Intelligent Protection Management Corp. Reports Second Quarter 2025 Financial Results

Rhea-AI Summary

Intelligent Protection Management Corp. (NASDAQ:IPM) reported Q2 2025 financial results, following its strategic transformation into a cybersecurity and cloud infrastructure company. Total revenue reached $5.7 million in Q2 and $11.2 million for H1 2025, with a sequential quarterly revenue growth of 4%.

The company reported a Q2 net loss of $1.1 million, increasing from Q1's net income of $0.8 million. Adjusted EBITDA improved 22% to negative $0.4 million in Q2. IPM maintains a strong balance sheet with $8.3 million in cash and equivalents, no long-term debt, and $3.9 million in deferred revenue.

Notable Q2 developments include becoming an HPE Private Cloud AI accredited partner, initiating collaboration with IT Ally, implementing a $400,000 stock repurchase plan, and launching Aura, an AI-powered online safety solution.

Positive

• Sequential revenue growth of 4% quarter-over-quarter
• Strong cash position of $8.3 million with no long-term debt
• Positive operating cash flow of $0.9 million in H1 2025
• Significant deferred revenue of $3.9 million to be recognized in future quarters
• Strategic partnership with Hewlett Packard Enterprise for Private Cloud AI solutions
• Implementation of $400,000 stock repurchase program

Negative

• Net loss increased 230% to $1.1 million in Q2 from Q1 2025 profit
• Negative Adjusted EBITDA of $0.4 million in Q2 2025
• Operating expenses remain high relative to revenue

Insights

Financial Analyst

IPM's Q2 shows revenue growth but widening losses following strategic pivot to cybersecurity after recent acquisition.

Intelligent Protection Management (IPM) reported $5.7 million in Q2 2025 revenue, representing a 4% sequential increase from Q1. This follows their January 2025 acquisition of Newtek Technology Solutions (NTS) and divestiture of their "Paltalk," "Camfrog," and "Vumber" applications, marking a strategic pivot toward enterprise cybersecurity and cloud infrastructure.

The company's financial performance presents a mixed picture. While revenue is growing sequentially, their net loss widened significantly to $1.1 million in Q2 compared to $0.8 million net income in Q1 - a 230% negative swing. Adjusted EBITDA showed modest improvement at negative $0.4 million compared to negative $0.5 million in Q1, suggesting some operational efficiency gains.

The balance sheet appears reasonably healthy with $8.3 million in cash (including $1.0 million restricted), no long-term debt, and positive operating cash flow of $0.9 million for 1H 2025. Their $3.9 million deferred revenue indicates a pipeline of future recognizable income as services are delivered.

Revenue diversification looks promising with multiple streams: managed IT ($3.5 million), procurement ($1.2 million), professional services ($0.7 million), and subscription revenue ($0.3 million). However, a substantial portion comes from related party transactions - notably $1.8 million of their managed IT revenue is from related parties, raising questions about client diversification.

The $400,000 stock repurchase program (with 104,600 shares already bought) signals management confidence but may also reflect limited growth investment opportunities. New partnerships with Hewlett Packard Enterprise and IT Ally, plus the Aura offering, show efforts to expand their technology portfolio and market reach in the competitive cybersecurity space.

IPM's "White Glove, High Touch" service approach targets differentiation through dedicated technology managers rather than offshore call centers, focusing on regulated industries (legal, healthcare, finance) where they claim certification advantages. This strategy could command premium pricing but also requires higher personnel costs, potentially explaining the ongoing losses despite revenue growth.

Q2 Total Revenue: $5.7 million; Six Months Total Revenue: $11.2 million

Cash Flow from Operations for 1H 2025: $0.9 million

Cash and Equivalents: $8.3 million, including Restricted Cash of $1.0 million

No Long-Term Debt

Investor Conference Call TODAY at 4:30 p.m. Eastern Time

JERICHO, NEW YORK / ACCESS Newswire / August 12, 2025 / Intelligent Protection Management Corp. ("IPM," "we," "us," "our" or the "Company") (Nasdaq:IPM), a managed technology solutions provider focused on enterprise cybersecurity and cloud infrastructure, today announced financial results for the three and the six months ended June 30, 2025.

