Castellum, Inc. (CTM) AI Stock Analysis
CTM AI stock analysis summary
AI ResearchCastellum, Inc. (CTM) provides cybersecurity, IT, and electronic warfare services primarily to federal government clients. Over the trailing twelve months, revenue reached $55.3M while posting an operating margin of -7.9% and a net margin of -4.1%. The balance sheet shows solid liquidity with $15.9M in net cash as of June 30, 2026.
- Market cap
- $54.9M
- Revenue (TTM)
- $55.3M
- P/E
- —
- 1Y return
- -40.5% S&P 500 16.8%
- Avg. target
- $2.00 245.4% vs last close
Bull case
- Revenue expanded from $25.1M in FY2021 to $52.9M in FY2025, reflecting a 5-year CAGR of 31.7%.
- The company maintains a strong liquidity cushion with $15.9M in net cash and a current ratio of 4.71 as of June 30, 2026.
- A single Wall Street analyst maintains a Buy rating with a $2.00 price target, representing a 245.4% premium over the $0.58 closing price.
Bear case
- Operating performance has remained unprofitable, with an operating margin of -7.9% and net margin of -4.1% over the trailing twelve months.
- Share count increased 355.4% over 5 years, driven by activities such as $15.3M in share issuances in FY2025.
- The stock has dropped 40.5% over the past year and trades 21.8% below its 200-day moving average.
What Castellum does
Castellum, Inc. is a Bethesda, Maryland-based provider of services in cybersecurity, information technology, electronic warfare, information warfare, and information operations. Founded in 2010, the company delivers intelligence analysis, software development, software engineering, program management, strategic mission planning, and information assurance. Castellum serves clients across the Federal government, financial services, healthcare, and other data application sectors. Its operations also include cybersecurity compliance and data analytics designed to enhance operational efficiency.
Growth and profitability
Between FY2021 and FY2025, Castellum expanded annual revenue from $25.1M to $52.9M, representing a 5-year revenue CAGR of 31.7%. Gross margin trended down from 44.2% in FY2021 to 36.6% in FY2025, while operating margin narrowed from -30.8% to -5.3%. Net income remained negative over this timeframe, ending FY2025 at -$2.4M with EPS of $0.01. For the trailing twelve months ended June 30, 2026, Castellum generated $55.3M in revenue with an operating margin of -7.9% and EPS of -$0.04. Quarterly revenue fell 1.1% year-over-year in the latest quarter.
Balance sheet and cash flow
As of June 30, 2026, Castellum held $16.9M in cash and short-term investments against $958,908 in total debt, resulting in a net cash position of $15.9M. Its current ratio stood at 4.71, and the debt-to-equity ratio was 0.03 alongside shareholders' equity of $35.9M. In FY2025, free cash flow was -$2.1M on operating cash flow of -$1.9M and capital expenditures of $151,741. Financing activities during FY2025 included $15.3M from share issuance and $107,442 in dividends paid, while the 5-year share count increased 355.4%.
Valuation and performance
Castellum trades at a price-to-sales multiple of 1.0x and an EV-to-revenue multiple of 0.8x, both below the US-listed Technology peer group median price-to-sales multiple of 2.8x. The stock has a price-to-book ratio of 1.7x with an enterprise value of $44.1M and market cap of $54.9M. Over the past year, CTM fell 40.5%, trailing the S&P 500 (SPY) gain of 16.8%, and is down 35.9% year-to-date.
What analysts expect
One analyst covers Castellum with a Buy rating and a mean price target of $2.00, which is 245.4% above the last close of $0.58 on October 16, 2026. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $56.0M and EPS of $0.00. For the next fiscal year, projected revenue is $60.0M, reflecting 7.1% revenue growth, with EPS estimated at $0.01. The company recorded zero EPS beats over the last 4 quarters, and its next earnings date is November 6, 2026.
Key risks and what to watch
- Free cash flow was -$2.1M in FY2025, meaning continued operations may require external capital if cash burn persists.
- Gross margins have declined steadily from 44.2% in FY2021 to 36.6% in FY2025.
- Quarterly revenue declined 1.1% year-over-year in the period ending June 30, 2026, signaling potential near-term growth pressure.
- Castellum recorded 0 earnings beats over the prior four quarters against analyst expectations.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this CTM AI stock analysis
This page is an AI-written research summary of Castellum, Inc. (CTM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: CTM income statement, CTM balance sheet, CTM key metrics, CTM analyst forecast, CTM chart. See the CTM stock overview for the latest quote and news.
CTM AI stock analysis FAQ
What does Castellum, Inc. do?
Castellum delivers cybersecurity, IT, electronic warfare, software engineering, and data analytics services. It primarily serves clients in the Federal government, financial services, and healthcare sectors.
What is Castellum's financial position?
As of June 30, 2026, Castellum held $16.9M in cash and short-term investments and $958,908 in total debt, giving it $15.9M in net cash. Its current ratio was 4.71 with a debt-to-equity ratio of 0.03.
Does Castellum pay a regular dividend?
While Castellum reported $107,442 in dividends paid during FY2025, it does not currently maintain an active regular dividend program or stated yield.
What is the Wall Street analyst outlook for CTM stock?
One analyst covers Castellum with a Buy rating and a mean price target of $2.00. That target stands 245.4% above its October 16, 2026 closing price of $0.58.