CISO Global 2025 Q1 Earnings Misses Targets, Net Loss Narrows by 18.6%

CISO Global (CISO) reported its fiscal 2025 Q1 earnings on May 15th, 2025. CISO Global's fiscal 2025 Q1 results fell short of expectations, with a revenue decline of 10.8% compared to the previous year. However, the company narrowed its net loss to $-5.38 million, marking an 18.6% improvement from 2024 Q1. Looking ahead, the company maintains its revenue target of $34 million for the fiscal year.

Revenue
CISO Global experienced a 10.8% decrease in total revenue, reaching $7.16 million in Q1 2025 compared to $8.03 million in the same period in 2024. The security managed services segment contributed significantly with $6.45 million, while professional services generated $569,823. Additionally, the cybersecurity software segment added $147,266. Notably, there were no costs associated with payroll or stock-based compensation during this quarter, reflecting stringent financial management.

Earnings/Net Income
CISO Global narrowed losses to $0.38 per share in 2025 Q1 from a loss of $0.55 per share in 2024 Q1, a 30.9% improvement. The company also reduced its net loss to $5.38 million, an 18.6% improvement over 2024 Q1's $6.61 million loss. The consistent losses over six years indicate ongoing financial challenges, yet the narrowed EPS reflects signs of improvement.

Price Action
The stock price of CISO Global has tumbled 13.57% during the latest trading day, surged 19.80% during the most recent full trading week, and surged 201.75% month-to-date.

Post-Earnings Price Action Review
Investors who adopted the strategy of purchasing CISO Global shares following revenue declines on financial report release dates and holding for 30 days realized a 42.35% gain over the past year. This performance significantly outpaced the US IT industry's return of 28.8% and the broader US market's return of 11.5%. Despite the volatile nature of CISO Global's share price and past earnings declines, the strategy of buying post-revenue drop proved to deliver robust risk-adjusted returns. The approach highlights the potential for strategic investment decisions even amid fluctuating market conditions. Such gains suggest that despite the company's challenges, there is confidence in its long-term prospects, particularly in the AI-powered cybersecurity sector.

CEO Commentary
CISO Global Inc. CEO expressed cautious optimism regarding the company’s recent performance, highlighting a revenue of $7.16 million for Q1 2025. The CEO emphasized the strategic focus on enhancing the company's AI-powered cybersecurity offerings as a key growth driver. However, challenges remain, particularly in managing shareholder dilution and maintaining compliance with Nasdaq listing standards. The leadership is committed to strengthening market positioning through targeted investments in technology and talent, balancing growth aspirations with prudent financial management.

Guidance
CISO Global anticipates continued revenue growth, projecting a revenue target of $34 million for the fiscal year ending December 31, 2023. The company expects to narrow its loss per share to approximately -$0.38 for Q1 2025, demonstrating an intent to improve financial performance while navigating current market challenges. The management remains focused on stabilizing operations and enhancing cash flow as part of its strategic priorities.

Additional News
In recent developments, CISO Global has announced a strategic partnership with Cyber Assurance Group Inc. to launch CyberSimple, aimed at the SMB market, providing cybersecurity protection and financial coverage. This initiative targets the cyber insurance gap for small businesses, leveraging CISO's AI-powered CHECKLIGHT® platform to deliver 24/7/365 protection against advanced cyber threats. Additionally, CISO Global eliminated convertible debt, fueling investor confidence, and anticipates achieving profitability with at least $34 million in adjusted EBITDA revenue in 2025. The company also commented on stock volatility, attributing pressure to market makers rather than insider sales.