🧾 What This Document Is

This is an 8-K filing, which is like a company's "breaking news" update to the SEC. Exhibit 99.1 is a press release announcing that Cycurion has won two new contracts. The big headline is that these deals are expected to bring in about $1.35 million in revenue for 2026.

🏢 What The Company Does

👉 In simple terms, Cycurion is a cybersecurity and AI company that protects computer systems for government agencies and healthcare organizations. Think of them as a high-tech security guard for important digital infrastructure. They're based in McLean, Virginia, and trade on the Nasdaq under the ticker CYCU.

💰 Financial Highlights

The news here is all about new, reliable income. The key number is $1.165 million in new Annual Recurring Revenue (ARR). That's money the company can count on every year going forward.

• Total 2026 Revenue from Deals: ~$1.35 million
• New Annual Recurring Revenue (ARR): $1.165 million
• Additional One-Time/Project Revenue: The remaining amount comes from the NACCHO expansion, adding $185,000 this year.

👉 Why it matters: Recurring revenue (like a subscription) is highly valuable because it's predictable and often has higher profit margins. It's more stable than one-time project work.

🚀 Key Moves

Cycurion is strategically expanding its footprint in the public health sector. They landed two specific awards:

1. A New Multi-Year Engagement: With a "large healthcare government agency." This is a huge potential win, starting as a 1-year task order but part of a framework that could last up to 10 years. It's the source of the big $1.165 million ARR.
2. An Expanded Relationship: With the National Association of County and City Health Officials (NACCHO), adding $185,000 in revenue this year.

👉 The work focuses on building and securing cloud-based systems for public health, combining cybersecurity, resilience, and cloud infrastructure.

🌍 Industry Context

Government agencies and public health organizations are major targets for cyberattacks. Companies like Cycurion are essential for protecting sensitive data and keeping critical systems—like those managing public health information—running smoothly and safely. Winning work with a major agency and a national association like NACCHO strengthens Cycurion's reputation in this vital market.

💸 Cash Flow Story & What This Signals

The focus on recurring revenue (ARR) tells a clear story about the company's strategy. CEO Kevin Kelly explicitly stated they are "driving profitable growth while building predictable, high-margin recurring revenue." 👉 Why it matters: This shift toward predictable income makes the company's future finances easier to forecast and generally makes it more valuable in the eyes of investors. It signals a move toward more stable, software-like business models.

🔮 What's Next

The company is using these wins as a springboard. The announcement ties these public health contracts to their "ongoing expansion into public safety," showing a broader strategy to dominate secure technology for critical government sectors. The potential 10-year framework with the unnamed agency is a massive long-term opportunity if they win more task orders.

⚖️ Big Picture

👍 Strengths:

• Securing predictable, recurring revenue is a major financial strength.
• Building a track record with key clients (like the unnamed agency and NACCHO) in the sensitive public health sector creates a competitive "moat."
• The work is for mission-critical services, making it less likely to be cut.

⚠️ Risks:

• The large agency award is just a 1-year task order right now. Future funding isn't guaranteed, even within the 10-year framework.
• They operate in the competitive government IT contracting space.
• The company's success is tied to government budgets and priorities.

🧠 The Analogy

Winning these contracts is like a specialized plumbing and security company being hired to install and protect the water and alarm systems in a city's most important hospital. It's essential, trusted work that, if done well, leads to a long-term maintenance contract and referrals to other hospitals.

📇 Key Contacts & People

• Kevin Kelly: Chairman and CEO
• Investor Relations: (888) 341-6680, [email protected]
• Media Relations: (888) 341-6680, [email protected]

🧩 Final Takeaway

Cycurion is successfully locking in long-term, predictable income by winning critical cybersecurity contracts in the public health sector. The shift toward $1.165 million in new annual recurring revenue is the most important financial signal of a more stable business model.