Skkynet Cloud Systems, Inc. announced financial results for the fiscal year ended October 31, 2025, revealing a dramatic 268% year-over-year growth in subscription revenue. This surge validates the company's strategic shift toward a recurring revenue model while total annual revenue remained stable at $2.55 million during this transition period.
The company reported net income of $35,351, maintaining profitability while investing in team expansion and product development. Working capital increased to $1.0 million, providing financial stability for upcoming growth initiatives. CEO Gary Tillery noted that while total revenue remained relatively flat, the composition changed dramatically as customers increasingly prefer the flexibility and scalability of SaaS and subscription models.
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 and advisory capabilities, 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 expanded with the addition of Aarif Nakhooda and Shaunna Balady, bringing decades of experience in retail, industrial automation, and M&A.
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.
Founder and CTO Andrew Thomas emphasized that the expanded leadership team allows founders to focus on core expertise, dedicating attention to expanding product capabilities and optimizing business operations. This strategic broadening ensures technology continues to lead the market while the executive team drives global expansion. For more information about Skkynet's industrial software solutions, visit https://skkynet.com.
The company's strategic pivot toward subscription models and AI development has significant implications for industrial technology sectors. As manufacturing and industrial operations increasingly adopt AI-driven solutions, Skkynet's secure data connectivity platform could become essential infrastructure for real-time data processing. The 268% subscription growth indicates strong market acceptance of their SaaS approach, while the government-funded AI initiative demonstrates confidence in their technical capabilities.
For business and technology leaders, Skkynet's transformation illustrates how established industrial software companies can successfully transition to recurring revenue models while expanding into emerging technology markets. The company's ability to maintain profitability during this transition, combined with strengthened leadership and significant AI investment, positions it as a potential key player in the industrial AI ecosystem. The balance between offering both subscription and perpetual licenses provides flexibility for customers at different stages of digital transformation.
