Skkynet Q3 Revenue Jumps 16% as Subscription Shift Accelerates

Skkynet Cloud Systems, Inc. (OTCQB: SKKY), a global leader in industrial software for secure, real-time data connectivity and edge processing, announced financial results for the third quarter and nine-month period ended July 31, 2026. The company reported Q3 revenue of $560,504, a 16% increase over $482,682 in the same quarter last year, marking its second consecutive quarter of year-over-year growth following approximately 4% growth in Q2.

The acceleration follows a deliberate transition from perpetual licenses to subscription-based offerings, a move that initially suppressed reported revenue but is now building a higher-quality recurring base. Deferred revenue increased 17% to $406,694 from $347,686 at fiscal year-end, reflecting the build-up of subscription contracts that will drive future recognized revenue. Subscription revenue reached 13% of nine-month sales, up from 12% a year ago, while support revenue grew approximately 6% year over year to $641,040.

“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.”

The company’s balance sheet strengthened during the quarter. 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 as Skkynet funded planned growth investments. Notably, no new equity was issued; the company secured $329,919 in refundable SR&ED investment tax credits during the nine-month period, including $183,687 in Q3, and had drawn $220,706 under a non-interest-bearing FedDev Ontario Industrial AI Initiative loan.

Global expansion efforts are taking shape. Skkynet completed the build-out of regional go-to-market leadership with dedicated Vice Presidents of Sales across the Americas, Europe & Africa, and APAC & Middle East. Arpit B. Patel joined in Q3 to lead APAC and Middle East, bringing over 20 years of international business experience. The expanded team supported engagements at major industry events including Hannover Messe, AVEVA World, and EXPONOR. 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.

Product development is advancing in step with the company’s Industrial AI initiative, supported by up to $1.9 million in funding commitment from FedDev Ontario. The latest release, Cogent DataHub® Version 11.1, adds support for AVEVA CONNECT through a new External Historian option, introduces an Audit feature that records every configuration change, and adds UDP support for tunnelling and mirroring, making DataHub tunnels compatible with virtually any hardware data diode. These features reinforce the secure-by-design foundation for industrial AI, addressing security, auditability, and real-time determinism that consumer AI solutions do not.

For Texas businesses in industrial automation, oil and gas, manufacturing, and critical infrastructure, Skkynet’s technology offers secure, real-time data connectivity that can bridge plant systems, cloud platforms, and AI. The company’s growth and product advancements signal a reliable partner for Texas firms seeking to optimize operations, enhance efficiency, and drive innovation while maintaining robust security and data privacy standards. With a 25-year track record and a 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—Skkynet is positioning itself as a key enabler of the AI-driven industrial future. More information is available at skkynet.com.