Skkynet Cloud Systems Reports Q2 2025 Revenue Decline, Six-Month Growth

Skkynet Cloud Systems, Inc. reported its financial results for the second quarter of fiscal year 2025, revealing a revenue of $585,712 for the three months ending April 30, 2025, a decrease from $601,806 in the same period last year. However, for the six-month period, revenue increased by 14.8% to $1,414,764 compared to $1,232,342 in the prior year. The company attributed this growth to prior investments in sales and marketing, which have positively impacted sales, although it noted a significant fluctuation in revenue due to the timing of customer orders.

Operating expenses for the second quarter were reported at $780,405, down from $803,998 in the same quarter of 2024. The decrease was primarily due to reduced advertising expenses, although this was offset by increased salaries and stock-based compensation. The company recorded an operating loss of $194,693 for the quarter, slightly improved from a loss of $202,182 in the same period last year. For the six-month period, Skkynet reported an operating income of $3,544, a turnaround from an operating loss of $163,826 in the previous year, reflecting higher revenues that offset increased expenses.

In terms of net income, Skkynet reported a net loss of $227,723 for the three months ended April 30, 2025, compared to a loss of $166,503 in the same quarter of 2024. For the six-month period, the company achieved a net income of $1,340, a significant improvement from a loss of $145,119 in the prior year. The comprehensive loss for the quarter was $235,302, compared to a loss of $174,713 in the same period last year, influenced by foreign currency translation adjustments.

Operationally, Skkynet's total assets increased to $1,689,159 as of April 30, 2025, up from $1,549,486 at the end of the previous fiscal year. Current liabilities also rose to $758,809, resulting in a working capital of $930,350. The company reported a cash balance of $1,249,541, reflecting a net increase of $91,286 during the six-month period. Skkynet's employee headcount and customer engagement metrics were not detailed in the filing, but the company continues to focus on expanding its market presence and enhancing its product offerings.

Looking ahead, Skkynet remains optimistic about its growth trajectory, emphasizing the importance of its strategic investments in sales and marketing. The company is also evaluating potential acquisitions and product developments to further strengthen its position in the Industrial Internet of Things (IoT) market. However, management cautioned that future results may be influenced by various risks and uncertainties, including market conditions and the company's ability to secure necessary capital.