The defense contractor reported $28.2 million in first-half revenue, driven by three Navy prime contracts, despite near-term margin pressure.
Castellum reported a 10% year-over-year increase in first-half 2026 revenue to $28.2 million, supported by growth in three Navy prime contracts. The company expects record full-year revenue, backed by a $271.7 million backlog and a $953.5 million qualified pipeline.
Gross margin declined to 34% in the second quarter from 36% a year earlier, while adjusted EBITDA was roughly break-even. Net loss widened to $1.0 million due to subcontractor mix and planned investments in business development and acquisitions.
Cash rose to $16.9 million, with no long-term debt, and operating cash flow turned positive. Castellum plans to use internally generated cash for organic growth and strategic acquisitions rather than share repurchases.