Cycurion Reports Record $73.6 Million Backlog as AI Cybersecurity Platform Drives Growth
TL;DR
Cycurion's $73.6 million backlog and AI platform provide competitive advantage through high-margin growth and exclusive government contracts without competitive bidding requirements.
Cycurion's ARx platform uses noninvasive AI to inspect all requests and responses, blocking threats in real-time through multiple protective layers without hardware installation.
Cycurion's cybersecurity solutions protect critical infrastructure and public safety organizations, making digital systems more secure for government agencies and healthcare providers nationwide.
Cycurion secured 30 new agreements in 2025 including a Florida state contract allowing direct engagement without bidding across multiple IT services.
Cycurion Inc. (NASDAQ: CYCU) is concluding 2025 with a record $73.6 million in contracted backlog, driven by 30 new agreements signed throughout the year. The cybersecurity company attributes this growth to surging demand for its AI-enhanced ARx platform and managed security services, which protect government agencies and Fortune 100 and 500 companies.
The ARx platform represents a unified cybersecurity solution that incorporates multiple layers of protection focused on inspecting requests to and responses from digital assets. This noninvasive approach wraps around digital assets without requiring hardware or cloud installations while maintaining client intellectual property privacy. With every request inspected, malicious threats are logged and blocked in real time before reaching the asset, using an expanding set of protective layers to thwart potential attackers.
Cycurion's backlog spans multiple sectors, including over $8 million in new contracts signed during the second quarter alone. Notable agreements include a $6 million deal with a municipal transportation agency for AI-driven IT and cybersecurity solutions and $4.6 million in contracts across government, healthcare, and public safety sectors. The company expects to add $2.9 million in new annualized revenue from this backlog, which began accumulating in the fourth quarter.
Significant public sector partnerships have contributed to this growth, including Cycurion's multi-year contract with Florida that established the company as an approved IT vendor for the state. Under this agreement, any Florida state agency, county, municipality, or eligible entity can engage directly with Cycurion without competitive bidding for mission-critical IT staff augmentation across software development, cybersecurity, data analytics, cloud engineering, AI integration, project management, and systems architecture.
The company's partnership with the National Association of County and City Health Officials (NACCHO) represents another key growth driver. NACCHO will implement Cyber Shield, powered by Cycurion's AI-driven ARx platform, and help expand ARx availability to its more than 3,000 member organizations nationwide. Revenue from the Cyber Shield product is projected to reach $1.8 million in the first year.
CEO L. Kevin Kelly emphasized in a letter to shareholders that AI-driven engagements have transformed one-time contracts into enduring, high-margin partnerships. These relationships drive recurring revenue and foster referrals that amplify market reach, contributing to the company's high client retention rates.
The timing of this contract surge coincides with the rollout of AI software that has been under development for over five years. Kelly stated that as the ARx platform expands across the client base, it will significantly increase margins and create a recurring revenue model, fundamentally enhancing the company's value proposition in 2026. Cycurion is currently having its ARx platform's intellectual property valued, which management believes will significantly enhance company value by strengthening the balance sheet and attracting investors seeking AI-driven growth.
To broaden investor access, Cycurion implemented a one-for-thirty reverse stock split, characterizing it as a deliberate step to realign the share structure, enhance liquidity, and broaden access to institutional investors. The company has met with over 15 financial institutions expressing interest, most requiring a stock price in the $3-5 range to invest, reflecting strong appeal for the AI-powered backlog and partnerships. Significant interest has emerged from the Asia-Pacific region, including Japan, Korea, Singapore, China, and Australia.
Cycurion maintains Nasdaq compliance and improved its financial position through a preferred stock offering that reduced debt by $3.2 million during the summer. With $54 million of its $60 million Equity Line of Credit remaining, the company has significant flexibility for funding growth without relying solely on debt, positioning it to capitalize on its substantial backlog and expanding AI capabilities.
Curated from NewMediaWire