As previously disclosed, on January 2, 2025 the Company completed its acquisition of Newtek Technology Solutions, Inc. ("NTS") from NewtekOne, Inc. and the sale of its "Paltalk", "Camfrog" and "Vumber" applications and certain assets and liabilities related to such applications (the "Transferred Assets") to Meteor Mobile Holdings, Inc. (together, the "Transactions"). Following the Transactions, the Company's business is focused on cybersecurity and cloud infrastructure.

For the purposes of this earnings release and the financial information provided herein, revenue and income from operations for the three and six months ended June 30, 2025 primarily reflect the newly acquired NTS operations, while assets and liabilities related to the Transferred Assets are presented as held for sale/discontinued operations, and the results of operations related to the Transferred Assets are presented as discontinued operations.

Second Quarter 2025 Operational and Business Highlights:

• We were selected by Hewlett Packard Enterprise to be an accredited partner for its HPE Private Cloud AI solution.

• We initiated a collaboration with IT Ally, a trusted business and technology services provider focused on lower middle-market private equity firms and their portfolio companies.

• During the quarter, our Board of Directors approved a stock repurchase plan for up to $400,000 of our outstanding common stock, which plan expires on the one-year anniversary of such date. Pursuant to the repurchase plan, we purchased 104,600 shares of common stock during the quarter.

• We commenced offering Aura, a leading AI-powered online safety solution for individuals and families, designed to help minimize the impact of data breaches, scams, and other online threats on consumers.

Management Discussion

Jason Katz, Chairman and Chief Executive Officer of IPM, said, "We are pleased with the sequential progress made during our first two operational quarters after the acquisition of Newtek Technology Solutions on January 2, 2025 and our successful rebranding to Intelligent Protection Management. During this period, we have 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 stakeholders.

Sequentially, revenue for the second quarter increased by 4%, to $5.72 million, as our sales and marketing teams become more effective in servicing and growing our client base.Net loss increased 230% for Q2 2025 to $1.1 million, compared to net income of $0.8 million for Q1 2025. Q2 2025 Adjusted EBITDA improved 22% to negative $0.4 million compared to negative $0.5 million in the first quarter of 2025. As an enterprise cybersecurity and cloud infrastructure technology company we had deferred revenue, of $3.9 million in Q2 2025, which consists of sales that will be recognized in future quarters as product and services are installed. The balance sheet also reflects account receivables totaling $2.4 million, net in Q2 2025 based on the business that has been consummated since the Transactions"

Mr. Katz continued, "We have significant technological expertise, and we operate in large and growing markets where IPM is industry-certified in legal, healthcare and finance, giving us a significant competitive advantage versus our peers. That deep industry experience has led us to provide a "White Glove, High Touch," service to our clients. Our clients have dedicated Technology Managers as a single point of contact and we do not use voice response telephonic menus or hand off service calls to agents in call centers in foreign countries. Our clients speak directly to their IPM account team members that are familiar with the needs of their business and the history of their account. This is an important IPM advantage"

"As we continue to develop and buildout our company, we are excited for the opportunities ahead as we endeavor to become one of the leading managed technology solutions providers focused on cybersecurity and cloud infrastructure. We look forward to the second half of 2025 and into 2026."

Financial Highlights: Three and Six Months ended June 30, 2025

For the three months ended June 30, 2025 revenue totaled $5.7 million compared to $0.3 million for the prior year period. On a sequential basis, total revenue increased 4% from the first quarter of 2025. Revenue for the six months ended June 30, 2025 totaled $11.2 million, compared to $0.5 million in the prior year period. Total revenue by revenue stream for the three-and six month periods ended June 30, 2025 were as follows:

	Managed information technology revenue was $3.5 million and $7.1 million, respectively.
	Procurement revenue was $1.2 million and $2.2 million, respectively.
	Professional services revenue was $0.7 million and $1.4 million, respectively.
	Subscription revenue was $0.3 million and $0.6 million, respectively.

