Improved Profitability and Operational Efficiency
Despite a 1.7% decrease in year-over-year revenue, SideChannel improved its gross margin to 49.7%, up nearly 5 percentage points from the same quarter last year. Operating expenses were reduced by 11.2%, and the net loss was narrowed to $54,000 from $253,000 in the previous year.
Cash Flow and Cash Position
SideChannel reported a positive cash flow from operations for the fifth consecutive quarter, ending the period with $1.3 million in cash, cash equivalents, and short-term investments.
Revenue Growth in First Half of FY 2025
Year-to-date revenue increased by 3.8% compared to the first half of FY 2024, demonstrating resilience and execution across the company's core offerings.
Strategic Focus on Enclave Product
SideChannel continues to focus on accelerating the adoption of its Enclave product, which is gaining attention as a zero trust network solution among public and private sector organizations.