Financial Performance - Revenue for Q3 2025 was approximately $2.0 million, representing a 31% increase year-over-year[4] - Gross profit margin for Q3 2025 was 77%, remaining relatively flat compared to Q3 2024[5] - Operating expenses for Q3 2025 were $3.6 million, an increase of $0.4 million compared to Q3 2024[6] - Net loss for Q3 2025 was $2.1 million, or $0.10 per share, consistent with the prior year performance[6] - The company achieved its sixth consecutive quarter of revenue improvement[8] Cash and Assets - As of September 30, 2025, cash and cash equivalents were $2.5 million, with total cash and short-term investments increasing to $7.5 million after receiving $3.0 million from trade receivables[7] - Total current assets increased to $7.57 million as of September 30, 2025, compared to $5.53 million at the end of 2024[16] - Stockholders' equity rose to $9.81 million as of September 30, 2025, up from $6.25 million at the end of 2024[16] Strategic Initiatives - The company launched Intrusion Shield Cloud on the AWS Marketplace, aiming to drive long-term growth[8] - The U.S. Department of Defense contract expansion significantly contributed to revenue growth during the quarter[4]

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]

Company Performance - Intrusion Inc. (INTZ) stock increased by 1.18% to $1.71, outperforming the S&P 500 which declined by 0.1% [1] - Prior to the recent trading session, shares of Intrusion Inc. had decreased by 2.31%, underperforming the Computer and Technology sector's gain of 5.94% and the S&P 500's gain of 2.57% [1] Upcoming Earnings - The company is expected to report an EPS of -$0.1, which represents a 71.43% improvement from the prior-year quarter [2] - Quarterly revenue is anticipated to be $1.91 million, reflecting a 27.33% increase from the year-ago period [2] Full-Year Estimates - Zacks Consensus Estimates project full-year earnings of -$0.38 per share and revenue of $7.74 million, indicating year-over-year changes of +76.69% and +34.03%, respectively [3] - Recent changes to analyst estimates for Intrusion Inc. are important as they often reflect short-term business trends, with positive revisions being a favorable sign for the business outlook [3] Zacks Rank and Industry Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Intrusion Inc. at 4 (Sell) [5] - Over the past month, the Zacks Consensus EPS estimate has decreased by 4.17% [5] - The Computer - Networking industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 74, placing it in the top 30% of over 250 industries [6]

Summary of Intrusion (INTZ) Conference Call - August 21, 2025 Company Overview - **Company**: Intrusion (Ticker: INTZ) - **Industry**: Cybersecurity - **Key Personnel**: Tony Scott (CEO), Kim Pinson (CFO) Core Business and Technology - Intrusion operates in the cybersecurity space, providing an additional layer of protection beyond traditional firewalls [3][4] - The company has developed a fine-grained filtering technology that monitors both inbound and outbound traffic to detect and block threats [4][6] - Intrusion has a database of over **8.5 billion IP addresses**, which enhances its ability to identify malicious activity compared to competitors [6] - The company launched its first commercial product, Shield, in **mid-2021**, with subsequent enhancements in **2023 and 2024** [7] Financial Position - As of the call, Intrusion is **debt-free** and has a strong balance sheet with cash reserves [7] - The company reported a **$3 million contract** with the US Department of Defense for protecting critical infrastructure [12] - The target revenue for breakeven is estimated at around **$12 million** [32] - Current cash burn is approximately **$2 million per quarter**, with plans to raise capital in the second quarter of the following year if revenue does not significantly increase [42][43] Market Opportunities - The company sees significant growth potential in the **small and medium business** sector, which is increasingly targeted by cybercriminals [12][13] - The rise in cybercrime costs and the increasing frequency of attacks, particularly those enhanced by AI, present a favorable market environment for Intrusion [13][14] - The company is focusing on diversifying its customer base beyond government contracts, leveraging its technology for commercial applications [28] Competitive Landscape - Intrusion differentiates itself from traditional firewalls by providing a reputation-based filtering system that identifies threats beyond known signatures [34][38] - The complexity of modern networks necessitates additional layers of security, which Intrusion aims to provide [35][36] - The company acknowledges competition but believes its unique capabilities give it an advantage in the cybersecurity market [38] Future Plans and Developments - Intrusion is expanding its market presence through platforms like **AWS Marketplace** and **Azure Marketplace** [29] - The company is also licensing its technology to other solution providers, which is expected to enhance sales [30] - A robust development roadmap is in place, with plans for new capabilities and functionalities for existing products [48] Conclusion - Intrusion is well-positioned in the cybersecurity market with a unique product offering and a strong financial foundation. The company is focused on growth through diversification, strategic partnerships, and leveraging its extensive threat intelligence database to address the evolving landscape of cyber threats [10][12][13][14]