SideChannel Reports FY 2026 Third Quarter Results

Financial results conference call on Tuesday, August 12 @ 4:30 P.M. ET

WORCESTER, MA / ACCESS Newswire / August 12, 2026 / SideChannel, Inc. (OTCQB: SDCH) ("SideChannel" or the "Company"), a leading provider of cybersecurity services and technology, today announced its financial results for the third quarter of the fiscal year ending September 30, 2026 ("FY 2026").

FY 2026 Third Quarter Highlights

• Revenue of $1.8 million, representing $21 thousand, or 1.2% more than fiscal year ended September 30, 2025 ("FY 2025") third quarter revenue of $1.8 million.

• Gross margin of 54.9%, 790 basis points higher than 47.0% gross margin for FY 2025.

• Operating expenses increased $18 thousand, or 1.6%, compared to FY 2025.

• Net loss of $134 thousand, or $0.03 per share, versus net loss of $261 thousand, or $0.06 per share, in FY 2025.

• Trailing twelve-month revenue retention of 68.2% as of June 30, 2026, compared to 63.6% as of September 30, 2025.

• Cash, cash equivalents, and short-term investments decreased by $839 thousand from September 30, 2025, to an ending balance of $326 thousand at June 30, 2026.

Summary of FY 2026 Year to Date Results (Nine Months Ended June 30, 2026)

• Revenue of $5.1 million; $431 thousand or 7.7% less than FY 2025.

• Gross margin of 53.2%; 570 basis points higher than 47.5% gross margin for FY 2025.

• Operating expenses increased $536 thousand, or 16.8%, compared to FY 2025.

• Net loss of $974 thousand or $0.22 per share versus a net loss of $510 thousand or $0.12 per share in FY 2025.

SideChannel will host a conference call on August 12, 2026, at 4:30 P.M. Eastern Time to discuss its FY 2026 third quarter results and provide an update on the Company's initiatives.

Management Comments

Commenting on the results for the quarter ended June 30, 2026, Brian Haugli, SideChannel's President, Chief Executive Officer, and Chairman of the Board, said, "Revenue grew to $1.8 million, while operating expenses were cut during the third quarter, allowing us to achieve small sequential growth in cash for the quarter. That discipline pushed our gross margin up 790 basis points to almost 55%. We have advanced our cybersecurity platform and operating model through expanded AI-enabled capabilities and proactive access controls designed for today's SaaS environments. We continue to integrate AI across cybersecurity delivery, sales operations, and marketing to increase speed, consistency, client coverage, and go-to-market capacity without proportional headcount growth or sacrificing time our vCISOs spend with clients. AI-supported workflows help SideChannel's vCISO practitioners accelerate assessments, policy documentation, risk-management deliverables, and initial client findings."

Mr. Haugli continued, "On the technology side, SideChannel's Enclave delivers asset intelligence, network segmentation, and automated certificate lifecycle management as a unified security platform to organizations. It's the infrastructure I wished we had when I was running security programs myself, something a team can deploy and manage with partners and their security team."

CALL INFORMATION

A webcast of the call will also be available: https://www.webcaster5.com/Webcast/Page/2071/53380

Participants may register in advance for the call using the webcast link.

The call will include management remarks and a live question and answer session. Questions may be submitted prior to the meeting using [email protected].

The Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, is expected to be filed today with the Securities and Exchange Commission and will be available at https://investors.sidechannel.com/sec-filings.

Financial tables follow.

SIDECHANNEL, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)

The Company's weighted average common shares outstanding and net loss per common share - basic and diluted for the three and nine months ended June 30, 2025, have been retroactively restated for the 52:1 reverse stock split that became effective on January 22, 2026.

SIDECHANNEL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)

About SideChannel

SideChannel delivers security leadership and infrastructure to organizations that refuse to be easy targets. Built on decades of experience across government, manufacturing, and global enterprises, our team combines fractional CISO expertise with Enclave, our zero-trust security platform.

The vCISO practice helps growing and regulated organizations build security programs that are practical, measurable, and built to last. Enclave unifies asset intelligence, network segmentation, and certificate lifecycle management in a single platform, without the complexity of traditional security architectures.

Whether you need the strategy, the infrastructure, or both, SideChannel has a path for where your program is today.

Investors and shareholders are encouraged to receive press releases and industry updates by subscribing to the investor email newsletter and following SideChannel on X and LinkedIn.

You may contact us at:

SideChannel
146 Main Street, Suite 405
Worcester, MA 01608

Investor Contact
Ryan Polk
[email protected]

Forward-Looking Statements

This press release may contain forward-looking statements, including information about management's view of SideChannel's future expectations, plans and prospects. In particular, when used in the preceding discussion, the words "believes", "hopes", "expects", "intends", "plans", "anticipates", "potential", "could", "should" or "may", and similar conditional expressions are intended to identify forward-looking statements. Examples of forward-looking statements include, among others, statements relating to future sales, earnings, cash flows, results of operations, uses of cash and other measures of financial performance.

Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that may cause SideChannel's actual results and financial condition to differ materially from those expressed or implied in the forward-looking statements. These risk factors include, but are not limited to: that we have incurred net losses since inception, our need for additional funding, the substantial doubt about our ability to continue as a going concern, and the terms of any future funding we raise; our ability to grow revenues from our Enclave product; our dependence on current management and our ability to attract and retain qualified employees; competition for our products; our ability to develop and successfully introduce new products, improve current products and innovate; unpredictability in our operating results; our ability to retain existing licensees and add new licensees; our ability to manage our growth; our ability to protect our intellectual property (IP), enforce our IP rights and defend against claims that we infringed on the IP of others; the risk associated with the concentration of our cash in financial institutions at levels above the amount protected by FDIC insurance; and other risk factors included from time to time in documents we file with the Securities and Exchange Commission, including, but not limited to, our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These reports are available at www.sec.gov.

Other unknown or unpredictable factors also could have material adverse effects that could cause actual results to differ materially from those projected or represented in the forward-looking statements. Further, factors that we do not presently deem material as of the date of this release may become material in the future. The forward-looking statements included in this press release are made only as of the date hereof. SideChannel cannot guarantee future results, levels of activity, performance, or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, SideChannel undertakes no obligation to update these forward-looking statements after the date of this release, except as required by law, nor any obligation to update or correct information prepared by third parties.

SOURCE: SideChannel, Inc.

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