of existing shareholders.

Looking ahead, Cycurion's management expressed intentions to improve operations and generate positive cash flows, while also seeking additional capital through public offerings and other financing methods. The company remains focused on navigating the challenges posed by its current financial situation and aims to leverage its recent acquisitions to drive future growth. However, the ongoing need for capital raises and the potential for continued operating losses present significant risks to its financial stability.