Executive Summary

FY 2024 revenue was $44.8M, down 0.9% year over year (2023: $45.2M), while operating loss narrowed to ($7.2M) from ($16.7M) due to lower non-cash charges; Adjusted EBITDA improved to $0.8M . Gross profit was $18.3M for FY 2024 .
Quarterly trajectory in 2024 showed modest sequential growth through Q3: Q1 revenue $11.3M, Q2 $11.5M, Q3 $11.6M; implied Q4 ~$10.3M to reconcile to FY total, indicating seasonal softness into year-end .
Balance sheet strengthened: cash rose to $12.3M (from $1.8M), and debt fell to $10.7M (from $12.4M) at 12/31/2024, supporting working capital and growth initiatives .
Strategic catalyst: GTMR subsidiary won a $103.3M, 5.5-year NAVAIR Special Missions contract, the largest in company history, expected to begin “next month,” positioning for 2025 revenue growth .
Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable at time of analysis; comparisons to estimates cannot be made. Values retrieved from S&P Global were unavailable due to request limits.*

What Went Well and What Went Wrong

What Went Well

Sequential execution: “We have produced greater revenue and gross profit, quarter by quarter,” reflecting operational consistency through Q3 2024 .
Non-GAAP profitability improved: Q2 Adjusted EBITDA was positive at $0.3M, with net loss narrowing versus Q1, demonstrating cost discipline and leverage on existing contracts .
Balance sheet and liquidity: Cash increased to $12.3M and debt decreased to $10.7M, enabling investment in business development and supporting growth plans for 2025 .
Management conviction: “2025 will be our year of growth as new contract wins and continued execution… should lead to strong year-over-year growth in revenue and adjusted EBITDA,” signaling confidence in backlog conversion .

What Went Wrong

FY top-line softness and losses: Revenue declined slightly YoY to $44.8M, and FY operating loss remained elevated at ($7.2M), reflecting non-cash stock-based comp and other charges .
Heavy non-cash items: FY 2024 included $5.4M stock-based compensation and $2.2M depreciation/amortization, constraining GAAP operating results despite non-GAAP improvements .
Growth still reliant on new wins: Management noted growth to date is “modest” and must increasingly come from new contracts, highlighting execution risk on pipeline conversion .
Earnings call transcript for Q4 2024 was not available in company materials, limiting visibility into granular drivers and Q&A color for the quarter (searched earnings-call-transcript and other transcripts; none found) [ListDocuments 2025-02 to 2025-03 returned 0].

Financial Results

Quarterly Performance (Q1–Q4 2024)

Metric	Q1 2024	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Millions)	$11.335	$11.522	$11.600	~$10.308 (Derived from FY $44.765 less Q1–Q3)
Gross Profit ($USD Millions)	$4.515	$4.673	$5.000	~$4.078 (Derived from FY $18.266 less Q1–Q3)
Gross Margin (%)	39.8% (4.515/11.335)	40.6% (4.673/11.522)	43.1% (5.000/11.600)	~39.6% (4.078/10.308)
Operating Income ($USD Millions)	($2.671)	($1.6) (Operating loss)	N/A (not disclosed)	N/A (not disclosed separately; FY provided)
Net Income ($USD Millions)	N/A (not disclosed)	($1.847)	N/A (not disclosed)	N/A (not disclosed separately; FY provided)
Diluted EPS ($USD)	N/A (not disclosed)	N/A (not disclosed)	N/A (not disclosed)	N/A (not disclosed)

Notes:

Q4 revenue and gross profit are derived from FY totals minus disclosed Q1–Q3 figures to present a complete quarterly view; company did not break out Q4 in the FY press release .

Full-Year Comparison

Metric	FY 2023	FY 2024	YoY Change
Revenue ($USD Millions)	$45.2	$44.8	-0.9%
Gross Profit ($USD Millions)	$18.675	$18.266	-2.2%
Operating Income ($USD Millions)	($16.669)	($7.245)	+$9.424M (loss narrowed)
Adjusted EBITDA ($USD Millions)	$0.183	$0.848	+$0.664M
Cash and Equivalents ($USD Millions)	$1.8	$12.3	+$10.5M
Total Debt ($USD Millions)	$12.4	$10.7	-$1.7M
Cash from Operations ($USD Millions)	($2.3)	$1.1	+$3.4M

