Castellum Inc. announced that it has fully repaid its $2 million promissory note to Robert Eisiminger, eliminating all long‑term debt and leaving only $400,000 in short‑term notes payable. The move brings the company’s long‑term debt to zero, a milestone that sharpens leverage ratios and cuts interest expense.
The $2 million paydown was funded from free cash flow generated in the third quarter and the company’s cash reserves. The remaining $400,000 in notes payable is a modest short‑term obligation that does not materially affect the company’s liquidity profile.
Castellum’s debt‑reduction program has been in progress for more than a year. Earlier this year, the company retired a note payable to the Buckhout Charitable Remainder Trust in June 2025, and in February 2024 it closed a $4 million revolving credit facility with Live Oak Bank, making payments on other obligations. The elimination of the Eisiminger note completes the current cycle of deleveraging.
The ability to pay down debt was made possible by the company’s record third‑quarter performance. Revenue rose to $14.6 million, the highest in the company’s history, and the quarter produced the first quarterly GAAP net income. Strong free cash flow from that period provided the liquidity needed to retire the note without tapping additional financing.
The debt elimination comes as Castellum secures a $66.2 million prime contract with the Naval Air Warfare Center Aircraft Division, its largest non‑small‑business award to date. The company’s focus on federal cybersecurity and electronic warfare markets positions it to capture larger contracts, and the improved balance sheet gives it the flexibility to invest in business development and pursue new opportunities.
CFO David Bell said the paydown reflects the company’s disciplined strategy: 'With this paydown, part of which we were able to do from free cash flow generated in Q3 and part from our cash reserves, our long‑term debt has been reduced to zero, and our current notes payable now stands at $400,000, an extraordinary shift from just one year ago.' CEO Glen Ives added that the repayment 'enables us to make strategic investments in business development capabilities that enhance our ability to capture major prime contract opportunities.' The announcement was positively received by investors, underscoring confidence in Castellum’s financial discipline and growth prospects.
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