Want to see SDCH full AI Analyst Report?
Top Page
SideChannel
(OTC:SDCH)
Select Model
Select Model
Rating:44Neutral
Price Target:
$1.50
▲(8.70% Upside)
Action:Reiterated
Date:09/26/26
The score is held down primarily by weak financial quality: sizeable ongoing losses and a sharp deterioration in operating/free cash flow despite solid revenue growth and healthy gross margin. Technicals also weigh on the outlook, with the stock below key moving averages and negative MACD. Capital-structure actions modestly help by reducing potential dilution, but valuation remains difficult to support with negative earnings and no dividend.
Positive Factors
Revenue Growth and Gross Margin
Strong TTM revenue growth indicates improving demand for SideChannel’s cybersecurity services, while the healthy gross margin shows meaningful value remains after direct delivery costs. If sustained, this combination can support operating leverage and provide a foundation for future profitability.
Negative Factors
Persistent Unprofitability
Deeply negative operating and net margins show that revenue growth is not yet translating into sustainable earnings. Continued losses can consume the capital base, constrain reinvestment, and make the company more dependent on future operating improvements or external financing to reach stability.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Gross Margin
Strong TTM revenue growth indicates improving demand for SideChannel’s cybersecurity services, while the healthy gross margin shows meaningful value remains after direct delivery costs. If sustained, this combination can support operating leverage and provide a foundation for future profitability.
Read all positive factors
SideChannel (SDCH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.40M
Dividend YieldN/A
Average Volume (3M)2.42K
Price to Earnings (P/E)―
Beta (1Y)1.59
Revenue Growth-7.35%
EPS Growth-72.18%
CountryUS
Employees23
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.31
Shares Outstanding4,572,757
10 Day Avg. Volume568
30 Day Avg. Volume2,422
Financial Highlights & Ratios
PEG Ratio2.75
Price to Book (P/B)6.99
Price to Sales (P/S)2.04
P/FCF Ratio-115.23
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
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. identifies, develops, and deploys cybersecurity and privacy risk management solutions in North America. The company offers Enclave, a proprietary software that simplifies cybersecurity tasks, including asset inventory, vulnerabil...
How the Company Makes Money
SideChannel primarily makes money by selling cybersecurity services—most notably vCISO and related advisory/consulting engagements—to organizations on a contracted basis. Revenue is generated through service fees that may be structured as recurrin...
SideChannel Earnings Call Summary
Earnings Call Date:Dec 03, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Dec 16, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strategic investments and leadership hires aimed at positioning Enclave for significant growth in 2026. However, challenges such as flat revenue growth and execution risks were also acknowledged. The sentiment reflects cautious optimism with a focus on future potential rather than past performance.Positive Updates
Strong Gross Margin Maintenance
SideChannel maintained a strong gross margin near 48% despite flat revenue at approximately $7.4 million, showcasing financial discipline.
Negative Updates
Flat Revenue Growth
Revenue remained relatively flat at approximately $7.4 million, indicating challenges in achieving growth during fiscal 2025.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Gross Margin Maintenance
SideChannel maintained a strong gross margin near 48% despite flat revenue at approximately $7.4 million, showcasing financial discipline.
Read all positive updates
Company Guidance
During the SideChannel Fiscal Year 2025 Q4 Financial Results Update Conference Call, CEO Brian Haugli provided guidance on the company's strategic direction and financial performance. Despite flat annual revenue of approximately $7.4 million and a maintained gross margin near 48%, SideChannel focused on strengthening its Enclave platform as the cornerstone for future growth in 2026. The company aims to capitalize on increasing demand for zero trust segmentation, secure remote access, and protection of high-value assets. To drive revenue growth, SideChannel has made significant leadership hires, including Jamie Wolf as Chief Marketing Officer and Rick Dill as Enterprise Account Executive, to enhance marketing and enterprise sales capabilities. The company is committed to balancing growth with fiscal responsibility, maintaining zero debt, and focusing on higher-margin Enclave deployments. Looking forward, Enclave is positioned as the primary growth engine, with expectations for a breakout year in 2026, driven by strong channel execution and increased market awareness.SideChannel Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
66
Positive
Cash Flow
29
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.92M | 7.35M | 7.40M | 6.57M | 4.79M | 2.80M |
| Gross Profit | 3.59M | 3.50M | 3.53M | 3.33M | 2.32M | 1.26M |
| EBITDA | -1.33M | -712.00K | -748.00K | -2.08M | 340.00K | 511.00K |
| Net Income | -1.36M | -892.00K | -904.00K | -7.01M | -11.78M | 513.00K |
Balance Sheet | ||||||
| Total Assets | 2.57M | 3.46M | 3.95M | 3.98M | 10.77M | 6.75M |
| Cash, Cash Equivalents and Short-Term Investments | 326.00K | 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 | 1.19M | 1.32M | 1.25M | 954.00K | 1.37M | 1.49M |
| Stockholders Equity | 1.38M | 2.14M | 2.70M | 3.03M | 9.40M | 427.00K |
Cash Flow | ||||||
| Free Cash Flow | -923.00K | -130.00K | 292.00K | -1.98M | -396.00K | -3.63M |
| Operating Cash Flow | -923.00K | -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
1.38
Price Trends
1.63
Negative
1.77
Negative
2.09
Negative
Market Momentum
-0.04
Negative
50.07
Neutral
40.35
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 1.38 is below the 20-day moving average (MA) of 1.51, below the 50-day MA of 1.63, and below the 200-day MA of 2.09, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 50.07 is Neutral, neither overbought nor oversold. The STOCH value of 40.35 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% | |
51 Neutral | $428.10M | -7.74 | -183.74% | ― | 350.62% | -69.92% | |
45 Neutral | $17.42M | -1.29 | -187.84% | ― | -15.22% | 34.74% | |
44 Neutral | $6.40M | -4.59 | -80.00% | ― | -7.35% | -72.18% | |
43 Neutral | $46.20M | -2.40 | -0.25% | ― | 706.94% | 68.10% | |
42 Neutral | $7.76M | -0.38 | -297.47% | ― | -41.97% | 19.26% |
* Technology Sector Average
SDCH
SideChannel
1.55
-2.09
-57.48%
AUID
Ipsidy
0.37
-3.00
-89.02%
INTZ
Intrusion
0.67
-1.08
-61.49%
BNAI
Brand Engagement Network
5.97
3.00
101.01%
ARQQ
Arqit Quantum
24.64
-10.66
-30.20%
CISO
Cerberus Cyber Sentinel Corp
0.21
-0.87
-80.74%
SideChannel Corporate Events
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
SideChannel Shareholders Approve Significant Capital Structure Reduction
Positive
Sep 25, 2026
On September 23, 2026, SideChannel, Inc. held a special meeting of stockholders to vote on reducing its authorized share capital for both common and preferred stock. The company sought approval to amend its certificate of incorporation to cut auth...
Business Operations and StrategyExecutive/Board Changes
SideChannel Announces Board Resignation and Governance Transition
Neutral
Aug 7, 2026
On August 2, 2026, SideChannel, Inc. announced that Robert Brown resigned from its Board of Directors, a departure the company stated was not due to any disagreement over operations, policies or practices. Following General (Retired) Brown’s...
Business Operations and StrategyRegulatory Filings and Compliance
SideChannel Streamlines Equity Structure, Enhancing Capital Flexibility
Positive
Aug 3, 2026
On July 27, 2026, SideChannel, Inc. filed a Certificate of Withdrawal in Delaware to eliminate its previously designated Series A preferred stock, confirming that no Series A shares were outstanding as of that date. The move returns the former Ser...
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.