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

You've seen the conflicting signals on Intrusion Inc. (INTZ) and are probably asking: who is buying this stock, and what is their conviction? Honestly, the investor profile is a fascinating, complex picture, especially when you look at the Q3 2025 financials. The company delivered its sixth consecutive quarter of sequential top-line growth, pulling in approximately $2.0 million in revenue, a solid 31% jump year-over-year, largely driven by that U.S. Department of Defense contract expansion. But still, the net loss for the quarter remained at $2.1 million, or $0.10 per share, which is a near-term profitability challenge. So, who is holding the bag in this high-risk, high-reward cybersecurity play? The ownership structure is unusual: insiders hold a massive 75.80% of the shares, meaning the company's fate is tightly controlled by management and founders, but institutional investors-like Vanguard Group Inc. and Geode Capital Management LLC-only account for about 4.10% of the float, holding roughly 995,572 shares. Are the institutions slowly accumulating for a long-term turnaround, or is this a classic case of insider belief outweighing outside skepticism? Dive in to see the full breakdown of the major shareholders and the specific catalysts they are betting on.

Who Invests in Intrusion Inc. (INTZ) and Why?

The investor profile for Intrusion Inc. (INTZ) is unique for a publicly traded technology company: it is overwhelmingly dominated by individual retail investors, not large institutions. This ownership structure, coupled with the company's high-growth, pre-profitability financial profile, attracts a specific type of investor looking for outsized returns in the volatile cybersecurity market.

The key takeaway is that the stock's movement is less about the slow, methodical accumulation of a BlackRock-style fund and more about the collective sentiment of thousands of individual accounts.

Here is the quick math on the investor breakdown, based on recent filings:

Key Investor Types: The Retail Dominance

Unlike large-cap stocks where institutional investors-think Vanguard Group Inc or State Street Corp-can own upwards of 70% of the shares, Intrusion Inc. (INTZ) is a retail-driven stock. The most recent data shows that approximately 91.41% of the company's stock is held by retail investors. This is a critical point: a small float (the number of shares available for public trading) and high retail interest mean the stock can be prone to significant volatility and momentum swings.

Institutional ownership is low, with some reports placing it as low as 0.39%, while others suggest a slightly higher figure of around 19.43%. This discrepancy often comes down to how different data providers categorize smaller, non-reporting funds. Still, the largest institutional holders, such as Geode Capital Management LLC and Vanguard Group Inc, hold a total of just under 1 million shares (995,572 shares). The low institutional conviction is a signal of the company's small market capitalization and its pre-profitability stage, which makes it too risky for many large, conservative funds.

Investment Motivations: Betting on Growth and Defense

Investors are buying Intrusion Inc. (INTZ) not for dividends-the company doesn't pay one-but for a bet on exponential growth (a growth stock) in the high-demand cybersecurity sector. The motivation is clear: the company is showing tangible progress, even if it's not yet profitable.

• Revenue Momentum: The company achieved its sixth sequential quarter of revenue improvement, with Q3 2025 revenue hitting approximately $2.0 million, a 31% increase year-over-year.
• High Gross Margin: The gross profit margin for Q3 2025 was a strong 77%, suggesting that the core product, Intrusion Shield, is highly profitable on a per-unit basis. The problem is scaling sales without spiking operating expenses.
• Defense Contracts and Cloud Expansion: A major driver is the contract expansion with the U.S. Department of Defense and the launch of Intrusion Shield Cloud on the AWS Marketplace. These are concrete milestones that validate the technology and open up massive, long-term markets.

To be fair, the risk is real. The net loss for Q3 2025 was $2.1 million, and operating expenses were $3.6 million. This is a classic growth-stock trade-off: you are buying the potential for future profit, not current earnings. You can learn more about this balancing act by reviewing the company's history and mission at Intrusion Inc. (INTZ): History, Ownership, Mission, How It Works & Makes Money.

