SDCHOTCServices-Computer Processing & Data PreparationUS GAAP · USD

SideChannel, Inc.

SideChannel, Inc. is a U.S.-based cybersecurity services and software company focused on helping mid-market and emerging businesses manage cyber and privacy risk. Its offerings combine advisory services, managed security, and software-enabled security solutions delivered through a single reportable cybersecurity segment.

Revenue7.4m USD
−0.7 %y/y
Operating profit (EBIT)-0.9m USD
+2.3 %y/y
EBIT margin-12.5%
+0.2 ppy/y
Net income-0.9m USD
+1.3 %y/y
Free cash flow-0.1m USD
−149.7 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

-15-10-50510m USD2020: 0.05 m USD2020: EBIT -6.9 m USD20202021: 2.8 m USD2021: EBIT 0.51 m USD20212022: 4.8 m USD2022: EBIT -12 m USD20222023: 6.6 m USD2023: EBIT -7.4 m USD20232024: 7.4 m USD2024: EBIT -0.94 m USD20242025: 7.4 m USD2025: EBIT -0.92 m USD20257.4-0.92
RevenueOperating profit (EBIT)

Business

Share of revenue
vCISO Services45 %

Fractional chief information security officer services that help clients set security priorities and governance.

Cybersecurity Software and Services35 %

Managed and software-enabled security offerings including endpoint protection and support services.

Cyber Program Strategy and Advisory20 %

Planning and advisory work covering security architecture, zero trust, and risk management.

Products

Reported · share of revenue
55.5%44.5%FY2025100 %
  • Virtual Chief Information Security Officer Services55.5 %
  • Cybersecurity Software and Services44.5 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

SideChannel sells to mid-market and emerging companies that need practical cybersecurity support without building large in-house security teams. Customers buy its services to improve security governance, meet compliance expectations, and reduce cyber risk at a cost structure suited to smaller organizations.

Mid-market enterprises

Buy vCISO and advisory services to build security programs and governance.

Emerging companies

Buy cost-effective cybersecurity support because they lack internal depth.

Compliance-driven organizations

Buy readiness, privacy, and third-party risk services to meet requirements.

Cloud and endpoint security users

Buy managed security and architecture services to protect distributed systems.

Strategy

SideChannel's strategy is to expand its catalogue of cybersecurity services while keeping offerings accessible to mid-market and emerging customers. The company emphasizes a mix of advisory, managed services, and software-enabled solutions so it can address multiple security needs within one client relationship.

Broaden the service portfolioMedium term

A wider offering increases cross-sell opportunities and customer stickiness.

Target underserved customer segmentsMedium term

Mid-market and emerging companies often need outsourced security expertise.

Strengthen solution relevance against larger competitorsShort term

Broader and more integrated offerings help defend against bundled security vendors.

Geography

SideChannel is headquartered in the United States and serves customers primarily in the U.S. market. Its business is tied to domestic cybersecurity demand, although the company also faces indirect exposure to global technology and geopolitical conditions through customers, suppliers, and threat activity.

Risks

SideChannel faces intense competition from larger cybersecurity vendors and cloud-native security providers that can bundle products, spend more on sales, and adapt faster. Its business is also exposed to cyber incidents, third-party software dependence, litigation, and customer budget delays, all of which can disrupt service delivery and weaken demand.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Cybersecurity incidents and breaches1Intense cybersecurity competition2Third-party software and infrastructure dependence3Customer spending delays and macro pressure4Litigation and government proceedings5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Cybersecurity incidents and breachesImpact: CriticalLikelihood: Medium

    A breach could interrupt operations, expose data, and harm reputation.

    Exposure: Internal systems and customer-facing services

  2. Intense cybersecurity competitionImpact: HighLikelihood: Medium

    Larger vendors have stronger brands, budgets, and bundled offerings.

    Exposure: vCISO and managed security services

  3. Third-party software and infrastructure dependenceImpact: HighLikelihood: Medium

    Service delivery relies on external licensors and technology providers.

    Exposure: Licensed software and operational systems

  4. Customer spending delays and macro pressureImpact: MediumLikelihood: Medium

    Security purchases can be deferred when budgets tighten or uncertainty rises.

    Exposure: Mid-market and emerging customers

  5. Litigation and government proceedingsImpact: MediumLikelihood: Medium

    Claims or investigations can create legal expense and management distraction.

    Exposure: Corporate operations and public company status

Accounting

Judgemental items
Goodwill impairment

Management uses discounted cash flow and market-capitalization comparisons to test goodwill.

Impact: A change in assumptions could trigger a non-cash impairment charge.

Revenue recognition

The company sells both services and software-enabled solutions, which may have different performance obligations.

Impact: Contract timing can shift reported revenue between periods.

Estimates and valuation allowances

Deferred tax assets, intangibles, and long-lived assets rely on management estimates.

Impact: Changes in assumptions can materially affect asset carrying values.

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026