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SideChannel (SDCH)
OTHER OTC:SDCH
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SideChannel
(OTC:SDCH)
Rating:64Neutral
Price Target:―
SideChannel (SDCH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.81M
Dividend YieldN/A
Average Volume (3M)223.99K
Price to Earnings (P/E)―
Beta (1Y)1.48
Revenue Growth4.20%
EPS Growth86.77%
CountryUS
Employees20
SectorTechnology
Sector Strength84
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.00
Shares Outstanding231,229,050
10 Day Avg. Volume79,918
30 Day Avg. Volume223,989
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.72
Enterprise Value/Revenue2.00
Enterprise Value/Gross Profit4.18
Enterprise Value/Ebitda-22.77
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
SideChannel Business Overview & Revenue Model
Company DescriptionSideChannel (SDCH) operates in the cybersecurity sector, focusing on providing advisory and strategic services to safeguard digital assets for businesses. The company specializes in delivering comprehensive cybersecurity solutions, including risk management, compliance, and incident response, tailored to meet the unique needs of its clients.
How the Company Makes MoneySideChannel makes money primarily through consulting fees and service contracts. By offering tailored cybersecurity solutions, the company earns revenue from ongoing advisory services and implementation of security measures. Key revenue streams include subscription-based contracts for continuous monitoring services, one-time fees for specific projects like security architecture design, and premium pricing for emergency incident response. SideChannel may also have strategic partnerships with technology vendors, which can provide additional revenue through joint service offerings or referral agreements.
SideChannel Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q3-2025)
| % Change Since: -10.00%|
Next Earnings Date:Dec 03, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment. While the company is making strategic advancements and has a strong cash position with no debt, it faces challenges such as a decline in revenue and gross margin, and an operating loss. The introduction of new services and growth in cybersecurity software are positive signs, but these are tempered by financial setbacks.Q3-2025 Updates
Positive Updates
Expansion of Enclave Platform
Enclave is gaining traction as a Zero Trust network platform, expanding its footprint within the Department of Defense and other regulated sectors, driving top-of-funnel engagement.
Insider Threat Service Launch
The new Insider Threat service launched at DEFCON 33 is generating interest, helping clients identify and mitigate internal risks, integrating Enclave for a comprehensive security solution.
Revenue Growth in Cybersecurity Software
Despite a decline in vCISO services, the cybersecurity software and services portfolio grew by 22.8% year-over-year.
Strong Cash Position and No Debt
SideChannel reported cash and cash equivalents of $1.2 million with a minimal cash burn and zero outstanding debt.
Negative Updates
Revenue Decrease
Quarterly revenue of $1.8 million represents a 3.8% decrease compared to the prior year, primarily due to a decline in vCISO services clients.
Decreased Gross Margin
Gross margin decreased slightly from 48.9% last year to 47% this year due to reduced employee utilization and increased revenue from lower-margin third-party software and services.
Operating Loss
SideChannel reported an operating loss of $261,000 for the quarter.
Company Guidance
In the SideChannel Fiscal Year 2025 Q3 financial results call, CEO Brian Haugli detailed the company's strategic initiatives, highlighting the Enclave Zero Trust network platform's significant traction, especially within the Department of Defense. Despite a 3.8% year-over-year revenue decrease to $1.8 million for the quarter, attributed to a decline in vCISO services, the company saw a 22.8% increase in its cybersecurity software and services portfolio. The gross margin slightly fell to 47% from 48.9% last year due to increased third-party software revenue. Operating expenses rose to $1.1 million, driving an operating loss of $261,000. However, the company maintains a healthy financial position with $1.2 million in cash and equivalents, zero debt, and minimal cash burn, negating the need for additional capital. The company is investing heavily in Enclave's marketing and sales while introducing a new Insider Threat service, aiming to capitalize on market needs and continue its growth trajectory.SideChannel Financial Statement Overview
Summary
SideChannel shows strong revenue growth and cash flow improvements, with significant financial stability due to its strong equity position and lack of debt. However, ongoing net losses and negative return on equity highlight the need for enhanced profitability and efficiency.Income Statement
