Reported Q: Q1 2025 Rev YoY: +9.9% EPS YoY: +18.2% Move: +0.89%
SideChannel Inc
SDCH
$2.26 0.89%
Exchange OTC Sector Technology Industry Software Infrastructure
Q1 2025
Published: Feb 5, 2025

Company Status Snapshot

Fast view of the latest quarter outcome for SDCH

Reported

Report Date

Feb 5, 2025

Quarter Q1 2025

Revenue

1.91M

YoY: +9.9%

EPS

0.00

YoY: +18.2%

Market Move

+0.89%

Previous quarter: Q4 2024

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Earnings Highlights

  • Revenue of $1.91M up 9.9% year-over-year
  • EPS of $0.00 increased by 18.2% from previous year
  • Gross margin of 45.8%
  • Net income of -195.00K
  • ""Three areas for where our growth is going to sit on a go forward. We've aligned on this. We've agreed on it, and now the company is looking at resource planning to support hitting these three strategic objectives. And they are in order, growing our proprietary software revenue with Enclave. Two, increasing our vCISO and service engagements, and three, expanding program adoption at current clients."" - Brian Haugli
SDCH
Company SDCH

Executive Summary

SideChannel’s QQ1 2025 results reflect a small but improving top line with a continued tilt toward the company’s strategic software platform, Enclave, and a deliberate expansion of services around vCISO and risk advisory. Revenue rose 9.9% year over year to $1.908 million, driven by ongoing demand for managed security services and early signs of Enclave monetization. However, profitability remains constrained by operating expenses and a still‑early stage software monetization cycle, as evidenced by an operating loss of $206 thousand and net loss of $195 thousand for the quarter. The balance sheet remains liquidity‑positive with no debt, a cash and short‑term investment position of $1.37 million, and a cash from operations run‑rate that supports continued investment in go‑to‑market activities.

Management outlined a clear three‑pillar growth framework anchored by Enclave revenue growth, expanded vCISO engagements, and deeper program adoption with existing customers. This framework, designed to scale software margins and cross‑sell into security programs, is being operationalized through expanded U.S. and international sales coverage and a channel strategy, complemented by government‑sector opportunities via partnerships. The management cadence emphasizes returns on software, not just services, and signals a cash‑positive path to fund marketing and deployment as Enclave matures. Absent formal quarterly guidance, the company intends to reinvest cash from operations to accelerate top‑line growth and product adoption over the coming quarters.

Key Performance Indicators

Revenue
Increasing
1.91M
QoQ: 0.90% | YoY: 9.91%
Gross Profit
Increasing
874.00K
45.81% margin
QoQ: -4.69% | YoY: 3.43%
Operating Income
Increasing
-206.00K
QoQ: 22.85% | YoY: 20.46%
Net Income
Increasing
-195.00K
QoQ: 24.71% | YoY: 20.73%
EPS
Increasing
0.00
QoQ: -131.03% | YoY: 18.18%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q2 2025 1.89 0.00 -1.7% View
Q1 2025 1.91 0.00 +9.9% View
Q4 2024 1.89 0.00 +14.0% View
Q3 2024 1.85 0.00 +5.5% View
Q2 2024 1.93 0.00 +19.2% View