Cycurion, Inc. (NASDAQ: CYCU) disclosed a significant contract award on October 13, 2026, in a press release furnished with its Form 8-K. The company reported securing a 10-year contract valued at $54.6 million, which is described as the largest in its history. The agreement is intended to modernize and securely operate a major state Health and Human Services system. Work on the project is scheduled to commence in November 2026, with revenue expected to begin in the fourth quarter of 2026. The filing indicates that revenue will ramp gradually, building through 2027 toward more than $5 million in annual recurring revenue.
In addition to the new government contract, the company provided details regarding its acquisition of Digital Ally's Video Solutions business. The filing notes that this acquisition brings approximately $5.5 million in annual revenue and more than $1.2 million in EBITDA, along with a portfolio of intellectual property. The filing also references the company's public safety engagements, including work supporting the City of Chicago, which is forecast to generate approximately $843,028 in revenue during calendar 2026. Furthermore, the company highlighted recent diversification efforts, including a pharmaceutical AI Center of Excellence engagement and awards with the National Association of County and City Health Officials, totaling approximately $800,000 in annual contract spends.
The filing also addressed the company's financial position and compliance status. Cycurion confirmed that it has regained compliance with the Nasdaq Capital Market's $1.00 minimum bid price requirement as of October 1, 2026. The company stated that its pro-forma annual revenue run rate is approximately $30 million following the Digital Ally acquisition. Management indicated that the company expects to reach break-even and cash-positive operations by the second quarter of 2027. The filing notes that the company has cut net debt by more than 70% since going public, reducing it from $10.5 million to just under $3 million.
