Castellum (CTM) AI Stock Analysis

• Market Cap: $103.23M
• Dividend Yield: N/A
• Average Volume (3M): 2.45M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.72
• Revenue Growth: 4.17%
• EPS Growth: 73.67%
• Country: US
• Employees: 238
• Sector: Technology
• Sector Strength: 86
• Industry: Information Technology Services
• EPS (TTM): 0.01
• Shares Outstanding: 93,000,590
• 10 Day Avg. Volume: 2,328,328
• 30 Day Avg. Volume: 2,450,575
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 1.73
• Enterprise Value/Gross Profit: 4.41
• Enterprise Value/Ebitda: -21.05
• 1Y Price Target: $3.00
• Price Target Upside: 170.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: $1.00 ▼(-9.91% Downside)

Castellum's overall stock score reflects a company with potential growth opportunities but significant financial challenges. The positive corporate events and technical indicators provide some optimism, but the negative profitability and valuation metrics weigh heavily on the score.

Positive Factors

Leadership Stability

Under CEO Glen Ives, Castellum has transitioned to focus on organic growth and strategic initiatives, enhancing shareholder value and solidifying its competitive position in the defense sector.

Debt Reduction

Reducing long-term debt to less than $3 million strengthens Castellum's balance sheet, improving financial stability and supporting growth strategies aimed at securing major contracts.

Strategic Partnerships

The partnership with Tradewinds Networks enhances Castellum's cybersecurity offerings, strengthening its market position in AI-driven solutions and potentially increasing revenue streams.

Negative Factors

Return on Equity

A negative return on equity indicates inefficiencies in generating returns for shareholders, which may deter investment and hinder Castellum's ability to raise capital for future projects.

Cash Flow Issues

Negative operating cash flow suggests difficulties in generating cash from operations, which could constrain Castellum's ability to invest in growth opportunities and manage financial obligations.

Profitability Challenges

Persistent negative profitability metrics indicate ongoing challenges in cost management and revenue generation, potentially impacting long-term financial health and investment appeal.

Castellum Business Overview & Revenue Model

Company Description

Castellum, Inc. provides services in the areas of cybersecurity, information technology, electronic warfare, information warfare, and information operations. The company offers intelligence analysis, software development, software engineering, program management, strategic and mission planning, information assurance, cybersecurity and policy support, and data analytics services. It serves customers in the Federal government, financial services, healthcare, and other data application sectors. The company was incorporated in 2010 and is based in Bethesda, Maryland.

How the Company Makes Money

Castellum generates revenue primarily through rental income from its extensive portfolio of commercial properties. The company leases space to a diverse range of tenants, including businesses in various sectors such as technology, retail, and logistics, which provides a stable and recurring revenue stream. Additionally, Castellum may engage in property development projects, which can contribute to earnings through the sale or leasing of newly constructed properties. The company also benefits from strategic partnerships and collaborations with local governments and other real estate entities, enhancing its market position and facilitating growth opportunities. Furthermore, Castellum invests in sustainability initiatives that can attract tenants seeking environmentally friendly spaces, potentially increasing occupancy rates and rental income.

Castellum Financial Statement Overview

Summary

Despite revenue growth, Castellum faces significant financial challenges with negative net profit margins and cash flow issues. The company's balance sheet shows improved leverage management, but consistent net losses and negative cash flow highlight operational inefficiencies.

Income Statement

The company has been experiencing consistent revenue growth with a 6.88% increase from 2020 to 2021 and a significant jump in 2022. However, profitability remains a challenge as reflected by negative net profit margins across the periods, reaching -15.61% in the TTM. Gross profit margins are moderately stable, but negative EBIT and EBITDA margins highlight operational inefficiencies.

Balance Sheet

The balance sheet shows a moderate level of equity, with a debt-to-equity ratio decreasing from 4.50 in 2020 to 0.35 in the TTM, indicating improved leverage management. However, the equity ratio is below ideal levels, and consistent net losses erode equity value, affecting return on equity.

Cash Flow

The company faces challenges in generating positive operating cash flow, with negative free cash flow in the TTM. Despite some improvements in cash flow from financing activities, reliance on external funding could pose risks if not managed carefully.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.60M	44.77M	45.24M	42.19M	25.07M	13.34M
Gross Profit	18.69M	18.27M	18.68M	17.60M	11.07M	6.18M
EBITDA	-3.91M	-6.53M	-13.28M	-8.06M	-5.80M	362.29K
Net Income	-5.51M	-9.98M	-17.80M	-14.91M	-7.55M	-2.71M
Balance Sheet
Total Assets	43.45M	37.84M	30.11M	33.04M	30.76M	10.61M
Cash, Cash Equivalents and Short-Term Investments	14.73M	12.01M	1.83M	4.64M	2.02M	2.41M
Total Debt	5.38M	11.49M	11.96M	10.11M	11.73M	5.87M
Total Liabilities	11.67M	17.41M	17.16M	15.51M	15.43M	8.01M
Stockholders Equity	31.77M	20.43M	12.95M	17.53M	15.32M	2.61M
Cash Flow
Free Cash Flow	-2.04M	1.12M	-2.28M	900.88K	-1.36M	1.00M
Operating Cash Flow	-1.94M	1.12M	-2.26M	990.16K	-1.35M	1.01M
Investing Cash Flow	183.10K	221.36K	-440.99K	-339.28K	808.83K	-5.45K
Financing Cash Flow	14.08M	9.08M	-104.62K	1.97M	146.84K	109.00K

Castellum Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTM, the sentiment is Positive. The current price of 1.11 is above the 20-day moving average (MA) of 1.08, below the 50-day MA of 1.18, and above the 200-day MA of 1.01, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 49.56 is Neutral, neither overbought nor oversold. The STOCH value of 68.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTM.