Investment Strategies: Speculation and Long-Term HODLers

Given the ownership and financial profile, two main strategies dominate the Intrusion Inc. (INTZ) shareholder base: aggressive speculation and long-term growth holding.

• Short-Term Trading/Speculation: The high retail ownership and significant volatility-the stock price rose by 129.92% between November 2024 and November 2025-attract short-term traders. These investors are playing the news cycle, looking for quick gains from contract announcements or positive sequential revenue beats, like the Q3 2025 revenue beat against analyst estimates. They are defintely not in it for the long haul.
• Long-Term Growth Holding: This group, which includes company insiders and some patient retail investors, is focused on the long-term vision. They are holding (or HODLing, as the internet calls it) for the day the company achieves sustainable profitability. They believe the high gross margin and the strategic moves, like the AWS Marketplace launch, will eventually translate into a positive Earnings Before Interest and Taxes (EBIT), which is forecasted to still be negative at -$5 million for the full 2025 fiscal year.

The core strategy here is a bet on the management team's ability to convert product-market fit (evidenced by the 77% gross margin) into positive net income. Your action should be to monitor the cash position, which stood at a healthier $7.5 million after the October 1st collection of receivables, and watch for any major shifts in institutional accumulation, which would signal a new level of professional confidence.

Institutional Ownership and Major Shareholders of Intrusion Inc. (INTZ)

You want to know who is buying Intrusion Inc. (INTZ) and why, and the short answer is that institutional money is flowing in, largely to fund the company's strategic pivot and shore up its balance sheet. This isn't a typical growth-stock accumulation; it's a capital injection story. Institutional ownership sits at around 19.43% of the stock as of late 2025, showing a small but critical slice of the market is paying attention.

The institutional profile is a mix of passive index funds and a key financial partner, which is exactly what you'd expect for a micro-cap cybersecurity firm undergoing a major financial restructuring. Passive investors like The Vanguard Group, Inc. and Geode Capital Management LLC hold shares because INTZ is part of the small-cap indices their funds track, but the more active money is focused on the company's liquidity. The stock's price, around $1.44 per share as of mid-November 2025, reflects the high-risk, high-reward nature of this turnaround.

Top Institutional Investors and Their Stakes

When you look at the largest institutional holders, you see a couple of major index managers and a significant financier. Streeterville Capital, LLC, is a notable player here, not just as a shareholder but as a strategic capital provider. They are the largest holder by a wide margin, but their position is tied to a specific financing agreement, not a pure investment thesis on the stock's future price. Here's a quick look at the top institutional stakes reported in 2025:

Recent Changes in Ownership: The Capital Story

The most compelling story in 2025 is the net buying activity, which is directly linked to Intrusion Inc.'s need for working capital. Institutional ownership saw a significant jump in the first half of the year, with shares held by institutions increasing by a substantial 37.06% quarter-over-quarter in Q2 2025.

This accumulation is a sign that the company successfully executed a critical financial cleanup. In early 2025, the company announced actions that resulted in $14.5 million in proceeds and the elimination of $10.1 million notional value of all Series A Preferred Stock. This was a necessary step to stabilize the company.

• Buyers: Firms like FNY Investment Advisers LLC added 42,075 shares and Geode Capital Management LLC increased its position by +18.8% in Q2 2025.
• Sellers: Some institutions, like Two Sigma Securities, LLC, fully exited their position in Q2 2025, selling 60,789 shares. This kind of churn is defintely normal for a stock with high volatility.

Impact of Institutional Investors on Stock Price and Strategy

The role of these large investors is twofold: providing stability and validating the strategic direction. The Standby Equity Purchase Agreement (SEPA) with Streeterville Capital, LLC, which allows the company to sell up to $10 million in common stock over a 24-month period, is a prime example of institutional money providing a crucial financial lifeline.

