MCLEAN, Va., July 08, 2026 (GLOBE NEWSWIRE) — Cycu io , I c. (NASDAQ: CYCU) (“Cycu io ” o the “Compa y”), a leadi g AI-d ive , tech-e abled cybe secu ity solutio s p ovide , today eleases the followi g Lette to Sha eholde s f om Kevi Kelly, Chai ma a d Chief Executive Office .
Dea Valued Sha eholde s,
Cycu io ‘s fi st obligatio is to p otect a d build sha eholde value, a d to mai tai ou listi g th ough sustai able, fu dame tals-d ive pe fo ma ce athe tha sho t-te m p ice optics. Afte ca eful delibe atio , the Boa d of Di ecto s a d Ma ageme t have dete mi ed that a 7-fo -1 eve se stock split is ot i the best i te est of sha eholde s at this time. Ou focus is o g owi g the busi ess, a d ma ageme t expects that co ti ued g owth will, ove time, be eflected i the p ice of the stock. Ma ageme t fu the believes that pu sui g a eve se split ow would ot p otect sha eholde s a d would dive t the Compa y f om the wo k that c eates value. Based o the Compa y’s p io expe ie ce, the t adi g eco d we have a alyzed, a d the evide ce we have collected a d co ti ue to collect, ma ageme t co cluded that a othe eve se split ca ied a substa tial isk of ha mi g sha eholde s while faili g to esolve the u de lyi g issues.
Ou decisio begi s with a simple p emise: the most eliable way to p otect a d g ow sha eholde value is to build a st o ge , mo e p ofitable compa y — a d that is whe e ma ageme t is co ce t ati g its effo ts. Ove the past yea we completed two st ategic acquisitio s: Digital Ally, which co t ibuted app oximately $5.1 millio i eve ue, a d Secuva t, which co t ibuted app oximately $2.5 millio — each expa di g ou cybe secu ity platfo m, deepe i g custome elatio ships, a d addi g ecu i g, high-value se vices we ca c oss-sell ac oss the base. We g ew o ga ic eve ue to app oximately $15.5 millio a d lifted the Compa y’s a ual eve ue u ate to app oximately $28 millio . We secu ed a ew te -yea co t act valued at $58 millio a d built app oximately $8 millio of co t acted backlog, givi g the Compa y multi-yea eve ue visibility. The o ga izatio is focused o i teg ati g those acquisitio s, tighte i g ope ati g discipli e, a d p io itizi g the ecu i g, highe -ma gi wo k that we believe d ives du able p ofitability.
I othe wo ds, the busi ess co ti ues to expa d while ma ageme t wo ks to st e gthe the Compa y’s positio . Co ti ued g owth — ot fi a cial e gi ee i g — ultimately builds sha eholde value. The Compa y’s ope ati g p og ess will be eflected i the sha e p ice ove time.
Reve ue Compositio & A ual Ru Rate
Co t acted & Committed Fo wa d Value
A eve se stock split does ot c eate value. It educes the umbe of sha es outsta di g a d aises the omi al p ice, but it does ot cha ge the u de lyi g wo th of the busi ess.
At best, a eve se split offe s mecha ical, sho t-te m complia ce with mi imum p ice ules; it does ot c eate the stable, fu dame tals-based valuatio that lo g-te m complia ce equi es. Ou ow histo y makes the poi t. A p evious eve se split histo ically did ot delive du able p ice suppo t fo Cycu io stock.
The Compa y has evide ce f om ou expe ie ce i 2025 of what ca happe whe a eve se split is a ou ced i to this ki d of e vi o me t. Acco di g to ou histo ical eco ds, if a 7-fo -1 eve se split had bee a ou ced while CYCU was t adi g a ou d $0.60, the implied post-split p ice would have bee app oximately $4.20. Based o the Octobe 2025 patte , Ma ageme t believes the stock could have bee d ive dow sha ply befo e a d afte the split, pote tially leavi g it i a effective a ge of app oximately $1.20 to $1.50, a d vul e able to bei g pushed below $1.00 agai . That outcome would have educed sha eholde ow e ship a d still left the Compa y exposed to the same listi g isk. Ma ageme t co cluded that, while a ou ci g a othe split i to this e vi o me t might c eate a b ief optical imp oveme t, it would be followed by e ewed p essu e capable of pushi g the stock back dow . We a e ot willi g to ask sha eholde s to bea that isk.
