Intrusion Inc. Reports First Quarter 2026 Results
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.
AI-generated analysis. Not financial advice.
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
Key Figures
Market Reality Check
Peers on Argus
INTZ showed a positive 2.68% move with elevated volume, while momentum scanner peers like DVLT and CISO were moving modestly up and sector-context peers such as CSAI and MSAI were down on the day, pointing to stock-specific dynamics around this earnings print rather than a broad sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 24 | Q4/FY25 earnings | Neutral | -5.7% | Reported Q4/FY25 results with revenue growth but widened full-year net loss. |
| Nov 11 | Q3 2025 earnings | Positive | -8.0% | Q3 2025 revenue up 31% YoY with steady margins and higher cash/investments. |
| Aug 12 | Q2 2025 earnings | Positive | -4.7% | Q2 2025 revenue grew 28% YoY with strong margins but ongoing net loss. |
| Apr 29 | Q1 2025 earnings | Positive | +0.8% | Fourth straight quarter of revenue growth and major balance sheet cleanup. |
| Feb 27 | Q4/FY24 earnings | Positive | -21.3% | Q4/FY24 revenue growth and margin strength with reduced quarterly net loss. |
Earnings releases have often been followed by negative price reactions, even when revenue growth or margin strength was highlighted, suggesting a pattern of the stock selling off on earnings updates.
Over the past year, Intrusion’s earnings reports have shown revenue growth and high gross margins but persistent net losses. Events from Feb 27, 2025 through Mar 24, 2026 highlighted expanding Shield products, government contract dependence, and balance sheet actions. Price reactions to these earnings were frequently negative, including moves of -21.3% and -8%, indicating that investors have been sensitive to ongoing losses and contract timing risk. Today’s Q1 2026 update fits into this pattern of contract-driven volatility and profitability focus.
Historical Comparison
Past earnings releases for INTZ have averaged a -7.77% move, often skewing negative despite revenue growth. Today’s Q1 2026 update, with revenue down and contract delays, fits a pattern where contract timing and losses weighed heavily on reactions.
Earnings history shows a shift from steady revenue growth in 2024–2025 toward contract-driven volatility, with continued high gross margins but persistent net losses and growing emphasis on government contract timing.
Market Pulse Summary
This announcement details a weak Q1 2026, with revenue of $0.9M (down 50% year over year) and a net loss of $3.6M, but also highlights a new $4M state contract and a $3M secured financing that bolstered liquidity. Historically, earnings events have averaged a -7.77% move, underscoring investor focus on losses and contract timing. Investors may watch future updates on federal contract awards, margin durability near 74%, and progress toward the stated 2026 profitability goal.
Key Terms
secured financing agreement financial
gross profit margin financial
cash and cash equivalents financial
AI-generated analysis. Not financial advice.
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
First Quarter Financial Results
Revenue for the first quarter of 2026 was approximately
The gross profit margin was
Operating expense for the first quarter of 2026 was
Net loss for the first quarter of 2026 was
As of March 31, 2026, cash and cash equivalents were
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 | 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, | - | - | ||||||
Common stock, | 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