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SideChannel (SDCH) AI Stock Analysis
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SideChannel
(Other OTC:SDCH)
Weak financial performance with ongoing losses and cash burn is the primary limiter, compounded by bearish technical signals; positive corporate events on capital structure provide modest support.
SideChannel (SDCH) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $6.49M
- Dividend Yield
- ―
- Average Volume (3M)
- 4,204
- Price to Earnings (P/E)
- -4.6
- Beta (1Y)
- 1.58
- Revenue Growth
- -7.35%
- EPS Growth
- -72.18%
- Country
- US
- Employees
- 23
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Software - Infrastructure
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, vulnerability...
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 recurring r...
SideChannel Earnings Call Summary
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.
Q4-2025 Updates
Positive Updates
Negative 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
Revenue growth from $2.8M to $7.4M is offset by persistent net losses, negative cash flows, and eroding equity despite zero debt.
Income Statement
45NeutralBalance Sheet
40NegativeCash Flow
35Negative| 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 | 0 | 0 | 50.00K | 50.00K | 0 |
| 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 |
| Financing Cash Flow | 0 | 0 | -50.00K | 0 | -511.00K | 8.33M |
SideChannel Technical Analysis
Price Trends
Market Momentum
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 1.28 is below the 20-day moving average (MA) of 1.42, below the 50-day MA of 1.47, and below the 200-day MA of 1.90, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 38.23 is Neutral, neither overbought nor oversold. The STOCH value of 58.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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.
Latest Risks Added
0 New RisksSideChannel Peers Comparison
Overall Rating
- SDCH45Neutral
BNAI41Neutral
INTZ41Neutral
AUID40Underperform
ARQQ39Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| SDCH | 45Neutral | $5.85M | -4.60 | -80.00% | ― | -7.35% | -72.18% |
| BNAI | 41Neutral | $31.37M | -1.63 | -0.25% | ― | 706.94% | 68.10% |
| INTZ | 41Neutral | $14.27M | -1.06 | -187.84% | ― | -15.22% | 34.74% |
| AUID | 40Underperform | $4.41M | -0.21 | -297.47% | ― | -41.97% | 19.26% |
| ARQQ | 39Underperform | $273.74M | -4.95 | -183.74% | ― | 350.62% | -69.92% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| SDCH | Sidechannel, Inc. | 1.28 | -2.04 | -61.47% | |
| AUID | Ipsidy Inc. | 0.26 | -2.21 | -89.35% | |
| INTZ | Intrusion | 0.58 | -1.27 | -68.54% | |
| BNAI | Brand Engagement Network Inc. | 4.19 | -0.46 | -9.89% | |
| ARQQ | Arqit Quantum Inc. | 15.73 | -25.00 | -61.38% | |
| CISO | Cerberus Cyber Sentinel Corporation | 0.17 | -0.93 | -84.27% |
SideChannel Corporate Events
SideChannel Shareholders Approve Significant Capital Structure Reduction
PositiveOn 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 authori...
SideChannel Announces Board Resignation and Governance Transition
NeutralOn 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 re...
SideChannel Streamlines Equity Structure, Enhancing Capital Flexibility
PositiveOn 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 Series...
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.
Date of analysis: Sep 25, 2026