Intrusion(INTZ) - 2025 Q2 - Quarterly Results

Company Overview & Q2 2025 Highlights Intrusion Inc. reported positive Q2 2025 results, driven by Shield product expansion and a DoD contract, focusing on sustainable growth and enhanced offerings Introduction and Strategic Focus Intrusion Inc. reported positive Q2 2025 results, driven by Shield product expansion in critical infrastructure, with a strategic focus on enhancing offerings and customer acquisition - Intrusion Inc. is a leader in cyberattack prevention solutions[2] - The company is committed to achieving sustainable growth and long-term profitability[3] - Revenue growth is primarily driven by continuous improvements in the Shield product suite, especially in critical infrastructure[3] - Future priorities include enhancing product offerings, accelerating customer acquisition, and strengthening sales channels[3] Recent Financial & Business Highlights The company achieved its fifth consecutive quarter of revenue growth in Q2 2025, securing an additional $3 million from a DoD contract for critical infrastructure monitoring and threat analysis - Secured an additional $3 million in support from a U.S. Department of Defense contract for deploying critical infrastructure monitoring tools and deepening threat analysis capabilities[9] - Achieved its fifth consecutive quarter of revenue growth[9] Second Quarter 2025 Financial Performance Intrusion Inc. reported Q2 2025 revenue of $1.9 million with a 76% gross margin, a $2 million net loss, and $4.7 million in cash Revenue and Gross Profit Intrusion Inc. reported Q2 2025 revenue of approximately $1.9 million, a 28% YoY increase driven by new customer acquisitions, maintaining a 76% gross margin | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YoY Change | | :----- | :--------------------- | :--------------------- | :--------- | | Revenue | $1,873 | $1,460 | +28% | | Gross Profit | $1,431 | $1,110 | +28.9% | | Gross Profit Margin | 76% | 76% | Flat | - The sequential revenue growth this quarter was primarily driven by recently signed new customers, including the U.S. Department of Defense contract[4] Operating Expenses and Net Loss Q2 2025 operating expenses increased to $3.5 million, resulting in a net loss of $2.0 million or $0.10 per share, an improvement from Q2 2024 | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YoY Change | | :---------------------- | :--------------------- | :--------------------- | :--------- | | Operating Expenses | $3,517 | $3,143 | +$374 | | Net Loss | $(2,042) | $(2,067) | -$25 | | Net Loss Per Share (Basic) | $(0.10) | $(0.53) | -$0.43 | - Operating expenses for Q2 2025 were $3.5 million, an increase of $0.4 million compared to Q2 2024[6] Liquidity and Capital Resources As of June 30, 2025, the company maintained a healthy liquidity position with $4.7 million in cash and $3.7 million in short-term U.S. Treasury investments | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change | | :-------------------------- | :----------------------------- | :----------------------------- | :----- | | Cash and cash equivalents | $4,689 | $4,851 | -$162 | | Short term investments | $3,749 | $0 | +$3,749 | Business Description Intrusion Inc. is a Plano, Texas-based cybersecurity company specializing in advanced threat intelligence through its TraceCop database and Shield platform About Intrusion Inc. Intrusion Inc., a Plano, Texas-based cybersecurity firm, specializes in advanced threat intelligence through its proprietary TraceCop database, which tracks IP addresses and domain reputations - Intrusion Inc. is a cybersecurity company focused on advanced threat intelligence[10] - Its core capability is TraceCop, a proprietary database for recording historical behavior, associations, and reputational risks of IP addresses, domains, and hostnames[10] - TraceCop data is based on years of accumulated global internet intelligence and government entity support[10] Products and Solutions Intrusion Shield is a next-generation cybersecurity platform offering real-time threat detection and prevention through "Observe Mode" for insights and "Protect Mode" for automated blocking of malicious connections - Intrusion Shield is a next-generation cybersecurity platform for real-time threat detection and prevention[11] - 'Observe Mode' provides analytical insights to identify unknown patterns and risks[11] - 'Protect Mode' monitors traffic and automatically blocks malicious and unknown connections, providing defense against zero-day threats and ransomware[11] Condensed Consolidated Financial Statements The condensed consolidated financial statements show total assets increased to $16.4 million and a net loss of $4.1 million for the six months ended June 30, 2025 Condensed Consolidated Balance Sheets As of June 30, 2025, total assets increased to $16.36 million, driven by short-term investments, and stockholders' equity grew to $11.63 million | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------- | :------------ | :---------------- | :----- | | ASSETS | | | | | Total current assets | $10,488 | $5,534 | +$4,954 | | Total noncurrent assets | $5,868 | $5,975 | -$107 | | TOTAL ASSETS | $16,356 | $11,509 | +$4,847 | | LIABILITIES | | | | | Total current liabilities | $3,247 | $3,672 | -$425 | | Total noncurrent liabilities | $1,476 | $1,586 | -$110 | | Total Liabilities | $4,723 | $5,258 | -$535 | | STOCKHOLDERS' EQUITY | | | | | Total stockholders' equity | $11,633 | $6,251 | +$5,382 | Unaudited Condensed Consolidated Statements of Operations For the six months ended June 30, 2025, revenue increased to $3.65 million, but net loss expanded to $4.14 million due to higher operating expenses | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | | :-------------------- | :----------------------------- | :----------------------------- | :----- | | Revenue | $3,648 | $2,591 | +$1,057 | | Cost of revenue | $874 | $576 | +$298 | | Gross profit | $2,774 | $2,015 | +$759 | | Sales and marketing | $2,391 | $2,335 | +$56 | | Research and development | $2,550 | $2,054 | +$496 | | General and administrative | $2,012 | $2,131 | -$119 | | Operating loss | $(4,179) | $(4,505) | +$326 | | Net loss | $(4,140) | $(3,783) | -$357 | | Net loss per share (Basic) | $(0.21) | $(1.31) | +$1.10 | Additional Information This section provides details on the Q2 2025 earnings conference call and a cautionary statement regarding forward-looking information Conference Call Information Intrusion management held a conference call on August 12, 2025, at 5:00 PM ET to discuss results, with live access and replay options available - The conference call was held on August 12, 2025, at 5:00 PM ET[8] - Live dial-in and webcast access were provided[8] - Replay services were accessible until August 26, 2025[8] Cautionary Statement Regarding Forward-Looking Information This press release contains forward-looking statements, subject to significant risks and uncertainties detailed in SEC filings, which should not be considered predictions of future events - The press release contains forward-looking statements regarding financial condition, business strategies, and product marketing[12] - These statements are subject to significant risks and uncertainties[12] - Readers should not regard forward-looking statements as predictions of future events[13] - The company undertakes no obligation to update these statements except as required by law[14]