SideChannel (SDCH) AI Stock Analysis

• Market Cap: $13.82M
• Dividend Yield: N/A
• Average Volume (3M): 108.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.79
• Revenue Growth: -0.66%
• EPS Growth: 4.88%
• Country: US
• Employees: 20
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.00
• Shares Outstanding: 231,229,050
• 10 Day Avg. Volume: 29,178
• 30 Day Avg. Volume: 108,088
• PEG Ratio: 3.44
• Price to Book (P/B): 6.99
• Price to Sales (P/S): 2.04
• P/FCF Ratio: -115.15
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 1.52
• Enterprise Value/Gross Profit: 3.19
• Enterprise Value/Ebitda: -14.85
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $0.06 ▼(-5.00% Downside)

The score is held down primarily by weak financial performance (flat/slightly declining revenue, ongoing losses, and inconsistent cash flow) and bearish/soft technical signals. Earnings-call commentary and leadership changes provide some upside potential via Enclave-led growth in 2026, but execution risk remains the key swing factor.

Positive Factors

Revenue Growth

Consistent revenue growth indicates effective market strategies and product demand, supporting long-term business expansion and stability.

Cash Flow Management

Strong cash flow management enhances financial flexibility, enabling strategic investments and operational resilience, crucial for sustainable growth.

Market Expansion

Expanding into international markets diversifies revenue streams and reduces dependency on existing markets, fostering long-term growth opportunities.

Negative Factors

Net Losses

Ongoing net losses highlight challenges in achieving profitability, which may hinder long-term financial health and investor confidence.

Increased Competition

Rising competition can pressure margins and market share, requiring strategic differentiation to maintain a competitive edge over time.

Deferred Revenue Recognition

Deferred revenue recognition can obscure financial performance, complicating cash flow management and financial planning in the short to medium term.

SideChannel Business Overview & Revenue Model

Company Description

SideChannel, Inc. provides cybersecurity solutions. It offers RealCISO, a software platform that helps companies to understand and manage cyber risk. The company also provides virtual chief information security officer (vCISO), virtual chief privacy officer, risk assessments, cybersecurity compliance, risk management, training and awareness, and team building and staffing services. It serves clients in healthcare (tech), life sciences/bio tech, energy, technology, infrastructure/industrial, research institutes, legal, finance, and DoD/defense industrial base sectors. The company was formerly known as Cipherloc Corporation and changed its name to SideChannel, Inc. in July 2022. SideChannel, Inc. was incorporated in 1953 and is based in Austin, Texas.

How the Company Makes Money

SideChannel 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 Financial Statement Overview

Summary

Overall fundamentals are weak: revenue is flat to slightly down and the company remains unprofitable with negative margins. Positives include a low-risk balance sheet with no debt and improved (but still inconsistent) cash flow, with 2025 returning to modestly negative operating/free cash flow.

Income Statement

Revenue has been roughly flat to slightly down in the latest year (2025 revenue down ~1.6% after modest growth in 2024), suggesting limited near-term momentum. Gross margin is steady around the high-40% range, which is a positive sign of pricing/cost consistency. However, the company remains unprofitable with negative operating and net margins in 2024–2025 (net loss ~12% of revenue), and while losses improved materially versus 2022–2023, the business has not yet demonstrated sustained operating profitability.

Balance Sheet

The balance sheet is conservatively levered with essentially no debt in recent years (2024–2025 total debt of $0 and debt-to-equity of 0), reducing financial risk and refinancing pressure. That said, equity has declined from 2023 to 2025 (roughly $3.0M to $2.1M), consistent with ongoing losses, and returns on equity remain meaningfully negative in the latest period—highlighting that the capital base is not currently generating profits.

