SideChannel (SDCH) AI Stock Analysis

• Market Cap: $8.93M
• Dividend Yield: N/A
• Average Volume (3M): 108.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.65
• Revenue Growth: -0.66%
• EPS Growth: 4.88%
• Country: US
• Employees: 20
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.09
• Shares Outstanding: 4,467,207
• 10 Day Avg. Volume: 29,178
• 30 Day Avg. Volume: 108,088
• PEG Ratio: 2.71
• Price to Book (P/B): 6.99
• Price to Sales (P/S): 2.04
• P/FCF Ratio: -115.23
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 1.17
• Enterprise Value/Gross Profit: 2.38
• Enterprise Value/Ebitda: -8.67
• 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): $9.12M

• Rating: 43 Neutral
• Price Target: $2.00 ▲(3233.33% Upside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is held down primarily by weak financial performance (declining revenue, continued net losses, and equity erosion), reinforced by bearish technical signals (price below key moving averages and negative MACD). Improved TTM cash flow and a debt-free balance sheet provide some support but are not yet sufficient to outweigh profitability and trend concerns.

Positive Factors

Zero Financial Leverage

Having no debt is a durable strength: it lowers fixed obligations, preserves cash flow for operations or strategic hires, and increases resilience through downturns. This structural flexibility supports continued service delivery and investment in growth without near-term refinancing risk.

Improved Cash Generation

A meaningful improvement in operating and free cash flow signals the business can generate internally fundable cash from services revenue. Over months, positive FCF supports reinvestment in sales/engineering and reduces dependence on external capital, enhancing sustainability if maintained.

Stable Gross Margin

A consistent ~48% gross margin reflects durable pricing power and scalable service delivery in a consulting GRC model. Sustained margins provide a path to operating leverage as revenue stabilizes, making profitability achievable with modest volume gains or efficiency improvements.

Negative Factors

Declining Revenue Trend

A sustained revenue decline undermines scale economics vital to consulting firms; it compresses the ability to cover fixed costs and invest in client acquisition. Over several months this trend can erode competitive position and make margin recovery and profitable growth more difficult.

Ongoing Net Losses & Equity Erosion

Persistent net losses that materially erode equity reduce financial cushions for adverse quarters and limit options for hiring, M&A, or platform investment. Structurally, continued negative returns on capital can deter large enterprise clients and restrict long-term strategic initiatives.

Small Scale and Volatile Cash Metrics

Small headcount and volatile FCF growth indicate limited scale and sensitivity to client churn or project timing. Over months, this magnifies operational risk, constrains margin improvement, and reduces ability to absorb client losses or fund initiatives without dilutive financing.

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 primarily makes money by selling cybersecurity advisory and consulting services to customers. Its key revenue stream is fees for ongoing and project-based engagements, including vCISO subscriptions/retainers where clients pay recurring amounts for access to security leadership, strategic guidance, and program oversight, and professional services billed on a fixed-fee or time-and-materials basis for deliverables such as security assessments, risk and compliance support, policy development, vendor/security reviews, and incident preparedness. If applicable, the company may also generate revenue from sales or licensing of any associated software/platform offerings and related implementation/support services; null. Specific significant partnerships or revenue concentration details are not available; null.

SideChannel Financial Statement Overview

Summary

Overall fundamentals are weak. Revenue has turned down sharply and profitability remains negative (operating loss and ~-12% net margin), despite a stable ~48% gross margin. Positives include zero debt and improved TTM operating/free cash flow (~$1.42M), but equity has eroded materially and returns on equity remain deeply negative.

Income Statement

TTM (Trailing-Twelve-Months) revenue is $7.2M and has turned down sharply (revenue growth rate -1.823), following modest declines in the most recent annual period. Gross margin remains fairly steady around ~48%, but profitability is still weak: TTM operating profit and net income are negative (net margin about -12%). Losses have improved materially versus 2023 (when net margin was deeply negative), but the company has not yet returned to sustainable profitability.

