Castellum Reports Slight Revenue Decline but Significant Reduction in Net Loss for Fiscal Year 2024

Castellum, Inc. reported a slight decline in revenue for the fiscal year ending December 31, 2024, generating $44.8 million, down 1.1% from $45.2 million in 2023. The decrease was attributed primarily to the divestiture of its subsidiary, Mainnerve Federal Services, Inc., which occurred on September 11, 2024. Despite the drop in revenue, the company saw a significant reduction in its net loss, which decreased by 43.9% to $10.0 million from $17.8 million in the previous year. This improvement was largely due to a decrease in operating expenses, which fell by 27.8% to $25.5 million, driven by strategic cost-saving initiatives and a reduction in general and administrative expenses.

In terms of operational developments, Castellum has been active in its acquisition strategy, having completed seven acquisitions over the past five years. The company’s recent acquisition of Global Technology Management Resources, Inc. (GTMR) in March 2023 has been a key component of its growth strategy, aimed at expanding capabilities in cybersecurity and IT services. The integration of GTMR is expected to enhance Castellum's market position, particularly in government contracting. Additionally, the company reported a backlog of $119.8 million as of December 31, 2024, indicating a strong pipeline of future revenue opportunities.

Castellum's workforce has also seen changes, with a total of 238 employees as of December 31, 2024, a slight increase from previous years. The company emphasizes the importance of recruiting and retaining skilled professionals, particularly in the competitive fields of cybersecurity and IT. As part of its employee benefits strategy, Castellum transitioned to a unified benefits plan in June 2024, consolidating various employee benefits to enhance recruitment and retention efforts.

Looking ahead, Castellum remains focused on organic growth and strategic acquisitions to bolster its capabilities and market share. The company anticipates continued demand for its services, particularly in the defense sector, as government budgets for national security are expected to grow. However, Castellum acknowledges the uncertainties surrounding U.S. government spending and budgetary processes, which could impact future revenue recognition. The company is committed to navigating these challenges while leveraging its existing relationships with government agencies to secure new contracts and maintain operational stability.