Key Takeaways Intrusion posted a Q3 loss of 10 cents per share, improving from 35 cents a year ago.Revenue rose 31% to $2 million, boosted by DoD contract gains and new Shield tech clients.Launch of Shield Cloud on AWS and rising DoD demand signal broader growth momentum.Intrusion Inc. ((INTZ) incurred a third-quarter 2025 loss of 10 cents per share compared with a loss of 35 cents a year ago. The bottom line matched the Zacks Consensus Estimate.Quarterly revenues reached $2 million, marking a 31% increase ...

Revenue Performance - Revenue for the three months ended September 30, 2025, was $1.966 million, a 31% increase from $1.504 million in 2024; for the nine months, revenue was $5.614 million, up 37% from $4.095 million in 2024[87] - Consulting revenue for the three and nine months ended September 30, 2025, was $1.5 million and $4.2 million, respectively, compared to $1.1 million and $2.9 million in the same periods of 2024, reflecting work under a Department of Defense contract[87] - Revenue from U.S. government entities for the three and nine months ended September 30, 2025, was $1.9 million and $5.3 million, comprising 96.7% and 94.7% of total revenues, respectively, compared to 85.9% and 79.5% in 2024[88] - INTRUSION Shield revenue for the three and nine months ended September 30, 2025, was $0.5 million and $1.4 million, respectively, compared to $0.4 million and $1.2 million in 2024[87] Profitability and Loss - Gross profit for the three months ended September 30, 2025, was $1.505 million, representing a gross profit margin of 76.6%, compared to $1.160 million and 77.1% in 2024; for the nine months, gross profit was $4.279 million, with a margin of 76.2%[91] - Net loss for the three months ended September 30, 2025, was $2.094 million, a slight decrease from $2.050 million in 2024; for the nine months, net loss was $6.234 million, compared to $5.833 million in 2024[99] - Operating loss for the three months ended September 30, 2025, was $2.136 million, a 5% increase from $2.038 million in 2024; for the nine months, operating loss was $6.315 million, a 3% improvement from $6.543 million in 2024[87] - The company reported a net loss of $(6.2) million for the nine months ended September 30, 2025, compared to a net loss of $(5.8) million for the same period in 2024[106][107] Operating Expenses - Total operating expenses for the three months ended September 30, 2025, were $3.641 million, a 14% increase from $3.198 million in 2024; for the nine months, operating expenses were $10.594 million, up 9% from $9.718 million[91] Cash Flow and Investments - As of September 30, 2025, cash and cash equivalents totaled $2.5 million, with short-term investments in U.S. treasuries of $2.0 million, resulting in $4.5 million available to fund operations[100] - For the nine months ended September 30, 2025, net cash used in operating activities was $(6.2) million, compared to $(6.1) million for the same period in 2024[105][106] - Net cash used in investing activities for the nine months ended September 30, 2025, was $(4.2) million, which included $(2.0) million in short-term investments and $(2.2) million in software and hardware purchases[108] - Net cash provided by financing activities for the nine months ended September 30, 2025, was $8.1 million, driven by $1.5 million from common stock sales and $7.0 million from a registered direct offering[109] - The company retired $0.5 million in Streeterville debt through the issuance of 552.3 thousand shares of common stock in March 2025[104] Accounting and Financial Policies - There were no significant changes to the company's critical accounting policies and estimates as disclosed in the 2024 Annual Report[111] - The company has not made any sales under the new shelf registration as of the date of the report[103] Customer Concentration - The company expects revenue concentration among customers to fluctuate, with government sales continuing to represent a significant portion of revenues, while no individual commercial customer accounted for more than 10% of total revenues in 2025[90] Adjustments and Working Capital - Adjustments for non-cash items in operating activities for the nine months ended September 30, 2025, amounted to $2.4 million, primarily from depreciation and stock-based compensation[106] - Changes in working capital for the nine months ended September 30, 2025, resulted in a decrease of $(2.4) million, largely due to an increase in contract billings[106]

Exhibit 99.1 Intrusion Inc. Reports Third Quarter 2025 Results Continued Intrusion Shield expansion underscores progress toward achieving sustainable growth and long-term profitability PLANO, Texas, November 11, 2025 (ACCESSWIRE) -- Intrusion Inc. (NASDAQ: INTZ) ("Intrusion" or the "Company"), a leader in cyberattack prevention solutions, announced today financial results for the third quarter ended September 30, 2025. As of September 30, 2025, cash and cash equivalents were $2.5 million, and short-term inv ...

