Skkynet Cloud Systems, Inc. (OTCQB: SKKY), a provider of secure real-time data connectivity and edge processing for industrial systems, reported third-quarter fiscal 2026 revenue of $560,504, a 16% increase from $482,682 in the same period last year. The result marks the company’s second consecutive quarter of year-over-year growth, following approximately 4% growth in the prior quarter, and signals that the company’s transition from perpetual licenses to a subscription model is beginning to yield results.
The shift to subscriptions, while initially suppressing reported revenue, has started to build a higher-quality recurring base. Deferred revenue, a key indicator of future recognized revenue, rose 17% to $406,694 from $347,686 at fiscal year-end. Subscription revenue accounted for 13% of nine-month sales, up from 12% a year ago, while support revenue grew 6% to $641,040. The company also strengthened its balance sheet: cash and cash equivalents grew 11% to $1,585,566, and working capital increased 7% to $1,098,795, even as Skkynet continued to invest in growth initiatives.
“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.”
A key driver of this momentum is the company’s global go-to-market expansion. During the quarter, Skkynet completed the build-out of regional sales leadership, appointing dedicated Vice Presidents of Sales for the Americas, Europe and Africa, and Asia Pacific and the Middle East. The expanded team supported a busy quarter of international engagement, with Skkynet exhibiting or presenting at major industry events including Hannover Messe in Germany, AVEVA World in Italy, and EXPONOR in Chile. The results are already visible in the geographic mix: North America revenue grew 12% to $777,987, representing 45% of nine-month sales, while Asia Pacific and the Middle East together accounted for 17% of revenue.
“Skkynet’s technology is sold and deployed worldwide, and our opportunity is global,” Tillery continued. “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.”
The company’s industrial AI initiative, supported by FedDev Ontario through up to $1.9 million in funding, is also progressing. As of July 31, 2026, Skkynet had drawn $220,706 under a non-interest-bearing loan agreement of up to $750,000. Product development is advancing in step: the latest release, Cogent DataHub® Version 11.1, adds support for AVEVA CONNECT, introduces a new audit feature for configuration traceability, and enhances security with UDP support for tunnelling and mirroring. These developments position Skkynet to build the secure data backbone for the AI-driven industrial future.
Financially, the company’s nine-month revenue was $1,716,003, compared to $1,897,446 in the prior year, reflecting approximately $484,000 of increased operating investment in staff, consultants, advertising, and go-to-market activity. This was partially offset by $329,919 in SR&ED tax credits received. Importantly, all growth investments were funded from cash flow and non-dilutive sources, with no new equity issued during the period.
“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,” Tillery concluded. “No new equity was issued during the period, and we enter our fiscal year-end with a stronger balance sheet than we started with.”
For more information, visit skkynet.com.
