Breaking Down Intrusion Inc. (INTZ) Financial Health: Key Insights for Investors

You're looking at Intrusion Inc. (INTZ) and seeing a classic cybersecurity growth story-but one still battling for profitability, so you need to know which number matters most right now. The company's Q3 2025 results, released on November 11, 2025, show a mixed picture: revenue grew a solid 31% year-over-year to approximately $2.0 million, driven by a contract expansion with the U.S. Department of Defense and the launch of Intrusion Shield Cloud on the AWS Marketplace. That top-line growth is defintely encouraging, but the market reacted negatively, pushing the stock down about 3.9% after-hours, because the net loss widened to $2.1 million as operating expenses climbed to $3.6 million. The good news is their liquidity position is stronger, with combined cash and short-term investments totaling $7.5 million after a key receivable collection on October 1, which gives them runway; but still, the core challenge is turning that impressive 77% gross profit margin into a positive bottom line.

Revenue Analysis

You need to know where the money is actually coming from at Intrusion Inc. (INTZ) to properly assess its risk profile. The direct takeaway is that while the company is small, it is showing a clear, albeit concentrated, growth trend, driven heavily by government contracts and its core cybersecurity product, Intrusion Shield.

For the third quarter ended September 30, 2025, Intrusion Inc.'s total revenue was approximately $2.0 million. This figure represents a significant year-over-year (YoY) increase of 31%, marking the sixth consecutive quarter of sequential revenue improvement. That's a strong growth signal, but the revenue base is still quite small.

Breakdown of Primary Revenue Streams

Intrusion Inc.'s revenue is primarily generated from two core areas: its proprietary cybersecurity technology, Intrusion Shield, and professional consulting services. The most significant near-term driver for both is the U.S. government.

• Intrusion Shield Technology: This includes sales of their cyberattack prevention solutions, like the new Intrusion Shield Cloud, which recently launched on the AWS Marketplace.
• Consulting Services: Specialized services, often bundled with the Shield technology, particularly for large-scale deployments.

The company's growth is defintely tied to a major contract expansion with the U.S. Department of Defense (DoD), which utilizes both the Intrusion Shield technology and consulting services. This concentration means you need to watch government funding cycles closely. For a deeper dive into the investor base, you can check out Exploring Intrusion Inc. (INTZ) Investor Profile: Who's Buying and Why?

Segment Contribution and Growth Dynamics

The contribution of consulting services remains material to the overall top line. For example, in the second quarter of 2025, before the latest reported quarter, consulting revenues totaled approximately $1.4 million, out of the quarter's total revenue of about $1.9 million. Here's the quick math on Q2 2025:

The Q3 2025 revenue increase was specifically driven by new customer signings and the DoD contract expansion. Management noted a sequential increase of $0.1 million in consulting revenue and a year-over-year rise of $0.1 million in Shield revenue in Q3 2025, demonstrating that both segments are participating in the growth. The gross profit margin held steady at 77% in Q3 2025, which is a good sign of product strength and disciplined delivery, even with a changing product mix.

Significant Revenue Stream Changes

The most significant change is the strategic pivot to cloud distribution. The launch of Intrusion Shield Cloud on the AWS Marketplace and the partner-driven adoption of Shield Endpoint via PortNexus are clear moves to diversify away from a heavy reliance on direct government contracts. This shift is designed to expand their total addressable market (TAM) by reaching a broader commercial customer base through cloud platforms and channel partners. If commercial adoption scales, it will fundamentally change the revenue mix from a high-touch consulting model to a more scalable software-as-a-service (SaaS) model. Your key action here is to monitor the quarterly deferred revenue figures-that's the leading indicator for the success of their new subscription-based cloud strategy.

Profitability Metrics

You are looking at Intrusion Inc. (INTZ) and seeing a stock price that reflects uncertainty, so let's cut through the noise with the latest profitability numbers. The direct takeaway is this: Intrusion Inc. has a strong 77% gross margin, which is excellent for a software company, but its operating expenses are currently overwhelming its small revenue base, resulting in a significant net loss.

