Cycurion Reports Record $73.6 Million Backlog as AI Cybersecurity Platform Gains Traction

Cycurion Inc. is closing out 2025 with $73.6 million in contracted backlog and a new AI platform that positions the company for high-margin growth. The record-breaking backlog, which includes multi-year agreements, reflects surging demand for its AI-enhanced ARx platform and managed security services. ARx is a unified cybersecurity solution for protecting critical digital assets that incorporates multiple layers of protection focused on inspecting requests to and responses from digital assets.

Cycurion's noninvasive approach wraps around digital assets without requiring hardware or cloud installations while keeping client intellectual property completely private. With every request inspected, malicious threats are logged and blocked in real time before reaching the asset. The company's multi-layer approach is designed to thwart potential attackers through an expanding set of protective layers.

The backlog includes over $8 million in new contracts inked in the second quarter alone, featuring 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. Cycurion expects to add $2.9 million in new annualized revenue from this backlog, which began accumulating in the fourth quarter.

These contracts complement existing agreements with major private and public sector entities, including a multi-year contract with Florida that made Cycurion an approved IT vendor for the state. Under this arrangement, 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 will implement Cyber Shield, powered by Cycurion's AI-driven ARx platform, expanding availability to more than 3,000 member organizations nationwide. Revenue from the Cyber Shield product is projected to reach $1.8 million in the first year. Cycurion has secured more than 30 new agreements in 2025 and achieved high client retention, which the company attributes to AI-powered solutions that surpass traditional cybersecurity.

CEO L. Kevin Kelly stated in a letter to shareholders that these AI-driven engagements have transformed one-time contracts into enduring, high-margin partnerships, driving recurring revenue and fostering referrals that amplify market reach. The timing is particularly significant as the AI software developed over five years begins rolling out across the client base.

Kelly emphasized that as the ARx platform expands, 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 the company believes will significantly enhance corporate value by strengthening the balance sheet and attracting investors seeking AI-driven growth.

The company's recent one-for-thirty reverse stock split represents a deliberate step to realign the share structure, enhance liquidity and broaden access to institutional investors. This alignment with Nasdaq listing standards improves the investment profile and positions Cycurion to attract institutional support. 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 of the AI-powered backlog and partnerships.

Cycurion maintains Nasdaq compliance and, following a preferred stock offering during the summer, reduced debt by $3.2 million while improving its financial position. With $54 million of its $60 million Equity Line of Credit remaining, the cybersecurity company has significant flexibility for funding growth without relying solely on debt, positioning it to capitalize on its substantial backlog.