Cycurion Reports Record $73.6 Million Backlog Fueled by AI Cybersecurity Platform

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 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.

This noninvasive approach wraps around digital assets without requiring hardware or cloud installations while maintaining client IP privacy. With every request inspected, malicious threats are logged and blocked in real time before reaching the asset. Cycurion's multi-layer approach is designed to thwart potential attackers through an expanding set of protective layers. The company's backlog spans various sectors, including over $8 million in new contracts signed in the second quarter alone.

Notable contracts include 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 its backlog beginning in the fourth quarter. These 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 the Florida agreement detailed in the company's official communications, any 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 also partners with the National Association of County and City Health Officials, which will implement Cyber Shield powered by Cycurion's AI-driven ARx platform.

This partnership expands ARx availability to more than 3,000 member organizations nationwide, with first-year Cyber Shield revenue projected at $1.8 million. Cycurion has secured more than 30 new agreements in 2025 and achieved high client retention, attributing this success to AI-powered solutions that surpass traditional cybersecurity. CEO L. Kevin Kelly stated in a shareholder letter that 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.

The company emphasizes that these contracts coincide with the rollout of AI software developed over five years. 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. Cycurion 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 as a deliberate step to realign share structure, enhance liquidity and broaden access to institutional investors. This alignment with Nasdaq listing standards improves the investment profile and positions the company to attract institutional support. Management has met with over 15 financial institutions requiring stock prices 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, through a preferred stock offering in 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.