Core Insights - Intrusion Inc. reported a quarterly loss of $0.1 per share, which aligns with the Zacks Consensus Estimate, showing improvement from a loss of $0.35 per share a year ago [1] - The company generated revenues of $1.97 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 2.93% and up from $1.5 million year-over-year [2] - Intrusion shares have declined approximately 41.8% year-to-date, contrasting with the S&P 500's gain of 16.2% [3] Financial Performance - The company has not surpassed consensus EPS estimates over the last four quarters [1] - The current consensus EPS estimate for the upcoming quarter is -$0.08 on revenues of $2.16 million, and for the current fiscal year, it is -$0.38 on revenues of $7.74 million [7] Market Outlook - The earnings outlook and estimate revisions trend for Intrusion are currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - The Computer - Networking industry, to which Intrusion belongs, is ranked in the bottom 36% of over 250 Zacks industries, suggesting potential challenges ahead [8] Industry Comparison - Another company in the same industry, Radcom (RDCM), is set to report its quarterly results on November 12, with expected earnings of $0.22 per share, reflecting a year-over-year decline of 4.4% [9] - Radcom's anticipated revenues are $17.9 million, representing a 13.2% increase from the previous year [10]

Financial Data and Key Metrics Changes - Total revenues for Q3 2025 were $2.0 million, representing a 5% increase sequentially and a 31% increase year over year, driven by contract expansion with the Department of Defense [11][15] - Gross profit margin for Q3 was 77%, down 58 basis points year over year, consistent with expected variability based on product and service mix [16] - Net loss for Q3 2025 was $2.1 million, or $0.10 per share, unchanged from the net loss of $2.1 million in Q3 2024 [17] Business Line Data and Key Metrics Changes - Consulting revenue was $1.5 million, up $0.1 million sequentially and $0.4 million year over year [15] - Shield revenues totaled $0.5 million, relatively flat sequentially but up approximately $0.1 million year over year, primarily reflecting work under the DoD contract [15] Market Data and Key Metrics Changes - The company shipped over 230 units of its Critical Infrastructure device as part of a contract with the Department of Defense, indicating strong demand for protecting critical infrastructure from cyber threats [9][10] - The partnership with Port Nexus is seeing strong demand for Shield Endpoint embedded within their MyFlare solution, particularly among school districts [10][41] Company Strategy and Development Direction - The launch of Shield Cloud on the AWS Marketplace is expected to drive long-term growth by expanding customer access to Shield Technology [7][8] - The company is preparing to launch Shield Cloud on Microsoft's Azure platform, further expanding its reach to potential customers [8] - The focus remains on disciplined spending while investing in product development and sales and marketing to accelerate customer base growth [16] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about closing new agreements in the government sector once the current government shutdown is resolved, while also seeing an expanding pipeline of non-government opportunities [12][14] - The company is confident in its ability to deliver stronger performance over time, supported by ongoing investments and improved customer engagement [19] Other Important Information - Cash and cash equivalents as of September 30, 2025, were $2.5 million, with short-term investments in U.S. treasuries of $2 million, and an additional $3 million received post-quarter end related to the DoD contract extension [17] Q&A Session Summary Question: Infrastructure work with the DoD and future opportunities - Management indicated that the initial project has opened doors for further discussions about deployment in other locations, with significant potential for additional contracts in both government and private sectors [23][24] Question: Experience on AWS and initial feedback - The company has received positive feedback from initial beta customers and is making updates to improve configuration and installation, with expectations for accelerated adoption [26][28] Question: Revenue opportunity with OT Defender - Management highlighted that OT Defender presents larger sales opportunities compared to other products, with significant market potential in underinvested cybersecurity areas [54][55] Question: Revenue opportunity with Port Nexus school safety offering - The solution is expected to become critical in schools, with strong interest from school administrators due to its simplicity and effectiveness in enhancing situational awareness during incidents [58][60] Question: Shield Cloud revenue opportunity - Management expressed optimism about the growth potential in the cloud market, emphasizing the need for effective execution of marketing and demand generation plans [63]

Core Insights - Intrusion Inc. is set to release its third quarter 2025 financial results on November 11, 2025, after market close [1] - The conference call will be hosted by CEO Tony Scott and CFO Kimberly Pinson at 5:00 p.m. on the same day [1] Financial Results - The upcoming financial report will cover the performance of Intrusion Inc. for the third quarter of 2025 [1] - The timing of the report is strategically scheduled after market close, which may influence investor reactions [1] Leadership Communication - The involvement of CEO Tony Scott and CFO Kimberly Pinson in the conference call indicates a focus on transparency and direct communication with stakeholders [1] - The scheduled conference call provides an opportunity for management to address investor questions and provide insights into the company's performance and future outlook [1]

