Castellum, Inc. (CTM)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 delivered the first year-over-year organic revenue growth since listing, with revenue of $11.7M, up from $10.3M in Q4 2024 and $11.3M in Q1 2024, and a narrower operating loss of $(1.1)M including non‑cash/non‑recurring charges .
• Consensus context (S&P Global): CTM beat on revenue ($11.66M vs $10.03M est.) and posted a less negative EPS than expected (−$0.021 vs −$0.03 est.) as execution improved; estimate coverage was thin (1 estimate each) (Values retrieved from S&P Global).*
• Liquidity strengthened: record quarter‑end cash of $13.3M vs $12.3M in Q4, supporting execution and working capital as contract wins ramp .
• Strategic contract ramp: execution began on the five‑and‑a‑half‑year, $103.3M NAVAIR PMA‑290 MOSS award (largest in company history), a key contributor to 2025 trajectory and medium‑term visibility .

What Went Well and What Went Wrong

• What Went Well

  • First YoY organic revenue growth since listing, signaling an inflection in organic execution: “Posting our first year-over-year organic revenue growth is a milestone for Castellum.” – CEO Glen Ives .
  • Operating leverage improved: operating loss narrowed to $(1.1)M vs $(1.6)M in Q4 2024 and $(4.0)M in Q1 2024 as cost discipline took hold .
  • Strengthened liquidity: record cash of $13.3M at 3/31/25 (up from $12.3M at 12/31/24), enhancing capacity to support growth and ramp newly won programs .

• What Went Wrong

  • Profitability still negative on GAAP: operating loss persisted despite improvements (Q1 2025 $(1.1)M) .
  • Gross margin mixed vs recent quarters (see table), reflecting contract mix and ramp dynamics; continued focus on mix/efficiency needed (Values retrieved from S&P Global).*
  • Macro/government funding sensitivity remains a risk: management reiterates exposure to federal budget delays, CRs/shutdowns, and DoD funding dynamics in forward‑looking statements .

Financial Results

Overall P&L, margins, and liquidity (quarters ordered oldest → newest):

• Cells marked with * are values retrieved from S&P Global (Capital IQ) due to lack of primary-document citation; use with standard caution on non‑GAAP definitions where applicable.

Estimate comparison (S&P Global – Q1 2025):

• Values retrieved from S&P Global.*

Context from company press materials:

• Q1 revenue $11.7M; operating loss $(1.1)M; cash $13.3M .
• Sequential revenue improvement vs Q4 ($10.3M) and YoY vs Q1 2024 ($11.3M) .
• Q3 2024 and Q2 2024 revenue were $11.6M and $11.5M, respectively .

Guidance Changes

Note: No explicit numerical guidance ranges (revenue, margins, EPS, tax, etc.) were provided in Q1 2025 materials .

Earnings Call Themes & Trends

Note: A Q1 2025 earnings call transcript was not available in our document corpus; we tracked themes using recent quarterly press materials.

Management Commentary

• “I’m very encouraged by the momentum in Q1… Posting our first year-over-year organic revenue growth is a milestone for Castellum. It reflects stronger execution, increased customer confidence, and a more focused approach to delivering results.” – Glen Ives, President & CEO .
• “This five-year, $103 million contract win was a key achievement for our team and is already contributing to our 2025 performance… fortifies our rock-solid business base … and the strong and steady progress we’re making in building a more resilient, opportunity-rich business for the long term.” – Glen Ives on PMA‑290 .
• “2025 will be our year of growth as new contract wins and continued execution on our existing contracts should lead to strong year-over-year growth in revenue and adjusted EBITDA.” – Year-end 2024 release framing the 2025 setup .

Q&A Highlights

• A Q1 2025 earnings call transcript was not available; no Q&A items or clarifications to report from a call (we searched for an earnings call transcript and found none for CTM in Q1 2025 in our document set).
• Company’s investor news post mirrors the 8‑K press release content .

Estimates Context

• Q1 2025 revenue beat by ~16% ($11.66M actual vs $10.03M est.), while EPS was less negative than expected (−$0.021 actual vs −$0.03 est.); both had one covering estimate (Values retrieved from S&P Global).*
• Given thin coverage, we expect estimate dispersion to widen as PMA‑290 revenue timing clarifies; upward revisions to revenue/EBITDA for 2025 are likely if execution sustains and contract ramps as indicated .

Key Takeaways for Investors

• Organic inflection achieved: First YoY organic growth plus a revenue beat supports the 2025 growth narrative .
• Execution leverage: Narrowing operating loss and improving operating metrics point to better cost control; watch mix and utilization to sustain margin progression .
• Contract visibility: PMA‑290 ($103.3M) is now executing and a potential multi‑quarter catalyst as staffing ramps; monitor backlog conversion and task order cadence .
• Liquidity runway: Record cash provides flexibility to execute and buffer working capital during contract ramps .
• Risk skew: Federal budget/CR dynamics and DoD timing remain key exogenous risks to revenue cadence .
• Near‑term catalysts: Q2 progress on PMA‑290 contribution, 10‑Q details on backlog/margins, any additional IDIQ/task order wins or option exercises .
• Positioning: Constructive into 2025 on improving fundamentals and contract ramp, with sensitivity to execution and federal funding cycles.

References to primary documents:

• Q1 2025 8‑K/Press Release with revenue/operating loss/cash and PMA‑290 ramp .
• 2024 unaudited results and PMA‑290 award press release .
• Q3 2024 and Q2 2024 quarterly press releases for trend .

S&P Global (Capital IQ) data used where noted for financial line items and estimates; marked with an asterisk in tables where no document citation was available.