Cycurion Reports Record $73.6M Backlog as AI Cybersecurity Platform Drives Growth

Cycurion Inc. (NASDAQ: CYCU) is closing out 2025 with a record $73.6 million in contracted backlog, driven by surging demand for its AI-enhanced cybersecurity solutions across government agencies and Fortune 500 companies. The backlog includes multi-year agreements that reflect growing adoption of the company's ARx platform, a unified cybersecurity solution that protects critical digital assets through noninvasive inspection of requests and responses.

The company's recent contract wins include over $8 million in new agreements signed in the second quarter alone, highlighted by a $6 million deal with a municipal transportation agency for AI-driven IT and cybersecurity solutions. Additional contracts totaling $4.6 million span government, healthcare, and public safety sectors, with Cycurion expecting to add $2.9 million in new annualized revenue from these backlogged projects starting in the fourth quarter.

Cycurion's expansion includes significant public sector partnerships, such as becoming an approved IT vendor for the state of Florida through a multi-year contract that allows state agencies, counties, and municipalities to engage directly with the company without competitive bidding. The company also partnered with the National Association of County and City Health Officials (NACCHO) to implement Cyber Shield, powered by Cycurion's AI-driven ARx platform, which is projected to generate $1.8 million in first-year revenue while expanding availability to over 3,000 member organizations nationwide.

CEO L. Kevin Kelly emphasized in a letter to shareholders that AI-driven engagements have transformed one-time contracts into enduring, high-margin partnerships, driving recurring revenue and fostering referrals that amplify market reach. The company credits its high client retention to AI-powered solutions that go beyond traditional cybersecurity, with the ARx platform's multi-layer protection designed to thwart potential attackers through real-time threat detection and blocking.

What makes Cycurion's current growth particularly significant is that it 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. The company 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 support its growth trajectory and broaden investor access, Cycurion recently completed a one-for-thirty reverse stock split, which the company describes as a deliberate step to realign share structure, enhance liquidity, and attract institutional investors. The move aligns the company with Nasdaq listing standards and has generated interest from over 15 financial institutions, particularly from the Asia-Pacific region including Japan, Korea, Singapore, China, and Australia.

Financially, Cycurion maintains a strong position with $54 million remaining from its $60 million Equity Line of Credit, providing significant flexibility for funding growth without relying solely on debt. The company also reduced its debt by $3.2 million through a preferred stock offering this summer, further strengthening its financial foundation as it prepares to capitalize on its record backlog and expanding AI capabilities.