SideChannel Q2 revenue falls, net loss widens on higher operating expenses

Sidechannel

12/05/2026 13:38

Overview

US cybersecurity services firm's fiscal Q2 revenue fell 17% yr/yr

Gross margin for fiscal Q2 rose to 53.5% from 49.7% last year

Net loss widened as operating expenses increased due to higher selling and marketing costs

Outlook

Company prioritizes converting Enclave pipeline into recurring revenue for remainder of fiscal 2026

SideChannel plans to maintain operating discipline while scaling Enclave platform and services

Company continues to invest in marketing and partnerships to support retention and margin improvement

Result Drivers

HIGHER OPERATING EXPENSES - Co said increased operating expenses were due to targeted investment in selling and marketing

MARGIN AND RETENTION IMPROVEMENT - Co said marketing and partnership investments led to higher gross margin and improved revenue retention

Company press release: ID:nACSm8dXSa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
$1.58 mln
Q2 Net Income
-$444,000
Q2 Gross Profit
$843,000
Q2 Operating Income
-$448,000


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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)