Skkynet Reports Q3 FY2026 Financial Results

Revenue Growth Accelerates to 16% as go-to-market Global Expansion Takes Shape; Deferred Revenue Builds on the Shift to Subscriptions; Balance Sheet Strengthens While the Company Invests in Its Industrial AI Roadmap

MISSISSAUGA, ON – September 16, 2026 (NEWMEDIAWIRE) – Skkynet Cloud Systems, Inc. (“Skkynet” or “the Company”) (OTCQB: SKKY), a global leader in industrial software for secure, real-time data connectivity and edge processing, today announced financial results for the third quarter and nine-month period ended July 31, 2026. The results were reported in the Company’s Form 10-Q filed with the Securities and Exchange Commission on September 15, 2026.

Q3 FY2026 Financial Highlights

• Revenue growth accelerating: Revenue for the third quarter was $560,504, an increase of approximately 16%over $482,682 in Q3 FY2025 – the Company’s second consecutive quarter of year-over-year growth, following approximately 4% growth in Q2.
• Deferred revenue build: Deferred revenue increased 17% to $406,694 from $347,686 at fiscal year-end (October 31, 2025), reflecting the build-up of subscription contracts that will drive future recognized revenue.
• Strengthening balance sheet: Cash and cash equivalents grew to $1,585,566, up $158,245 (11%) from fiscal year-end, and working capital rose to $1,098,795, up $71,080 (7%) – even while funding the Company’s planned growth investments.
• Non-dilutive funding secured: The Company received $329,919 in refundable SR&ED investment tax credits during the nine-month period, including $183,687 in Q3, and had drawn $220,706 as of July 31, 2026 under its non-interest-bearing FedDev Ontario Industrial AI Initiative loan.
• Recurring revenue mix growing: Subscription revenue reached 13% of nine-month sales, up from 12% a year ago, while support revenue grew to $641,040, up approximately 6% year over year.
• Broadening customer base: Twenty-nine end-user customers accounted for approximately 50% of gross revenue in the nine-month period, up from nineteen a year ago – deepening the Company’s diversification.

“Q3 marks an inflection point,” said Gary Tillery, CEO of Skkynet. “Two quarters ago we told shareholders that the shift from perpetual to subscription licenses would temporarily suppress reported revenue while building a higher-quality, recurring base. That transition is now maturing: revenue growth has turned positive and is accelerating, deferred revenue is up 17% since fiscal year-end, and our cash and working capital grew even as we invested in the team and systems behind our go-to-market expansion. We are seeing the strategy begin to pay off.”

Go-To-Market Global Expansion

During the quarter, Skkynet completed the build-out of its regional go-to-market leadership, with dedicated Vice Presidents of Sales across all three major regions: Michael Quartarone (Americas), Martin J. Rempel (Europe & Africa), and Arpit B. Patel (APAC & Middle East), who joined the Company in Q3.

Mr. Patel leads Skkynet’s go-to-market efforts and strategic partner relationships across the Asia Pacific and Middle East regions. He brings over 20 years of international business experience helping industrial automation and infrastructure customers – including end users, EPCs, OEMs, and system integrators – enhance operational efficiency and business performance.

The expanded team supported an active quarter of global market engagement, with Skkynet exhibiting or presenting at Hannover Messe (Hannover, Germany), AVEVA World (Milan, Italy), the CSIA Conference (Baltimore, USA), EXPONOR (Antofagasta, Chile), and AVEVA Enable (Miami, USA).

The results are visible in the Company’s geographic mix. North America revenue grew approximately 12% to $777,987, or 45% of nine-month sales, while Asia Pacific and the Middle East together represented 17% of revenue – regions that now sit under dedicated senior sales leadership.

“Skkynet’s technology is sold and deployed worldwide, and our opportunity is global,” continued Tillery. “With regional leadership now in place across the Americas, Europe and Africa, and APAC and the Middle East – and with Arpit’s two decades of industrial automation relationships in fast-growing markets – we have the team structure to convert that opportunity. Combined with our industrial AI initiative, we are building the go-to-market engine to match our technology leadership.”

Industrial AI Initiative Advancing

Skkynet’s Industrial AI product development initiative, supported by FedDev Ontario through up to $1.9 million in funding commitment under the Regional Artificial Intelligence Initiative, is progressing on schedule. As of July 31, 2026, the Company had received $220,706 under a loan agreement providing up to $750,000 on a non-interest-bearing, repayable basis, with repayment commencing April 30, 2030.

Product development is advancing in step with the initiative. The Company’s latest release, Cogent DataHub® Version 11.1, adds support for AVEVA CONNECT through a new External Historian option that lets customers write to and read from AVEVA CONNECT. The release also introduces an all-new Audit feature that monitors and records every DataHub configuration change – traceability first developed for the closely monitored pharmaceutical industry, now available to all users – and UDP support for tunnelling and mirroring, which makes DataHub tunnels fully compatible with virtually any hardware data diode, locking down OT systems completely with zero chance of write-backs. Version 11.1 also includes further enhancements to DataHub’s security options.

“DataHub Version 11.1 strengthens our relationships across the industrial ecosystem,” said Tillery. “AVEVA CONNECT support deepens our partnership with AVEVA, and UDP support for tunnelling and mirroring strengthens our relationships with all data diode manufacturers. The new Audit feature and our enhanced security options reinforce the secure-by-design foundation on which our industrial AI initiative is built.”

The Company is developing an agent harness specifically designed for the strict requirements of industrial customers – security, auditability, and real-time determinism that consumer AI solutions do not address. Skkynet’s secure-by-design architecture and more than 25 years of industrial data connectivity experience position the Company to build the secure data backbone for the AI-driven industrial future.

Nine-Month Results

Revenue for the nine-month period was $1,716,003 compared to $1,897,446 in the same period of FY2025, a decrease of $(352,741) reflects approximately $484,000 of increased operating investment – in additional staff, consultants, advertising, and go-to-market activity to support the Company’s future growth plan – partially offset by $329,919 in SR&ED tax credits received.

“Everything we invested in this year – regional sales leadership, marketing, and the industrial AI program – was funded from our own cash flow and non-dilutive sources,” concluded Tillery. “No new equity was issued during the period, and we enter our fiscal year-end with a stronger balance sheet than we started with.”

About Skkynet

Skkynet has been helping organizations securely share real-time data for more than 25 years. We offer secure, real-time data connectivity and edge processing for industrial systems of all types. Skkynet’s technologies bridge plant systems, cloud platforms, and AI, enabling safe, intelligent, and resilient operations across all industrial verticals. Skkynet’s solutions empower organizations to optimize operations, enhance efficiency, and drive innovation by connecting, monitoring, and controlling their systems in real time while maintaining robust security and data privacy standards. For more information, visit skkynet.com.

Forward-Looking Statements

This press release contains statements that may constitute forward-looking statements, which can be identified by terminology such as “may,” “will,” “expect,” “believe,” “anticipate,” “estimate,” “approximate,” or “continue,” or the negative thereof. These statements speak only as of the date made and are based on management’s current expectations and assumptions. Actual results could differ materially due to risks including the Company’s ability to obtain necessary capital, meet anticipated development timelines, protect its proprietary technology and knowhow, establish a global market, successfully consummate future acquisitions, and other risk factors identified in the Company’s reports filed with the Securities and Exchange Commission. The Company disclaims any obligation to revise any forward-looking statement to reflect events or circumstances after the date thereof.

Contact

Skkynet Cloud Systems, Inc.
Paul E. Thomas, President 
Tel: (888) 702-7851
Web: https://skkynet.com
Email: ir@skkynet.com

News Source: Skkynet