Castellum Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GMM	64 Neutral	$65.16M	1.04	15.52%	―	41.74%	-75.97%
Sector *	61 Neutral	$36.70B	12.21	-10.39%	1.84%	8.50%	-7.32%
CTM	51 Neutral	$103.23M	―	-25.15%	―	4.17%	73.67%
DVLT	50 Neutral	$34.35M	―	-144.42%	―	148.07%	98.91%
NOTE	43 Neutral	$72.97M	14.84	-45.59%	―	-15.06%	-50.98%
VEEA	―	$27.67M	―	-460.94%	―	―	―
SAIH	41 Neutral	$101.39M	―	-36.39%	―	―	―

Castellum Corporate Events

Castellum Announces Reseller Agreement with Tradewinds Networks

On August 19, 2025, Castellum, Inc. and Tradewinds Networks, Inc. announced a reseller agreement where Castellum’s new subsidiary will resell Tradewinds’ GuardTower AI cybersecurity products. This partnership aims to enhance Castellum’s offerings in AI-driven cybersecurity solutions, providing advanced protection for national security, military, and commercial systems, thereby strengthening their market position in cybersecurity.

Castellum Secures $4.5M from Warrant Exercise

On August 14, 2025, Castellum, Inc. announced that investors exercised an aggregate of 3,673,666 warrants from their June 12, 2025 public offering, resulting in gross proceeds of approximately $4.5 million. This capital injection is seen as a strong vote of confidence in Castellum’s business plan, enhancing its financial position and supporting its growth initiatives as it moves towards the end of 2025 and into 2026.

Castellum Partners with Quarrio for Government AI Solutions

On August 12, 2025, Castellum, Inc. announced a teaming agreement with Quarrio Corporation to enhance government processes with Quarrio’s TrustworthyAI™. This collaboration aims to leverage Castellum’s expertise in software deployments and cybersecurity to improve decision-making and data analytics within the government sector.

Castellum Extends Note Maturity and Reduces Debt

On August 4, 2025, Castellum, Inc. executed an agreement to extend the maturity date of a $400,000 note to March 1, 2026, and prepaid $2 million on a note payable to Robert Eisiminger, reducing the principal balance to $2 million. This move is part of Castellum’s debt reduction strategy, which has significantly lowered its total long-term debt to less than $3 million, strengthening its balance sheet and supporting its growth strategy aimed at securing major prime contracts.

Castellum Marks CEO’s One-Year Anniversary

On July 14, 2025, Castellum, Inc. released a letter to shareholders marking the one-year anniversary of CEO Glen Ives’s leadership. Over the past year, the company transitioned from a start-up phase to focusing on organic growth, raising over $16 million, reducing long-term debt, and securing a $103.3 million contract. Castellum has strengthened its leadership, established joint ventures, and improved its proposal quality, positioning itself as a competitive technology services provider committed to national security. The company’s strategic moves aim to enhance shareholder value and solidify its standing as a premier defense company.

Castellum Announces Reseller Agreement with AmpliTech

On July 8, 2025, Castellum, Inc. announced a reseller agreement with AmpliTech Group, Inc. through its newly formed subsidiary, Castellum Advanced Technology Products, Inc. This partnership allows Castellum to resell AmpliTech’s products, such as low noise amplifiers, to its clients, enhancing its product offerings. The collaboration aims to leverage Castellum’s C5ISR capabilities with AmpliTech’s products to penetrate the government market more effectively, potentially strengthening both companies’ positions in the next-generation communications technology sector.

Castellum Launches New Advanced Technology Subsidiary

On June 24, 2025, Castellum, Inc. announced the creation of a new subsidiary, Castellum Advanced Technology Products, Inc. (CATP), to focus on advanced technology products. This strategic move aims to broaden Castellum’s support for the Department of Defense by teaming with leading-edge technology companies and developing technology internally, potentially increasing revenue and operating margins while enhancing organic growth capabilities.

Castellum Closes $5 Million Public Offering

On June 16, 2025, Castellum, Inc. announced the successful closing of its $5 million public offering of common stock and warrants. The proceeds from this offering are intended for working capital and general corporate purposes, potentially impacting the company’s operational capabilities and market positioning.

Castellum Raises $5 Million in Public Offering

On June 12, 2025, Castellum, Inc. entered into a securities purchase agreement to sell 4,166,667 units, each consisting of one share of common stock and one warrant, in a public offering priced at $1.20 per unit, raising approximately $5 million before expenses. The offering, which closed on June 13, 2025, is expected to provide Castellum with funds for working capital and general corporate purposes, potentially impacting its operational capacity and market positioning.