Castellum Inc., a key provider of cybersecurity and electronic warfare services to the federal government, has released its third-quarter financial results for the period ending September 30, 2023. Despite achieving revenues of $11.7 million and a gross profit of $4.8 million, the company reported an operating loss of $8.6 million.
The loss was attributed to non-cash charges such as stock-based compensation, depreciation, and a substantial $6.9 million write-down of goodwill due to stock price volatility. However, highlighting a silver lining amidst these figures, CEO Mark Fuller pointed out that the company's Non-GAAP Recurring Cash Operating Profit (RCOP) stood at a positive $194.7 thousand. This figure is seen as a testament to Castellum's effective cost management strategies that are steering the company towards its target RCOP of $3.5 million by 2024.
Fuller emphasized the company's growing business development pipeline and an uptick in submitted proposals for new contracts, which are expected to translate into increased revenue in the coming year. In pursuit of further growth, Castellum is actively exploring mergers and acquisitions (M&A) opportunities along with other strategic initiatives.
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