Intrusion 2025 Q3 Earnings Narrowed Losses, Revenue Growth of 30.7%

Intrusion (INTZ) reported Q3 2025 results that narrowly met expectations, with a 30.7% revenue increase to $1.97 million and a 71.4% improvement in per-share losses. The company provided cautious guidance for Q4, forecasting sequential revenue growth but no EPS improvement.

Revenue

Intrusion’s total revenue surged 30.7% year-over-year to $1.97 million in Q3 2025, driven by a $0.1 million sequential increase in consulting revenue and a $0.1 million year-over-year rise in Shield revenue. The AWS Marketplace launch of Shield Cloud is positioned to drive long-term growth, while the Department of Defense contract contributed to a 31% year-over-year revenue jump.

Earnings/Net Income

The company narrowed its per-share loss to $0.10 in Q3 2025 from $0.35 in Q3 2024, reflecting a 71.4% improvement. However, the net loss widened slightly to $2.09 million from $2.05 million year-over-year, a 2.1% increase, underscoring ongoing profitability challenges.

Post-Earnings Price Action Review

Following the earnings report, Intrusion’s stock price declined 4.17% in a single trading day, 9.04% over the subsequent week, and 9.04% month-to-date. The drop mirrored broader market skepticism about the company’s path to profitability, despite revenue growth. Management’s emphasis on long-term strategic investments and cautious guidance likely tempered investor optimism.

CEO Commentary

CEO Tony Scott highlighted progress in R&D and partnerships but acknowledged near-term financial constraints. He emphasized AI-driven threat detection as a key differentiator and noted the importance of government contract opportunities post-shutdown.

Guidance

The company anticipates sequential Q4 revenue growth driven by renewed client contracts and expanded service adoption. However, it cautioned that EPS may remain negative due to continued investments in infrastructure and talent. No specific revenue or EPS targets were provided.

Additional News

1. AWS Marketplace Launch: Intrusion launched Shield Cloud on the AWS Marketplace, aiming to expand its customer base and drive long-term growth.

2. DoD Contract Extension: A $3 million cash injection from a Department of Defense contract extension bolstered liquidity, raising cash reserves to $7.5 million.

3. Government Shutdown Impact: While the shutdown did not immediately affect operations, it delayed potential government contract discussions, creating uncertainty for future revenue.

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