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.