SideChannel (SDCH)
OTHER OTC:SDCH
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SideChannel
(OTC:SDCH)
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Rating:43Neutral
Price Target:
$2.00
▲(3233.33% Upside)
Action:Reiterated
Date:05/14/26
The score is held down primarily by weak financial performance (revenue contraction and continued losses) despite a low-debt balance sheet and improved TTM cash flow. Technicals remain mixed-to-weak with a negative MACD and price below longer-term averages, while valuation is unattractive due to negative earnings and no stated dividend support. Recent company news reinforces the pressure from declining revenue and rising expenses, partially offset by margin improvement and better retention.
Positive Factors
Conservative leverage / low debt
Minimal leverage meaningfully reduces financial risk and gives management flexibility to invest in growth or withstand revenue volatility without near-term refinancing pressure. This durable balance-sheet strength supports longer-term execution of recurring services and platform scaling.
Negative Factors
Revenue contraction and negative margins
Persistent revenue declines combined with sizable negative net margins undermine scalability: shrinking top line reduces operating leverage, forces tradeoffs between growth and cost control, and makes it harder to convert investments into sustainable profitability over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative leverage / low debt
Minimal leverage meaningfully reduces financial risk and gives management flexibility to invest in growth or withstand revenue volatility without near-term refinancing pressure. This durable balance-sheet strength supports longer-term execution of recurring services and platform scaling.
Read all positive factors
SideChannel (SDCH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.76M
Dividend YieldN/A
Average Volume (3M)108.09K
Price to Earnings (P/E)―
Beta (1Y)1.54
Revenue Growth-8.49%
EPS Growth-120.29%
CountryUS
Employees20
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.33
Shares Outstanding4,572,757
10 Day Avg. Volume29,178
30 Day Avg. Volume108,088
Financial Highlights & Ratios
PEG Ratio2.71
Price to Book (P/B)6.99
Price to Sales (P/S)2.04
P/FCF Ratio-115.23
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue1.21
Enterprise Value/Gross Profit2.42
Enterprise Value/Ebitda-5.89
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)$9.12M
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 priva...
How the Company Makes Money
SideChannel primarily makes money by selling cybersecurity services to organizations on a contracted basis. Key revenue streams include (1) recurring service fees for vCISO engagements where SideChannel provides ongoing security leadership, strate...
SideChannel Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
62
Positive
Cash Flow
41
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.90M | 7.35M | 7.40M | 6.57M | 4.79M | 2.80M |
| Gross Profit | 3.44M | 3.50M | 3.53M | 3.33M | 2.32M | 1.26M |
| EBITDA | -1.41M | -712.00K | -748.00K | -2.08M | 340.00K | 511.00K |
| Net Income | -1.48M | -892.00K | -904.00K | -7.01M | -11.78M | 513.00K |
Balance Sheet | ||||||
| Total Assets | 2.62M | 3.46M | 3.95M | 3.98M | 10.77M | 6.75M |
| Cash, Cash Equivalents and Short-Term Investments | 311.00K | 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 | 1.21M | 1.32M | 1.25M | 954.00K | 1.37M | 1.49M |
| Stockholders Equity | 1.41M | 2.14M | 2.70M | 3.03M | 9.40M | 427.00K |
Cash Flow | ||||||
| Free Cash Flow | 409.94K | -130.00K | 292.00K | -1.98M | -396.00K | -3.63M |
| Operating Cash Flow | 409.94K | -130.00K | 307.00K | -1.95M | -396.00K | -3.63M |
| Investing Cash Flow | -50.00K | 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
Neutral
0.06
Price Trends
2.01
Negative
2.23
Negative
2.94
Negative
Market Momentum
-0.04
Positive
48.36
Neutral
28.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SDCH, the sentiment is Neutral. The current price of 0.06 is below the 20-day moving average (MA) of 1.93, below the 50-day MA of 2.01, and below the 200-day MA of 2.94, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 48.36 is Neutral, neither overbought nor oversold. The STOCH value of 28.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
46 Neutral | $20.65M | -1.14 | -180.18% | ― | 116.95% | 17.04% | |
45 Neutral | $96.57M | -8.04 | -162.16% | ― | 515.72% | 81.42% | |
44 Neutral | $258.41M | -5.35 | -183.74% | ― | 350.62% | -69.92% | |
43 Neutral | $8.76M | -5,731.66 | -29.22% | ― | -8.49% | -120.29% | |
42 Neutral | $16.91M | -1.60 | -129.84% | ― | -3.21% | 56.91% |
* Technology Sector Average
SDCH
SideChannel
1.92
-0.57
-22.78%
AUID
Ipsidy
1.28
-3.87
-75.15%
INTZ
Intrusion
0.83
-0.85
-50.60%
BNAI
Brand Engagement Network
14.84
9.94
202.86%
ARQQ
Arqit Quantum
16.51
-5.94
-26.46%
CISO
Cerberus Cyber Sentinel Corp
0.45
-0.57
-55.94%
SideChannel Corporate Events
Business Operations and StrategyFinancial Disclosures
SideChannel Q2 results show revenue decline, margin gains
Negative
May 12, 2026
SideChannel reported second-quarter FY 2026 results on May 12, 2026, with revenue of $1.6 million, down 16.8% from the prior-year period, but gross margin improved to 53.5% from 49.7%. Operating expenses rose 28.8%, driven by higher selling, marke...
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.