SideChannel Announces Preliminary Fiscal Year 2025 Results
Rhea-AI Summary
SideChannel (OTCQB:SDCH) announced preliminary, unaudited results for the fiscal year ended September 30, 2025, reporting revenue of $7.351 million, down $49 thousand (70 bps) versus FY 2024, and a net loss of $892 thousand (basic and diluted loss per share $0.00). Gross margin held at 47.7%. Management said it increased selling and marketing investment to drive Enclave adoption and noted partner-led sales momentum. Cash, cash equivalents, and short-term investments totaled $1.165 million (down $130 thousand year-over-year). The company will host a fiscal results call on December 3, 2025 at 4:30 PM ET and plans to timely file its Form 10-K after audit completion.
Positive
- Deferred revenue up 55% to $801k
- Selling and marketing spend increased 25% to $966k (growth investment)
- Gross margin steady at 47.7% year-over-year
Negative
- Total assets down 12.3% to $3.465M
- Revenue retention declined 560 bps to 63.6%
- Net loss remained $892k for FY 2025
- Cash and short-term investments decreased $130k to $1.165M
Key Figures
Market Reality Check
Peers on Argus
Peers showed mixed moves: CLOQ -10.08%, CYBCF +2.99%, UNFYF +9.08%, NOWVF 0%, PKKFF +21.52%. No clear, unified sector direction relative to SDCH.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 09 | Board appointment | Positive | +5.5% | New director with marketing and cybersecurity background joined the board. |
| Oct 29 | Leadership hire | Positive | +5.6% | New CMO and account executive hired to drive Enclave and vCISO growth. |
| Oct 08 | Leadership expansion | Positive | -8.3% | VP Cybersecurity Advisor appointed to accelerate Enclave client adoption. |
| Aug 20 | Product launch | Positive | -3.8% | Threat Intelligence Labs and insider threat platform unveiled at DEF CON. |
| Aug 13 | Quarterly earnings | Negative | -10.3% | Q3 results showed revenue decline, wider loss, and lower gross margin. |
News around leadership and board changes tended to align with positive price moves, while product and strategic updates often diverged. Earnings reactions have been mixed, with one notably negative move on soft Q3 results.
Over the last six months, SideChannel reported multiple strategic updates and leadership changes. Q3 FY2025 earnings on Aug 13 showed revenue softness and a wider net loss, and the stock fell 10.27%. Product and platform launches in August produced modest negative or muted reactions. In October and December, commercial and board appointments tied to Enclave and marketing saw positive moves of about 5–6%. Today’s preliminary FY2025 results fit into an ongoing narrative of modest revenue pressure but stable margins and continued Enclave-focused strategy.
Market Pulse Summary
This announcement provides an early view of FY2025 performance, with revenue around $7.4 million, gross margin steady at 47.7%, and operating expenses down modestly to about $4.4 million. Net loss improved slightly to $892,000, while revenue retention fell to 63.6% and cash plus short-term investments declined to roughly $1.2 million. Investors may track final audited results, future retention trends, Enclave growth indicators, and cash levels in upcoming quarters.
Key Terms
microsegmentation technical
zero trust technical
vCISO technical
AI-generated analysis. Not financial advice.
Financial results conference call on Wednesday, December 3 @ 4:30 P.M. ET
WORCESTER, MA / ACCESS Newswire / December 3, 2025 / SideChannel, Inc. (OTCQB:SDCH) ("SideChannel"), a leading provider of cybersecurity services and technology to emerging and middle market companies, today announced its preliminary, unaudited financial results for the fiscal year ended September 30, 2025.
Preliminary Fiscal Year 2025 Highlights
● | Revenue of | |
● | Gross margin of | |
● | Operating expenses of | |
● | Net loss of | |
● | Revenue retention of | |
● | Cash, cash equivalents, and short-term investments decreased by |
Management Comments
Commenting on the results for the fiscal year ended September 30, 2025, Brian Haugli, President and Chief Executive Officer of SideChannel, said, "We made focused investments in selling and marketing this year and saw encouraging progress toward achieving multiple quarters of Enclave revenue growth. Fiscal year 2025 was a year of disciplined execution across both our services organization and our Enclave business. We continued our emphasis on increasing Enclave adoption by expanding awareness of how Enclave's novel approach to microsegmentation and network security provides a significantly cost-effective alternative for mid-market and enterprise clients."
Haugli continued, "With our expanding service portfolio, we are well-positioned to meet the needs of organizations seeking options beyond our core vCISO offering. As the economic uncertainty stabilizes and tailwinds emerge for cybersecurity risk management, such as the Pentagon's rollout of CMMC standards, we are positioned for renewed growth in our services business line.
Our partner-led sales motion advanced during the year as more partners introduced Enclave to their clients, supporting our view that the platform's capabilities address a broad set of zero-trust and microsegmentation needs. Enclave's product roadmap, combined with the reach of our partner network and our established services foundation, supports our confidence in the opportunities ahead."
CALL INFORMATION
Date: | Wednesday December 3, 2025, at 4:30 P.M. Eastern Standard Time. |
Dial In: | Toll Free: 888-506-0062 |
International: 973-528-0011 | |
Participant Access Code: 878142 |
A webcast of the call will also be available: https://www.webcaster4.com/Webcast/Page/2071/51584
Participants may register in advance for the call using the webcast link.
