By Meg Flippin Benzinga

DETROIT, MICHIGAN - November 7, 2025 (NEWMEDIAWIRE) - Cycurion Inc. (NASDAQ: CYCU), an IT cybersecurity solutions and AI company protecting government agencies and corporations including Fortune 100 and 500 companies, is closing out 2025 on a high note with $73.6 million in contracted backlog and a new AI platform that it believes positions it for high-margin growth.

The record-breaking backlog, which includes multi-year agreements, reflects what the company says is 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. It is focused on inspecting requests to and responses from a digital asset.

Cycurion says this noninvasive approach wraps around a digital asset without the need for hardware or cloud installations, all the while keeping the client’s IP completely private. With every request inspected, malicious threats are logged and blocked in real time before reaching the asset. Cycurion’s multi-layer approach is intended to thwart potential attackers via an expanding set of protective layers.

Backlog Is Across A Variety Of Sectors

Cycurion’s backlog includes over $8 million in new contracts inked in the second quarter alone, including a $6 million deal with a municipal transportation agency to provide 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 as a result of its backlog which it said started in the fourth quarter.

Those contracts are in addition to the deals Cycurion has already inked with big names in both the private and public sectors. Take its multi-year contract with Florida as one example, which saw Cycurion become an approved IT vendor for the state. Under the terms of that deal, any Florida state agency, county, municipality or eligible entity can engage directly – without competitive bidding – with Cycurion for mission-critical IT staff augmentation across software development, cybersecurity, data analytics, cloud engineering, AI integration, project management and systems architecture.

Then there’s its partnership with the National Association of County and City Health Officials (NACCHO). NACCHO will implement Cyber Shield, powered by Cycurion’s AI-driven ARx platform, and help expand the availability of ARx to its more than 3,000 member organizations nationwide. Revenue in the first year from the Cyber Shield product is projected to be $1.8 million, reports the company.

All told, Cycurion has secured more than 30 new agreements so far in 2025 and has achieved high client retention, which it credits to its AI-powered solutions that go beyond traditional cybersecurity.

“These AI-driven engagements – backed by real-time monitoring and seamless integration – have transformed one-time contracts into enduring, high-margin partnerships, driving recurring revenue and fostering referrals that amplify our market reach,” said L. Kevin Kelly, CEO of Cycurion, in a letter to shareholders.

AI In Its Infancy

And it's only at the cusp of it. What makes all of the contracts particularly exciting, says the company, is that they are coming at a time when the AI software that’s been under development for over five years is just rolling out.

“As our ARx platform expands across our client base, it will significantly increase our margins and create a recurring revenue model, fundamentally enhancing our value proposition in 2026,” said Kelly. ”We are currently having our ARx platform’s IP valued, which we believe will significantly enhance the Company’s value by strengthening our balance sheet and attracting investors seeking AI-driven growth.”

To broaden access to investors, Cycurion said its recent one-for-thirty reverse stock split should not be viewed negatively but rather as a deliberate, positive step designed to realign the share structure, enhance liquidity and broaden access to institutional investors, which in turn will give it access to capital for growth.

“It aligns us with the Nasdaq listing standards, improves our investment profile, and positions us to attract the institutional support we know our fundamentals warrant. In fact, we have now met with over 15 financial institutions who expressed interest in our story, most of whom require a stock price in the $3-5 range to invest, reflecting the strong appeal of our AI-powered backlog and partnerships,” said Kelly. The CEO said the company is seeing a lot of interest from investors in the Asia-Pacific region, including Japan, Korea, Singapore, China and Australia.

Cycurion is also Nasdaq-compliant, and thanks to a preferred stock offering in the summer, it reduced its debt by $3.2 million and improved its financial position. With $54 million of its $60 million Equity Line of Credit remaining, the cybersecurity company says it has “ significant flexibility” for funding growth without relying solely on debt. Given the size of its backlog, Cycurion may be ready to do some flexing.

Keep up with Cycurion’s (NASDAQ: CYCU) latest news here!

Images from Shutterstock & Cycurion Inc.

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