SideChannel Q2 revenue falls, net loss widens on higher operating expenses

SIDECHANNEL INC

SIDECHANNEL INC

SDCH

0.00


Overview

  • US cybersecurity services firm's fiscal Q2 revenue fell 17% yr/yr

  • Gross margin for fiscal Q2 rose to 53.5% from 49.7% last year

  • Net loss widened as operating expenses increased due to higher selling and marketing costs


Outlook

  • Company prioritizes converting Enclave pipeline into recurring revenue for remainder of fiscal 2026

  • SideChannel plans to maintain operating discipline while scaling Enclave platform and services

  • Company continues to invest in marketing and partnerships to support retention and margin improvement


Result Drivers

  • HIGHER OPERATING EXPENSES - Co said increased operating expenses were due to targeted investment in selling and marketing

  • MARGIN AND RETENTION IMPROVEMENT - Co said marketing and partnership investments led to higher gross margin and improved revenue retention


Company press release: ID:nACSm8dXSa


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

$1.58 mln

Q2 Net Income

-$444,000

Q2 Gross Profit

$843,000

Q2 Operating Income

-$448,000


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