CY4Gate SpA (CY4) AI Stock Analysis

• Market Cap: €186.45M
• Dividend Yield: N/A
• Average Volume (3M): 93.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: 29.64%
• EPS Growth: 62.10%
• Country: IT
• Employees: 511
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): N/A
• Shares Outstanding: 23,571,428
• 10 Day Avg. Volume: 148,367
• 30 Day Avg. Volume: 93,014
• PEG Ratio: 0.98
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 1.67
• P/FCF Ratio: -28.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €7.40
• Price Target Upside: -6.45% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: €6.50 ▼(-17.83% Downside)

CY4Gate SpA's stock score is primarily influenced by its strong technical momentum, despite overbought signals. Financial performance shows revenue growth but is hindered by profitability challenges and rising leverage. Valuation is negatively impacted by ongoing losses and lack of dividends.

Positive Factors

Revenue Growth

Consistent revenue growth highlights CY4Gate's expanding market presence and product demand, crucial for long-term business sustainability.

Strategic Partnerships

Partnerships with key industry players enable CY4Gate to access larger projects and funding, strengthening its competitive position.

Cash Generation Ability

Positive cash flow generation relative to net income indicates effective cash management, supporting operational stability and growth.

Negative Factors

Rising Leverage

Increased leverage can strain financial flexibility, posing risks to long-term financial health if not managed properly.

Profitability Challenges

Ongoing net losses impact profitability, limiting the company's ability to reinvest in growth and improve shareholder value.

Negative Free Cash Flow

Negative free cash flow suggests reliance on external financing, which could hinder strategic investments and operational flexibility.

CY4Gate SpA Business Overview & Revenue Model

Company Description

CY4Gate SpA (CY4) is an innovative technology company specializing in advanced cybersecurity solutions and artificial intelligence applications. Operating primarily within the defense and security sectors, CY4 focuses on developing products that enhance situational awareness and data protection for military and governmental organizations. Their core offerings include software for intelligence analysis, surveillance, reconnaissance, and cybersecurity, positioning them as a key player in the evolving landscape of defense technology.

How the Company Makes Money

CY4Gate generates revenue through a combination of direct sales of its software products and services, government contracts, and partnerships with defense and security agencies. The company’s primary revenue streams include licensing fees for its software solutions, which are often customized for specific client needs, as well as maintenance and support services. Additionally, CY4 benefits from long-term contracts with government entities that require ongoing cybersecurity solutions and intelligence services. Strategic collaborations with other technology firms and defense contractors further enhance their market reach and contribute to their earnings, allowing them to tap into larger projects and funding opportunities.

CY4Gate SpA Financial Statement Overview

Summary

CY4Gate SpA has shown revenue growth and some operational cash profitability, but faces challenges with profitability and increasing leverage. Maintaining growth while addressing profitability and managing debt levels is crucial.

Income Statement

CY4Gate SpA has shown a positive revenue growth trajectory over the years, with notable growth from 2020 to 2023. However, the company has consistently operated at a net loss for the recent years, including TTM, which negatively impacts the net profit margin. The EBIT margin is negative, suggesting operational inefficiencies, although there is a positive EBITDA margin indicating some level of operational cash profitability.

Balance Sheet

The company's debt-to-equity ratio has increased, indicating rising leverage which could pose risks if not managed properly. However, the equity ratio remains stable suggesting some balance in the capital structure. The return on equity is negative due to net losses, impacting the attractiveness of equity returns.

Cash Flow

Operating cash flow has fluctuated but generally improved over the recent years. Free cash flow remains negative, highlighting potential challenges in funding operations and growth without external financing. The operating cash flow to net income ratio is positive, suggesting that cash generation is better than accounting profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	64.66M	68.40M	68.14M	56.45M	16.56M	13.39M
Gross Profit	6.53M	47.28M	11.89M	14.97M	8.74M	8.31M
EBITDA	964.73K	11.87M	8.66M	12.32M	7.96M	6.91M
Net Income	-11.28M	-7.40M	-8.90M	2.47M	5.19M	5.28M
Balance Sheet
Total Assets	180.85M	190.57M	178.85M	172.25M	41.28M	32.78M
Cash, Cash Equivalents and Short-Term Investments	11.92M	15.34M	18.36M	21.05M	2.30M	9.98M
Total Debt	43.06M	42.76M	32.58M	18.63M	4.01M	1.47M
Total Liabilities	88.86M	88.28M	67.72M	49.71M	11.02M	6.75M
Stockholders Equity	90.00M	99.10M	108.55M	121.12M	30.25M	26.03M
Cash Flow
Free Cash Flow	11.34M	-3.95M	-1.59M	-9.30M	-7.54M	-5.99M
Operating Cash Flow	13.50M	11.78M	20.46M	1.35M	-497.92K	-841.02K
Investing Cash Flow	-12.76M	-21.59M	-26.07M	-84.52M	-7.94M	-5.15M
Financing Cash Flow	-12.31M	6.79M	3.29M	97.29M	758.21K	13.14M

