Cycurion Inc. is closing out 2025 with a record $73.6 million in contracted backlog and a new AI platform that the company believes positions it for high-margin growth. The backlog includes multi-year agreements reflecting 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. The company's noninvasive approach wraps around digital assets without requiring hardware or cloud installations while maintaining client IP privacy.
Cycurion's backlog includes over $8 million in new contracts signed 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. The company expects to add $2.9 million in new annualized revenue from its backlog starting in the fourth quarter. These contracts complement existing agreements with major private and public sector organizations. The company's multi-year contract with Florida established Cycurion as an approved IT vendor for the state, allowing any Florida state agency, county, municipality or eligible entity to engage directly without competitive bidding for mission-critical IT staff augmentation across multiple domains including 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. First-year revenue from the Cyber Shield product is projected at $1.8 million. Cycurion has secured more than 30 new agreements in 2025 and achieved high client retention, which the company attributes to its AI-powered solutions that extend beyond traditional cybersecurity. CEO L. Kevin Kelly stated in a letter to shareholders that these AI-driven engagements with real-time monitoring and seamless integration have transformed one-time contracts into enduring, high-margin partnerships, driving recurring revenue and fostering referrals that amplify market reach.
Kelly projected that as the ARx platform expands across the client base, it will significantly increase margins and create a recurring revenue model, fundamentally enhancing the company's value proposition in 2026. The company is currently having its ARx platform's IP valued, which management believes will significantly enhance company value by strengthening the balance sheet and attracting investors seeking AI-driven growth. To broaden investor access, Cycurion implemented a one-for-thirty reverse stock split, describing it as a deliberate step to realign share structure, enhance liquidity and broaden access to institutional investors. This move provides access to capital for growth and aligns with Nasdaq listing standards. 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.
Interest from Asia-Pacific investors in Japan, Korea, Singapore, China and Australia has been particularly strong. Cycurion maintains Nasdaq compliance and, following a preferred stock offering this summer, reduced debt by $3.2 million while improving its financial position. With $54 million remaining from its $60 million Equity Line of Credit, the cybersecurity company has significant flexibility for funding growth without relying solely on debt.