This flexible access to capital is what allows CEO Tony Scott to focus on core strategic initiatives, like the company's successful launch of Intrusion Shield Cloud on the Amazon Web Services (AWS) Marketplace in October 2025. The market is reacting to these strategic moves; for example, the stock rose 5.52% in aftermarket trading following the Q2 2025 earnings announcement, which highlighted a 28% year-over-year revenue increase.

The institutional capital is essentially funding the turnaround and the push for growth from new contracts, including expansion with the U.S. Department of Defense. If you want a deeper dive into the company's financial health, you should check out Breaking Down Intrusion Inc. (INTZ) Financial Health: Key Insights for Investors. For now, understand that the money coming in is a bet on the management team executing their cloud and government-focused strategy, despite the continued net loss of $2.0 million reported in Q2 2025.

Key Investors and Their Impact on Intrusion Inc. (INTZ)

The investor profile for Intrusion Inc. (INTZ) is unique, dominated by a massive insider stake that fundamentally dictates company control, while institutional interest is showing a recent, albeit small, accumulation trend based on 2025 data.

The most important factor here is who actually owns the stock: insiders-executives, directors, and their related parties-hold a staggering 75.80% of the shares outstanding. This means company decisions are defintely controlled internally, not by Wall Street funds.

The Dominance of Insider Ownership

Unlike many publicly traded tech firms, Intrusion Inc. is primarily an insider-owned company. This concentration of ownership means that the strategic direction, capital allocation, and management decisions are heavily influenced by a few key individuals, not external activist pressure. The largest individual shareholder is Raymond T. Hyer, who holds approximately 3.83 million shares, representing about 19.06% of the company. Other significant insider holders include members of the Paxton family, such as Michael L. Paxton and Julie Paxton Puckett, whose combined holdings further solidify this control.

This structure is a double-edged sword for outside investors. It provides stability and alignment between management and ownership, meaning they are playing the long game. But, it also means institutional investors have very little leverage to push for immediate operational or strategic changes, a factor that can limit stock price volatility but also suppress a quick turnaround.

• Raymond T. Hyer: Holds 19.06% of shares.
• Michael L. Paxton: Holds 17.19% of shares.
• Julie Paxton Puckett: Holds 14.14% of shares.

Institutional Buying and Recent Moves in 2025

While insiders hold the majority, institutional investors are showing a net accumulation trend through 2025, indicating growing interest as the company posts sequential revenue growth. The total number of shares owned by institutions increased by 24.55% in the three months leading up to October 2025, bringing the total institutional holdings to roughly 810K shares as of that period. This is a small slice of the pie, but the direction is positive.

The largest institutional holders are typically passive index funds or quantitative managers, which is common for smaller-cap stocks. For instance, Geode Capital Management LLC is a top institutional holder, increasing its position by 18.8% as of August 2025. Vanguard Group Inc and Two Sigma Investments LP are also notable names on the shareholder list. These funds buy for portfolio diversification or quantitative signals, not usually to influence management.

Connecting Investment to Financial Trajectory

The recent insider buying and institutional accumulation coincide with Intrusion Inc.'s improved financial trajectory in 2025. The company reported Third Quarter 2025 revenue of approximately $2.0 million, marking a 31% year-over-year increase and the sixth sequential quarter of revenue improvement. Analysts project the full 2025 fiscal year revenue to reach around $7.3 million. This top-line growth, driven by new customer wins and a contract expansion with the U.S. Department of Defense, is what's attracting new money, even if the net loss remains at approximately $2.1 million for the quarter, or a projected Non-GAAP EPS of -$0.91 for the year.

The insider buying, specifically from Independent Directors in August 2025, where four directors collectively bought over 161,848 shares at $1.73 per share, is a strong signal of conviction in the company's future, especially given the context of the recent revenue growth. This is a classic sign of management putting their money where their mouth is. For a deeper dive into the company's fundamentals, you can check out Intrusion Inc. (INTZ): History, Ownership, Mission, How It Works & Makes Money.

