CTM Reports Record Backlog and Revenue Growth; Debt-Free Balance Sheet Highlights Q1 2026 Performance

Revenue Up 23% and Backlog Hits $273M, Providing Multi-Year Visibility

Castellum, Inc. (NYSE-American: CTM), a company specializing in cybersecurity, electronic warfare, and software services for federal clients, posted significant gains in its first quarter 2026 results. The company achieved $14.3 million in revenues, up 23% from $11.7 million in Q1 2025. With a record total backlog of $273.3 million — a rise from $265 million at the end of 2025 — Castellum has set the stage for multi-year growth, forecasting recognition of approximately 16% of that backlog within the next 12 months and nearly half (49%) over the next two years.

Gross Profit and Adjusted EBITDA Show Strong Improvement; Loss Narrows Sharply

Gross profit climbed to $5.1 million, marking an 11% increase over the prior year. The company reported a net loss of $0.4 million, a substantial improvement compared to the $1.2 million net loss in the same quarter last year, with net loss per share stable at $0.00. Adjusted EBITDA, an important internal measure for operating performance, turned sharply higher to $0.4 million versus $0.08 million in Q1 2025, suggesting a meaningful improvement in operational efficiency.

Debt-Free Balance Sheet and Healthy Cash Reserves

Perhaps most notable, Castellum exited the quarter with zero long-term debt after paying off remaining obligations, reducing interest expense and freeing up resources for growth initiatives. The company closed March 2026 with $15.8 million in cash and cash equivalents, up from $14.9 million at year-end 2025, and maintained a solid liquidity position while supporting ongoing growth and M&A capacity.

Qualified Pipeline Expands to $938M, Supporting Continued Contract Wins

Castellum’s qualified pipeline of potential federal contracts grew to $938 million, up from $817 million three months earlier. This expansion reflects both the company’s competitive advantage—including newly acquired cybersecurity certifications—and the robust demand outlook for its mission-critical technologies in federal markets. The management team highlighted its focus on building from new Navy and DoD contracts signed in 2025, which underpinned the current quarter's gains.

Financial and Operational Highlights Table

Management Points to Execution and Growth Focus

Castellum’s leadership emphasized that strong organic growth, the strategic use of cybersecurity certifications, and selective acquisitions will drive the next phase. Improved gross margin efficiency (35.4%) and a more disciplined cost structure were central to the improved bottom line, though some margin softness was attributed to a changing mix of contracts.

Record Backlog and Cash Provide Foundation for Long-Term Expansion

Combining a record backlog, robust balance sheet, and pipeline strength, Castellum appears positioned for sustained progress in its federal market niches. As investors watch new contract wins materialize and gross profit trends continue, the company’s enhanced flexibility may lead to further organic and acquisitive growth in mission-critical defense and cybersecurity domains.

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