SideChannel's income statement shows significant improvement in revenue growth, with a TTM increase of 15.2% from the previous year. The gross profit margin stands at 47% in TTM, indicating efficient cost management. However, the company is still operating at a net loss with a net profit margin of -11.3% and an EBIT margin of -11.7%, reflecting ongoing challenges in achieving profitability. The EBITDA margin is also negative, at -9.8%, but improving from previous periods.65
Positive
Balance Sheet
The balance sheet reveals a strong equity position with an equity ratio of 70.2% in TTM, which indicates financial stability. The absence of debt reduces financial risk, but the return on equity is negative at -32.5%, suggesting inefficiencies in generating returns for shareholders. The company has a healthy cash position, which provides a buffer for future operations.70
Positive
Cash Flow
SideChannel's cash flow statement is robust, with a significant improvement in operating cash flow, resulting in a positive free cash flow of $551,000 in TTM. The free cash flow growth rate is 88.7%, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is positive, indicating that the company is converting its earnings into cash effectively. However, continued negative net income remains a concern.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.47M | 7.40M | 6.57M | 4.79M | 2.80M | 47.98K |
| Gross Profit | 3.57M | 3.53M | 3.33M | 2.32M | 1.26M | -576.00K |
| EBITDA | -655.00K | -748.00K | -2.08M | 340.00K | 511.00K | -6.95M |
| Net Income | -769.00K | -904.00K | -7.01M | -11.78M | -3.10M | -6.97M |
Balance Sheet | ||||||
| Total Assets | 3.85M | 3.95M | 3.98M | 10.77M | 6.75M | 1.83M |
| Cash, Cash Equivalents and Short-Term Investments | 1.25M | 1.29M | 1.05M | 3.03M | 5.78M | 1.08M |
| Total Debt | 0.00 | 0.00 | 50.00K | 50.00K | 0.00 | 1.10M |
| Total Liabilities | 1.42M | 1.25M | 954.00K | 1.37M | 1.49M | 1.97M |
| Stockholders Equity | 2.44M | 2.70M | 3.03M | 9.40M | 5.27M | -137.96K |
Cash Flow | ||||||
| Free Cash Flow | 2.34M | 292.00K | -1.98M | -396.00K | -3.63M | -6.68M |
| Operating Cash Flow | 2.34M | 307.00K | -1.95M | -396.00K | -3.63M | -6.65M |
| Investing Cash Flow | 50.00K | -265.00K | -32.00K | 3.59M | 0.00 | -28.97K |
| Financing Cash Flow | 0.00 | -50.00K | 0.00 | -511.00K | 8.33M | -84.57K |
SideChannel Technical Analysis
Positive
0.09
Price Trends
0.10
Positive
0.07
Positive
0.06
Positive
Market Momentum
>-0.01
Positive
48.26
Neutral
38.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SDCH, the sentiment is Positive. The current price of 0.09 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.10, and above the 200-day MA of 0.06, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.26 is Neutral, neither overbought nor oversold. The STOCH value of 38.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SDCH.
SideChannel Risk Analysis
SideChannel disclosed 57 risk factors in its most recent earnings report. SideChannel reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SideChannel Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $20.81M | ― | -29.22% | ― | 4.20% | 86.77% | |
61 Neutral | $35.50B | 7.54 | -10.82% | 1.90% | 8.85% | -10.46% | |
48 Neutral | $35.82M | ― | -111.75% | ― | 25.86% | 85.97% | |
46 Neutral | $7.61M | ― | 163.42% | ― | -30.70% | 82.02% | |
45 Neutral | $13.61M | ― | -254.58% | ― | 20.51% | 30.55% | |
34 Underperform | $2.81M | ― | 470.97% | ― | ― | ― |
* Technology Sector Average
Performance Comparison
SDCH
SideChannel
0.09
0.04
80.00%
INTZ
Intrusion
1.83
0.49
36.57%
BNAI
Brand Engagement Network
0.32
-1.39
-81.29%
ATCH
AtlasClear Holdings
0.20
-13.05
-98.49%
HUBC
Hub
2.42
-3.01
-55.43%
SideChannel Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
SideChannel to Exhibit at 2025 Global Force Symposium
Neutral
Feb 19, 2025
On February 19, 2025, SideChannel announced its participation as an attendee and exhibitor at the 2025 Global Force Symposium, scheduled for March 25-27 in Huntsville, Alabama. The event provides a platform for SideChannel to showcase its Enclave platform, already deployed by two Department of Defense agencies, and to engage with prospective clients on cybersecurity compliance and risk mitigation. This participation underscores SideChannel’s commitment to the defense industry and its role in supporting the Pentagon’s cybersecurity standards.
Business Operations and StrategyFinancial Disclosures
SideChannel Reports Q1 Revenue Growth and Expansion Plans
Positive
Feb 5, 2025
SideChannel reported its financial results for the first quarter of the fiscal year ended September 30, 2025, highlighting a revenue increase of 9.9% to $1.9 million compared to the previous year. The company is focused on expanding its sales and marketing team to boost revenue growth and aims to drive adoption of its Enclave platform, continue acquiring new vCISO clients, and expand its cybersecurity solutions with existing clients.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.