For the third quarter of 2025, which ended September 30, 2025, the company continued its streak of revenue growth-the sixth sequential quarter of improvement-but the bottom line shows the cost of that growth. You need to see a clear path to operating leverage (the rate at which profit grows faster than revenue) to feel comfortable here. The current numbers tell a tale of a high-quality product that is still too expensive to sell at its present scale.

Here's the quick math on the core profitability ratios for Q3 2025, based on approximately $2.0 million in revenue:

The 77% gross profit margin is defintely a bright spot, putting Intrusion Inc. right in the 75% to 85% range typical for B2B Software-as-a-Service (SaaS) companies. This high margin indicates the core product, like Intrusion Shield, is efficient and scalable from a cost-of-goods-sold (COGS) perspective. You want to see this kind of margin; it confirms the underlying product economics are sound.

But still, the operational efficiency is the major hurdle. Look at the operating profit margin: -103%. This massive negative number stems directly from operating expenses (OpEx) of $3.6 million in Q3 2025, which is an increase of $0.4 million compared to the same quarter last year. The company is spending nearly twice its revenue to run the business and acquire new customers. This is why the net loss of $2.1 million translates to a net margin of -105%.

Comparing this to the industry average is stark. While Intrusion Inc.'s gross margin is competitive, the median operating margin for SaaS companies in 2024 was -9%, with profitable companies sitting around 11%. The average net profit margin for the broader cybersecurity industry is around 3.86%. Intrusion Inc. is clearly in an aggressive investment phase, trading deep losses for future growth, which is a high-risk, high-reward strategy.

The trend is clear: revenue is rising, but OpEx is rising faster than the gross profit dollars generated, meaning the company is not yet achieving operating leverage. They are investing heavily in areas like the launch of Intrusion Shield Cloud on the AWS Marketplace and expanding the Department of Defense contract, which are great strategic moves but expensive upfront. For a deeper dive into the company's long-term vision, you can review their Mission Statement, Vision, & Core Values of Intrusion Inc. (INTZ).

Your action item is to track these specific points in the next two quarters:

• Monitor revenue growth rate versus the $3.6 million OpEx.
• Confirm the gross margin stays above 75%.
• Look for a sequential reduction in the operating loss, not just a smaller net loss per share.

Debt vs. Equity Structure

You want to know how Intrusion Inc. (INTZ) is fueling its growth, and the short answer is: almost entirely through equity, not debt. The company executed a significant financial overhaul in early 2025, shifting its capital structure to be nearly debt-free, a crucial move for a growth-focused cybersecurity firm.

As of the first half of 2025, Intrusion Inc.'s debt levels are either near-zero or completely eliminated. The CEO stated in April 2025 that the company had 'fully eliminating our outstanding debt' to fund operations through the fiscal year 2025 and beyond. This is a massive change from their previous structure. For example, some recent data still shows a small amount of total debt at around $1.60 million, but the overall picture is one of minimal leverage.

This debt elimination makes the company's Debt-to-Equity (D/E) ratio exceptionally low. While one analysis puts the D/E ratio at 0%, reflecting the stated debt elimination, other trailing-twelve-month data suggests a ratio between 0.15 and 0.16. Either way, this is a very strong signal. To put that in perspective, a comparable cybersecurity peer, CyberArk Software, has a D/E ratio of 0.53 as of late 2025. Intrusion Inc.'s ratio is defintely a low-risk profile for lenders.

The company's recent activity shows a clear, aggressive preference for equity funding over debt financing. They've essentially traded future interest payments for immediate capital and a cleaner balance sheet, which is smart when you're prioritizing growth. Here's the quick math on their recent capital actions:

• Debt-for-Equity Swaps: In March 2025, Intrusion Inc. exchanged $236,642.64 in debt for common stock.
• Preferred Stock Elimination: They eliminated $10.1 million notional value of all Series A Preferred Stock in early 2025 by exchanging it for common stock.
• Equity Raise: Total proceeds from various equity transactions, including a registered direct offering in January 2025, brought in approximately $14.5 million to fund operations through 2025.

