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. This growth validates the company's strategic shift toward a recurring revenue model while maintaining profitability with net income of $35,351. Total annual revenue remained stable at $2.55 million during this transition period as the company converts perpetual license opportunities into long-term subscription contracts.
The company's working capital increased to $1.0 million, providing financial stability for upcoming growth initiatives. CEO Gary Tillery emphasized that while total revenue remained relatively flat, the composition changed dramatically, confirming customer preference for the flexibility and scalability of SaaS and subscription models. "We have successfully laid the foundation for high-quality, recurring revenue growth while maintaining profitability and strengthening our cash position," Tillery stated.
Beyond financial performance, Skkynet achieved significant operational milestones designed to accelerate its entry into Industrial AI and Industry 4.0 markets. The company significantly bolstered its executive leadership, appointing Gary Tillery as CEO, Xavier Mesrobian as Chairman of the Board, and welcoming Lee Tedstone as a new Director. The advisory board expanded with the addition of Aarif Nakhooda and Shaunna Balady, bringing decades of experience in retail, industrial automation, and M&A to strategic planning.
Founder and CTO Andrew Thomas noted that this leadership expansion allows founders to focus on core expertise. "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," Thomas explained.
During the fiscal year, Skkynet launched a CA$2.6 million AI product development initiative 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. The initiative positions Skkynet as a critical enabler for industrial enterprises seeking to securely feed real-time production data into AI and Machine Learning models. For more information about the company's industrial software solutions, visit https://skkynet.com.
The company's strategic pivot matters because it demonstrates how industrial software providers are adapting to the growing demand for AI-ready infrastructure. As manufacturing and industrial sectors increasingly adopt artificial intelligence for optimization and automation, secure data connectivity becomes essential. Skkynet's 268% subscription growth indicates strong market validation of their SaaS approach, while their AI initiative addresses a critical need in the Industry 4.0 ecosystem.
This development has implications for industrial enterprises worldwide that rely on real-time data for decision-making. Skkynet's focus on secure connectivity for AI applications could accelerate industrial AI adoption by addressing security concerns that often hinder implementation. The company's maintained profitability during this transition suggests a sustainable growth model that balances innovation with financial discipline, potentially influencing how other industrial technology companies approach their own digital transformations.
