SideChannel Announces Third Quarter Financial Results for FY 2025

WORCESTER, MA - On August 13, 2025, SideChannel, Inc. (OTCQB:SDCH), a prominent provider of cybersecurity services to emerging and mid-market companies, reported its financial results for the third quarter of the fiscal year ending September 30, 2025. The company revealed a revenue of $1.8 million, marking a 3.8% decrease compared to the same period in FY 2024.

Financial Highlights

In the third quarter, SideChannel reported a gross margin of 47.0%, slightly lower than the 48.9% recorded a year earlier. Operating expenses rose by $47,000, or 4.5%, indicating increased investment in the company’s services. The net loss for this quarter amounted to $261,000, a notable increase from the net loss of $146,000 reported in the third quarter of FY 2024.

As of June 30, 2025, the company had cash and cash equivalents totaling $1.2 million, a decrease of $46,000 from the previous year. The trailing twelve-month revenue stood at $7.5 million, with a revenue retention rate of 61.4% for the same period.

Year-to-Date Results

For the nine months ending June 30, 2025, SideChannel’s revenue totaled $5.6 million, reflecting a slight increase of 1.3% compared to the previous fiscal year. The gross margin remained stable at 47.5%, while operating expenses decreased by $103,000, or 3.1%, leading to a net loss of $510,000.

Strategic Developments

Brian Haugli, President and CEO of SideChannel, expressed optimism regarding the company's direction. With the Enclave Zero Trust software platform gaining traction, including onboarding two Department of Defense clients, SideChannel is focused on expanding its market presence. Additionally, the recent launch of an Insider Threat program is expected to bolster the company’s offerings, addressing internal security risks.

Haugli emphasized the company’s commitment to enhancing its cybersecurity services portfolio and adapting to meet the growing demands of critical markets. A conference call is scheduled for later today at 4:30 PM ET to further discuss these results and future initiatives.

Key Takeaways

SideChannel's Q3 FY 2025 revenue totaled $1.8 million, down 3.8% year-over-year.

Operating expenses increased by $47,000 compared to Q3 FY 2024.

The company reported a net loss of $261,000 for the quarter.

The CEO highlighted growth opportunities, particularly within defense sectors and new cybersecurity programs.

Trailing twelve-month revenue stood at $7.5 million, with a retention rate of 61.4%.