Intrusion Inc. Reports Third Quarter 2026 Results
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Intrusion (NASDAQ:INTZ) reported third-quarter 2026 revenue of $2.680 million, up 36% year over year and 84% sequentially.
VigilAigent contributed $0.8 million in its first full quarter, while the State of Texas contract also supported growth. Gross margin fell to 55% from 77% a year earlier and 66% in the second quarter. Operating expenses rose to $4.3 million. Net loss attributable to Intrusion widened to $2.901 million, or $0.12 per share, from $2.094 million, or $0.10 per share. Cash was $0.4 million at September 30.
On October 29, Intrusion exchanged $4.0 million of debt for Series B preferred stock. Together with warrant inducement and share sales, this lifted stockholders' equity above $5.0 million and qualified Intrusion for another 180 days to regain Nasdaq's $1.00 minimum bid price compliance. Nine-month revenue declined to $5.021 million from $5.614 million.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Major pointOctober 29 debt exchange eliminated $4.0 million of outstanding debt through Series B preferred stock issuance. 28% of market cap
- Moderate pointThird-quarter revenue increased 36% year over year and 84% sequentially to $2.680 million.
- Moderate pointNasdaq granted an additional 180-day extension to regain minimum bid price compliance.
- Minor pointVigilAigent contributed $0.8 million of revenue in its first full quarter following acquisition.
- Minor pointLegacy operating expenses decreased approximately $0.2 million, or 5%, year over year, excluding VigilAigent.
2 minor points
- Minor pointHeadcount, contractor and discretionary marketing spending reductions were implemented to conserve cash.
- Minor pointRecent capital actions increased stockholders' equity to more than $5.0 million.
Negative
- Major pointDebt conversion issued Series B preferred stock; warrant inducement, ATM share sales and compensation-for-equity exchanges also added equity issuance.
- Moderate pointThird-quarter gross margin fell to 55% from 66% sequentially and 77% a year earlier.
- Moderate pointThird-quarter attributable net loss widened to $2.901 million, or $0.12 per share, versus $2.094 million, or $0.10.
- Moderate pointCash declined to $400,000 at September 30, 2026, from $3.624 million at December 31, 2025.
- Moderate pointSeptember 30 current liabilities of $6.789 million exceeded current assets of $1.987 million.
- Moderate pointSeptember 30 stockholders' equity declined to $2.848 million from $7.277 million at December 31, 2025.
- Moderate pointCommon shares outstanding increased to 26.789 million at September 30 from 20.116 million at year-end.
- Moderate pointNasdaq's $1.00 minimum bid price requirement remains unmet despite the additional compliance period.
8 minor points
- Minor pointThird-quarter operating expenses rose to $4.3 million, up $0.8 million sequentially and $0.6 million year over year.
- Minor pointThird-quarter operating loss widened to $2.798 million from $2.136 million a year earlier.
- Minor pointThird-quarter interest expense increased to $397,000 from $17,000 a year earlier.
- Minor pointNine-month revenue declined to $5.021 million from $5.614 million a year earlier.
- Minor pointNine-month gross profit declined to $3.101 million from $4.279 million a year earlier.
- Minor pointNine-month operating loss widened to $8.863 million from $6.315 million a year earlier.
- Minor pointNine-month attributable net loss widened to $9.054 million, or $0.41 per share, versus $6.234 million, or $0.32.
- Minor pointSeptember 30 notes payable included $3.292 million current and $1.479 million noncurrent, versus none at year-end.
News Explained
The balance sheet lists 26,789 thousand common shares outstanding at
Key Figures
- Q3 revenue
- $2.7 million
- Third quarter of 2026
- Sequential revenue growth
- 84%
- Third quarter of 2026
- Year-over-year revenue growth
- 36%
- Third quarter of 2026
- Gross profit margin
- 55%
- Compared with 66% in Q2 2026 and 77% in the prior-year period
- Net loss attributable to Intrusion
- $2.9 million
- Third quarter of 2026
- Cash and cash equivalents
- $0.4 million
- As of September 30, 2026
- Debt-for-equity exchange
- $4.0 million
- Completed in October 2026
- Nasdaq compliance extension
- 180 days
- Additional extension to regain compliance with the minimum bid price requirement
Previous Earnings Reports
-
Revenue rose sequentially but fell year over year amid government-contract delays and a larger net loss.
