Cycurion Inc. (NASDAQ: CYCU) reported approximately $112 million in contracted backlog and outlined plans for profitability in 2026, according to a shareholder letter from Chief Executive Officer Kevin Kelly.

The McLean, Virginia-based cybersecurity company said it expects public health contracts to contribute approximately $1.35 million in 2026 revenue, with about $1.165 million in new annual recurring revenue. The company operates an AI-driven platform called ARx for cybersecurity protection.

Kelly said the company reduced net debt by over 70% in 2025, ending the year at just under $3 million while maintaining over $5 million in cash. The company also implemented $2.2 million in annualized cost savings during the year.

The company plans to focus on higher-margin business segments, emphasizing sales of proprietary products and targeted acquisitions of companies with complementary products that deliver over 70% gross margins, according to the letter.

Cycurion said it faced challenges in 2025 including federal government shutdowns and efficiency reviews. The company also reported confronting what it described as defamatory campaigns and suspected market manipulation, leading to the initiation of legal action and litigation hold letters to 16 market makers.

The company noted that Cycurion trades at approximately 0.5 times trailing revenue, compared to broader cybersecurity sector multiples ranging from 5 to 12 times revenue for public companies.

Global cybersecurity spending is projected to exceed $500 billion by 2030, according to Cybersecurity Ventures' 2026 Cybersecurity Market Report cited in the letter.