FreeTheAI

Cycurion Outlines $54.6M State HHS Contract and $30M Revenue Run-Rate

BullishHigh impact
CYCU$2.89 −2.69%

Cycurion, Inc. (CYCU) has outlined details of a $54.6 million, 10-year contract with a state Health and Human Services department, marking the largest contract win in the company's history. Work on the contract is scheduled to begin in the fourth quarter, with annual recurring revenue expected to exceed $5 million by 2027.

Following its acquisition of Digital Ally Video Solutions, the company stated that its pro-forma annual revenue run rate has reached approximately $30 million. The Digital Ally deal contributes $5.5 million in revenue, over $1.2 million in EBITDA, and adds more than 800 agency clients. Additionally, Secuvant adds around $3 million in revenue and an estimated $1.5 million in EBITDA this year. Shares of Cycurion traded down 2.69% to $2.89.

Looking forward, management is targeting operational breakeven by the second quarter of 2027. Key factors to watch include how effectively these new contracts and acquisitions translate into reported revenue growth and improved cash generation in coming quarters.

Key points

  • Cycurion secured a 10-year, $54.6 million state HHS contract starting in the fourth quarter.
  • Annual recurring revenue from the new contract is targeted to exceed $5 million by 2027.
  • Pro-forma revenue run rate reached approximately $30 million following recent acquisitions.
  • Digital Ally Video Solutions adds $5.5 million in revenue and over 800 agency clients.
  • The company is targeting operational breakeven by the second quarter of 2027.

Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org

How we writeDisclaimer

Questions and answers

What is the value of Cycurion's new state HHS contract?

Cycurion outlined a 10-year state Health and Human Services contract valued at $54.6 million, which is the largest contract in the company's history. Revenue from the contract begins in the fourth quarter.

What is Cycurion's current revenue run rate?

Following its acquisition of Digital Ally Video Solutions, Cycurion's pro-forma revenue run rate is approximately $30 million.

When does Cycurion expect to reach breakeven?

Cycurion is targeting operational breakeven by the second quarter of 2027 as revenue ramps up from its new contract and recent acquisitions.