CISO Global Reports $6.22 Million Revenue in Q1 2026, Faces Net Loss Improvement

CISO Global, Inc. reported a total revenue of $6.22 million for the first quarter of 2026, a decrease of approximately 13.2% from $7.16 million in the same period last year. The decline was primarily driven by a 14% drop in revenue from security managed services, which fell to $5.54 million, attributed to the loss of several high-revenue customers. In contrast, revenue from cybersecurity software increased by 32% to $195,006, reflecting the successful launch of new software products. The company's gross profit for the quarter rose slightly to $1.82 million, compared to $1.78 million in the prior year, indicating improved cost management despite lower overall revenue.

CISO Global's net loss for the quarter was $1.59 million, a significant improvement from a net loss of $5.38 million in the first quarter of 2025. This reduction in loss was aided by a decrease in total operating expenses, which fell to $3.27 million from $3.49 million year-over-year. Notably, stock-based compensation expenses dropped by 86% due to lower grant date fair values and employee terminations. The company also reported a substantial decrease in interest expenses, which fell from $8.21 million to $127,051, largely due to the conversion of convertible notes into equity in the previous year.

Operationally, CISO Global's total current assets decreased to $2.33 million as of March 31, 2026, down from $3.26 million at the end of 2025, primarily due to a significant reduction in cash and cash equivalents. Current liabilities increased slightly to $7.85 million, resulting in a working capital deficit of $5.52 million. The company continues to face challenges in customer retention and onboarding new clients, which could impact future revenue and liquidity.

Strategically, CISO Global is focused on expanding its service offerings and geographic reach by acquiring cybersecurity talent. The company has entered into a Preferred Equity Purchase Agreement with B. Riley Principal Capital I, allowing it to sell up to $15 million in Series B Preferred Stock. As of March 31, 2026, the company had raised $2.3 million through this agreement. However, the company faces substantial doubt about its ability to continue as a going concern, as it must raise additional capital to fund ongoing operations and meet its financial obligations, including a redemption obligation for the Series B Preferred Stock.

Looking ahead, CISO Global aims to improve its financial position by enhancing customer retention and expanding its client base. The company is also evaluating various strategies to secure additional funding, including equity financing and restructuring operations to reduce expenses. However, there is no assurance that it will be able to obtain the necessary liquidity or achieve compliance with Nasdaq listing requirements, which could further complicate its financial outlook.