Intrusion Inc. Reports First Quarter 2026 Results

Intrusion (NASDAQ:INTZ) reported Q1 2026 revenue of approximately $0.9 million, down about 50% year over year, mainly due to delays in a key U.S. government contract.

Rhea-AI Summary

Intrusion (NASDAQ:INTZ) reported Q1 2026 revenue of approximately $0.9 million, down about 50% year over year, mainly due to delays in a key U.S. government contract. Gross margin was 74%, operating expense $4.2 million, and net loss $3.6 million or $(0.18) per share.

The company secured a $4 million state government contract and a $3 million secured financing facility, and reiterates expectations of achieving profitability in fiscal 2026.

Positive

• Awarded a $4 million state government contract for cyber threat and infrastructure protection
• Entered a $3 million secured financing agreement, enhancing near-term liquidity and flexibility
• Maintained a high 74% gross profit margin in Q1 2026
• Q1 2026 net loss of $3.6 million, down $1.5 million versus prior year

Negative

• Q1 2026 revenue of $0.9 million, a 50% year-over-year decline
• Key U.S. government contract award delayed, pressuring near-term revenue
• Q1 2026 operating expense increased to $4.2 million, up $0.8 million year over year
• Quarter-end cash and equivalents of $1.4 million, before new financing

Argus May 15 session

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News Market Reaction – INTZ

On May 15, the first trading day after this news, INTZ closed 4.96% below the previous close.

Data tracked by StockTitan Argus for the May 15 session.

Key Figures

Q1 2026 revenue: $0.9M Gross profit margin: 74% Operating expense: $4.2M +5 more

Q1 2026 revenue

$0.9M

First quarter 2026; down 50% year-over-year

Gross profit margin

74%

First quarter 2026; slightly below prior-year period

Operating expense

$4.2M

First quarter 2026; up $0.8M vs Q1 2025

Net loss

$3.6M

First quarter 2026; $(0.18) per share

Cash & equivalents

$1.4M

Balance as of March 31, 2026

State contract

$4M

New cyber threat intelligence and infrastructure protection contract

Secured financing

$3M

Secured financing agreement to strengthen liquidity in early April 2026

Revenue decline

50%

Year-over-year Q1 2026 revenue decrease

Previous Earnings Reports

5 past events · Latest: Mar 24

Same Type 5 events

1. Mar 24

   Q4/FY25 earnings

   24h Move

   -5.7%

   Reported Q4/FY25 results with revenue growth but widened full-year net loss.

2. Nov 11

   Q3 2025 earnings

   24h Move

   -8.0%

   Q3 2025 revenue up 31% YoY with steady margins and higher cash/investments.

3. Aug 12

   Q2 2025 earnings

   24h Move

   -4.7%

   Q2 2025 revenue grew 28% YoY with strong margins but ongoing net loss.

4. Apr 29

   Q1 2025 earnings

   24h Move

   +0.8%

   Fourth straight quarter of revenue growth and major balance sheet cleanup.

5. Feb 27

   Q4/FY24 earnings

   24h Move

   -21.3%

   Q4/FY24 revenue growth and margin strength with reduced quarterly net loss.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

secured financing agreement, gross profit margin, cash and cash equivalents

3 terms

secured financing agreement financial

"Entered into a $3 million secured financing agreement to strengthen liquidity position"

A secured financing agreement is a loan or credit arrangement backed by specific assets that the borrower pledges as collateral, so the lender can seize or sell those assets if the borrower fails to pay. For investors, it matters because secured debt typically ranks ahead of unsecured claims in repayment order, reducing lender risk but potentially limiting a company’s flexibility and affecting equity value — similar to a mortgage that gives the bank first claim on a house.

gross profit margin financial

"The gross profit margin was 74% for the first quarter of 2026"

Gross profit margin shows how much money a company keeps from sales after paying for the goods or services it sold. It’s like checking how much profit is left over from each dollar earned before covering other costs. A higher margin indicates the company makes more money from its sales, which helps assess its profitability and efficiency.

cash and cash equivalents financial

"As of March 31, 2026, cash and cash equivalents were $1.4 million"

Cash and cash equivalents are the money a company has on hand plus very short-term, low-risk investments that can be quickly turned into cash, like bank deposits or government bills. Investors watch this figure because it shows a company’s immediate ability to pay bills, cover unexpected costs, and fund operations or growth — like a household’s checking account and emergency fund that keeps daily life running smoothly.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Continued adoption of Shield technology supports the Company's expected transition to profitability in fiscal 2026

PLANO, TX / ACCESS Newswire / May 14, 2026 / Intrusion Inc. (NASDAQ:INTZ) ("Intrusion" or the "Company"), a leader in cyberattack prevention solutions, announced today financial results for the first quarter ended March 31, 2026.