CY4Gate SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:CY4, the sentiment is Positive. The current price of 7.91 is above the 20-day moving average (MA) of 7.73, above the 50-day MA of 6.88, and above the 200-day MA of 5.27, indicating a bullish trend. The MACD of 0.40 indicates Positive momentum. The RSI at 62.62 is Neutral, neither overbought nor oversold. The STOCH value of 61.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:CY4.

CY4Gate SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DGV	71 Outperform	€288.14M	15.29	―	2.83%	-24.28%	-57.55%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CY4	60 Neutral	€186.45M	-27.31	-7.05%	―	29.64%	62.10%

CY4Gate SpA Corporate Events

CY4GATE Secures €3 Million Decision Intelligence Contract

CY4GATE has secured a €3 million contract for 12 months with a major European institutional client to deliver Decision Intelligence solutions. This contract highlights the growing demand for CY4GATE’s technologies, as Decision Intelligence gains traction in Italy and Europe, offering organizations a competitive edge by transforming data into actionable insights.

CY4Gate Reports Significant Growth and Raises 2025 Revenue Guidance

CY4Gate’s Board of Directors has approved the consolidated data as of September 30, 2025, highlighting substantial growth in economic indicators, driven by significant awards in decision and forensic intelligence. The company has revised its 2025 revenue guidance upwards to over €90 million, supported by a strong order backlog and improved financial structure. The results underscore CY4Gate’s strategic solidity and its ability to sustainably grow in the rapidly evolving cyber intelligence and security markets, with a focus on innovation and international development.

CY4Gate Secures €10 Million Forensic Intelligence Contract

CY4Gate SpA has secured a significant contract valued at approximately €10 million to provide forensic intelligence solutions to a major foreign institutional client. This contract, finalized in the third quarter of 2025, marks a strategic enhancement of CY4Gate’s market presence and underscores its capability to deliver cutting-edge technologies to meet the complex needs of institutional clients.

CY4Gate Secures €21 Million in Contracts for Decision Intelligence Solutions

CY4Gate Group has secured three contracts totaling €21 million to provide Decision Intelligence solutions to European institutional clients over three years. This development underscores the growing trust in CY4Gate’s technology and expertise, as the Decision Intelligence market expands in response to the demand for data-driven insights to enhance decision-making efficiency in complex environments.

CY4Gate Secures €9.9 Million Contract for Decision Intelligence Solutions

CY4Gate SpA has secured a €9.9 million contract over 36 months with a foreign institutional client to provide Decision Intelligence solutions. This contract underscores the market’s confidence in CY4Gate’s expertise in managing big data and leveraging Artificial Intelligence, as the Decision Intelligence market grows in Italy and Europe, driven by the need for advanced tools to enhance operational efficiency and decision-making processes.

CY4Gate Denies Allegations of Misused EU Subsidies

CY4Gate S.p.A. has denied allegations from the newspaper ‘Domani’ and platform ‘Follow the Money’ regarding receiving EU subsidies for spyware development, clarifying that the €3.8 million received from the EU between 2020 and 2024 was solely for cyber security research and development. The company emphasizes its commitment to transparency with stakeholders, aiming to maintain its reputation in the cyber security industry.

CY4Gate Reports Strong Financial Growth in H1 2025

The Board of Directors of CY4Gate has approved the consolidated financial report for the first half of 2025, showing significant growth in economic indicators. Revenues increased by 30% compared to the previous year, with a production value of €40.6 million and operating revenues of €39.5 million. The company confirmed its 2025 revenue guidance, expecting total revenues between €84 million and €87 million. The positive financial trajectory, driven by strong performance in forensic and decision intelligence segments, reflects the company’s solid strategies and its ability to meet market demands. The geopolitical situation further supports the company’s value proposition in cyber intelligence and security, with expectations of continued market growth.