• Net loss from continuing operations for the three months ended June 30, 2025 totaled $1.1 million compared to a net loss from continuing operations of $1.3 million for the three months ended June 30, 2024. Net loss from continuing operations for the six months ended June 30, 2025 totaled $0.2 million compared to a net loss of $1.5 million for the prior six months ended June 30, 2024. The reduction in net loss was attributed to IPM recording an income tax benefit during the first quarter of approximately $2.1 million in connection with the Transactions.

• Net loss for the three months ended June 30, 2025 totaled $1.1 million compared to a net loss of $0.8 million for the three months ended June 30, 2024. Net loss for the six months ended June 30, 2025 totaled $0.2 million compared to a net loss of $1.1 million for the six months ended June 30, 2024.

• Adjusted EBITDA¹ for the three months ended June 30, 2025 was negative $0.4 million compared to negative $0.9 million for the three months ended June 30, 2024; while Adjusted EBITDA for the six months ended June 30, 2025 was negative $0.9 million compared to negative $1.4 million for the six months; ended June 30, 2024.

• As of June 30, 2025, we had no long-term debt and cash and cash equivalents totaled $8.3 million (including $1.0 million of restricted cash).

• Cash provided by operations for the six months ended June 30, 2025 was $0.9 million compared to cash used in continuing operations for the six months ended June 30, 2024 of $0.1 million.

• IPM reported deferred revenue of $3.9 million for Q2 2025, which will be recognized as revenue in future quarters as products and/or services are installed.

¹Adjusted EBITDA is a non-GAAP financial measure. Please see the discussion below under the heading "Use of Non-GAAP Financial Measures" and the reconciliation at the end of this release for additional information.

Conference Call Access

Date and Time: Tuesday, August 12, 2025, at 4:30 p.m. Eastern Time.

Call-in Information: Interested parties can access the conference call by dialing 877-545-0523 domestically or 973-528-0016 for international callers and referencing the participant access code 693040.

Webcast Information: The webcast will be accessible live and on-demand at https://www.webcaster4.com/Webcast/Page/2856/52737 and accessible on the Investors section of the Company's website at https://investors.ipm.com/ under Events & Presentations.

Replay: A replay of the call will be available at 877-481-4010 domestically or 919-882-2331 for international callers and the replay passcode is 52737.

About IPM

Intelligent Management Protection Corp. (Nasdaq: IPM) is a managed technology solutions provider focused on cybersecurity and cloud infrastructure. IPM provides dedicated server hosting, cloud hosting, data storage, managed security, backup and disaster recovery, and other related services, including consulting and implementing technology solutions for enterprise and commercial clients across the United States. IPM's other products include ManyCam. IPM has an over 20-year history of technology innovation and holds 8 patents. For more information, please visit: www.ipm.com

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements anticipated in such statements. Forward-looking statements may be identified by words such as "aim," "anticipates," "believes," "building," "continue," "could," "drive," "estimates," "expects," "extent," "focus," "forecasts," "goal," "guidance," "intends," "may," "might," "outlook," "plan," "position," "probable," "progressing," "projects," "prudent," "seeks," "should," "steady," "target," "view," "will" or "would" or the negative of these words and phrases or similar words or phrases. Forward-looking statements in this press release may include, but are not limited to, the Company's expectations of future plans, priorities, focus following the Transactions, the Company's potential growth opportunities, the Company's plans, objectives, strategies, expectations, intentions and other statements that are not statements of historical fact. The following factors, among others, could cause actual results to differ materially from those set forth in the forward-looking statements: the possibility of security vulnerabilities, cyber-attacks and network disruptions, including breaches of data security and privacy leaks, data loss, and business interruptions; the Company's ability to operate its secure private cloud through its data centers; the intense competition in the industry in which the Company operates and its ability to effectively compete with existing competitors and new market entrants; the Company's ability to consummate favorable acquisitions and effectively integrate any companies or businesses that the Company acquires; the impact of adverse economic and market conditions, including those related to fluctuations in inflation and geopolitical conflicts; the Company's reliance on a limited number of customers for its revenues and income; the Company's ability to attract new customers, retain existing customers and sell additional services to customers; the Company's ability to protect its intellectual property rights; and other events outside of the Company's control. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission ("SEC"), including the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's website at www.sec.gov.

All forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement was made, except to the extent required by applicable securities laws.

Investor Contacts:

Joe Dorame, Roger Weiss
Lytham Partners, LLC
602-889-9680
E: ipm@lythampartners.com

INTELLIGENT PROTECTION MANAGEMENT CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS

		June 30, 2025				December 31, 2024
		(unaudited)
Assets
Current assets:
Cash and cash equivalents		$	7,286,978			$	10,588,534
Restricted cash			1,014,714				--
Accounts receivable, net of $269,850 allowance			2,405,772				--
Due from related party			864,879				--
Prepaid expense and other current assets			1,682,845				462,422
Operating lease right-of-use assets, net			--				74,490
Employee retention tax credit receivable, net			114,212				114,212
Assets held for sale - current			--				72,925
Total current assets			13,369,400				11,312,583
Property and equipment, net			790,680				--
Intangible assets, net			8,662,605				1,882,781
Goodwill			5,516,501				2,663,229
Operating lease right of use assets, net			1,483,724				--
Other assets			13,937				13,937
Total assets		$	29,836,847			$	15,872,530
Liabilities and stockholders' equity
Current liabilities:
Accounts payable		$	2,340,097			$	380,298
Accrued expenses and other current liabilities			1,059,940				509,759
Operating lease liabilities, current portion			768,060				74,490
Deferred revenue			3,856,401				555,039
Earnout liability			704,000				--
Liabilities held for sale - current			--				2,024,237
Total current liabilities			8,728,498				3,543,823
Operating lease liabilities, non-current portion			710,911				--
Deferred tax liability			506,683				429,045
Total liabilities			9,946,092				3,972,868
Commitments and contingencies
Stockholders' equity:
Series A Preferred Stock, $0.001 par value, 9,000,000 authorized, 4,000,000 and 0 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively			4,000				--
Common stock, $0.001 par value, 25,000,000 shares authorized, 9,878,950 shares issued and 9,132,387 and 9,236,987 shares outstanding as of June 30, 2025 and December 31, 2024, respectively			9,879				9,879
Treasury stock, at cost, 746,563 and 641,963 shares repurchased as of June 30, 2025 and December 31, 2024, respectively			(1,412,135	)			(1,199,337	)
Additional paid-in capital			44,841,286				36,399,897
Accumulated deficit			(23,552,275	)			(23,310,777	)
Total stockholders' equity			19,890,755				11,899,662
Total liabilities and stockholders' equity		$	29,836,847			$	15,872,530

INTELLIGENT PROTECTION MANAGEMENT CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

