Picture of Castellum logo

CTM — Castellum News Story

0.000.00%
us flag iconLast trade - 00:00
TechnologySpeculativeMicro CapContrarian

Castellum Q2 revenue stable as contract wind-downs offset new ones

Castellum Q2 revenue stable as contract wind-downs offset new ones


Overview

  • US cybersecurity and software services firm's Q2 revenue was stable yr/yr at $13.9 mln

  • Adjusted EBITDA for Q2 declined due to increased investments and higher subcontractor mix

  • Company expects record full-year 2026 revenue, supported by $271.7 mln backlog


Outlook

  • Castellum expects record revenue for full-year 2026

  • Company expects to recognize about 16% of backlog in next 12 months

  • Company to focus on converting backlog and pipeline into organic revenue growth


Result Drivers

  • CONTRACT RAMP-UP AND WIND-DOWN - Co said stable Q2 revenue reflected gains from ramp-up of new contracts, offset by expected wind-down of certain contracts that contributed to prior-year revenue

  • SUBCONTRACTOR MIX - Co said lower Q2 gross margin was due to a higher mix of subcontractor work, which typically carries a lower margin than direct labor, and costs to complete two firm-fixed-price contracts

  • INCREASED INVESTMENTS - Co said lower adjusted EBITDA reflected planned investments in business development, investor relations, and acquisition activities, with costs recognized ahead of related revenue


Company press release: ID:nGNX8Rhyzg


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Miss

$13.90 mln

$16.03 mln (1 Analyst)

Q2 Gross Profit

$4.70 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 $3.50, about 345.2% above its August 5 closing price of $0.79


Reuters Recommended Reads

  • Aug 5 - CACI International Q4 revenue slightly beats estimates on organic growth

  • Aug 4 - Leidos lifts annual forecasts on strong defense demand

  • Aug 3 - V2X Q2 revenue beats estimates; outlook raised


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.)

Recent news on Castellum

See all news