Cycurion Reports 13.9% Revenue Decline in Q3 2025, Operating Loss of $4.53 Million

Cycurion, Inc. reported a decline in financial performance for the third quarter of 2025, with net revenues of $3.83 million, a decrease of 13.9% from $4.45 million in the same period of 2024. For the nine months ending September 30, 2025, revenues totaled $11.59 million, down 15.4% from $13.69 million in the prior year. The company attributed this decline to delayed start dates for new contracts and a strategic focus on more profitable business segments. The gross profit margin also fell to 7.1% for the quarter, compared to 16.1% in the previous year, reflecting increased operating expenses.

Total operating expenses surged to $4.80 million for the third quarter, significantly higher than $0.30 million in the same quarter of 2024. This increase was primarily driven by higher selling, general, and administrative expenses, which rose due to costs associated with being a publicly traded company and the addition of key personnel. The company reported an operating loss of $4.53 million for the quarter, compared to an operating income of $0.42 million in the prior year. The net loss attributable to Cycurion was $3.12 million, resulting in a basic loss per share of $1.59.

Cycurion's balance sheet showed total assets of $32.31 million as of September 30, 2025, up from $25.56 million at the end of 2024. This increase was largely due to a rise in goodwill following the completion of a business combination with Western Acquisition Ventures Corp. in February 2025. The company’s cash and cash equivalents improved to $3.65 million, a significant increase from $38,742 at the end of 2024, primarily due to financing activities that generated $10.78 million in cash.

Operationally, Cycurion has been focusing on expanding its customer base and enhancing its service offerings. The company reported a total of 2,712,489 shares of common stock outstanding as of November 7, 2025, following a one-for-thirty reverse stock split that took effect on October 27, 2025. This strategic move aimed to increase the stock price to comply with Nasdaq listing requirements, which had previously been a concern due to the stock trading below the minimum bid price.

Looking ahead, Cycurion's management expressed optimism about improving operations and generating positive cash flows. However, the company continues to face challenges, including the need for additional financing to support its growth and the ongoing risk of delisting from Nasdaq if it fails to maintain compliance with listing requirements. The management plans to pursue further capital raises and strategic acquisitions to bolster its market position in the cybersecurity sector.