SideChannel Earnings Call Transcripts
Fiscal Year 2026
-
Q3 marked a turnaround with year-over-year revenue growth, improved gross margin, and a halved net loss. The business mix shifted toward higher-margin software and services, but a going concern risk persists due to limited liquidity and the need for new capital.
-
Q2 FY 2026 revenue declined 11.9% year-over-year as the business shifted from services to platform models, but gross margin expanded to 53.5%. Software and services revenue grew 12.5%, and the company is focused on operationalizing its platform transition and rebuilding sales execution.
-
Revenue declined 7% year-over-year to just under $1.8M, but gross margin improved by 540 basis points as the business shifts to a scalable security platform model. Marketing and partnerships are driving pipeline growth, with significant increases in partner and inbound opportunities.
Fiscal Year 2025
-
Q3 revenue declined 3.8% year-over-year to $1.8M, with gross margin at 47% and an operating loss of $261K. Enclave software adoption and new Insider Threat Service are driving strategic growth, while cash remains stable and the company is debt-free.
-
Gross margin rose to 49.7% and net loss narrowed to $54,000, with year-to-date revenue up 3.8%. Enclave product adoption and federal partnerships are driving growth, while the company maintains strong liquidity and prepares for future capital flexibility.
-
Q1 saw nearly 10% revenue growth and a fourth consecutive quarter of increased cash, ending at $1.4M. Strategic focus is on expanding proprietary software, vCISO services, and deeper client program adoption, with new hires supporting both US and international growth.