Balance Sheet

Leverage is a clear strength: total debt is $0 in TTM and recent annual periods (and only minimal debt in earlier years), keeping financial risk low. However, the equity base has been trending down (stockholders’ equity from $9.4M in 2022 to $1.8M in TTM), and returns on equity remain negative (TTM return on equity about -36%), reflecting ongoing losses and balance-sheet erosion.

Cash Flow

Cash generation improved meaningfully in TTM (operating cash flow and free cash flow both about $1.42M), a major positive versus prior annual periods that included cash burn (e.g., 2023 and 2025 annual). That said, free cash flow growth is negative in TTM (-31.167), signaling volatility and a weaker trajectory despite the recent positive level of cash flow.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	7.22M	7.35M	7.40M	6.57M	4.79M	2.80M
Gross Profit	3.54M	3.50M	3.53M	3.33M	2.32M	1.26M
EBITDA	-973.00K	-712.00K	-748.00K	-2.08M	340.00K	511.00K
Net Income	-1.09M	-892.00K	-904.00K	-7.01M	-11.78M	513.00K
Balance Sheet
Total Assets	2.98M	3.46M	3.95M	3.98M	10.77M	6.75M
Cash, Cash Equivalents and Short-Term Investments	595.00K	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	1.13M	1.32M	1.25M	954.00K	1.37M	1.49M
Stockholders Equity	1.85M	2.14M	2.70M	3.03M	9.40M	427.00K
Cash Flow
Free Cash Flow	1.42M	-130.00K	292.00K	-1.98M	-396.00K	-3.63M
Operating Cash Flow	1.42M	-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: Negative
• RSI: Neutral
• STOCH: Positive

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 below the 20-day moving average (MA) of 2.14, below the 50-day MA of 2.45, and below the 200-day MA of 3.61, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 38.11 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, 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	50 Neutral	$253.61M	-1.25	-611.70%	―	-24.72%	53.60%
AUID	46 Neutral	$21.70M	-2.07	-180.18%	―	141.81%	-21.61%
SDCH	43 Neutral	$8.93M	-8,477.95	-29.22%	―	-0.66%	4.88%
INTZ	42 Neutral	$21.31M	-3.82	-79.73%	―	33.49%	82.01%
ARQQ	42 Neutral	$213.33M	-8.15	-163.57%	―	80.89%	68.29%

SideChannel Corporate Events

SideChannel Launches 1-for-52 Reverse Stock Split

On January 22, 2026, SideChannel, Inc. announced that its board had approved a 1-for-52 reverse stock split of its common shares, effective at 4:00 p.m. ET the same day, with post-split trading on the OTCQB under the existing ticker SDCH beginning January 23, 2026. The move will reclassify every 52 shares of existing common stock into one new share, rounding up any fractional shares, reducing the number of shares outstanding from roughly 231.2 million to about 4.4 million while leaving the total authorized shares and par value unchanged, and adjusting all related equity awards and warrants accordingly. Management framed the transaction as an effort to boost the per-share trading price and improve the marketability and liquidity of the stock, potentially widening access to institutional investors and reshaping the company’s capital markets profile for existing shareholders and prospective investors.

The most recent analyst rating on (SDCH) stock is a Hold with a $0.06 price target. To see the full list of analyst forecasts on SideChannel stock, see the SDCH Stock Forecast page.

SideChannel Announces Reverse Stock Split and Share Adjustment

SideChannel, Inc. will implement a 1-for-52 reverse stock split of its common shares, following stockholder approval granted on February 12, 2025 and a board decision on August 21, 2025, with no change to the company’s authorized share count or par value. The reverse split, formally enacted through a certificate of amendment and corrected on January 16, 2026 to ensure any fractional shares are rounded up to the nearest whole share, will take effect at 4:00 p.m. ET on January 22, 2026, with the company’s stock expected to begin trading on a post-split basis on the OTCQB at the market open on January 23, 2026, simplifying the capital structure and modestly favoring smaller shareholders via the rounding-up provision.

The most recent analyst rating on (SDCH) stock is a Hold with a $0.06 price target. To see the full list of analyst forecasts on SideChannel stock, see the SDCH Stock Forecast page.