Amendment to Current Report (Form 8-K/A)

2026: A Breakout Year for Cycurion - Building Momentum and Shareholder Value

April 15, 2026

MCLEAN, Va., April 15, 2026 (GLOBE NEWSWIRE) -- Cycurion, Inc. (NASDAQ: CYCU) ("Cycurion" or the "Company"), a leading AI driven, tech-enabled cybersecurity solutions provider, today releases the following Letter to Shareholders from Kevin Kelly, Chairman and Chief Executive Officer.

Dear Valued Shareholders,

I am pleased to provide an update on our progress and outlook for 2026. Building on the operational transformation achieved in 2025, we have entered the year with improved financial flexibility, a strengthened balance sheet, and a clear path toward higher-margin, recurring revenue growth.

We began 2026 with a solid foundation for growth. We are executing our strategy of both organic and inorganic expansion in a highly favorable cybersecurity market, where global spending is projected to exceed $500 billion by 2030, according to Cybersecurity Ventures' 2026 Cybersecurity Market Report. This growth is being driven by the AI arms race, increasingly sophisticated threats, and rising demand for resilient government and critical infrastructure solutions.

Our ARx platform is purpose-built for this environment, delivering real-time, AI-enhanced protection that addresses these challenges.

We have approximately $112 million in contracted backlog, providing multi-year revenue visibility. This contracted backlog, combined with public health contracts expected to add approximately $1.35 million in 2026 revenue (with approximately $1.165 million in new annual recurring revenue), demonstrates strong momentum in our sales pipeline.

Our path to profitability is clear and focused. We are deliberately shifting toward higher-margin businesses by emphasizing the sale of proprietary products, particularly our scalable AI-driven ARx platform, and through targeted acquisitions of companies with complementary high-margin products, often delivering over 70% gross margins. This, combined with a growing mix of recurring revenue from managed services and our cost discipline, positions us for meaningful margin expansion and progress toward sustainable profitability in 2026 and beyond.

At current levels, Cycurion is trading at roughly 0.5x our trailing revenue - a significant discount to the broader cybersecurity sector, where public companies typically trade at multiples ranging from 5 to 12 times revenue (and high-growth platform leaders often command 10 to 20 times or more), based on publicly available market data. As we execute on backlog conversion, shift toward higher-margin product sales and acquisitions, and deliver sustainable profitability, we believe this valuation disconnect will narrow, creating substantial upside for shareholders.

2025 was a year of deliberate cleanup and structural transformation. We navigated transitory headwinds from federal government shutdowns and efficiency reviews. Despite these challenges, we executed significant operational improvements: implementing $2.2 million in annualized cost savings, reducing net debt by over 70% (ending the year at just under $3 million while holding over $5 million in cash), streamlining our capital structure, and continuing targeted investments in our proprietary AI-driven ARx platform. These steps have laid a stronger foundation for higher-margin, recurring revenue growth going forward.

We also confronted external challenges, including defamatory campaigns, suspected short selling and market manipulation, and unauthorized press releases. True to our commitment, we have initiated a John Doe lawsuit against involved parties and recently issued litigation hold letters to 16 market makers to preserve evidence. We will continue to protect the Company and our shareholders vigorously.

With improved financial flexibility, contracted backlog conversion, strategic expansion, and deliberate focus on high-margin growth, I believe that 2026 will be a year of revenue growth and long-term value creation for you, our shareholders.

We remain fully committed to our mission of securing the digital future. Thank you for your continued support. We look forward to providing regular updates on backlog execution, new contract awards, ARx advancements, and financial progress throughout the year.

Sincerely,

Kevin Kelly, Chairman and Chief Executive Officer

About Cycurion, Inc.

Based in McLean, Virginia, Cycurion (NASDAQ: CYCU) is a forward-thinking provider of IT cybersecurity solutions and AI, committed to delivering secure, reliable, and innovative services to clients worldwide. Specializing in cybersecurity, program management, and business continuity, Cycurion harnesses its AI-enhanced ARx platform and expert team to empower clients and safeguard their operations. Along with its subsidiaries, Axxum Technologies LLC, Cloudburst Security LLC, and Cycurion Innovation, Inc., Cycurion serves government, healthcare, and corporate clients committed to securing the digital future. More info: www.cycurion.com.