Castellum, Inc.

What they do

Castellum provides technology services and solutions to U.S. government agencies, including intelligence analysis, software development, cybersecurity, data analytics, and model-based systems engineering. It serves defense, federal civilian, and commercial markets, with primary customers being U.S. government departments and agencies. The company has completed seven acquisitions since 2019 and competes with larger firms like Northrop Grumman and CACI.

Revenue drivers

• Digital Solutions — Modernizes enterprise and agency-unique applications, infrastructure, and processes for government customers; part of the broader IT services portfolio.
• C4ISR, Cyber & Space — Delivers multi-domain C4 technology, cybersecurity, electronic warfare, and counter-UAS solutions; includes work on 5G, millimeter wave, and free space optical communications.
• U.S. Navy contracts — Secured a directed $4.0 million U.S. Navy ADMACS modernization subcontract and won a position on the U.S. Navy's $250.0 million LIIS CMDS Logistics IT MAC; these contribute to backlog and revenue.

Recent performance

For Q2 2026, revenue was $13.9 million, flat versus $14.0 million in Q2 2025, with a net loss of $1.1 million. First half 2026 revenue rose 10% to $28.2 million, with gross profit of $9.8 million. Cash and equivalents were $16.9 million at June 30, 2026, with no long-term debt. Adjusted EBITDA was $0.4 million for the first half. Total backlog was $271.7 million as of June 30, 2026.

Strategy

Castellum's strategy centers on organic growth and acquisitions, having completed seven acquisitions since 2019. Management emphasizes a qualified pipeline of $953.5 million as of June 30, 2026, and a backlog of $271.7 million. They are investing in prime contract wins, as evidenced by recent Navy awards, and achieved CMMC Level 2 certification to support defense programs. The company also filed a Form S-8 to register additional shares for its stock incentive plan.

Risks

• Limited operating history — Consolidated operations began in 2019, so there is limited history to evaluate the business and prospects at current scale.
• U.S. government budget uncertainty — Spending cuts, budget delays, or shutdowns could reduce or delay funding for contracts, impacting revenue.
• Competition — Competes with larger firms like Northrop Grumman and CACI, which have greater financial resources and assets.
• Contract wind-downs — Q2 2026 revenue was flat due to expected wind-down of certain contracts that contributed in Q2 2025, a timing factor that can affect period-over-period results.

Outlook

Management expects full-year 2026 to be a record year in revenue, driven by the ramp-up of major long-term prime contracts won in 2025, including NAVAIR PMA-290 and NAWCAD Lakehurst. They expect to recognize approximately 16% of backlog over the next 12 months and 48% over 24 months. The company ended Q2 2026 debt-free, providing financial flexibility for future growth.