SideChannel reports revenue decline in fiscal 2025 preliminary results

SideChannel, Inc. (OTCQB: SDCH) reported preliminary unaudited financial results for fiscal year 2025, showing revenue of $7.4 million, a decrease of $49,000 from the previous year. The cybersecurity services provider announced the results ahead of a financial conference call scheduled for December 3.

The company maintained a gross margin of 47.7%, equal to fiscal 2024 levels. Operating expenses decreased by $50,000 to $4.4 million, representing a 1.1% reduction compared to the prior year.

SideChannel recorded a net loss of $892,000, or $0.00 per share, compared to a net loss of $904,000, or $0.00 per share, in fiscal 2024. The company's revenue retention rate declined to 63.6%, down 5.6 percentage points from 69.2% in the previous fiscal year.

Cash, cash equivalents, and short-term investments decreased by $130,000 from September 30, 2024, ending at $1.2 million as of September 30, 2025. The company's weighted average common shares outstanding increased to approximately 229.1 million from 222.1 million in the prior year.

Brian Haugli, President and Chief Executive Officer, stated the company made investments in selling and marketing during the year and saw progress in Enclave revenue growth. The company provides cybersecurity services to emerging and middle market companies and offers Enclave, a network infrastructure platform.

SideChannel will hold a financial results conference call on December 3 at 4:30 p.m. Eastern Time. The company's annual report on Form 10-K will be filed with the Securities and Exchange Commission upon completion of its audit.

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