Cash Flow

Cash generation is mixed. 2024 showed positive operating and free cash flow (about $0.3M), but 2025 slipped back to modestly negative operating and free cash flow (about -$0.13M), indicating volatility and limited consistency in funding operations internally. The large improvement versus 2023’s deeply negative operating cash flow is encouraging, but the latest-year reversal keeps cash flow quality and predictability below average.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.35M	7.35M	7.40M	6.57M	4.79M	2.80M
Gross Profit	3.50M	3.50M	3.53M	3.33M	2.32M	1.26M
EBITDA	-752.00K	-878.00K	-748.00K	-2.08M	340.00K	511.00K
Net Income	-892.00K	-892.00K	-904.00K	-7.01M	-11.78M	513.00K
Balance Sheet
Total Assets	3.46M	3.46M	3.95M	3.98M	10.77M	6.75M
Cash, Cash Equivalents and Short-Term Investments	1.17M	1.17M	1.29M	1.05M	3.03M	5.78M
Total Debt	0.00	0.00	0.00	50.00K	50.00K	0.00
Total Liabilities	1.32M	1.32M	1.25M	954.00K	1.37M	1.49M
Stockholders Equity	2.14M	2.14M	2.70M	3.03M	9.40M	427.00K
Cash Flow
Free Cash Flow	2.07M	-130.00K	292.00K	-1.98M	-396.00K	-3.63M
Operating Cash Flow	2.07M	-130.00K	307.00K	-1.95M	-396.00K	-3.63M
Investing Cash Flow	0.00	150.00K	-265.00K	-32.00K	3.59M	0.00
Financing Cash Flow	0.00	0.00	-50.00K	0.00	-511.00K	8.33M

SideChannel Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SDCH, the sentiment is Negative. The current price of 0.06 is above the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.06, and below the 200-day MA of 0.07, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 17.10 is Positive, neither overbought nor oversold. The STOCH value of 60.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SDCH.

SideChannel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BNAI	55 Neutral	$27.60M	-1.49	-218.30%	―	-24.72%	53.60%
SDCH	46 Neutral	$13.82M	-13.33	-29.22%	―	-0.66%	4.88%
AUID	46 Neutral	$21.40M	-1.00	-150.91%	―	141.81%	-21.61%
INTZ	42 Neutral	$26.13M	-2.06	-132.37%	―	33.49%	82.01%
ARQQ	41 Neutral	$393.64M	-10.30	-181.44%	―	80.89%	68.29%

SideChannel Corporate Events

SideChannel Chairwoman Announces Retirement Plans

On December 9, 2025, SideChannel, Inc. announced that Deborah MacConnel, the Chairwoman of the Board of Directors, will retire following the next Annual Stockholders Meeting. Her departure is amicable, with no disagreements with the company’s management or board. In recognition of her service, she will receive the vesting of 333,667 restricted stock units, while the remaining units will be forfeited.

SideChannel Appoints Anna Seacat to Board of Directors

On December 8, 2025, SideChannel appointed Anna Seacat to its board of directors, highlighting the company’s commitment to leadership excellence and innovation in cybersecurity. Seacat, with over a decade of experience in marketing and technology leadership across cybersecurity and enterprise software, is expected to contribute significantly to SideChannel’s strategic direction and growth, particularly in advancing their Enclave platform and enhancing client resilience.

SideChannel Announces Preliminary Fiscal Year Results

On December 3, 2025, SideChannel, Inc. announced its preliminary financial results for the fiscal year ending September 30, 2025. The company reported a slight decrease in revenue to $7.4 million, with a consistent gross margin of 47.7% compared to the previous year. Operating expenses decreased slightly, and the net loss was reduced to $892 thousand. Despite a drop in revenue retention, SideChannel emphasized its strategic investments in selling and marketing, particularly for its Enclave platform, which is gaining traction in the market. The company is optimistic about future growth, driven by its expanding service portfolio and the stabilization of economic conditions.

SideChannel Appoints New CMO and Account Executive

On October 29, 2025, SideChannel announced the appointment of Jamie Wolf as Chief Marketing Officer to enhance brand visibility and market strategy, and Rick Dill as Account Executive to expand the enterprise reach of their Enclave security platform. These appointments are part of SideChannel’s strategy to strengthen its market position and engagement with clients and partners, highlighting its commitment to delivering significant value in the cybersecurity sector.