Cycurion (CYCU) - 1:8 Reverse Split Just Announced - Looks like a DFNS type setup <FOR YOUR WATCH LIST>
**CYCU has been firing on all cylinders** recently and has a strong back half outlook for 2026.
Had their NASDAQ Hearings Panel scheduled for Aug 20. My take is they have decided that to a small reverse split to ensure they gain compliance with the $1 bid rule and because they have been on a streak of very positive news recently. Will go from 25.8M shares to 3.23M. [**Cycurion PR**](https://investors.cycurion.com/pr/cycurion-inc-announces-reverse-stock-split-effective-august-28-2026)
With today's reverse split announcement, the share price dropped from $.65 to $.44 (\~$11M MC) midday today.
CYCU appropriately went from $.30 to $2.30 upon announcement of the largest sale in company history.
**It looks like it may be set up for a T3 Defense (DFNS) type of reverse split setup**.
**DFNS setup:**
* DFNS did a 1:125 reverse split recently.
* Was to be a 1:50 reverse split but shorts pounded down the share price to $.05 pre-split
* Share price went from $.05 before the split to mechanically $6.25 post-split
* .8M outstanding shares post reverse split
* Shorts pounded it down to $4.11 on July 20, the first post-split trading day
* Shorts pounded it down to $3.70 by **July 24**
* THEN, had a low-float melt-up by **July 29/30** to the $50 to $90 range
* $12 share price today (3x post-split)
**CYCU setup (reverse split to be on Friday, Aug 28):**
* 1:8 reverse split to occur
* Assuming a $.44 pre-split share price, yields a $3.52 post-split share price
* 3.23M shares post split
* Volatility likelihood is HIGH. Could take off immediately or retrench early next week before a melt-up
**Below is the recent CYCU background, which gives credence to a post reverse split melt-up but beyond that, a sustained much higher share price than the potential \~$3.50 post reverse split share price:**
* **7/30 PR:** Largest sale in company history (**$54.6M** over 10 years, with Top 5 Global Consulting firm). Installation begins this fall.
* **7/31 PR:** $4.5M gross proceeds ATM transaction
* **8/4 PR:** CYCU closes **acquisition** of Kustom Entertainment’s Digital Ally Video Solutions Business
* **Now serve more than 800 police depts, municipalities, and public safety agencies** that rely on Digital Ally’s video and evidence platforms—and become prospects for CYCU’s cybersecurity solutions
* **Brings CYCU’s Annual Revenue Run Rate visibility to \~$30M!**
* **Sales Pipeline** as of early August 2026:
* 122 open opportunities, representing **$34M** in first-year contract value, including **$11M in late-stage pursuits**
* **41 new awards (closes) year-to-date in 2026**
**BULLISH:**
* Reaching the above projected annual revenue run-rate, at **\~$40M** by EOY 2026 makes **CYCU undervalued by even a far wider margin**.
