Cycurion, Inc.
For the period ended Dec 31, 2025. Filed Mar 31, 2026.
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FY2025 · Filed Mar 31, 2026
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Item 7. Results of Operations
Results of Operations
| Table MD&A 1: Consolidated Results of Operations | ||
|---|---|---|
| For the Year Ended December 31, | ||
| 2025 | 2024 | |
| Net revenues | $15,133,647 | $17,771,485 |
| Cost of revenues | 13,521,329 | 14,136,742 |
| Gross profit | 1,612,318 | 3,634,743 |
| Gross profit percentage | 10.7% | 20.5% |
| Operating expenses: | ||
| Selling, general and administrative expenses | 9,258,199 | 1,208,630 |
| Stock compensation expenses | 3,898,867 | 10,000 |
| Business combination expenses | 11,870,114 | — |
| Total operating expenses | 25,027,180 | 1,218,630 |
| Operating (loss)/income | (23,414,862) | 2,416,113 |
| Interest income | 27,538 | 20,211 |
| Interest expense | (1,763,831) | (1,209,502) |
| Gain on debt settlement, net | 1,221,635 | — |
| Other (expense)/income | (129,564) | 2,779 |
| Other expense, net | (644,222) | (1,186,512) |
| (Loss)/income before income taxes | (24,059,084) | 1,229,601 |
| Provision for income tax | — | — |
| Net (loss)/income | (24,059,084) | 1,229,601 |
| Less: Net loss attributable to non-controlling interest | 393,376 | — |
| Net (loss)/income attributable to Cycurion | $(23,665,708) | $1,229,601 |
Revenue
Revenues for the year ended December 31, 2025 decreased $2.6 or 14.8% compared to the year ended December 31, 2024. We attribute this decrease in the revenues in 2025 compared to 2024 to delayed start dates of new federal, state and local contracts and the company’s focus on more profitable business.
Cost of revenues
The cost of revenue for the year ended December 31, 2025, was approximately $13.5 million, compared to $14.1 million for the year ended December 31, 2024. The cost of revenue is driven by the costs incurred while delivering services to our customers, therefore the decrease in costs is due to the decrease in revenues.
Selling, general and administrative expenses
Our selling, general and administrative ("SG&A") expenses increased in 2025 compared to 2024 due to additional expenses being recognized in 2025 due to increased costs associated with being a publicly traded company and the addition key individuals for the company's growth strategy.
Stock compensation expenses
Stock compensation expenses increased in 2025 compared to 2024 as a result of new compensation agreements with executives.
Business combination expenses
Business combination expenses in 2025 are a result of the business combination with Western.
Interest income
Interest income was $27,538 and $20,211 for the year ended December 31, 2025 and 2024, respectively. The change in interest income is a result of the balance of the underlying interesting earning assets.
Interest expense
Interest expense for the year ended December 31, 2025 and 2024, was $1.8 million and $1.2 million, respectively. The change in interest expense is a result of the underlying debt instruments. For further information refer to debt footnotes.
Gain on debt settlement, net
The $1.2 million gain on debt settlement, net for the year ended December 31, 2025 is the result of the conversion of debt to various equity instruments at a lower fair market value than the exchanged debt on the books.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.