Market Impact and Investor Sentiment

The investor profile for Intrusion Inc. (INTZ) is a study in dichotomy: a highly positive insider view clashes with a cautious, 'show-me' institutional and analyst stance. You're looking at a micro-cap cybersecurity firm with a market capitalization of just $25.732 million as of November 2025, a size that naturally amplifies the impact of any single large trade.

The consensus from Wall Street analysts is currently a 'Hold' rating, which is a neutral position, but that masks a significant split. Out of three recent analyst ratings, you have one 'Buy,' one 'Hold,' and one 'Sell,' which tells me the market isn't defintely sure about the near-term trajectory. Still, the average 12-month price target sits around $5.33 to $7.00, implying a massive potential upside of up to 446.88% from the current price, but that upside is dependent on the company delivering on its growth strategy.

Insider Confidence vs. Institutional Skepticism

The most compelling signal comes from those running the company. Insider sentiment for Intrusion Inc. is strongly 'Positive,' driven by high-impact open-market purchases. Insiders, including key directors, have been consistently buying shares, with over $3.81 million in high-impact open-market purchases over the last year. For example, on August 21, 2025, four independent directors each bought 40,462 shares at a price of $1.73 per share. This kind of conviction is a powerful, concrete signal you can't ignore.

In contrast, institutional ownership remains low, with institutions holding only about 4.10% of the stock, or around 976,945 shares. This is a red flag, as major funds typically require higher liquidity and a proven path to profitability. The largest institutional holders, such as Vanguard Group Inc and Geode Capital Management, LLC, are mostly passive index funds, meaning their positions are dictated more by the company's inclusion in a benchmark than by an active investment thesis. Low institutional float means the stock can be highly volatile.

• Insider ownership is high at 75.80%.
• Institutional ownership is low, around 4.10%.
• Insider buying totaled over $3.81 million in the last year.

Recent Market Reactions to Financials

The stock's reaction to recent earnings shows the market is focused squarely on the bottom line, despite top-line growth. In Q3 2025, Intrusion Inc. reported revenue of approximately $2.0 million, a strong 31% year-over-year increase, marking the sixth consecutive quarter of sequential revenue improvement. Here's the quick math: that's a great growth story, but the market punished the stock because the net loss widened slightly to $2.1 million (or $0.10 per share), missing the non-GAAP EPS estimate of -$0.097. The stock dropped about 3.9% in after-hours trading following that news.

Compare that to the Q2 2025 results: revenue of $1.9 million (a 28% YoY increase) and a net loss of $2.0 million, which was met with a 5.52% aftermarket stock increase. The difference in reaction highlights a key investor risk: the market will tolerate losses, but only if the revenue growth narrative is flawless and the loss doesn't exceed expectations. For a deeper dive into the company's fiscal health, you should read Breaking Down Intrusion Inc. (INTZ) Financial Health: Key Insights for Investors.

Analyst Projections and The Profitability Hurdle

Analysts are betting on continued revenue momentum but acknowledge the profitability challenge. The consensus revenue forecast for the 2025 fiscal year is approximately $7.89 million, which would be a significant increase from the prior year. However, the projected Earnings Per Share (EPS) for the 2025 fiscal year remains negative at -$0.39. The investment thesis, therefore, hinges on the company's ability to transition its sixth consecutive quarter of sequential revenue growth into an actual profit. They are trying to grow their customer base and deliver improved financial results, but it's a tightrope walk.

Your action here is to watch for operational leverage (gross margin minus operating expenses). Intrusion Inc. reported a solid gross profit margin of 77% in Q3 2025, but operating expenses were $3.6 million, which is a clear headwind against the $2.0 million in revenue. They need to grow revenue faster than those expenses.

The next concrete step is to monitor the Q4 2025 revenue and EPS estimates, which analysts project at $2.2 million and -$0.0765 respectively. If they beat the revenue number and narrow the loss, the stock should react positively, confirming the insider's bullish view.