Intrusion Reports 28% YoY Revenue Growth in Q2 2025, Expands DOD Contract to $3M

Intrusion reported Q2 2025 revenue of $1.9 million, a 28% YoY increase, driven by a $3 million DOD contract extension. The company achieved its fifth straight quarter of sequential revenue growth, with Shield segment revenue rising to $500,000. Operating expenses increased, reflecting investments in sales, marketing, and R&D. Intrusion plans to launch its technology on the AWS and Azure marketplaces to access broader commercial segments.

Intrusion Inc. (NASDAQ:INTZ), a leading provider of cyberattack prevention solutions, reported its second-quarter 2025 financial results on August 12, 2025. The company achieved a significant milestone with its fifth consecutive quarter of sequential revenue growth, reaching $1.9 million, a 28% year-over-year increase [1]. This robust performance was primarily driven by a $3 million extension and expansion of the Department of Defense (DOD) contract, which accounted for a substantial portion of the revenue increase [1].

The company's Shield segment, which offers operational technology (OT) protection, saw its revenue rise to $500,000, an increase of $100,000 compared to the prior quarter and $200,000 compared to the prior year period. This growth was supported by new contract wins and steady consulting contributions [1]. Intrusion also highlighted the critical infrastructure focus as a key driver of its medium-term addressable market [1].

Operating expenses increased by $100,000 sequentially, reflecting disciplined but rising investment in sales, marketing, and R&D. The company's management emphasized that these investments are essential to support the company's growth and product momentum [1].

Looking ahead, Intrusion plans to launch its Shield technology on the AWS and Azure marketplaces to access broader commercial segments. This strategic move aims to diversify revenue sources and reduce dependence on any one customer set [1]. The company has also expressed confidence in its liquidity position, stating that it has sufficient cash flow into early 2026 and no anticipated need for near-term fundraising [1].

Intrusion's Q2 results reveal a company making steady but measured progress, with a strong gross profit margin of 76% but a net loss of $2.0 million. The company's path to profitability remains challenging, with scaling costs offsetting revenue gains. However, the company's focus on the critical infrastructure security market and its strategic government contracts position it well for long-term growth [2].

In summary, Intrusion Inc.'s Q2 2025 results demonstrate continued revenue growth and strategic positioning in the cybersecurity market. The company's focus on expanding its product offerings and accessing new commercial segments through marketplaces like AWS and Azure underscores its commitment to sustainable growth and profitability.

References:
[1] https://www.nasdaq.com/articles/intrusion-revenue-jumps-28-percent
[2] https://www.stocktitan.net/news/INTZ/intrusion-inc-reports-second-quarter-2025-v5y8v07ab15h.html