The Compa y’s co clusio that its stock has bee the ta get of t adi g activity i co siste t with fai a d o de ly ma kets is ot speculatio . I Octobe 2025, app oximately 89.9 millio sha es of CYCU cha ged ha ds i a si gle sessio agai st a float of oughly 86.5 millio sha es. Mo e tha 100% of the float tu ed ove i a si gle day — a eve t that, i Ma ageme t’s view, is ot co siste t with legitimate ma ket activity.
The patte was epeated this sp i g. O Ma ch 16, 2026, CYCU fell app oximately 45% i t aday — f om a p io close ea $1.75 to a low of $0.96 — t igge i g the Regulatio SHO Rule 201 sho t-sale ci cuit b eake at 9:30:01 a.m. That safegua d is mea t to est ai sho t selli g o ce a stock has d opped 10% o mo e. Yet o p ecisely the two days the est ictio was i fo ce (Ma ch 16 a d 17), the eco ds eflect a p o ou ced su ge i sho t sales, most ma ked “sho t exempt” — a desig atio that, if misused, pe mits sho t selli g to co ti ue at o below the p evaili g bid du i g the wi dow whe it is supposed to be cu tailed. The cha t below shows both the p ice collapse a d the co ce t atio of sho t-exempt selli g o those two est icted days.
CYCU p ice collapse a d est icted-day sho t selli g (Feb–Ma 2026)
The o de eco ds suggest t adi g behavio co siste t with additio al acts of ma ipulatio , i cludi g ‘spoofi g’ — i cludi g a u usually high umbe of o de s placed a d executed, followed by apid seque ci g of ca cellatio s, c eati g a false imp essio of supply a d dema d.
The Compa y i te ds to follow the evide ce a d, if app op iate, pu sue those pa ties espo sible fo imp ope t adi g a d ma ket ma ipulatio ide tified i ou eview. I co ectio with these effo ts, the Compa y is i co tact with NASDAQ ega di g this t adi g activity a d the actio s Cycu io is taki g, a d we will co ti ue to wo k with the excha ge as ou i vestigatio p oceeds, ecog izi g that the timi g a d outcome of a y egulato y o e fo ceme t actio s emai i he e tly u ce tai .
Agai , decidi g ot to e gage i a eve se stock split was a sha eholde -p otectio decisio : it p ese ved sha eholde positio s a d gave the Compa y the ability to co ti ue pu sui g the emedies it believes best p otect i vesto s, i cludi g holdi g accou table those espo sible fo what the Compa y views as imp ope t adi g a d ma ket ma ipulatio i its stock.
Ma ageme t ecog izes that the last seve al qua te s have ot bee a smooth oad fo i vesto s. The volatility i CYCU’s sha e p ice, pa ticula ly whe it has ot eflected the p og ess a d g owth of the busi ess, has bee f ust ati g a d, fo ma y lo g-te m sha eholde s, pai ful.
Cycu io will co ti ue sta di g up fo its sha eholde s. The Compa y will co ti ue buildi g its busi ess, co ti ue pu sui g the evide ce, a d co ti ue usi g eve y app op iate legal, egulato y, a d fo e sic ave ue available to add ess a y misco duct that ou i vestigatio substa tiates. Decidi g ot to pu sue a eve se split at this time was the ight decisio , the p otective decisio , a d the decisio most co siste t with ou duty to defe d ou sha eholde s a d thei lo g-te m i te ests.
