Cycurion announces 1-for-8 reverse stock split, cites margin gains

Cycurion, Inc. (NASDAQ: CYCU), a McLean, Virginia-based cybersecurity company, announced a 1-for-8 reverse stock split, according to a shareholder letter issued by Chairman and Chief Executive Officer L. Kevin Kelly.

The company stated the reverse split is intended to satisfy a Nasdaq listing requirement. Kelly said the board moved forward only after securing shareholder authority, completing required filings, and determining the ratio provided sufficient cushion.

According to the letter, Cycurion's gross margin expanded from 6.1% in the second quarter of 2025 to 29.1% in the second quarter of 2026. The company also reported cutting its net debt by more than half since year-end 2024.

Cycurion completed two acquisitions this year — Secuvant and Digital Ally/Kustom — which the company said added more than 800 agency clients and additional intellectual property. The company signed a 10-year, $54.6 million award supporting the Department of Health and Human Services, with more than $5 million in annual recurring revenue expected to begin in November.

The company reported $15 million to $17 million of committed revenue in each of 2026, 2027, and 2028, along with a $34 million open pipeline. The board also authorized a $500,000 share repurchase program.

Kelly stated a target of reaching break-even, profitability, and a cash-positive operating position by the second quarter of 2027.

The letter also addressed what Kelly described as a "manipulation campaign" against the company's stock, stating that a false press release was disseminated through ACCESS Newswire and that the company is pursuing legal action. Kelly said the company has trading records and is confident in the outcome.

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