The call will include management remarks and a live question and answer session. Questions may be submitted prior to the meeting using ir@sidechannel.com.
The Company's annual report for the year ended September 30, 2025, will be timely filed on Form 10-K with the Securities and Exchange Commission upon completion of the audit.
Financial tables follow.
SIDECHANNEL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
Twelve Months Ended | ||||||||
September 30, | ||||||||
2025 | 2024 | |||||||
(Unaudited) | ||||||||
Revenues | $ | 7,351 | $ | 7,400 | ||||
Cost of revenues | 3,847 | 3,868 | ||||||
Gross profit | 3,504 | 3,532 | ||||||
Operating expenses | ||||||||
General and administrative | 2,894 | 3,155 | ||||||
Selling and marketing | 966 | 771 | ||||||
Research and development | 562 | 546 | ||||||
Total operating expenses | 4,422 | 4,472 | ||||||
Operating loss | (918 | ) | (940 | ) | ||||
Other income, net | 40 | 41 | ||||||
Net loss before income tax expense | (878 | ) | (899 | ) | ||||
Income tax expense | 14 | 5 | ||||||
Net loss after income tax expense | $ | (892 | ) | $ | (904 | ) | ||
Net loss per common share - basic and diluted | $ | (0.00 | ) | $ | (0.00 | ) | ||
Weighted average common shares outstanding - basic and diluted | 229,097,973 | 222,078,462 | ||||||
SIDECHANNEL, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
September 30, 2025 | September 30, 2024 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 1,065 | $ | 1,045 | ||||
Short-term investments | 100 | 250 | ||||||
Accounts receivable, net | 553 | 732 | ||||||
Deferred costs | - | 150 | ||||||
Prepaid expenses and other current assets | 374 | 385 | ||||||
Total current assets | 2,092 | 2,562 | ||||||
Fixed assets | 17 | 33 | ||||||
Goodwill | 1,356 | 1,356 | ||||||
Total assets | $ | 3,465 | $ | 3,951 | ||||
LIABILITIES & STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued liabilities | $ | 515 | $ | 729 | ||||
Deferred revenue | 801 | 515 | ||||||
Income taxes payable | 6 | 3 | ||||||
Total current liabilities | 1,322 | 1,247 | ||||||
Total liabilities | 1,322 | 1,247 | ||||||
Commitments and contingencies | ||||||||
Common stock, | 231 | 226 | ||||||
Additional paid-in capital | 22,647 | 22,321 | ||||||
Accumulated deficit | (20,735 | ) | (19,843 | ) | ||||
Total stockholders' equity | 2,143 | 2,704 | ||||||
Total liabilities and stockholders' equity | $ | 3,465 | $ | 3,951 | ||||
About SideChannel
SideChannel helps emerging and mid-market companies protect their assets. Founded in 2019, we deliver comprehensive cybersecurity plans through a series of actions branded SideChannel Complete.
SideChannel deploys a combination of skilled and experienced talent and technological tools to offer layered defense strategies supported by battle-tested processes. SideChannel also offers Enclave, a network infrastructure platform that eases the journey from zero to zero-trust. Learn more at sidechannel.com.
Investors and shareholders are encouraged to receive press releases and industry updates by subscribing to the investor email newsletter and following SideChannel on X and LinkedIn.
You may contact us at:
SideChannel
146 Main Street, Suite 405
Worcester, MA 01608
Investor Contact
Ryan Polk
ir@sidechannel.com
Forward-Looking Statements
This press release may contain forward-looking statements, including information about management's view of SideChannel's future expectations, plans and prospects. In particular, when used in the preceding discussion, the words "believes", "hopes", "expects", "intends", "plans", "anticipates", "potential", "could", "should" or "may", and similar conditional expressions are intended to identify forward-looking statements. Examples of forward-looking statements include, among others, statements relating to future sales, earnings, cash flows, results of operations, uses of cash and other measures of financial performance.
Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that may cause SideChannel's actual results and financial condition to differ materially from those expressed or implied in the forward-looking statements. These risk factors include, but are not limited to: that we have incurred net losses since inception, our need for additional funding, the substantial doubt about our ability to continue as a going concern, and the terms of any future funding we raise; our dependence on current management and our ability to attract and retain qualified employees; competition for our products; our ability to develop and successfully introduce new products, improve current products and innovate; unpredictability in our operating results; our ability to retain existing licensees and add new licensees; our ability to manage our growth; our ability to protect our intellectual property (IP), enforce our IP rights and defend against claims that we infringed on the IP of others; the risk associated with the concentration of our cash in one financial institution at levels above the amount protected by FDIC insurance; and other risk factors included from time to time in documents we file with the Securities and Exchange Commission, including, but not limited to, our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These reports are available at www.sec.gov.
Other unknown or unpredictable factors also could have material adverse effects that could cause actual results to differ materially from those projected or represented in the forward-looking statements. Further, factors that we do not presently deem material as of the date of this release may become material in the future. The forward-looking statements included in this press release are made only as of the date hereof. SideChannel cannot guarantee future results, levels of activity, performance, or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, SideChannel undertakes no obligation to update these forward-looking statements after the date of this release, except as required by law, nor any obligation to update or correct information prepared by third parties.
SOURCE: SideChannel, Inc.
View the original press release on ACCESS Newswire
FAQ
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