This strategy means Intrusion Inc. is currently relying on shareholder capital to fuel its operations and product development, not the burden of interest-bearing loans. It removes the near-term risk of debt covenants or refinancing pressure, allowing management to focus on their core business, as detailed in our full breakdown at Breaking Down Intrusion Inc. (INTZ) Financial Health: Key Insights for Investors.

Liquidity and Solvency

When you look at Intrusion Inc. (INTZ), the near-term liquidity picture is surprisingly strong, but it masks a critical underlying cash burn issue. The company's high current and quick ratios suggest an excellent ability to cover short-term debts, but the cash flow statement shows operations are still consuming capital.

The latest available data, reflecting the trailing twelve months (TTM) leading up to Q3 2025, shows Intrusion Inc.'s liquidity positions are robust. The Current Ratio stands at approximately 3.23, and the Quick Ratio is about 3.00. This means that for every dollar of short-term liability, Intrusion Inc. has over three dollars in current assets, and three dollars in highly liquid assets (excluding inventory, which is minimal for a software company). That's a defintely strong buffer.

Here's the quick math on their short-term health, based on the high ratios:

• Current Ratio of 3.23: Strong indicator of being able to pay bills over the next year.
• Quick Ratio of 3.00: Shows high-quality, easily convertible assets (like cash and receivables) are plentiful.

The working capital trend, however, is a classic study in a growth-focused, pre-profit company. The high ratio is a strength, but it's largely supported by capital raises and the nature of their assets. The real story is in the cash flow statements, which paint a clearer picture of the company's operational sustainability.

The cash flow statement overview for the TTM period ending Q3 2025 highlights the core challenge:

The operating cash flow (OCF) of -$6.41 million is the key figure; it confirms the company is still burning cash to fund its operations, despite a 31% year-over-year revenue increase in Q3 2025. This is a common situation for a cybersecurity firm investing heavily in R&D and sales, but it means their liquidity strength relies on external funding or balance sheet management, not internal profits.

The biggest liquidity strength near-term came right after the quarter ended. As of September 30, 2025, Intrusion Inc.'s cash and short-term investments totaled $4.5 million. Importantly, on October 1, 2025, the company collected an additional $3.0 million in trade receivables, boosting their immediate liquid position to approximately $7.5 million. This cash injection is crucial and is expected by management to fund operations through the rest of 2025 and into early 2026. This is a great tactical move, but it's a one-time event, not a sustainable trend. You can dive deeper into who is funding this growth by Exploring Intrusion Inc. (INTZ) Investor Profile: Who's Buying and Why?

Valuation Analysis

You're looking at Intrusion Inc. (INTZ) and wondering if the market has priced in the cybersecurity growth story, which is a smart question given the volatility in smaller-cap tech. The direct takeaway is that Intrusion Inc. is currently trading at a significant discount to the average analyst price target, but its traditional valuation multiples are skewed by negative earnings, signaling a speculative growth play, not a value investment. The stock price of around $1.44 (as of mid-November 2025) is far below the consensus target of up to $7.00, suggesting a potential upside of over 386%, but you must look past the simple numbers.

Here's the quick math on why a simple Price-to-Earnings (P/E) ratio isn't helpful here. Intrusion Inc. is not profitable yet; for the trailing twelve months (TTM) ending Q3 2025, the company reported a loss of approximately -$8.2 million on revenue of $7.29 million. Because earnings are negative, the P/E ratio is not applicable (n/a), which is common for emerging growth companies focused on scaling. Similarly, the Enterprise Value-to-EBITDA (EV/EBITDA) ratio is also not applicable, or at least not meaningful for valuation comparison, since Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is likely negative.

