8-K: Castellum Reports Strong Q1 2026 Results, Record Backlog

Castellum, Inc. announced a 23% revenue increase in Q1 2026, driven by new contract ramp-ups, reaching a record backlog of $273.3 million.

Summary

• Castellum, Inc. reported first-quarter 2026 financial results, with revenues reaching $14.3 million, a 23% increase compared to $11.7 million in the first quarter of 2025.
• Gross profit rose by 11% to $5.1 million from $4.6 million in Q1 2025.
• Adjusted EBITDA improved significantly to $0.4 million, up from $0.08 million in Q1 2025.
• The net loss narrowed to $0.4 million ($0.00 per share) from a net loss of $1.2 million ($0.01 per share) in Q1 2025.
• The company ended the quarter with a record backlog of $273.3 million, an increase from $265 million at the end of 2025.
• Cash and cash equivalents stood at $15.8 million as of March 31, 2026.
• The company has no long-term debt, having paid off its remaining obligations during the quarter.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong positive report, with significant revenue growth, improved profitability metrics, a record backlog, and a debt-free balance sheet, indicating robust operational performance and a positive future outlook.

Positives

• Revenue increased by 23% year-over-year to $14.3 million in Q1 2026.
• Gross profit increased by 11% to $5.1 million.
• Adjusted EBITDA showed significant improvement, reaching $0.4 million.
• Net loss was reduced to $0.4 million, an improvement from $1.2 million in the prior year.
• Record backlog of $273.3 million provides multiyear revenue visibility.
• Qualified pipeline increased to $938 million, indicating strong future opportunities.
• The company is debt-free after paying off remaining long-term obligations.
• Cash and cash equivalents increased to $15.8 million.

Negatives

• Gross margin of 35.4% was somewhat affected by changes in contract mix and type.
• The company reported a net loss of $0.4 million for the quarter.

Risks

• The company's ability to continue to grow and execute on its total backlog and qualified pipeline.
• Competition against new and existing competitors.
• The ability to effectively integrate and grow acquired companies.
• The ability to identify additional acquisition targets and close additional acquisitions.
• Maintaining the listing of its common stock on the NYSE American LLC.

Future Outlook

The company expects to recognize approximately 16% of its current backlog over the next 12 months and approximately 49% over the next 24 months. Castellum is focused on building organic growth, leveraging its CMMC Level 2 C3PAO certification, and exploring M&A opportunities.

Management Comments

• "Our strong Q1 2026 results reflect the momentum we built throughout a standout 2025, when we secured over $219 million in contracts across three major, longterm prime wins and deepened our relationships with the U.S. Navy and other key federal customers."
• "The 23% revenue increase for Q1 2026 was driven by production rampup of these new contract wins."
• "We ended the quarter with a record backlog of approximately $273 million, which provides us with multiyear revenue visibility."
• "Similarly, the pipeline of qualified opportunities continues to increase, and we had $938 million in identified opportunities at quarter-end, which is a testament of the strength of our strategy and the competitiveness of our offerings for complex, missioncritical programs in cybersecurity, electronic warfare, and advanced engineering."
• "Q1 2026 was our best first quarter ever and second best of any quarter on record in terms of revenue and delivered a significantly improved bottom line."
• "We ended the period with a debtfree balance sheet and $15.8 million in cash, which give us the flexibility to invest in growth initiatives while maintaining a solid financial profile."
• "We have entered Phase 3 of Castellums evolution, and our priorities are clear. We are focused on building on our strong organic growth momentum, fully leveraging our new CMMC Level 2 C3PAO certification as a key competitive differentiator in the DoD market, federal cyber and missioncritical programs, and selectively exploring compelling M&A opportunities that meet our criteria."
• "As we progress through 2026, we remain focused on disciplined execution to position Castellum for sustainable, long-term growth and enhanced shareholder value."

Industry Context

StockSavvy.ai notes that Castellum's focus on cybersecurity, electronic warfare, and software services for the federal government aligns with increasing defense spending and the growing demand for advanced technology solutions in national security. The company's CMMC Level 2 C3PAO certification is a significant differentiator in the DoD market.

Stakeholder Impact

• Shareholders: Potential for increased value due to strong financial performance, record backlog, and debt-free status.
• Employees: Continued investment in capabilities and growth may lead to job security and opportunities.
• Customers (Federal Government): Continued delivery on critical mission programs in cybersecurity and electronic warfare.

Next Steps

• Continue building on strong organic growth momentum.
• Fully leverage CMMC Level 2 C3PAO certification as a competitive differentiator.
• Selectively explore compelling M&A opportunities.
• Continue investing in mission-critical technologies and capabilities.
• Position Castellum for sustainable, long-term growth and enhanced shareholder value.

Key Dates

Recommendation

The filing demonstrates significant year-over-year revenue growth, improved profitability, a record backlog, and a strengthened balance sheet with no debt. The company's strategic focus on high-demand areas like cybersecurity and electronic warfare, coupled with its CMMC certification, positions it for continued success. These factors suggest a strong upward trajectory for the stock.

Keywords

Castellum, CTM, Cybersecurity, Electronic Warfare, Software Services, Federal Government, Q1 2026, Financial Results