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.

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.

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.