Filing Flows › SideChannel (SDCH) › Q1 FY26
SideChannel (SDCH) Q1 FY26 earnings results (first quarter fiscal 2026)
10-Q filed Feb 17, 2026
SideChannel (SDCH) reported revenue of $1.8M for the first quarter fiscal 2026 (Q1 FY26), -7% from a year earlier and +0.1% from the quarter before. Operating margin was -22.5%, net loss $396K (22.3% of revenue).
SideChannel, Q1 FY26: revenue $1.8M (-7% year over year), operating margin -22.5%, net loss $396K, operating cash flow −$570K. The chart follows the revenue to costs, profit and cash.
| Q1 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $1.8M | +0.1% | -7% |
| Operating profit | −$400K | — | — |
| Net earnings | −$396K | — | — |
| Operating cash flow | −$570K | — | — |
What changed
Revenue was $1.8M in Q1 FY26, down 7% year over year and roughly flat from the previous quarter. Cybersecurity Software and Services was the largest line at 52% of revenue. vCISO Services lost $348K year over year (down 29%), 260% of the total change.
Gross margin was 51.2%, up 5.4 points from a year earlier. Operating costs exceeded revenue by $400K, an operating margin of -22.5%. Operating expenses grew 21% against a revenue fall of 7%. The fastest-growing cost line was Sales & marketing (+71%). The quarter ended with a net loss of $396K, wider than the previous quarter's $382K loss.
Operating cash flow was −$570K. Non-cash charges added back $4K of depreciation and amortization and $100K of share-based compensation. Working capital and other items used $278K.
Questions
What was SideChannel's revenue in the first quarter fiscal 2026?
SideChannel (SDCH) reported revenue of $1.8M for the first quarter fiscal 2026 (Q1 FY26), -7% from a year earlier and +0.1% from the quarter before.
Was SideChannel profitable in the first quarter fiscal 2026?
Operating loss was $400K (-22.5% of revenue) and net loss $396K.
Source: SideChannel 10-Q on SEC EDGAR.