Intrusion Q3 2026 loss widens to $2.9M on higher costs
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 Filing Summary
Intrusion Inc. reported third-quarter 2026 revenue of $2.68 million, up 36% year over year and 84% sequentially, driven by the first full quarter of revenue from VigilAigent and its State of Texas contract. Gross profit margin was 55%, versus 77% a year earlier and 66% in the second quarter, reflecting revenue and product mix, including lower-margin managed services.
Operating expenses were $4.3 million. Net loss attributable to Intrusion was $2.901 million, or $(0.12) per share, versus $2.094 million, or $(0.10) per share, a year earlier; the company cited higher operating expenses and a $0.4 million increase in interest expense. For the first nine months, revenue was $5.021 million versus $5.614 million, and net loss attributable was $9.054 million versus $6.234 million. Cash and cash equivalents were $0.4 million as of September 30, 2026.
On October 29, 2026, Intrusion exchanged $4.0 million of outstanding debt for Series B preferred stock. Along with a completed warrant inducement and sales of a limited number of shares through its ATM facility, this increased stockholders’ equity to more than $5.0 million. Intrusion said it met applicable Nasdaq listing requirements and qualified for an additional 180-day extension to regain compliance with the $1.00 minimum bid price requirement.
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
- Moderate pointThird-quarter revenue rose 36% year over year to $2.68 million.
Negative
- Moderate pointThird-quarter net loss attributable to Intrusion increased to $2.901 million from $2.094 million.
- Minor pointFirst-nine-month revenue was $5.021 million, versus $5.614 million a year earlier.
- Minor pointNine-month net loss attributable to Intrusion increased to $9.054 million from $6.234 million.
Filing Explained
The balance sheet adds a share-count measure: common shares outstanding were 26,789 thousand on
8-K Event Classification
Key Figures
Key Terms
gross profit margin financial
at-the-market (ATM) facility financial
Series B preferred stock financial
warrant inducement transaction financial
managed security service provider technical
IPv4 and IPv6 addresses technical
Earnings Snapshot
FAQ
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of
earliest event reported):
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(Registrant’s Telephone Number, Including Area Code)
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| The |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On November 12, 2026, Intrusion, Inc. (the “Company”) issued a press release providing information about its operating and financial results for the quarter ended September 30, 2026. A copy of the press release is furnished with this Current Report on Form 8-K as Exhibit 99.1.
The information included in this Item 2.02, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
|
Exhibit No. |
Description | |
| 99.1 | Press release of the registrant, issued on November 12, 2026. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
| Intrusion, Inc. | ||
| Dated: November 12, 2026 | By: | /s/ Kimberly Pinson |
| Kimberly Pinson | ||
| Chief Financial Officer | ||
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Exhibit 99.1
Intrusion Inc. Reports Third Quarter 2026 Results
Revenue growth reflects first full quarter of VigilAigent contribution and continued stabilization of the legacy business
PLANO, Texas, November 12, 2026 (ACCESSWIRE) -- 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% and 36%, 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 $2.7 million, representing an increase of 84% on a sequential basis and an increase of 36% compared to the prior year period. This improvement was driven by the first full quarter of revenue contributions from the recent VigilAigent acquisition and the State of Texas contract.
The gross profit margin was 55% for the third quarter of 2026, compared to 66% for the second quarter of 2026 and 77% for the prior year period. The decrease primarily reflects changes in revenue and product mix, including the addition of lower-margin managed services revenue from VigilAigent.
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Operating expense for the third quarter of 2026 was $4.3 million, an increase of $0.8 million sequentially and $0.6 million compared to the third quarter of 2025. VigilAigent contributed approximately $0.8 million of operating expenses. Excluding VigilAigent, operating expenses from legacy Intrusion operations decreased approximately $0.2 million, or 5%, year over year. The Company also implemented reductions in headcount, contractor and discretionary marketing spending, and exchanged a portion of management and Board cash compensation for equity to conserve cash.
Net loss attributable to Intrusion for the third quarter of 2026 was $2.9 million, or $(0.12) per share, compared to a net loss of $2.1 million, or $(0.10) per share, in the third quarter of 2025. The increase primarily reflects higher operating expenses and a $0.4 million increase in interest expense related to the Company’s notes payable.
As of September 30, 2026, cash and cash equivalents were $0.4 million.
On October 29, 2026, the Company exchanged $4.0 million of outstanding debt for Series B preferred stock. This transaction, together with a recently completed warrant inducement transaction and the sale of a limited number of shares through the Company’s at-the-market (ATM) facility, increased stockholders’ equity to more than $5.0 million. As a result, the Company satisfied Nasdaq’s applicable listing requirements and qualified for an additional 180-day extension to regain compliance with the $1.00 minimum bid price requirement.
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.
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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
Source: Intrusion Inc.
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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 $0.1 million | 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, $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 – 26,790 in 2026 and 20,117 in 2025; Outstanding shares – 26,789 in 2026 and 20,116 in 2025 | 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 | ||||
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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 | ||||||||||||
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