Castellum posts Q3 net loss, increased spending weighed on near-term profitability

Castellum

Thu 21:49

Overview
U.S. defense tech firm's Q3 revenue rose slightly year-over-year
Adjusted EBITDA for Q3 declined from prior year
Company posted Q3 net loss versus net income a year ago

Outlook
Castellum expects record annual revenue for full yr 2026
Company expects to recognize 25% of backlog in next 12 months, 51% in 24 months
Castellum sees M&A as principal driver for growth over next 6 to 12 months

Result Drivers
SUBCONTRACTOR MIX - Co said higher mix of subcontractor work limited gross profit growth
INCREASED SPENDING - Co said deliberate increase in business development and M&A spending weighed on near-term profitability
CONTRACT EXECUTION - Co attributed revenue growth to execution on major long-term contracts

Company press release: ID:nGNX5PfwDd

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$14.70 mln
$14.86 mln (1 Analyst)
Q3 Gross Profit
 
$5.30 mln
 

Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for Castellum Inc is $2.00, about 308.2% above its November 4 closing price of $0.49

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)