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SideChannel, Inc. (SDCH) Stock Fundamental Analysis & AI Rating 2026

SDCH OTC Services-Computer Processing & Data Preparation DE CIK: 0001022505
Recently Updated • Analysis: Apr 15, 2026 • SEC Data: 2025-12-31
STRONG SELL
92% Conf
Pending
Analysis scheduled

📊 SDCH Key Takeaways

Revenue: $1.8M
Net Margin: -22.3%
Free Cash Flow: $-585.0K
Current Ratio: 1.42x
Debt/Equity: 0.20x
EPS: $-0.09
AI Rating: STRONG SELL with 92% confidence
SideChannel, Inc. (SDCH) receives a STRONG SELL rating with 92% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $1.8M, net profit margin of -22.3%, and return on equity (ROE) of -21.4%, SideChannel, Inc. demonstrates mixed fundamentals in the Technology sector. Below is our complete SDCH stock analysis for 2026.

Is SideChannel, Inc. (SDCH) a Good Investment?

Claude

SideChannel is a loss-making micro-cap burning cash at an unsustainable rate with only ~4 months of runway at current burn levels. Absent immediate operational turnaround or external capital injection, the company faces severe distress. Despite reasonable 51% gross margins, operating losses of $400K and free cash flow burn of $585K on $1.8M revenue demonstrate fundamental business dysfunction.

Why Buy SideChannel, Inc. Stock? SDCH Key Strengths

Claude
  • + Gross margin of 51.2% indicates reasonable unit economics and pricing power
  • + Conservative leverage with debt/equity of 0.20x limits financial distress from debt service
  • + Slight net loss improvement YoY (+1.3%) suggests marginal operational stabilization

SDCH Stock Risks: SideChannel, Inc. Investment Risks

Claude
  • ! Critical cash runway: $201K cash with $585K annual FCF burn = 4+ months runway before insolvency
  • ! Negative operating cash flow of $570K on $1.8M revenue reflects inability to fund operations organically
  • ! Declining revenue (-0.7% YoY) with no growth trajectory offers no visibility to profitability
  • ! Negative interest coverage (-0.8x) indicates inability to service debt from operations
  • ! Micro-cap scale ($3M assets) with limited financial flexibility for restructuring or pivots

Key Metrics to Watch

Claude
  • * Quarterly cash burn rate and remaining cash position for insolvency risk
  • * Revenue trajectory for stabilization or turnaround evidence
  • * Operating cash flow improvement toward positive territory

SideChannel, Inc. (SDCH) Financial Metrics & Key Ratios

Revenue
$1.8M
Net Income
$-396.0K
EPS (Diluted)
$-0.09
Free Cash Flow
$-585.0K
Total Assets
$3.0M
Cash Position
$201.0K

💡 AI Analyst Insight

SideChannel, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

SDCH Profit Margin, ROE & Profitability Analysis

Gross Margin 51.2%
Operating Margin -22.5%
Net Margin -22.3%
ROE -21.4%
ROA -13.3%
FCF Margin -33.0%

SDCH vs Technology Sector: How SideChannel, Inc. Compares

How SideChannel, Inc. compares to Technology sector averages

Net Margin
SDCH -22.3%
vs
Sector Avg 18.0%
SDCH Sector
ROE
SDCH -21.4%
vs
Sector Avg 22.0%
SDCH Sector
Current Ratio
SDCH 1.4x
vs
Sector Avg 2.5x
SDCH Sector
Debt/Equity
SDCH 0.2x
vs
Sector Avg 0.5x
SDCH Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is SideChannel, Inc. Stock Overvalued? SDCH Valuation Analysis 2026

Based on fundamental analysis, SideChannel, Inc. has mixed fundamental signals relative to the Technology sector in 2026.

