SideChannel Inc. Stock Price, News & Analysis

SideChannel (OTCQB:SDCH), a cybersecurity services provider, reported its fiscal Q3 2025 results with revenue of $1.8 million, down 3.8% year-over-year. The company posted a net loss of $261,000 compared to a $146,000 loss in Q3 2024, with gross margins declining to 47.0% from 48.9%.

The company's Enclave Zero Trust platform is gaining traction with two Department of Defense clients, and SideChannel launched its new Insider Threat program at DEFCON 33. Year-to-date revenue reached $5.6 million, up 1.3% from FY 2024, while maintaining cash and equivalents of $1.2 million as of June 30, 2025.

The company's trailing twelve-month revenue was $7.5 million with a revenue retention rate of 61.4%.

SideChannel (OTCQB:SDCH) announced that a major Arizona city has selected its Enclave zero trust platform to modernize and secure municipal networks. The deployment includes over 1,700 Enclave agents to protect critical infrastructure and services.

The implementation comes amid growing cyber threats to municipalities, with recent incidents costing cities between $7 million to $19 million in recovery costs. Enclave's solution provides microsegmentation, asset intelligence, and integrated security controls to protect vital city operations and resident data.

This selection follows Enclave's recent adoption by a second branch of the U.S. Department of Defense, demonstrating the platform's growing acceptance in protecting critical government infrastructure.

SideChannel (OTCQB:SDCH) has secured its second Department of Defense software contract, marking a significant expansion of its cybersecurity services within national security infrastructure. The company's Enclave zero trust software will be deployed with over 5,000 agents operating on-premise within national intelligence networks, focusing on asset intelligence and certificate management. This implementation, facilitated through a federal resale partner, demonstrates Enclave's capability to meet stringent security requirements for sensitive government operations. The software is specifically designed for segmented and air-gapped environments, providing detailed visibility and control over devices, certificates, and secure communications. This contract reinforces SideChannel's growing presence in the federal sector and validates its strategy in addressing complex cybersecurity challenges for defense and intelligence stakeholders.

SideChannel (OTCQB:SDCH) reported its Q2 FY2025 financial results with revenue of $1.9 million, showing a slight decrease of 1.7% compared to Q2 FY2024. The company improved its gross margin to 49.7%, up 470 basis points year-over-year, while reducing operating expenses by 11.2%. Net loss narrowed to $54,000 ($0.00 per share) from $253,000 in the prior year quarter. Cash position remained stable at $1.3 million. Year-to-date revenue increased by 3.8% to $3.7 million, with improved gross margins of 47.7%. Despite experiencing a decline in vCISO Services revenue retention (62.4%) due to previous loss of high-value clients, management remains optimistic about growth prospects through Enclave adoption and new client acquisition strategies.

SideChannel (OTCQB:SDCH), a cybersecurity services provider, announced its participation as an attendee and exhibitor at the 2025 Global Force Symposium hosted by the Association of the United States Army (AUSA) from March 25-27 in Huntsville, Alabama.

The company's CEO, Brian Haugli, highlighted that their Enclave solution is currently deployed by two Department of Defense (DoD) agencies, providing microsegmentation capabilities. SideChannel also offers cybersecurity risk advisory services to companies within the Armed Forces ecosystem, particularly focusing on CMMC compliance guidance through their vCISO leadership model.

The symposium is expected to attract over 6,000 attendees, including key leaders from the Army, DoD, academia, and the worldwide defense industry.

SideChannel (OTCQB:SDCH) reported its Q1 FY2025 financial results, showing revenue growth of 9.9% to $1.9 million compared to $1.7 million in Q1 FY2024. The company's gross margin decreased by 290 basis points to 45.8% from 48.7% year-over-year. Operating expenses saw a reduction of $24,000 (2.1%) compared to FY2024.

The company reported a net loss of $195,000 ($0.00 per share), an improvement from the $246,000 loss in the previous year. Cash, cash equivalents, and short-term investments increased by $75,000 to $1.4 million. Trailing twelve-month revenue reached $7.6 million with a revenue retention rate of 66.1%.

CEO Brian Haugli outlined strategic objectives focusing on Enclave adoption, new vCISO client acquisition, and expansion of cybersecurity risk reduction solutions. The company continues to invest in its sales and marketing team to accelerate revenue growth using existing cash reserves and operational cash flow.

SideChannel (OTCQB:SDCH) and Recon Infosec have announced a strategic partnership to enhance their cybersecurity offerings. The collaboration enables Recon Infosec's clients to access SideChannel's virtual Chief Information Security Officer (vCISO) services, while SideChannel's clients gain access to Recon's Managed Security Operations services.

The partnership combines SideChannel's expertise in Risk Management and vCISO services with Recon's managed security operations capabilities. SideChannel provides cybersecurity services to emerging and middle market companies, including their zero-trust network solution Enclave, compliance tools, and privacy enhancement across various sectors such as healthcare, finance, and technology.

This 'better together' approach aims to deliver comprehensive cybersecurity support, combining SideChannel's security strategy and risk management services with Recon's operational security capabilities to provide end-to-end support for balanced cybersecurity programs.

SideChannel (OTCQB:SDCH) reported its fiscal year 2024 financial results, showing revenue growth of 12.8% to $7.4 million compared to $6.6 million in FY2023. The company's gross margin decreased to 47.8% from 50.7% in the previous year. Operating expenses were reduced by $1.2 million (22.0%), and net loss improved significantly to $785,000 ($0.00 per share) from $7.0 million ($0.04 per share) in FY2023.

The company maintained a strong cash position with $1.3 million in cash, cash equivalents, and short-term investments, representing an increase of $242,000 from the previous year. Revenue retention was 69.2%, slightly down from 71.0% in FY2023. Management highlighted their achievement of sustainable cash provided by operations and plans to focus on growing Enclave revenue through building a dedicated sales team.

SideChannel (OTCQB:SDCH), a cybersecurity services provider, has rescheduled its fiscal year 2024 financial results conference call from December 4 to December 5, 2024, at 4:30 PM ET. The fiscal year ended September 30, 2024. The conference call will feature management remarks and a Q&A session, with participants able to submit questions in advance via email. Both toll-free and international dial-in options will be available, along with a webcast option for which participants can pre-register.