Castellum's Turnaround: From Debt to Defense Sector Dominance

VIENNA, Va. – December 09, 2025 – Castellum, Inc. (NYSE-American: CTM), a federal cybersecurity and software services firm, has capped off what its CEO Glen Ives calls a “remarkable and transformative year,” executing a dramatic pivot from a company weighed down by debt to a financially robust contender securing major national security contracts.

In a detailed update to shareholders, Ives celebrated a series of strategic victories that have fundamentally altered the company’s trajectory. A year ago, Castellum was grappling with significant debt and insufficient cash flow, with its stock trading below $0.20. Today, the narrative is one of resurgence, defined by a fortified balance sheet, a string of nine-figure contract wins, and a clear strategy for future growth in the high-stakes federal defense arena.

A Financial Fortress Rebuilt

The most striking aspect of Castellum’s transformation is its financial overhaul. The company successfully raised over $25 million in gross proceeds through a combination of public offerings and warrant exercises throughout 2025. This infusion of capital was instrumental in aggressively tackling its liabilities. Castellum systematically reduced its notes payable to a mere $400,000, a stark contrast to its previous position. By November, the company had fully eliminated a $2 million debt obligation, effectively bringing its long-term debt to zero and establishing a balance sheet where cash now outweighs debt.

“This time last year, we were anchored in significant debt and insufficient cash flow,” Ives stated in his letter, underscoring the magnitude of the turnaround. The improved financial health, reflected in a strong current ratio of 4.17, has provided the stability and resources necessary to compete for larger, more complex government projects—a crucial step for any firm aiming to move up the federal contracting ladder.

Securing Landmark Defense Contracts

With its financial house in order, Castellum demonstrated a newfound prowess in winning substantial prime contracts. The pinnacle of this success came in February 2025, when its GTMR subsidiary secured a monumental $103.3 million, five-and-a-half-year contract. This award, the largest in Castellum’s history, is for Special Missions support of the Naval Air Systems Command Program Office PMA 290. The scope includes critical Intelligence, Surveillance, Reconnaissance, and Targeting (ISR&T) programs for naval aviation platforms like the P-8A and MQ-4C Triton. The contract’s value, more than double the company’s 2024 annual revenue, provides an unprecedented long-term revenue runway and solidifies its role in high-priority defense initiatives.

Further bolstering its portfolio, Castellum’s subsidiary, Specialty Systems, Inc. (SSI), was awarded a $66.2 million five-year contract to provide logistics, engineering, and cyber support for the Naval Air Warfare Center. Significantly, this was a “Full and Open” competition, meaning SSI won against larger, more established primes without the aid of small-business set-asides. This victory marks a critical milestone, proving Castellum can compete and win on the main stage of federal procurement.

Rounding out a banner year for contract wins, the company and its joint ventures were awarded positions on the Missile Defense Agency’s (MDA) SHIELD Multiple Award IDIQ. This contract vehicle is focused on developing next-generation defense systems to counter advanced aerial and missile threats, placing Castellum at the forefront of innovation in areas like artificial intelligence, digital engineering, and agile software development for national defense.

The 'Battle E' Spirit and Strategic Shifts

CEO Glen Ives, a former Naval Officer and Aviator, attributes much of the company’s success to a cultural philosophy he calls the 'Battle E' spirit. Drawing from the U.S. Navy’s Battle Effectiveness Award, which recognizes units for sustained, championship-level warfighting readiness, Ives has ingrained a culture of relentless dedication and teamwork at Castellum. “It signifies a unit's sustained excellence in executing combat missions… which is what all our service members and warfighters… live and fight for,” Ives explained. “The Battle ‘E’ philosophy is ingrained in our culture here at CTM.”

This cultural drive is complemented by shrewd strategic maneuvering. Castellum has established two mentor-protégé joint ventures with woman-owned and native Hawaiian organizations, expanding its access to new contract opportunities. It also launched a new subsidiary dedicated to advanced technology products, signaling a deeper investment in innovation.

One of the most forward-looking initiatives is the development of an extended reality assistant (“xRA”) prototype. While details are emerging, this investment places Castellum in the rapidly growing field of augmented reality for military applications. AR technology is revolutionizing how technicians are trained and how they perform complex maintenance on sophisticated equipment, promising to enhance military readiness and efficiency. This focus on proprietary product development represents a strategic effort to diversify revenue streams beyond pure services.

The year also marked a significant leadership transition with the departure of co-founder, General Counsel, and Chief Strategy Officer Jay Wright. Ives thanked Wright for his “outstanding service and countless contributions” in building the company. Tammy L. Martin, previously the company's Senior Counsel, has been appointed to assume the role of General Counsel, marking a new chapter in Castellum's executive leadership as it continues its growth trajectory.