SideChannel reported Q4 2024 revenue of $1.891 million, up 13.98% year over year and 2.44% quarter over quarter, with a gross margin of 48.5% and a net loss of $0.259 million. The company achieved cash flow positive operations for fiscal 2024, supported by a disciplined cost stance and a focus on scalable growth initiatives. Management framed cybersecurity as a persistent, expanding risk where SideChannel’s vCISO and Enclave platforms address both confidentiality/integrity and increasingly material availability concerns, underscoring a long‑cycle, high‑value market opportunity for 2025–2027.
Strategically, SideChannel is prioritizing Enclave as a multi‑module SaaS platform (asset intelligence, vulnerability discovery, microsegmentation, machine identity, host firewall, and secure web gateway) with a foothold in the DoD via a first customer that is expected to unlock broader federal adoption. The firm is expanding channel partnerships to increase addressable market access and is bolstering cloud‑security capabilities through new leadership. While the company is positioned for growth, near‑term risks include a small revenue base, dependence on a single DoD contract, and dilution risk from historic warrants. Management emphasized that the warrants are transitioning out of the money and that growth investments will be funded from operating cash flow rather than equity dilutive financings.