INTZ — Intrusion Inc.

Summary of Intrusion Inc. (INTZ) Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Total Revenues: $7.1 million for FY 2025, a 23% increase year-over-year.
• Q4 Revenues: $1.5 million, a decrease of 25% sequentially and 12% year-over-year, primarily due to a delay in government contract funding.
• Consulting Revenues: $1.1 million in Q4, down from $1.5 million in Q3 and $1.3 million in Q4 2024.
• Shield Revenues: $0.4 million in Q4, slightly up from $0.3 million in the prior year.
• Gross Profit Margin: 74% in Q4, down from the prior year; 76% for the full year, a decrease of 93 basis points.
• Operating Expenses: $4 million in Q4, up $0.3 million sequentially and $0.8 million year-over-year; total operating expenses for FY 2025 were $14.5 million, an increase of $1.7 million.
• Net Loss: $2.8 million in Q4 ($0.14 per share), compared to a net loss of $2 million in Q4 2024; total net loss for FY 2025 was $9.1 million ($0.46 per share).

2. Strategic Updates and Business Highlights

• Debt Elimination: Successfully eliminated outstanding debt and Series A preferred stock at the beginning of FY 2025.
• Product Launches: Expanded Shield Cloud solutions on AWS and Microsoft Azure marketplaces, enhancing customer access.
• Partnerships: Collaborated with PortNexus to integrate Shield technology into the MyFlare safety solution for schools and law enforcement, with promising pilot results.
• New Sales Leadership: Hired key personnel to strengthen public sector sales and channel partnerships.

3. Forward Guidance and Outlook

• Anticipates recognizing delayed revenue from the Department of War contract in the first half of 2026 as procurement activity normalizes.
• Plans to seek small debt financing to support growth initiatives.
• Confident in achieving breakeven operations by Q3 2026, contingent on new contracts and market conditions.

4. Bad News, Challenges, or Points of Concern

• Contract Delays: The delay in the Department of War contract funding has negatively impacted Q4 revenues and overall growth expectations.
• Increased Operating Expenses: Rising costs associated with strategic investments in sales and marketing, which may pressure profitability in the short term.
• Market Risks: Ongoing government shutdowns and geopolitical tensions (e.g., the war in Iran) could further delay contract actions and funding.

5. Notable Q&A Insights

• P.O.S.S.E Program Economics: Average contract values for sheriff's departments vary based on bandwidth needs, with initial pilot costs around a few thousand dollars.
• Sales Cycle: High adoption rates observed in pilot programs, with effective demonstrations leading to quicker sales.
• Sales and Marketing Expenses: Expected to continue increasing as the company invests in growth, although efficiencies may offset some costs.
• Emerging Technologies: Intrusion's technology is adaptable to new threats posed by AI and autonomous systems, emphasizing the need for continuous network monitoring.
• Customer Satisfaction: Positive feedback from critical infrastructure customers, indicating potential for expansion in other regions.

This summary encapsulates the key aspects of Intrusion Inc.'s Q4 2025 earnings call, highlighting both the company's achievements and the challenges it faces moving forward.