Si ce ely,
Kevi Kelly, Chai ma a d Chief Executive Office
Based i McLea , Vi gi ia, Cycu io (NASDAQ: CYCU) is a fo wa d-thi ki g p ovide of IT cybe secu ity solutio s a d AI, committed to delive i g secu e, eliable, a d i ovative se vices to clie ts wo ldwide. Specializi g i cybe secu ity, p og am ma ageme t, a d busi ess co ti uity, Cycu io ha esses its AI-e ha ced ARx platfo m a d expe t team to empowe clie ts a d safegua d thei ope atio s. Alo g with its subsidia ies, Axxum Tech ologies LLC, Cloudbu st Secu ity LLC, a d Cycu io I ovatio , I c., Cycu io se ves gove me t, healthca e, a d co po ate clie ts committed to secu i g the digital futu e. Mo e i fo: www.cycu io .com.
Ce tai stateme ts i this p ess elease that a e ot histo ical facts a e fo wa d-looki g stateme ts withi the mea i g of Sectio 27A of the Secu ities Excha ge Act of 1934, as ame ded. A y stateme ts co tai ed i this p ess elease that a e ot stateme ts of histo ical fact may be deemed fo wa d-looki g stateme ts. Such stateme ts i clude, but a e ot limited to, stateme ts ega di g the accele atio of the Compa y’s i o ga ic g owth st ategy th ough pote tial acquisitio s a d st ategic t a sactio s; the co ti ued executio of the Compa y’s co t acted backlog; the timi g, amou t a d likelihood of ealizi g eve ues associated with ou co t acted backlog; a d othe stateme ts that a e ot histo ical facts, i cludi g stateme ts which may be accompa ied by wo ds such as “co ti ue,” “will,” “may,” “could,” “should,” “expect,” “expected,” “pla s,” “i te d,” “a ticipate,” “believe,” “estimate,” “p edict,” “pote tial,” a d simila exp essio s i te ded to ide tify such fo wa d-looki g stateme ts. All fo wa d-looki g stateme ts i volve sig ifica t isks a d u ce tai ties that could cause actual esults to diffe mate ially f om those exp essed o implied i the fo wa d-looki g stateme ts, ma y of which a e ge e ally outside the co t ol of Cycu io a d a e difficult to p edict. Examples of such isks a d u ce tai ties i clude, but a e ot limited to, isks elated to custome pe fo ma ce a d satisfactio , co t act modificatio s, delays o te mi atio s, a d the Compa y’s ability to fulfill co t actual obligatio s, the outcomes of the Compa y’s i vestigatio s, a y pote tial legal p oceedi gs, o the futu e pe fo ma ce of the Compa y’s stock. Additio al facto s that could cause actual esults to diffe mate ially f om those exp essed o implied i the fo wa d-looki g stateme ts ca be fou d i the most ece t a ual epo t o Fo m 10-K, qua te ly epo ts o Fo m 10-Q, a d cu e t epo ts o Fo m 8-K filed by Cycu io with the U.S. Secu ities a d Excha ge Commissio . Cycu io a ticipates that subseque t eve ts a d developme ts may cause its pla s, i te tio s, a d expectatio s to cha ge. Cycu io assumes o obligatio , a d it specifically disclaims a y i te tio o obligatio , to update a y fo wa d-looki g stateme ts, whethe as a esult of ew i fo matio , futu e eve ts, o othe wise, except as exp essly equi ed by law. Fo wa d-looki g stateme ts speak o ly as of the date they a e made a d should ot be elied upo as ep ese ti g Cycu io ’s pla s a d expectatio s as of a y subseque t date.
Cycu io I vesto Relatio s:(888) 341-6680i vesto s@cycu io .com
Cycu io Media Relatio s:(888) 341-6680media@cycu io .com
Photos accompa yi g this a ou ceme t a e available athttps://www.globe ewswi e.com/NewsRoom/Attachme tNg/5b24c81c-e9b4-410f-850e-19af7c646cbahttps://www.globe ewswi e.com/NewsRoom/Attachme tNg/c5ab9851-4ffe-4444-b5d5-c3b6e14dd855https://www.globe ewswi e.com/NewsRoom/Attachme tNg/49724926-f2da-4262-ab26-1b54d3c61fd5