-
Revenue grew year over year while gross margin and net loss were flat.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
at-the-market (atm) facility financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
PLANO, TX / ACCESS Newswire / November 12, 2026 / Intrusion Inc. (NASDAQ:INTZ) ("Intrusion" or the "Company"), a provider of AI-powered cyberattack prevention, threat intelligence, and managed cybersecurity solutions, announced today financial results for the third quarter ended September 30, 2026.
Recent Financial & Business Highlights:
- Achieved sequential and year-over-year revenue growth of
84% and36% , respectively, reflecting the$0.8 million contribution from the recent VigilAigent acquisition and continued stabilization of Intrusion's legacy business. - Implemented additional cost-reduction initiatives, including headcount reductions and the voluntary exchange of management and Board cash compensation for equity, to streamline operations and improve cost efficiency while ensuring the Company maintains the resources necessary to pursue longer-term growth opportunities.
- Completed a
$4.0 million debt-for-equity exchange in October which, together with other recent capital actions, increased stockholders' equity to more than$5.0 million and allowed the Company to secure an additional 180-day extension from Nasdaq to regain compliance with the minimum bid price requirement.
"Our third quarter results represent an important step forward for Intrusion as we continued to stabilize our business, integrate VigilAigent's capabilities with our existing platform, and execute on our growth strategy. Revenue in our legacy business approached prior-year levels, driven primarily by our contract with the State of Texas. Additionally, VigilAigent contributed its first full quarter of revenue since the acquisition, further strengthening our overall revenue run rate," said Tony Scott, President & Chief Executive Officer of Intrusion. "We are also encouraged by the quality of opportunities currently developing in our pipeline, including opportunities to expand our existing partnerships and government relationships and grow in new markets. We believe that these opportunities could meaningfully support future sustainable revenue growth."
Mr. Scott concluded, "Our focus remains on growing recurring revenue, expanding our commercial reach, and continuing to build a stronger platform that delivers AI-driven cybersecurity solutions to address the evolving threats facing our customers across both commercial and government markets. Looking ahead, we remain committed to disciplined execution as we work toward achieving profitability and creating long-term value for our shareholders."
Third Quarter Financial Results
Revenue for the third quarter of 2026 was
The gross profit margin was
Operating expense for the third quarter of 2026 was
Net loss attributable to Intrusion for the third quarter of 2026 was
As of September 30, 2026, cash and cash equivalents were
On October 29, 2026, the Company exchanged
Conference Call
Intrusion's management will host a conference call today at 5:00 P.M. EST. 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: 494042. 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. EST until November 26, 2026, by dialing 1-877-481-4010, or 1-919-882-2331 for international callers, and entering the following access code: 54609. 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 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. In 2026, Intrusion acquired VigilAigent, an AI-native managed security service provider, expanding its recurring revenue base and commercial reach.
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)
September 30, 2026 | December 31, 2025 | |||||||
| (unaudited) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 400 | $ | 3,624 | ||||
Accounts receivable, net of allowance of | 1,076 | 131 | ||||||
Prepaid expenses and other assets | 511 | 476 | ||||||
Total current assets | 1,987 | 4,231 | ||||||
Noncurrent Assets: | ||||||||
Property and equipment: | ||||||||
Equipment | 2,990 | 2,917 | ||||||
Capitalized software development | 6,691 | 5,663 | ||||||
Leasehold improvements | 18 | 18 | ||||||
Property and equipment, gross | 9,699 | 8,598 | ||||||
Accumulated depreciation and amortization | (5,458 | ) | (4,313 | ) | ||||
Property and equipment, net | 4,241 | 4,285 | ||||||
Goodwill | 4,407 | - | ||||||
