Castellum, Inc. Q3 2026 Earnings Recap

Castellum fell 19.9% after earnings, with investors likely focused on nearly flat year-over-year third-quarter revenue and lower gross profit and gross margin. Management cited contract mix and timing variability, while its full-year record-revenue expectation remains in place.

Key Takeaways

• Third-quarter revenue was $14.7 million, up from $14.6 million a year earlier and $13.9 million in the prior quarter.
• Gross profit declined to $5.3 million from $5.5 million a year earlier. Gross margin fell to 36.1% from 37.6%, though it improved from approximately 34% in Q2; management attributed the year-over-year pressure to a higher mix of lower-margin subcontractor work.
• Revenue for the first nine months was $42.9 million, up 6% year over year. The company said it expects record revenue for full-year 2026.
• Backlog was $254.5 million at quarter-end, down from $271.7 million at June 30; Castellum expects to recognize about 25% over the next 12 months and 51% over 24 months.
• The qualified pipeline reached approximately $1.66 billion, up from $953.5 million at June 30. The company said increased business-development and M&A investment was planned and weighed on EBITDA, but the transcript excerpt provides no EBITDA result.