		Three Months Ended June 30,								Six Months Ended June 30,
		2025				2024				2025				2024
Revenue
Managed information technology, includes $1,827,817 and $3,516,400 of related party revenue for the three and six months, respectively		$	3,506,754			$	--			$	7,065,587			$	--
Procurement revenue, includes $23,361 and $77,881 of related party revenue for the three and six months, respectively			1,248,401				--				2,199,780				--
Professional services revenue, includes $56,396 and $108,246 of related party revenue for the three and six months, respectively			688,815				--				1,415,422				--
Subscription revenue			278,629				271,409				559,848				542,981
Total revenue			5,722,599				271,409				11,240,637				542,981
Costs and expenses, exclusive of depreciation and amortization shown separately below
Costs of revenue			2,857,449				73,037				5,322,112				134,673
Sales, marketing and product development expense			839,397				257,398				1,604,761				523,187
General and administrative expense			2,481,801				786,442				5,419,698				1,530,015
Depreciation and amortization			673,651				205,583				1,357,692				411,166
Total costs and expenses			6,852,298				1,322,460				13,704,263				2,599,041
Operating loss from continuing operations			(1,129,699	)			(1,051,051	)			(2,463,626	)			(2,056,060	)
Interest income, net			87,928				144,231				170,320				296,215
Other income, net			63,750				146,269				63,750				146,269
Loss from continuing operations before income tax benefit			(978,021	)			(760,551	)			(2,229,556	)			(1,613,576	)
Income tax (expense) benefit			(72,007	)			(532,502	)			1,988,058				66,208
Net loss from continuing operations			(1,050,028	)			(1,293,053	)			(241,498	)			(1,547,368	)
Income from discontinued operations, net of income tax benefit of $481,911 and $1,101 for the three and six months ended June 30, 2024			--				358,902				--				120,910
Net loss		$	(1,050,028	)		$	(934,151	)		$	(241,498	)		$	(1,426,458	)
Net income (loss) per share of common stock:
Basic - continuing operations			(0.08	)			(0.14	)			(0.02	)		$	(0.17	)
Diluted - continuing operations			(0.08	)			(0.14	)			(0.02	)		$	(0.17	)
Basic - discontinued operations			--				0.04				--			$	0.02
Diluted - discontinued operations			--				0.04				--			$	0.02
Basic			(0.08	)			(0.10	)			(0.02	)		$	(0.15	)
Diluted			(0.08	)			(0.10	)			(0.02	)		$	(0.15	)
Weighted average number of shares of Series A Preferred Stock used in calculating net loss per share of Series A Preferred Stock, basic and diluted			4,000,000				--				3,977,901				--
Weighted average number of shares of Common Stock used in calculating net loss per share of Common Stock, basic and diluted			9,201,658				--				9,219,225				--
Basic and diluted net loss per share of Series A Preferred Stock, basic and diluted		$	(0.08	)			--			$	(0.02	)			--
Basic and diluted net loss per share of Common Stock, basic and diluted		$	(0.08	)			--			$	(0.02	)			--
Weighted average number of shares of common stock used in calculating net loss per share of common stock:
Basic			13,201,658				9,222,157				13,197,125				9,222,157
Diluted			13,201,658				9,222,157				13,197,125				9,222,157

INTELLIGENT PROTECTION MANAGEMENT CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

		For the Six Months Ended June 30,
		2025				2024
Cash flows from operating activities:
Net loss		$	(241,498	)		$	(1,426,458	)
Net (income) from discontinued operations			-				(120,910	)
Net loss from continuing operations		$	(241,498	)		$	(1,547,368	)
Adjustments to reconcile net loss from continuing operations to net cash provided by (used in) operating activities:
Amortization of intangible assets			1,130,176				411,166
Amortization of operating lease right-of-use assets			415,661				39,383
Depreciation of property and equipment			227,515
Deferred tax liability			-				(66,208	)
Income tax benefit			(1,971,762	)			(4,200	)
Stock-based compensation			245,389				91,561
Allowance for credit losses			3,436				-
Changes in operating assets and liabilities, net of acquired assets and disposition:
Accounts receivable			1,199,060				-
Operating lease liabilities			(420,414	)			(39,383	)
Prepaid expense and other current assets			(1,650,494	)			494,202
Accounts payable, accrued expenses and other current liabilities			2,067,674				531,849
Deferred revenue			(148,638	)			(14,212	)
Net cash provided by (used in) operating activities - continuing operations			856,105				(103,210	)
Net cash used in operating activities -discontinued operations			-				(668,835	)
Net cash provided by (used in) operating activities			856,105				(772,045	)
Cash flows from investing activities:
Cash paid for acquisition of NTS			(4,000,000	)			-
Purchases of fixed assets			(280,149	)
Net cash used in investing activities			(4,280,149	)			-
Cash flows from financing activities:
Proceeds from sale of Transferred Assets			1,350,000				-
Purchase of treasury stock			(212,798	)			-
Net cash provided by financing activities			1,137,202				-
Net decrease in cash and cash equivalents			(2,286,842	)			(772,045	)
Balance of cash and cash equivalents at beginning of period			10,588,534				13,568,049
Balance of cash and cash equivalents at end of period, including restricted cash of $1,014,714 at June 30, 2025		$	8,301,692			$	12,796,004
Supplemental non-cash disclosure:
Non-cash portion of consideration for acquisition of NTS (Series A Preferred Stock issuance)		$	8,200,000				-

