Skkynet Cloud Systems Reports Revenue Decline and Net Loss for Three and Nine Months Ended July 31, 2025

Skkynet Cloud Systems, Inc. reported its financial results for the three and nine months ended July 31, 2025, revealing a decline in revenue and a net loss for the periods. The company generated revenue of $482,682 for the three months and $1,897,446 for the nine months, compared to $666,359 and $1,898,701 for the same periods in 2024, marking a decrease of approximately 28% in the third quarter. The decline in revenue is attributed to a shift towards subscription-based licensing, which accounted for 12% of sales in 2025, compared to just 2% in 2024. This transition to subscription agreements, which typically yield lower upfront revenue, has impacted the timing of revenue recognition.

Operating expenses for the three and nine months ended July 31, 2025, were $535,085 and $1,946,305, respectively, slightly down from $556,274 and $1,952,333 in the prior year. The company reported an operating loss of $52,403 for the third quarter and $48,859 for the nine-month period, contrasting with an operating income of $110,085 and a loss of $53,632 in the same periods of 2024. The increase in operating loss is attributed to static revenues and expenses, with no significant changes in expense categories.

Skkynet's net loss before taxes was $44,235 for the three months and $41,655 for the nine months, compared to a net income of $121,718 and a net loss of $51,675 in the previous year. After accounting for tax refunds, the net loss attributable to common stockholders was $18,353 for the third quarter and $22,820 for the nine months, compared to net income of $118,813 and a loss of $32,116 in 2024. The company also reported comprehensive losses of $17,838 and $31,652 for the respective periods, reflecting foreign currency translation adjustments.

In terms of operational metrics, Skkynet's total assets increased to $1,615,964 as of July 31, 2025, up from $1,549,486 at the end of the previous fiscal year. The company’s current liabilities were $668,946, resulting in working capital of $946,634. The stockholders' equity rose to $947,018, an increase of $57,488 during the nine-month period. The company continues to focus on expanding its subscription services, which may influence future revenue streams and customer engagement.

Looking ahead, Skkynet's management remains cautious about the potential for future growth, citing the need for capital and the ability to meet development timelines as critical factors. The company is also evaluating the impact of market conditions and strategic decisions on its operations. As it navigates these challenges, Skkynet aims to enhance its product offerings and expand its market presence, particularly in the Industrial Internet of Things sector.