Quarterly ResultMay 12, 2026, 08:32 AM
SideChannel Reports Q2 Net Loss of $444K; Revenue Down 16.8%
AI Summary
SideChannel, Inc. announced its financial results for the second quarter of fiscal year 2026, reporting a net loss of $444 thousand, or $0.10 per share, a significant increase from the $54 thousand net loss in the prior year. Revenue for the quarter decreased by 16.8% to $1.6 million. Despite the revenue decline and increased operating expenses due to targeted investments in selling and marketing, the company achieved an improved gross margin of 53.5% and increased trailing twelve-month revenue retention to 66.8%.
Key Highlights
- Q2 revenue decreased 16.8% to $1.6 million compared to FY 2025.
- Q2 net loss increased to $444 thousand ($0.10 per share) from $54 thousand ($0.01 per share) in FY 2025.
- Gross margin improved to 53.5%, up 380 basis points from 49.7% in FY 2025.
- Operating expenses increased by $289 thousand, or 28.8%, in Q2 due to targeted investments.
- Trailing twelve-month revenue retention improved to 66.8% as of March 31, 2026.
- Cash, cash equivalents, and short-term investments decreased by $854 thousand to $311 thousand.
- Six-month revenue decreased 11.9% to $3.4 million compared to FY 2025.
- Six-month net loss increased to $840 thousand ($0.19 per share) from $249 thousand ($0.06 per share) in FY 2025.