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

Castellum

06/08/2026 21:44

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

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(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.)