Reported Q: Q2 2025 Rev YoY: -1.7% EPS YoY: +81.8% Move: +0.89%
SideChannel Inc
SDCH
$2.26 0.89%
Exchange OTC Sector Technology Industry Software Infrastructure
Q2 2025
Published: May 7, 2025

Company Status Snapshot

Fast view of the latest quarter outcome for SDCH

Reported

Report Date

May 7, 2025

Quarter Q2 2025

Revenue

1.89M

YoY: -1.7%

EPS

0.00

YoY: +81.8%

Market Move

+0.89%

Previous quarter: Q1 2025

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Earnings Highlights

  • Revenue of $1.89M down 1.7% year-over-year
  • EPS of $0.00 increased by 81.8% from previous year
  • Gross margin of 49.7%
  • Net income of -54.00K
  • ""Our gross margin rose to 49.7%, up nearly 5 percentage points from the same quarter last year. This improvement reflects disciplined cost control, better service delivery margins and early contribution from Enclave sales."" - Brian Haugli
SDCH
Company SDCH

Executive Summary

SideChannel reported Q2 2025 revenue of USD 1.894 million, a 1.7% YoY decline and a QoQ decline of 0.7%, accompanied by notable margin and cash-flow improvements. Gross margin rose to 49.68% (approximately 49.7%), up nearly 5 percentage points from the year-ago quarter, driven by disciplined cost controls, improved service delivery margins, and early Enclave contributions. Operating expenses declined 11.2%, narrowing the quarterly net loss to USD 54 thousand from USD 253 thousand in the prior-year quarter, with year-to-date revenue of USD 3.7 million, up 3.8% versus the first half of FY 2024. Management acknowledged vCISO headwinds from the loss of several larger contracts in the prior year, but highlighted a scalable go-to-market plan and stronger sales capabilities, which are beginning to gain traction. Enclave is positioned as the long-term growth engine, supported by a push into both public and private sector deployments, including a growing DoD footprint via partners such as Koniag. The company ended the quarter with USD 1.3 million in cash, cash equivalents and short-term investments, reinforcing a lean footprint and positive operating cash flow for a fifth straight quarter. Looking ahead, management emphasizes executing on Enclave while preserving balance sheet strength; warrants expiring in roughly a year may enable future capital actions if desired, but near-term plans remain focused on growth and shareholder value without immediate liquidity pressure.

Key Performance Indicators

Revenue
Decreasing
1.89M
QoQ: -0.73% | YoY: -1.71%
Gross Profit
Increasing
941.00K
49.68% margin
QoQ: 7.67% | YoY: 8.41%
Operating Income
Increasing
-61.00K
QoQ: 70.39% | YoY: 76.54%
Net Income
Increasing
-54.00K
QoQ: 72.31% | YoY: 78.66%
EPS
Increasing
0.00
QoQ: 77.78% | YoY: 81.82%

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