SideChannel (SDCH) Q4 2025 earnings summary

Executive summary

• Focused on providing cybersecurity advisory services and proprietary software (Enclave) to mid-market and emerging companies, with a mission to make cybersecurity accessible and simple for underserved markets.

• Revenue is reported in two categories: VCISO Services (virtual Chief Information Security Officer) and Cybersecurity Software & Services, with Enclave as a key product.

• Growth strategy centers on increasing Enclave adoption, acquiring new VCISO clients, and expanding software/service offerings, including AI-based security and data security posture management.

Financial highlights

• Total revenue for the year ended September 30, 2025, was $7.4 million, a decrease of $49 thousand or 0.7% year-over-year.

• VCISO Services revenue declined by $715 thousand (14.9%), while Cybersecurity Software & Services revenue grew by $666 thousand (25.6%).

• Gross margin remained steady at 47.7% for both 2025 and 2024.

• Operating expenses decreased by $50 thousand (1.1%) to $4.4 million.

• Net loss after income tax was $892 thousand, compared to $904 thousand in the prior year.

• Cash and equivalents at year-end were $1.2 million, with working capital of $0.8 million.

Outlook and guidance

• Management believes existing cash balances are sufficient to fund operations through at least December 31, 2026.

• No credit facilities are currently available, but discussions with lenders for a line of credit are ongoing.

• The company aims to achieve positive cash flow from operations but cannot guarantee this outcome.