What this estimate hides is the reliance on Price-to-Book (P/B) and Price-to-Sales (P/S) for a clearer picture. The Price-to-Book (P/B) ratio currently sits at approximately 2.64, which is reasonable for a software infrastructure company. More telling is the Price-to-Sales (P/S) ratio of 2.98. This ratio compares the company's market capitalization of $25.83 million to its TTM revenue, suggesting the stock is trading at nearly three times its revenue. This is a common metric for high-growth, unprofitable tech firms, and it's a number you should track closely against industry peers.

The stock has seen a massive swing over the last 12 months, which is defintely a risk factor. The 52-week price range has been dramatic, from a low of $0.35 to a high of $7.34, reflecting extreme investor sentiment shifts. Overall, the stock has climbed by nearly +99.43% over the last year, showing strong recovery from its low. This kind of volatility means you need a strong conviction in the company's Mission Statement, Vision, & Core Values of Intrusion Inc. (INTZ). and its ability to execute on its growth plan.

Intrusion Inc. is not a dividend stock. The TTM dividend payout is $0.00, and the dividend yield is 0.00%. This is expected; they are reinvesting every dollar back into growth, primarily through their flagship INTRUSION Shield product, which is what you want to see at this stage.

The analyst consensus is a mixed bag, which is why you see such a wide price target range. Based on the most recent ratings, the consensus is a 'Hold,' but this is a blend of a 'Buy,' a 'Hold,' and a 'Sell' rating across three analysts. The average 12-month price target is approximately $7.00, but the range is huge, from a low of $2.00 to a high of $12.00. This dispersion tells you there's no clear Wall Street conviction yet, and the valuation is highly dependent on which analyst's growth model you believe.

Your action here is to look past the N/A ratios and focus on the company's ability to drive revenue growth (projected to be $7.3 million for the full 2025 fiscal year) and improve its cash flow. If they can execute on their cloud strategy, the P/S ratio will look very cheap in hindsight. Finance: track quarterly cash burn against the $4.5 million in cash and short-term investments reported as of September 30, 2025.

Risk Factors

If you're looking at Intrusion Inc. (INTZ), the first thing to understand is that their financial trajectory still carries significant risk, even with recent revenue growth. While the company is projecting 2025 revenue of approximately $7.3 million, up from $5.2 million in 2024, the path to profitability remains the core challenge. They are still operating at a loss, and that dictates the near-term investment thesis.

The Q3 2025 results clearly show the financial tightrope: revenue was up 31% year-over-year to approximately $2.0 million, which is great, but operating expenses also rose to $3.6 million, contributing to a net loss of $2.1 million for the quarter. You need to watch that expense-to-revenue gap closing, or the stock will continue to face skepticism.

Exploring Intrusion Inc. (INTZ) Investor Profile: Who's Buying and Why?

Operational and Strategic Concentration

The biggest internal risk is concentration. Intrusion Inc. is heavily reliant on a small customer base, with a staggering 83.8% of 2024 revenue coming from U.S. government entities. That's defintely a double-edged sword: a major contract expansion, like the one with the Department of Defense (DoD), can drive a 31% revenue jump, but a budget cut or contract cancellation could be catastrophic.

Also, the company's legacy product, TraceCop, still accounts for a large portion of existing revenue, and the market success of the newer INTRUSION Shield solution is not yet guaranteed. They are dependent on channel partners like PortNexus for sales, so any disruption there is a direct hit to the top line.

• Government Sales Risk: Over-reliance on DoD contracts.
• Product Risk: New Shield product must gain market traction.
• Competition Risk: Facing rivals with far greater resources.

Liquidity and Market Headwinds

From a financial perspective, liquidity is the immediate concern, though management has taken steps to mitigate it. As of September 30, 2025, cash and short-term investments totaled $4.5 million. Here's the quick math: they collected an additional $3.0 million in receivables on October 1st, bringing their total liquid resources to $7.5 million. Management believes this is enough to fund operations into early 2026. Still, they must increase revenue to regain profitability and avoid future dilutive financings.

