SideChannel (SDCHD) AI Stock Analysis

• Market Cap: $12.72M
• Dividend Yield: N/A
• Average Volume (3M): 108.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.82
• 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: 4,446,712
• 10 Day Avg. Volume: 29,178
• 30 Day Avg. Volume: 108,088
• PEG Ratio: 179.01
• Price to Book (P/B): 363.48
• Price to Sales (P/S): 105.96
• P/FCF Ratio: -5.99K
• Enterprise Value/Market Cap: 0.88
• 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: $2.50 ▲(4066.67% Upside)

The score is held down primarily by weak financial performance (flat/slightly declining revenue, continued losses, and inconsistent free cash flow) and a bearish technical trend (price below key moving averages with negative MACD). Offsetting factors include low balance-sheet leverage (no debt) and cautiously positive forward-looking commentary and product progress around Enclave, but these catalysts are not yet evident in reported profitability.

Positive Factors

Conservative balance sheet / no debt

Zero reported debt materially reduces refinancing and interest risk, giving SideChannel durable financial flexibility to fund Enclave development and go-to-market hires without immediate external financing. This preserves optionality over multiple quarters while pursuing scaled revenue.

High, steady gross margins

Sustained gross margins near 48% indicate consistent pricing power and controllable cost of delivery for services and product deployments. That margin base supports operating leverage as revenue grows, making a durable path to profitability more feasible if Enclave adoption accelerates.

Product improvements to Enclave platform

Platform enhancements align Enclave with secular shifts to cloud SaaS and remote work, strengthening differentiation versus legacy network controls. These durable product improvements reduce integration friction and can increase appeal for higher-margin, recurring deployments across quarters.

Negative Factors

Flat revenue and ongoing losses

Stagnant top-line and continued net losses constrain the firm's ability to scale fixed-cost investments sustainably. Without clear, sustained revenue growth, operating leverage remains out of reach and the business risks persistent equity erosion and reliance on external capital to support expansion.

Inconsistent cash generation

Volatile cash flows reduce internal funding reliability for sales, marketing, and product rollouts tied to Enclave. This inconsistency increases the likelihood of fundraising or constrained investment during critical GTM scaling, which can dilute shareholders or slow commercial momentum over several quarters.

Execution velocity and revenue visibility risk

Management cites execution speed as a key risk; converting product interest into enterprise deals requires sustained sales execution and channel performance. If go-to-market improvements and hires fail to consistently close larger Enclave contracts, growth and margin expansion targets may remain elusive for multiple quarters.

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
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
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SideChannel Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SDCHD, the sentiment is Negative. The current price of 0.06 is below the 20-day moving average (MA) of 2.93, below the 50-day MA of 2.99, and below the 200-day MA of 3.64, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 47.51 is Neutral, neither overbought nor oversold. The STOCH value of 58.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SDCHD.

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	$111.08M	-4.26	-218.30%	―	-24.72%	53.60%
SDCHD	46 Neutral	$12.72M	-14.17	-29.22%	―	-0.66%	4.88%
AUID	46 Neutral	$26.82M	-1.11	-150.91%	―	141.81%	-21.61%
INTZ	42 Neutral	$20.91M	―	-132.37%	―	33.49%	82.01%
ARQQ	41 Neutral	$318.05M	-8.25	-181.44%	―	80.89%	68.29%

SideChannel Corporate Events

SideChannel enhances Enclave platform for secure SaaS access

On January 27, 2026, SideChannel announced expanded capabilities for its Enclave platform aimed at reducing risk around software-as-a-service access as organizations continue shifting to cloud-based applications and remote work. The enhancements focus on preventing unauthorized access to critical SaaS applications, including email, by enforcing controls that only allow trusted users on approved devices and locations to connect, even when attackers possess valid credentials or have bypassed multi-factor authentication. The update introduces strengthened egress routing, IPv6 support, enhanced DNS features and extended microsegmentation, enabling organizations to secure modern, cloud-centric networks without disruptive redesigns or added operational complexity, which is intended to reduce security teams’ alert fatigue and improve overall risk management for customers.

The most recent analyst rating on (SDCHD) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on SideChannel stock, see the SDCHD Stock Forecast page.