Castellum, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, showing a mixed performance compared to the previous fiscal period. For the three months ended September 30, 2024, revenues decreased slightly to $11.6 million from $11.7 million in the same period of 2023, a decline of 1%. However, gross profit increased by 3% to $5.0 million, up from $4.8 million. The company significantly reduced its total operating expenses by 53%, from $13.4 million in Q3 2023 to $6.3 million in Q3 2024, primarily due to a goodwill impairment loss recorded in the prior year. This led to a substantial improvement in the loss from operations, which narrowed to $1.4 million from $8.6 million year-over-year.

For the nine months ended September 30, 2024, Castellum's revenues rose to $34.5 million, a 1% increase from $34.2 million in the same period of 2023. Gross profit remained relatively stable at $14.1 million, compared to $14.1 million in the prior year. Operating expenses decreased by 32% to $19.8 million, down from $29.2 million, contributing to a reduced net loss of $7.3 million, compared to $15.7 million in the same period of 2023.

Strategically, Castellum completed the acquisition of GTMR in March 2023, which was aimed at expanding capabilities and market share. The company also divested its subsidiary, Mainnerve Federal Services, Inc., in September 2024, receiving an initial cash payment of $15,000 and future revenue considerations. The divestiture is not classified as a discontinued operation as it represented less than 5% of total revenue.

Cash as of September 30, 2024, stood at $2.7 million, an increase from $1.8 million at the end of 2023. The company reported net cash provided by operating activities of $1.5 million for the nine months, a significant turnaround from the cash used in operations of $3.1 million in the same period of 2023. This improvement was attributed to better collections of accounts receivable and a reduction in net loss.

The company also entered into a new $4 million revolving credit facility in February 2024, replacing a previous facility, and raised approximately $2.7 million through a securities purchase agreement in January 2024. As of September 30, 2024, Castellum's total assets were $28.8 million, down from $30.1 million at the end of 2023, reflecting changes in intangible assets and operating lease assets.