Return on Equity
-21.4%
Sector avg: 22%
Net Profit Margin
-22.3%
Sector avg: 18%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.20x
Sector avg: 0.5x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

SideChannel, Inc. Balance Sheet: SDCH Debt, Cash & Liquidity

Current Ratio
1.42x
Quick Ratio
1.42x
Debt/Equity
0.20x
Debt/Assets
38.0%
Interest Coverage
-0.81x
Long-term Debt
$365.4K

SDCH Revenue & Earnings Growth: 5-Year Financial Trend

SDCH 5-year financial data: Year 2021: Revenue $48.0K, Net Income -$7.0M, EPS N/A. Year 2022: Revenue $4.8M, Net Income $513.0K, EPS N/A. Year 2023: Revenue $6.6M, Net Income -$11.8M, EPS $-0.14. Year 2024: Revenue $7.4M, Net Income -$7.0M, EPS $-0.04. Year 2025: Revenue $7.4M, Net Income -$904.0K, EPS $0.00.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: SideChannel, Inc.'s revenue has grown significantly by 15,322% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.00 indicates the company is currently unprofitable.

SDCH Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-33.0%
Free cash flow / Revenue

SDCH Quarterly Earnings & Performance

Quarterly financial performance data for SideChannel, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $1.8M -$195.0K $-0.04
Q3 2025 $1.8M -$54.0K $0.00
Q2 2025 $1.9M -$54.0K $0.00
Q1 2025 $1.7M -$195.0K $0.00
Q3 2024 $1.8M -$146.0K $0.00
Q2 2024 $1.6M -$246.0K $0.00
Q1 2024 $1.5M -$246.0K $0.00
Q3 2023 $1.3M -$88.0K $0.00

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

SideChannel, Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$570.0K
Cash generated from operations
Stock Buybacks
$40.0K
Shares repurchased (TTM)
Capital Expenditures
$15.0K
Investment in assets
Dividends
None
No dividend program

SDCH SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for SideChannel, Inc. (CIK: 0001022505)

📋 Recent SEC Filings

Date Form Document Action
Mar 31, 2026 8-K form8-k.htm View →
Mar 18, 2026 4 xslF345X06/ownership.xml View →
Mar 18, 2026 4 xslF345X06/ownership.xml View →
Mar 18, 2026 4 xslF345X06/ownership.xml View →
Feb 17, 2026 10-Q form10-q.htm View →

Frequently Asked Questions about SDCH

What is the AI rating for SDCH?

SideChannel, Inc. (SDCH) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.

What are SDCH's key strengths?

Claude: Gross margin of 51.2% indicates reasonable unit economics and pricing power. Conservative leverage with debt/equity of 0.20x limits financial distress from debt service.

What are the risks of investing in SDCH?

Claude: Critical cash runway: $201K cash with $585K annual FCF burn = 4+ months runway before insolvency. Negative operating cash flow of $570K on $1.8M revenue reflects inability to fund operations organically.

What is SDCH's revenue and growth?

SideChannel, Inc. reported revenue of $1.8M.

Does SDCH pay dividends?

SideChannel, Inc. does not currently pay dividends.

Where can I find SDCH SEC filings?

Official SEC filings for SideChannel, Inc. (CIK: 0001022505) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is SDCH's EPS?

SideChannel, Inc. has a diluted EPS of $-0.09.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is SDCH a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, SideChannel, Inc. has a STRONG SELL rating with 92% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is SDCH stock overvalued or undervalued?

Valuation metrics for SDCH: ROE of -21.4% (sector avg: 22%), net margin of -22.3% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.

Should I buy SDCH stock in 2026?

Our dual AI analysis gives SideChannel, Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is SDCH's free cash flow?

SideChannel, Inc.'s operating cash flow is $-570.0K, with capital expenditures of $15.0K. FCF margin is -33.0%.

How does SDCH compare to other Technology stocks?

Vs Technology sector averages: Net margin -22.3% (avg: 18%), ROE -21.4% (avg: 22%), current ratio 1.42 (avg: 2.5).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 15, 2026 | Data as of: 2025-12-31 | Powered by Claude AI