CISO Global 2025 Q2 Earnings Significant Net Loss Reduction Despite Revenue Decline

CISO Global (CISO) reported its fiscal 2025 Q2 earnings on August 15, 2025. The company posted a 14.0% year-over-year decline in total revenue to $6.71 million and did not meet any positive earnings expectations. While the company did not raise or lower guidance, it demonstrated a 64.3% reduction in net loss and a 87.0% improvement in EPS, indicating progress despite ongoing financial challenges.

Revenue

CISO Global reported a 14.0% year-over-year decline in total revenue, which fell to $6.71 million in the second quarter of 2025, compared to $7.81 million in the same period of 2024. The bulk of the company's revenue came from its Security managed services segment, which accounted for $6.05 million, while Professional services brought in $522,804 and Cybersecurity software contributed $143,833. Notably, both Payroll costs and Stock-based compensation were reported at $0.

Earnings/Net Income

The company narrowed its net loss to $3.01 million in 2025 Q2, representing a 64.3% reduction compared to a $8.44 million loss in 2024 Q2. On a per-share basis, the loss decreased to $0.09 from $0.69, a 87.0% improvement. However, CISO Global has recorded losses for six consecutive years in this quarter, indicating persistent financial challenges and underscoring that the EPS remains a negative metric.

Price Action

The stock price of CISO Global rose 6.01% on the latest trading day and gained 10.54% during the most recent full trading week, with a 6.72% increase month-to-date.

Post-Earnings Price Action Review

Following the earnings release, the strategy of buying CISO shares 30 days after a quarter-over-quarter revenue increase delivered a -23.44% return, significantly underperforming the 58.45% return of the benchmark. This resulted in an excess return of -81.89%, with a Sharpe ratio of -0.14, indicating a high-risk investment profile. Additionally, the strategy experienced 68.21% volatility and a maximum drawdown of 0.00%, further highlighting its poor performance.

CEO Commentary

The CEO emphasized the growing importance of cybersecurity in China's digital transformation, particularly in sectors such as government, healthcare, education, and finance. He highlighted the role of CISO Global in advancing national cybersecurity standards through its CISP certification program. While acknowledging the need for greater investment in security education, he expressed confidence in the company’s ability to scale its training programs and collaborate with partners like Hangzhou Anneng to meet increasing market demands.

Guidance

No quantitative guidance was provided in the earnings report. However, the CEO outlined qualitative expectations, including a focus on expanding CISP certification adoption and strengthening partnerships to align with national cybersecurity strategies.

Additional News

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