KPIs and Non-GAAP

KPI	Q1 2024	Q2 2024	Q3 2024	FY 2024
Adjusted EBITDA ($USD Millions)	N/A (RCOP provided, not adj. EBITDA)	$0.291	N/A (not disclosed)	$0.848
RCOP ($USD Millions)	($0.134)	N/A	N/A	N/A
Stock-Based Compensation ($USD Millions)	$1.660 (Q1)	$1.272 (Q2)	N/A	$5.427 (FY)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2025	None (no quantified guidance)	Directional: “strong year-over-year growth” expected	Qualitative raised tone
Adjusted EBITDA	FY 2025	None	Directional: growth expected with execution/new wins	Qualitative raised tone
Cash/Debt	FY 2025	None	Entering 2025 with higher cash, lower debt; no numeric targets	Maintained conservative posture
Segment/Contract Commentary	FY 2025	N/A	$103.3M GTMR NAVAIR Special Missions award to begin “next month”	New award added

Management did not provide specific numeric ranges for revenue, margins, OpEx, OI&E, tax rate, or dividends for FY 2025 in the Q4 materials; commentary was directional .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period	Trend
Growth drivers/new contracts	Q1: Focus on converting “large pipeline of opportunities” and strengthening balance sheet . Q2: “Positive cash flow,” progress but “more work to do… especially with growing revenue” .	FY: “2025 will be our year of growth… new contract wins and continued execution” .	Confidence increasing; pipeline conversion emphasized
Sequential performance	Q1/Q2: Sequential revenue and gross profit improvements . Q3: “greater revenue and gross profit, quarter by quarter,” modest growth .	Implied Q4 lighter; FY totals provided .	Consistent through Q3; softer Q4 implied
Non-GAAP focus	Q1: RCOP highlighted . Q2: Adjusted EBITDA positive .	FY: Adjusted EBITDA improved YoY .	Increasing non-GAAP emphasis
Federal budget/macro risk	Forward-looking statements caution on budget delays and shutdown risk .	Similar caution reiterated .	Persistent macro/government funding risks
Strategic wins	—	$103.3M GTMR NAVAIR Special Missions award; largest in history .	Major award supports 2025 backlog

Note: No Q4 2024 earnings call transcript was available in company materials; themes reflect press releases and forward-looking statements (searched earnings-call-transcript and other transcripts; none found).

Management Commentary

Prepared remarks (FY press release): “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… Our decreased debt and dramatic increase in cash… combined with our recent IDIQ wins have really positioned us well for 2025” — Glen Ives, CEO .
Q3 tone: “We have produced greater revenue and gross profit, quarter by quarter… growth must come from new contract wins” — Glen Ives .
Q2 tone: “Sequentially higher revenue, a smaller loss, and positive cash flow from operations… most important asset, our world-class team” — Glen Ives .
Strategic award (GTMR/NAVAIR): “This award represents the largest contract win in Castellum’s history… We are building a strong and enduring foundation and winning culture here at Castellum” — Glen Ives .

Q&A Highlights

Not available; the company did not publish a Q4 2024 earnings call transcript in accessible filings or transcripts databases for this period (searched earnings-call-transcript and other transcripts for Feb–Mar 2025; none found).

Estimates Context

S&P Global (Wall Street consensus) for Q4 2024 EPS and revenue was unavailable due to request limits at time of analysis; we cannot assess beats/misses versus consensus. Values retrieved from S&P Global were unavailable due to request limits.*

Where estimates may need to adjust: Given FY revenue down slightly YoY but improving Adjusted EBITDA, and a large new NAVAIR award, street models may lift 2025 top-line and EBITDA assumptions while maintaining cautious GAAP profitability forecasts under continued non-cash stock comp.

Key Takeaways for Investors

2024 ended with modest YoY revenue decline but materially improved operating loss and Adjusted EBITDA, aided by lower non-cash charges and positive operating cash flow .
Liquidity and leverage improved meaningfully (cash up $10.5M, debt down $1.7M), supporting business development and contract ramp through 2025 .
Sequential revenue/gross profit momentum through Q3 suggests underlying contract execution is stable; Q4 implied softness highlights seasonality and need for new wins .
The $103.3M NAVAIR Special Missions award is a significant backlog/catalyst, with work expected to start imminently; monitor start timing and margin profile on ramp .
Non-GAAP metrics (Adjusted EBITDA, RCOP) are increasingly central to the narrative; investors should track reconciliation and stock-based compensation impact on GAAP results .
Macro/government funding risks remain: continuing resolution/shutdown/sequestration could impact timing of awards and revenue recognition; diversify contract base where possible .
Near-term: watch for the 10-K filing by March 15, 2025, for audited details, quarter breakdowns, and backlog disclosures, and for evidence of early 2025 contract ramps .

Castellum, Inc. (CTM)·Q4 2024 Earnings Summary