IT small cap Cycurion soars 500% after landing biggest contract in its history

Shares of Cycurion, a cybersecurity solutions firm with a market capitalization of just $18.5 million, surged around 500% on the Nasdaq on Thursday. The company announced it had secured the largest contract in its history through a partnership with a top-five global consulting firm.

Cycurion shares jumped 496% on Thursday to $1.60 apiece. The stock was up another 50% in premarket trading on Friday as of this writing.

Markets were reacting to the company’s announcement of a new contract secured through an unnamed consulting firm ranked among the world’s top five. The 10-year agreement is worth $54.6 million. Cycurion calls it the largest contract in its history. At the end of 2025, the company’s order book stood at $112 million, with a weighted average life of around four years.

The cybersecurity company expects the new agreement to generate more than $5 million in annual revenue. For comparison, its top line fell more than 15% in 2025 to $15.1 million.

Under the contract, Cycurion will support the modernization and secure operation of “a major Health and Human Services System for a state government agency,” with work scheduled to begin this year, according to the press release.

Cycurion was founded in 2017 and listed on the Nasdaq through a merger with a SPAC in February 2025. Since then, the stock has lost 99.5% of its value, even after Thursday's rally.

The cybersecurity company had a difficult year, it stated when reporting its 2025 results. The challenges included curtailed government contract spending and delays in project launches caused by the federal government shutdown last autumn.

Cycurion CEO Kevin Kelly wrote that the company had also faced external challenges, including “defamatory campaigns, suspected short selling and market manipulation, and unauthorized press releases.” In a separate statement, the company cited what it described as “dozens of false, malicious, and defamatory statements accusing Cycurion of being a ‘scam,’ engaging in ‘death spiral financing,’ ‘pump and dump’ schemes” on Stocktwits and Reddit.

Cycurion filed lawsuits against those it alleges were behind the posts. It also sought damages from ACCESS Newswire, a press release distribution platform, and the parties allegedly involved in disseminating an unauthorized release.

The only Wall Street analyst covering the stock has a “buy” rating on Cycurion at a target price of $7 per share, implying around 340% upside from its last closing price.