CISO Global Inc.

What they do

CISO Global sells three things: security managed services (monitoring and managed security operations), professional services (customer security projects), and cybersecurity software licenses. The company is headquartered in Scottsdale, Arizona, is incorporated in Delaware, and is listed on Nasdaq under the symbol CISO. Healthcare and other regulated customers are the historical focus of its managed-services offering.

Revenue drivers

• Security managed services — Largest line: $5.13M in the three months ended June 30, 2026, about 89% of total revenue, but down 15% year over year on lost higher-revenue customers.
• Professional services — $464,525 in the June 2026 quarter, about 8% of revenue, down 11% year over year because of fewer customer projects.
• Cybersecurity software — Smallest line at $194,133 in the June 2026 quarter, but the only growing one, up 35% year over year on more licenses.
• Annual revenue base — Total revenue has fallen each year from $46.5M in 2022 to $30.8M in 2024 to $26.6M in 2025, with quarterly revenue sliding to $5.8M by June 30, 2026.

Recent performance

Second-quarter 2026 revenue was $5.79M, down 14% from $6.71M a year earlier, led by the 15% drop in security managed services. Total operating expenses fell to $2.91M from $3.97M, and the quarterly operating loss narrowed to $1.49M from $2.33M. The loss from continuing operations improved to $1.61M from $3.01M, helped by lower interest expense of $128K versus $736K. For the first half of 2026, operating expenses were $6.18M versus $7.46M and the operating loss was $2.93M versus $4.04M. Full-year 2025 revenue was $26.6M with a $8.1M net loss.

Strategy

The reported priorities are retention and pipeline expansion in managed services and growing the smaller, higher-margin software line, where revenue rose 35% year over year. Cost reduction is the visible operating lever: operating expenses, advertising and marketing, payroll, and stock-based compensation all decreased in the June 2026 quarter. Interest expense fell sharply versus the prior-year quarter, and other expense improved by $554,915. The company says it is focused on improving retention and expanding its pipeline, but states that new engagements may not fully offset lost revenue near term. No new product, market, or acquisition plans are described in the excerpts provided.

Risks

• Customer attrition — The company attributes the 15% managed-services decline to the loss of several higher-revenue customers and warns new engagements may not fully replace them.
• Revenue contraction — Annual revenue has fallen from $46.5M in 2022 to $26.6M in 2025 and quarterly revenue declined to $5.8M in the June 2026 quarter.
• Listing-rule failures — The company disclosed delisting notices on January 2, 2026 and July 6, 2026, creating uncertainty about continued Nasdaq listing.
• Thin liquidity — Cash and equivalents were $721,771 at June 30, 2026, against a $2.93M first-half operating loss, while operating cash flow was negative $8.0M in 2025.

Outlook

Management points to a smaller operating loss and lower expense base, with first-half 2026 operating expenses of $6.18M versus $7.46M a year earlier and an operating loss of $2.93M versus $4.04M. The stated focus is retention, pipeline expansion, and growth in software licenses. The company cautions that new customer contracts may not be comparable in size, duration, or profitability and that continued attrition could materially affect revenue and liquidity.