Castellum (CTM) Q2 2026 earnings summary

Executive summary

• Achieved record first-half 2026 revenue of $28.2 million, up 10% year-over-year, driven by ramp-up of three major Navy prime contracts and a robust backlog anchored in AI-enabled cyber, electronic warfare, and C5ISR programs.

• Maintained a debt-free balance sheet with $16.9 million in cash at June 30, 2026, supporting organic and M&A growth strategies.

• Net loss for the first half was $1.4 million, with adjusted EBITDA compressed due to planned growth investments.

• Seven acquisitions since 2019 have expanded capabilities and market reach.

• Expects full-year 2026 to set a new revenue record, with multi-year revenue visibility supported by a robust backlog and qualified pipeline.

Financial highlights

• First half 2026 revenue grew 10% year-over-year to $28.2 million; Q2 revenue was $13.9 million, nearly flat year-over-year.

• Gross profit for the first half was $9.8 million (34.7% margin), up 2% year-over-year; Q2 gross profit was $4.7 million (34% margin), down from $5.1 million (36%) in Q2 2025.

• Net loss for Q2 2026 was $1.05 million; first half net loss was $1.4 million, improved from $1.55 million in 2025.

• Adjusted EBITDA for the first half was $0.4 million (1.4% margin), down from $0.6 million in 2025, reflecting front-loaded investments.

• Cash and equivalents at June 30, 2026, totaled $16.9 million, up from $14.8 million at the end of H1 2025; operating cash flow for the first half was $2.4 million.

Outlook and guidance

• Expects record full-year 2026 revenue, with focus on converting backlog and pipeline into higher-margin growth.

• Plans to recognize approximately 16% of backlog over the next 12 months and 48% over the next 24 months.

• Continued disciplined execution and investment in business development, M&A, and mission technologies to drive multi-year growth.

• No immediate plans for share buybacks; capital will be prioritized for organic growth and acquisitions.

• Management expects sufficient liquidity for at least the next 12 months, supported by cash and operating cash flows.