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
News Market Reaction 3 Alerts
On the day this news was published, IPM declined 2.00%, reflecting a moderate negative market reaction. Argus tracked a trough of -6.8% from its starting point during tracking. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $377K from the company's valuation, bringing the market cap to $18M at that time.
Data tracked by StockTitan Argus on the day of publication.
Q2 Total Revenue:
Cash Flow from Operations for 1H 2025:
Cash and Equivalents:
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
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
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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, | 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 | 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, | 4,000 | -- | ||||||
Common stock, | 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 | Six Months Ended | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Revenue | ||||||||||||||||
Managed information technology, includes | $ | 3,506,754 | $ | -- | $ | 7,065,587 | $ | -- | ||||||||
Procurement revenue, includes | 1,248,401 | -- | 2,199,780 | -- | ||||||||||||
Professional services revenue, includes | 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 | -- | 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 | ||||||||
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 | $ | 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, | June 30, | |||||||||||||||
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
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