Recent Financial & Business Highlights:

• Secured a $4 million contract to deliver our cyber threat intelligence and critical infrastructure protection technology to a state government agency.

• Entered into a $3 million secured financing agreement to strengthen liquidity position and support near-term operating priorities.

• Launched the P.O.S.S.E (Protecting Our Sheriff's Security Everywhere) Program in February through a partnership with PortNexus that utilizes Shield On-Premise to help protect law enforcement from cyber threats.

"Our first quarter results primarily reflect the timing impact of the previously disclosed contract extension delay related to our critical infrastructure technology with the Department of War that was driven by federal funding and procurement delays," said Tony Scott, CEO of Intrusion. "We expect to recover this revenue in future periods as federal funding resumes and procurement activity returns to more typical levels. Furthermore, we continue to remain confident that we will see further expansion of our critical infrastructure solution both domestically and internationally with the Department of War throughout 2026 and beyond."

Mr. Scott concluded, "As we look ahead to the remainder of fiscal year 2026, we are optimistic that we will see an improvement in our financial results. This is supported by strengthening sales momentum, including broader adoption of the P.O.S.S.E Program through our partnership with PortNexus, and the recent award of a $4 million contract to provide our cyber threat intelligence and critical infrastructure protection solutions to a state government agency. These developments give us great confidence that Intrusion remains on track to achieve profitability by the end of the fiscal year and deliver value for our shareholders."

First Quarter Financial Results

Revenue for the first quarter of 2026 was approximately $0.9 million, representing a decrease of 50% on a year-over-year basis. Performance continued to be impacted by delays in the award of a key U.S. government contract. The Company remains optimistic that a meaningful portion of the associated revenue will be realized in future periods subject to final award timing and funding approvals.

The gross profit margin was 74% for the first quarter of 2026, down slightly from the prior year period. Gross margin varies based on product mix.

Operating expense for the first quarter of 2026 was $4.2 million, up $0.8 million compared to the first quarter of 2025.

Net loss for the first quarter of 2026 was $3.6 million, or $(0.18) per share, which is down $1.5 million when compared to prior year performance.

As of March 31, 2026, cash and cash equivalents were $1.4 million. In early April, the Company entered into a $3 million secured financing agreement, strengthening its liquidity position and supporting near-term operating priorities. The facility provides additional financial flexibility to execute on strategic initiatives.

Conference Call

Intrusion's management will host a conference call today at 5:00 P.M. EDT. Interested investors can access the live call by dialing 1-888-506-0062, or 1-973-528-0011 for international callers, and providing the following access code: 624002. The call will also be webcast live (LINK) For those unable to participate in the live conference call, a replay will be accessible beginning tonight at 7:00 P.M. EDT until May 28, 2026, by dialing 1-877-481-4010, or 1-919-882-2331 for international callers, and entering the following access code: 53875. Additionally, a live and archived audio webcast of the conference call will be available at www.intrusion.com.

About Intrusion Inc.

Intrusion Inc. is a cybersecurity company based in Plano, Texas, specializing in advanced threat intelligence. At the core of its capabilities is TraceCop, a proprietary database that catalogs the historical behavior, associations, and reputational risk of IPv4 and IPv6 addresses, domain names, and hostnames. Built on years of gathering global internet intelligence and supporting government entities, this data forms the backbone of Intrusion's commercial solutions.

Its most recent solution is Intrusion Shield - a next-generation network security platform designed to detect and prevent threats in real time. In observe mode, Shield delivers analytical insights powered by Intrusion's exclusive data, helping organizations identify unseen patterns and previously unknown risks. In protect mode, it monitors traffic flow and automatically blocks known malicious and unknown connections from entering or exiting the network - providing a powerful defense against Zero-Day threats and ransomware. By integrating Shield into a network, organizations can elevate their overall security posture and enhance the performance of their broader cybersecurity architecture.

Cautionary Statement Regarding Forward-Looking Information

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. All statements other than statements of historical facts contained herein, including statements regarding our financial position; our ability to continue our business as a going concern; our business, sales, and marketing strategies and plans; our ability to successfully market, sell, and deliver our Intrusion Shield commercial product and solutions to an expanding customer base; are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," or "would" or the negative of these words or other similar terms or expressions. Forward-looking statements contained in this press release include, but are not limited to, such statements.

You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this press release primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors described in our filings with the Securities and Exchange Commission, including but not limited to our most recent annual report on Form 10-K and quarterly reports on Form 10-Q, as the same may be updated from time to time.

The forward-looking statements made herein relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date hereof or to reflect new information or the occurrence of unanticipated events, except as required by law.

