Castellum reported its third‑quarter 2025 results, posting revenue of $14.6 million, up 4 % from the $14.0 million earned in Q2 2025 and 26 % higher than the $11.6 million reported for the same quarter in 2024. The company’s operating profit rose to $0.4 million, a turnaround from the $0.4 million loss in Q2 2025 and the $7.3 million loss in Q3 2024, marking the first time the company has posted a positive GAAP net income for a quarter.
The 4 % quarter‑over‑quarter revenue increase was driven by stronger demand in Castellum’s core federal technology services segments, while modest headwinds in legacy contract volumes helped keep growth modest. Year‑over‑year, the 26 % jump reflects the company’s continued success in securing new federal contracts and expanding its cybersecurity and electronic warfare offerings.
Operating profit improvement to $0.4 million reflects disciplined cost management and a higher operating‑margin mix. The company’s operating margin expanded as cost controls offset the modest rise in operating expenses, and the shift toward higher‑margin contract work contributed to the turnaround.
Adjusted EBITDA for the quarter was $1.1 million, and cash on hand climbed to a record $17.8 million, up from $14.7 million at the end of Q2 2025. Total debt fell to $2.4 million, underscoring the company’s strengthening liquidity and balance‑sheet position.
Chief Financial Officer David Bell said the company’s “continued discipline in operating performance and cash management has resulted in our best performance and balance‑sheet strength to date, all of which prepares Castellum for additional investment in our growth.” Chief Executive Officer Glen Ives added that the “record revenue and solid operating margin improvement, coupled with our focus and discipline, have resulted in outstanding performance.”
The results signal a clear operational turnaround for Castellum. The first quarterly GAAP net income, combined with record revenue and a stronger balance sheet, positions the company for continued growth in the federal technology services market and provides the financial flexibility to pursue new contract opportunities and strategic investments.
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