External risks are standard for the cybersecurity sector but amplified for a smaller player. The market is fiercely competitive, and global uncertainties can cause customers to delay or cancel major cybersecurity initiatives. Plus, the rapid pace of technological change means they must continuously innovate to keep their products relevant against zero-day threats and ransomware.

Mitigation and Next Steps

Intrusion Inc. is actively trying to mitigate these risks by diversifying away from their government-heavy revenue stream. They've launched Intrusion Shield Cloud on the AWS Marketplace and are planning a Microsoft Azure launch to reach a broader commercial customer base. They are also focusing on the high-growth critical infrastructure protection market, which is a smart move given escalating global threats.

For you, the investor, the action is simple: track the Shield product adoption metrics in the next two quarters. If the revenue mix starts to shift meaningfully toward commercial and Shield-driven sales, the risk profile improves dramatically. Finance: look for a clear path to quarterly operating cash flow positive by Q2 2026.

Growth Opportunities

You're looking at Intrusion Inc. (INTZ) and seeing a small-cap cybersecurity firm that's still operating at a loss, but that headline number hides some genuine, near-term growth drivers. The company is defintely on a path to sustainable revenue growth, even if profitability remains a challenge through the 2025 fiscal year. Our analysis shows the core strategy is working: lock in government contracts and expand the product's reach through major cloud channels.

For the full year 2025, Wall Street analysts project Intrusion Inc.'s revenue to be approximately $7.74 million, with the consensus earnings (net loss) estimated at around -$7,791,899. Here's the quick math: the focus isn't on profit yet, but on top-line expansion and market penetration. The Q3 2025 results showed revenue of $2.0 million, a strong 31% year-over-year increase, marking the sixth consecutive quarter of sequential revenue improvement. That's a clear upward trend.

The key growth drivers are concrete and tied to specific product and channel moves:

• Government Contracts: Expanding the contract with the U.S. Department of Defense (DoD) for Intrusion Shield technology and consulting services provides a stable, high-value revenue anchor.
• Cloud Marketplace Expansion: Launching Intrusion Shield Cloud on the AWS Marketplace (Amazon Web Services) and planning a launch on the Microsoft Azure Marketplace later in 2025 opens up enormous new sales channels.
• Product Focus: The Infrastructure Monitoring product within the Intrusion Shield suite is cited as the company's most successful offering, driving demand in critical infrastructure protection.

This strategy is centered on scaling their core product, Shield, which uses an innovative, AI-driven threat detection capability.

Competitive Edge and Strategic Partnerships

Intrusion Inc. has a few competitive advantages that position it well against larger players. First, they report continued near-zero customer churn, a strong testament to the value of their cybersecurity offerings. Second, the validation from the DoD contract is a powerful selling point in the broader cybersecurity market, especially for critical infrastructure clients. Third, their gross profit margin remains high at 77% as of Q3 2025, which shows the underlying unit economics of the product are sound.

Strategic partnerships are also starting to move the needle. The momentum with solution partner PortNexus, specifically for the Shield Endpoint product, is creating incremental opportunities in the endpoint and critical infrastructure markets. This partner-driven approach is crucial for a company with a smaller direct sales force.

What this estimate hides is the continued investment in growth. Operating expenses were $3.6 million in Q3 2025, up from the prior year, reflecting increased spending on product development and sales and marketing to fuel this customer base growth. Still, the company's strategic actions in early 2025 cleaned up the balance sheet, providing sufficient liquidity of $7.5 million (cash and short-term investments post-quarter) to fund operations into early 2026, which is a major risk mitigation factor. You can read more about their corporate direction in the Mission Statement, Vision, & Core Values of Intrusion Inc. (INTZ).

To summarize the financial trajectory for 2025, here is a snapshot of the consensus analyst forecasts:

Finance: Monitor the Q4 2025 revenue and EPS results closely for signs that the AWS Marketplace launch is accelerating the top-line growth beyond the current $2.2 million revenue and -$0.0765 EPS Q4 analyst estimates.