IPM — Intelligent Protection Management Corp.

Summary of IPM Q3 2025 Earnings Call

1. Key Financial Results and Metrics:

• Revenue: Q3 2025 revenue was $6.2 million, a significant increase from $300,000 in Q3 2024. Year-to-date revenue reached $17.5 million, up from $800,000 in the prior year.
• Revenue Breakdown:
  • Managed IT: $3.8 million (Q3), $10.9 million (YTD)
  • Procurement: $1.7 million (Q3), $3.9 million (YTD)
  • Professional Services: $500,000 (Q3), $1.9 million (YTD)
  • Subscription: $300,000 (Q3), $800,000 (YTD)
• Operating Loss: Q3 operating loss was $1.4 million, slightly improved from a loss of $1.5 million in Q3 2024. Year-to-date operating loss totaled $3.9 million, compared to $3.5 million in the previous year.
• Net Loss: Q3 net loss was $1.1 million, improved from $1.5 million in Q3 2024. Year-to-date net loss was $1.3 million, down from $2.9 million in the prior year.
• Adjusted EBITDA: Q3 adjusted EBITDA was negative $300,000, an improvement from negative $1.5 million in Q3 2024. Year-to-date adjusted EBITDA was negative $1.1 million, compared to negative $2.9 million in the previous year.
• Cash Position: As of September 30, 2025, cash and cash equivalents totaled $8.3 million, with no long-term debt.

2. Strategic Updates and Business Highlights:

• Successful integration of Newtek Technology Solutions post-acquisition and rebranding to Intelligent Protection Management (IPM).
• Focus on expanding services to legacy customers and cross-selling ManyCam software.
• Entered into a reseller agreement with MindsDB for AI capabilities and collaborated with IT Ally to serve private equity firms.
• Launched the Heroes program offering discounts to military, first responders, healthcare, teachers, and veterinary business owners.
• Stock repurchase plan initiated, with 151,258 shares bought at an average price of $1.99.

3. Forward Guidance and Outlook:

• Management expressed confidence in the company's growth trajectory, aiming to leverage existing infrastructure to expand the customer base.
• No immediate need for additional capital; however, potential for future acquisitions if they are accretive.

4. Bad News, Challenges, or Points of Concern:

• Despite revenue growth, the company continues to report operating and net losses, indicating ongoing challenges in achieving profitability.
• The potential impact of litigation-related expenses on the net proceeds from the patent litigation award against Cisco, which may affect future financials.
• The need to navigate competitive pressures in the managed technology solutions market, particularly in cybersecurity and cloud infrastructure.

5. Notable Q&A Insights:

• Management indicated interest in acquiring smaller managed service providers to enhance customer contracts and recurring revenue.
• IPM's private cloud solutions were highlighted as a competitive advantage, especially in light of recent AWS outages, which affected many public cloud users.
• The company has a clean capital structure and sufficient cash to operate for at least the next twelve months, with openness to financing for strategic acquisitions.

Overall, IPM is positioned for growth following its acquisition and rebranding, but it must address ongoing losses and competitive challenges as it seeks to establish itself in the managed technology solutions market.