Company Performance - Intrusion Inc. (INTZ) closed at $1.77, reflecting a +1.72% change from the previous day, outperforming the S&P 500's gain of 1.56% [1] - Over the past month, shares of Intrusion Inc. have increased by 2.96%, while the Computer and Technology sector gained 1.06% and the S&P 500 gained 0.41% [1] Upcoming Earnings - The company is expected to report an EPS of -$0.1, which represents a 71.43% increase compared to the same quarter last year [2] - Revenue is projected to be $1.91 million, indicating a 27.33% rise from the equivalent quarter last year [2] Full Year Estimates - For the full year, earnings are projected at -$0.38 per share and revenue at $7.74 million, showing increases of +76.69% and +34.03% respectively from the previous year [3] Analyst Estimates - Recent modifications to analyst estimates for Intrusion Inc. reflect short-term business trends, with positive revisions indicating analyst optimism regarding the company's profitability [4] - The Zacks Rank system, which assesses these estimate changes, currently ranks Intrusion Inc. as 4 (Sell) [6] Industry Context - The Computer - Networking industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 39, placing it in the top 16% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Insights - Intrusion Inc. has launched Intrusion Shield Cloud on the AWS Marketplace, enhancing its cybersecurity offerings and addressing modern cyber threats [1][10] - The solution acts as a virtual firewall gateway for autonomous threat prevention, blocking malicious network traffic before it impacts systems [2][10] - Intrusion Shield Cloud is designed to mitigate risks from attackers already within a network, a common vulnerability in cloud security [3] Product Features - The Shield Cloud continuously analyzes network traffic, proactively blocking outbound calls to malicious IPs and domains, thus preventing potential attacks at early stages [5] - Its autonomous operation reduces response time to cyber threats, allowing organizations to stay ahead of sophisticated attacks without manual intervention [6] - The solution leverages a robust cyber threat intelligence engine, built on over 30 years of innovation, providing near-complete network visibility and a unique risk assessment framework [7] Investment Opportunity - Intrusion presents a compelling investment opportunity with a focus on execution and profitable growth, leveraging its proprietary database and intellectual property [8] - The company is shifting towards a recurring revenue model through Managed Service Providers (MSPs), Managed Security Service Providers (MSSPs), and Value-Added Resellers (VARs), establishing a sustainable growth foundation [8] - A clear long-term roadmap for product growth, supported by strong core technology assets, positions the company for continued success [8] Market Performance - Intrusion's stock has gained 93.2% over the past year, outperforming the sub-industry growth of 28.2% [9]

Core Insights - Intrusion Inc. has launched Intrusion Shield Cloud on AWS Marketplace, marking a significant step in its mission for autonomous network enforcement [1] Company Developments - The introduction of Intrusion Shield Cloud aims to enhance real-time threat protection for AWS environments [1] - This product is part of the company's broader strategy to provide reputation-based threat prevention solutions [1] Industry Context - The availability of Intrusion Shield Cloud in AWS Marketplace positions the company within a competitive landscape of cybersecurity solutions [1] - The move reflects a growing trend in the industry towards integrating advanced threat protection within cloud environments [1]

Company Performance - Intrusion Inc. closed at $1.89, reflecting a -3.08% change from the previous day, underperforming the S&P 500's loss of 0.55% [1] - Over the past month, shares of Intrusion Inc. gained 8.33%, which is below the Computer and Technology sector's gain of 9.88% but above the S&P 500's gain of 3.64% [1] Upcoming Earnings - Analysts expect Intrusion Inc. to report earnings of -$0.1 per share, indicating a year-over-year growth of 71.43% [2] - The Zacks Consensus Estimate for revenue is projected at $1.91 million, representing a 27.33% increase from the previous year [2] Full Year Estimates - For the full year, analysts anticipate earnings of -$0.38 per share and revenue of $7.74 million, reflecting changes of +76.69% and +34.03% respectively from last year [3] Analyst Estimates - Recent modifications to analyst estimates for Intrusion Inc. indicate shifting business dynamics, with upward revisions suggesting positive sentiment towards the company's operations [4] - The Zacks Rank system, which incorporates these estimate changes, currently ranks Intrusion Inc. at 4 (Sell) [6] Industry Context - The Computer - Networking industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 50, placing it in the top 21% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]