Finance leases, right-of-use assets ("ROU"), net | 132 | 222 | ||||||
Operating leases, ROU, net | 1,362 | 1,392 | ||||||
Other assets | 304 | 257 | ||||||
Total noncurrent assets | 10,446 | 6,156 | ||||||
TOTAL ASSETS | $ | 12,433 | $ | 10,387 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable, trade | $ | 2,065 | $ | 492 | ||||
Accrued expenses | 734 | 357 | ||||||
Finance lease liabilities, current portion | 67 | 167 | ||||||
Operating leases liabilities, current portion | 234 | 266 | ||||||
Notes payable, current portion | 3,292 | - | ||||||
Deferred revenue | 397 | 503 | ||||||
Total current liabilities | 6,789 | 1,785 | ||||||
Noncurrent Liabilities: | ||||||||
Finance lease liabilities, noncurrent portion | 3 | 6 | ||||||
Operating lease liabilities, noncurrent portion | 1,314 | 1,319 | ||||||
Notes payable, noncurrent portion | 1,479 | - | ||||||
Total noncurrent liabilities | 2,796 | 1,325 | ||||||
Commitments and Contingencies | - | - | ||||||
Stockholders' Equity: | ||||||||
Preferred stock, | - | - | ||||||
Common stock, | 266 | 201 | ||||||
Common stock held in treasury, at cost - 1 share(s) | (362 | ) | (362 | ) | ||||
Additional paid-in capital | 139,107 | 134,547 | ||||||
Accumulated deficit | (136,120 | ) | (127,066 | ) | ||||
Noncontrolling interest | - | - | ||||||
Accumulated other comprehensive loss | (43 | ) | (43 | ) | ||||
Total stockholders' equity | 2,848 | 7,277 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 12,433 | $ | 10,387 | ||||
INTRUSION INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | |||||||||||||
Revenue | $ | 2,680 | $ | 1,966 | $ | 5,021 | $ | 5,614 | ||||||||
Cost of revenue | 1,203 | 461 | 1,920 | 1,335 | ||||||||||||
Gross profit | 1,477 | 1,505 | 3,101 | 4,279 | ||||||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing | 1,274 | 1,273 | 4,269 | 3,664 | ||||||||||||
Research and development | 1,515 | 1,329 | 4,111 | 3,879 | ||||||||||||
General and administrative | 1,486 | 1,039 | 3,584 | 3,051 | ||||||||||||
Operating loss | (2,798 | ) | (2,136 | ) | (8,863 | ) | (6,315 | ) | ||||||||
Interest expense | (397 | ) | (17 | ) | (518 | ) | (67 | ) | ||||||||
Other income, net | 113 | 59 | 140 | 148 | ||||||||||||
Net loss | (3,082 | ) | (2,094 | ) | (9,241 | ) | (6,234 | ) | ||||||||
| Less net loss attributable to noncontrolling interests | (181 | ) | - | (187 | ) | - | ||||||||||
Net loss attributable to Intrusion, Inc. | $ | (2,901 | ) | $ | (2,094 | ) | $ | (9,054 | ) | $ | (6,234 | ) | ||||
Net loss per share: | ||||||||||||||||
Basic | $ | (0.12 | ) | $ | (0.10 | ) | $ | (0.41 | ) | $ | (0.32 | ) | ||||
Diluted | $ | (0.12 | ) | $ | (0.10 | ) | $ | (0.41 | ) | $ | (0.32 | ) | ||||
| Weighted average common shares outstanding: | ||||||||||||||||
Basic | 24,802 | 19,975 | 21,840 | 19,698 | ||||||||||||
Diluted | 24,802 | 19,975 | 21,840 | 19,698 | ||||||||||||
SOURCE: Intrusion, Inc.
View the original press release on ACCESS Newswire
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Intrusion's third-quarter 2026 revenue and earnings results?
Intrusion reported revenue of $2.680 million and a net loss attributable to the company of $2.901 million, or $0.12 per share. Revenue increased 36% year over year and 84% sequentially. The prior-year attributable net loss was $2.094 million, or $0.10 per share.
How did Intrusion's October 2026 debt exchange affect its Nasdaq compliance?
Intrusion exchanged $4.0 million of outstanding debt for Series B preferred stock on October 29, 2026. That exchange, warrant inducement and ATM share sales lifted stockholders' equity above $5.0 million, qualifying the company for another 180 days to regain compliance with Nasdaq's $1.00 minimum bid price requirement.
Why did Intrusion's third-quarter 2026 gross margin decline?
The company attributed the gross margin decline primarily to changes in revenue and product mix, including lower-margin managed services revenue from VigilAigent. Gross margin was 55%, compared with 66% in the second quarter of 2026 and 77% in the prior-year quarter.
What cost reductions did Intrusion implement in 2026?
Intrusion reduced headcount, contractor spending and discretionary marketing spending, and exchanged a portion of management and Board cash compensation for equity to conserve cash. Excluding VigilAigent, legacy operating expenses decreased approximately $0.2 million, or 5%, year over year.