Skkynet Cloud Systems, Inc. announced financial results for the fiscal year ended October 31, 2025, revealing a dramatic 268% year-over-year increase in subscription revenue alongside the launch of a major artificial intelligence development initiative. The company maintained profitability while executing significant leadership changes and strengthening its balance sheet, marking what executives describe as a transformational period for the industrial software provider.
The financial results show total annual revenue remained stable at $2.55 million, reflecting what the company calls a transition period as it converts perpetual license opportunities into long-term subscription contracts. Despite this flat top-line revenue, the composition shifted dramatically, with subscription revenue surging to validate the company's strategic pivot toward recurring revenue models. Net income reached $35,351, demonstrating continued profitability even as the company invested heavily in team expansion and product development.
"The 268% surge in subscription revenue confirms that many of our customers prefer the flexibility and scalability of our SaaS and subscription models," said Gary Tillery, CEO of Skkynet. "We have successfully laid the foundation for high-quality, recurring revenue growth while maintaining profitability and strengthening our cash position." The company's working capital increased to $1.0 million, providing what management describes as a solid financial runway for upcoming growth initiatives.
Beyond financial performance, Skkynet achieved significant operational milestones designed to accelerate its entry into Industrial AI and Industry 4.0 markets. The company expanded its leadership team, appointing Gary Tillery as Chief Executive Officer, Xavier Mesrobian as Chairman of the Board, and welcoming Lee Tedstone as a new Director. The advisory board also grew with the addition of Aarif Nakhooda and Shaunna Balady, bringing decades of experience in retail, industrial automation, and mergers and acquisitions to the company's strategic planning.
"This strategic broadening of our leadership allows myself and the other founders to focus on our core expertise," said Andrew Thomas, Founder and CTO of Skkynet. "We can now dedicate our full attention to expanding product capabilities and optimizing business operations, ensuring our technology continues to lead the market while the executive team drives our global expansion."
Perhaps most significantly, Skkynet launched a CA$2.6 million AI product development initiative during the fiscal year. Supported by funding from the Government of Canada, this project focuses on developing next-generation secure data connectivity solutions specifically optimized for Artificial Intelligence applications. This positions Skkynet as what company leadership describes as a critical enabler for industrial enterprises seeking to securely feed real-time production data into AI and Machine Learning models.
"We have crafted a strong and focused leadership team and board to guide the team to execute the vision of being the default choice for the data backbone for the AI-driven industrial future," concluded Tillery. "We have a funded strategy and roadmap for AI innovation that will be delivered by a company that has very strong industrial experience and a proven track record." The company's technologies bridge plant systems, cloud platforms, and AI, enabling what it describes as safe, intelligent, and resilient operations across all industrial verticals. For more information about Skkynet's industrial software solutions, visit https://skkynet.com.
