Insider Buying: Castellum (NYSE American: CTM) Leadership Announce Open Market Purchase of the Cybersecurity Company's Stock Following Record Third Quarter Results

Mark C. Fuller, the CEO of Castellum, Inc. CTM announced this month that he, along with Castellum CFO David T. Bell, chief legal counsel, Jay O. Wright, and other directors made recent open market purchases of Castellum stock.  Wright and Fuller are the two largest shareholders of Castellum. 

A cybersecurity company providing software development, systems engineering, data analytics, and related services to both federal and commercial clients, Castellum posted record third-quarter financial results last month. Here are some of the company’s highlights from this year and what Castellum has planned for 2023 and beyond.

Castellum Reports Growing Revenue, Consistently Strong Margins In 2022’s Third Quarter

In November, Castellum released financial results for its third quarter ending in September. Noting a record $11.12 million in revenue, the company generated a gross profit of $4.65 million thanks to strong gross margins that remained above 40% for the quarter. 

That same month, Castellum announced that it had signed a letter of intent to acquire a government contractor already generating an estimated $10 million in revenue. Expected to close by the end of January 2023 following due diligence, the deal would mark the company’s seventh acquisition to date and Castellum expects it to increase its revenue run rate to $54 million.

Past acquisitions have already started yielding results for the cybersecurity company. For example, Castellum acquired Lexington Solutions Group in April 2022 and LSG has already grown from its $4 million baseline of revenue. 

Just recently, in December, Castellum announced that its subsidiary, Specialty Systems, Inc. (SSI) was one of the winners of the Air Force’s Architecture and Integration Directorate Multiple Award Indefinite Delivery/Indefinite Quantity Contract (AFLCMC/XA) (MAC IDIQ) contract. The $900 million, 10-year contract grants Castellum’s subsidiary the right to compete for task orders with the Air Force, a new service branch for Castellum.

Castellum Hopes To Make Several New Acquisitions In 2023 and beyond 

The acquisition announced in November is already expected to accelerate the company’s growth going into next year. “With our recently announced letter of intent to acquire a $10 million revenue East Coast company, we are positioned to make 2023 an even stronger year financially than 2022 for our shareholders,” Castellum President and CEO Mark Fuller said in a statement. Castellum will also look to make more acquisitions throughout next year and is currently looking at several possible opportunities.

The ambitious growth strategy the company has already been executing on over the last few years and its plans to continue that growth in 2023 and beyond are among the key reasons the company’s leadership chose to buy additional stock in Castellum on the open market using their personal funds.   The company’s overall goal is to build a $1 billion business over the next decade.

The preceding/following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and Skyline Corporate Communications Group, LLC, a financial partner of Benzinga. This article/video is a paid sponsorship by investor relations agency Skyline Corporate Communications Group, LLC, which is paid by Castellum, Inc. CTM for providing investor relations and corporate communications services relating to the Company’s securities. Please see Skyline's 17(b) Disclaimer and Disclosure Statement here: https://skylineccg.com/disclosures/. 

Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. The content that precedes is for informational purposes only and not intended to be investing advice.

Featured Photo by Mohammad Rahmani on Unsplash