SideChannel Earnings Call Transcripts
Fiscal Year 2026
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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.
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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
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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.
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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.
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Q1 revenue grew nearly 10% year-over-year, with cash increasing for the fourth straight quarter. Strategic focus is on expanding Enclave software, vCISO services, and program adoption, supported by new hires and international sales efforts.