Use of Non-GAAP Financial Measures

The Company has provided in this release Adjusted EBITDA, a non-GAAP financial measure, to supplement the consolidated financial statements, which are prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). Adjusted EBITDA is defined as net income (loss) adjusted to exclude interest (income) expense, net, other (income) expense, net, income tax (benefit) expense, depreciation and amortization expense, stock-based compensation expense and net loss from discontinued operations. Management uses Adjusted EBITDA internally in analyzing the Company's financial results to assess operational performance and to determine the Company's future capital requirements. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. The Company believes that both management and investors benefit from referring to Adjusted EBITDA in assessing its performance and when planning, forecasting and analyzing future periods. The Company believes Adjusted EBITDA is useful to investors and others to understand and evaluate the Company's operating results and it allows for a more meaningful comparison between the Company's performance and that of competitors. Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider this performance measure in isolation from or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are that Adjusted EBITDA does not reflect, among other things: cash capital expenditures for assets underlying depreciation and amortization expense that may need to be replaced or for new capital expenditures; interest income, net; other expense, net; income tax expense from continuing operations; our working capital requirements; the potentially dilutive impact of stock-based compensation; the provision for income taxes; and net loss from discontinued operations. Other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure.

Because of these limitations, you should consider Adjusted EBITDA along with other financial performance measures, including total revenues, subscription revenue, deferred revenue, net income (loss), cash and cash equivalents, restricted cash, net cash used in operating activities and our financial results presented in accordance with GAAP.

		Three Months Ended								Six Months Ended
		June 30, (unaudited)								June 30, (unaudited)
		2025				2024				2025				2024
Reconciliation of net loss to Adjusted EBITDA:
Net loss		$	(1,050,028	)		$	(1,293,053	)		$	(241,498	)		$	(1,547,368	)
Net income from discontinued operations			--				358,902				--				120,910
Interest income, net			(87,928	)			(144,231	)			(170,320	)			(296,215	)
Income tax expense, discontinued operations			--				(481,911	)			--				(1,101	)
Income tax expense (benefit)			72,007				532,502				(1,988,058	)			(66,208	)
Other income, net			(63,750	)			(146,269	)			(63,750	)			(146,269	)
Depreciation and amortization expense			673,650				205,583				1,357,691				411,166
Stock-based compensation expense			77,760				32,250				245,389				91,561
Adjusted EBITDA		$	(378,289	)		$	(936,227	)		$	(860,546	)		$	(1,433,524	)

SOURCE: Intelligent Protection Management Corp.

View the original press release on ACCESS Newswire

FAQ

What were IPM's Q2 2025 revenue and earnings results?

IPM reported Q2 2025 revenue of $5.7 million with a net loss of $1.1 million. Revenue increased 4% sequentially from Q1 2025.

How much cash does IPM (NASDAQ:IPM) have on its balance sheet?

As of June 30, 2025, IPM had $8.3 million in cash and cash equivalents, including $1.0 million in restricted cash, with no long-term debt.

What are IPM's main revenue streams in Q2 2025?

IPM's Q2 revenue streams included $3.5M from managed IT, $1.2M from procurement, $0.7M from professional services, and $0.3M from subscriptions.

What strategic initiatives did IPM announce in Q2 2025?

IPM became an HPE Private Cloud AI accredited partner, collaborated with IT Ally, launched the Aura AI-powered safety solution, and implemented a $400,000 stock repurchase plan.

How much deferred revenue does IPM have for future quarters?

IPM reported $3.9 million in deferred revenue for Q2 2025, which will be recognized in future quarters as products and services are installed.