IR Contact:
Alpha IR Group
Mike Cummings or Josh Carroll
INTZ@alpha-ir.com

INTRUSION INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value amounts)

		March 31, 2026				December 31, 2025
		(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents		$	1,366			$	3,624
Accounts receivable, net of allowance of $0.1 million			37				131
Prepaid expenses and other assets			602				476
Total current assets			2,005				4,231
Noncurrent Assets:
Property and equipment:
Equipment			2,971				2,917
Capitalized software development			5,861				5.663
Leasehold improvements			18				18
Property and equipment, gross			8,850				8,598
Accumulated depreciation and amortization			(4,687	)			(4,313	)
Property and equipment, net			4,163				4,285
Finance leases, right-of-use ("ROU") assets, net			193				222
Operating leases, ROU assets, net			1,320				1,392
Other assets			256				257
Total noncurrent assets			5,932				6,156
TOTAL ASSETS		$	7,937			$	10,387
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable, trade		$	1,049			$	492
Accrued expenses			519				357
Finance lease liabilities, current portion			127				167
Operating lease liabilities, current portion			146				266
Deferred revenue			1,044				503
Total current liabilities			2,885				1,785
Noncurrent Liabilities:
Finance lease liabilities, noncurrent portion			5				6
Operating lease liabilities, noncurrent portion			1,348				1,319
Total noncurrent liabilities			1,353				1,325
Commitments and Contingencies
Stockholders' Equity:
Preferred stock, $0.01 par value: Authorized shares - 5,000; Issued shares - 0 in 2026 and 2025			-				-
Common stock, $0.01 par value: Authorized shares - 80,000; Issued shares - 20,370 in 2026 and 20,117 in 2025; Outstanding shares - 20,369 in 2026 and 20,116 in 2025			204				201
Common stock held in treasury, at cost - 1 share(s)			(362	)			(362	)
Additional paid-in capital			134,529				134,547
Accumulated deficit			(130,629	)			(127,066	)
Accumulated other comprehensive loss			(43	)			(43	)
Total stockholders' equity			3,699				7,277
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	7,937			$	10,387

INTRUSION INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)

		Three Months Ended March 31,
		2026				2025
Revenue		$	888			$	1,775
Cost of revenue			229				432
Gross profit			659				1,343
Operating expenses:
Sales and marketing			1,631				1,184
Research and development			1,451				1,218
General and administrative			1,149				1,034
Operating loss			(3,572	)			(2,093	)
Interest expense			(11	)			(29	)
Other income (expense), net			20				24
Net loss		$	(3,563	)		$	(2,098	)
Net loss per share:
Basic		$	(0.18	)		$	(0.11	)
Diluted		$	(0.18	)		$	(0.11	)
Weighted average common shares outstanding:
Basic			20,274				19,216
Diluted			20,274				19,216

SOURCE: Intrusion Inc.

View the original press release on ACCESS Newswire

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How did Intrusion (NASDAQ:INTZ) perform financially in Q1 2026?

Intrusion reported Q1 2026 revenue of about $0.9 million and a net loss of $3.6 million. According to Intrusion, revenue fell roughly 50% year over year, gross margin was 74%, and operating expenses rose to $4.2 million.

Why did Intrusion's Q1 2026 revenue decline by 50% year over year?

Q1 2026 revenue declined mainly due to delays in a key U.S. government contract award. According to Intrusion, the timing impact from this critical infrastructure contract pushed revenue out, though the company remains optimistic about realizing a meaningful portion later.

What is the impact of Intrusion's new $4 million state government contract?

Intrusion secured a $4 million contract to supply cyber threat intelligence and infrastructure protection to a state agency. According to Intrusion, this award supports Shield adoption, strengthens its government footprint, and underpins expectations for improved financial performance in fiscal 2026.

How does the $3 million secured financing affect Intrusion's liquidity and operations?

Intrusion entered a $3 million secured financing agreement in early April 2026 to bolster liquidity. According to Intrusion, this facility supports near-term operating priorities, provides additional financial flexibility, and helps fund execution of strategic initiatives following quarter-end cash of $1.4 million.

What does Intrusion expect for profitability in fiscal 2026?

Intrusion expects to transition to profitability by the end of fiscal 2026. According to Intrusion, continued Shield adoption, expansion of the P.O.S.S.E program with PortNexus, and the new $4 million contract support confidence in this profitability trajectory.

What were Intrusion's key margin and expense metrics in Q1 2026?

Intrusion delivered a Q1 2026 gross margin of 74% and operating expenses of $4.2 million. According to Intrusion, gross margin slipped slightly year over year on product mix, while operating expenses increased $0.8 million compared with Q1 2025.

What caused Intrusion's Q1 2026 net loss and how did it compare year over year?

Intrusion reported a Q1 2026 net loss of $3.6 million, or $(0.18) per share. According to Intrusion, the loss was driven by lower revenue and higher operating expenses but was $1.5 million lower than the prior year's net loss.