IPM Aims for EBITDA Positivity by 2026, Advances Cybersecurity and Cloud Strategy

IPM aims for adjusted EBITDA positivity by early 2026. The company has successfully integrated Newtek Technology Solutions and divested legacy video chat products. Management believes they have laid the groundwork for growth through sales, marketing, accounting, and human capital. IPM is advancing its cybersecurity and cloud growth strategy.

Intelligent Protection Management Corp. (NASDAQ: IPM) reported its second quarter 2025 earnings, showcasing a strategic pivot towards managed services and cybersecurity solutions. The company's CEO, Jason Katz, highlighted successful integration efforts with Newtek Technology Solutions (NTS) and the divestiture of legacy video chat products, stating, "we've laid the groundwork from sales, marketing, accounting, and human capital to position IPM to be poised for growth for the benefit of our customers, employees, and shareholders" [1].

Revenue for the quarter was reported as $5.7 million, representing a 4% sequential increase from the first quarter of 2025. Revenue streams included managed IT services ($3.5 million), procurement ($1.2 million), professional services ($0.7 million), and subscription revenue ($0.3 million). The company aims to continue increasing top-line growth and improve adjusted EBITDA, with the goal of achieving adjusted EBITDA positivity by early 2026 [2].

IPM's strategic partnerships, such as being selected by Hewlett Packard Enterprise (HPE) to be an accredited partner for its HPE Private Cloud AI solution and collaborating with IT Ally, are expected to create recurring revenue streams. Additionally, the company initiated a stock repurchase plan for up to $400,000 of its outstanding common stock and began offering Aura, an AI-powered online safety solution [1].

Despite a net loss of $1.1 million for the quarter, the company's adjusted EBITDA improved to -$0.4 million. Cash and equivalents stood at $8.3 million, including $1 million of restricted cash. Deferred revenue of $3.9 million is to be recognized in future quarters as products and services are installed [1].

Management does not anticipate material impact from proposed tariff increases in fiscal 2025. The company expects growth through expanding service offerings to legacy NTS customers and cross-selling ManyCam software to its web hosting customer base [2].

Ongoing patent litigation remains a key uncertainty, with the company noting that it would receive no more than 1/3 of the gross proceeds from the $65.7 million awarded in a lawsuit against WebEx Communications, Cisco WebEx LLC, and Cisco Systems, subject to post-trial proceedings [1].

In summary, IPM's second quarter highlights the company's transition towards a managed services focus, with growth reinforced by new partnerships and product launches. Management's explicit target to achieve adjusted EBITDA positivity by early 2026, alongside steady revenue gains and strong cash liquidity, underscores a forward-looking strategy aimed at capitalizing on cybersecurity and cloud infrastructure demand.

References:
[1] https://seekingalpha.com/article/4812819-intelligent-protection-management-corp-ipm-q2-2025-earnings-call-transcript
[2] https://seekingalpha.com/news/4484336-ipm-aims-for-adjusted-ebitda-positivity-by-early-2026-while-advancing-cybersecurity-and-cloud