Intrusion Inc. (INTZ): BCG Matrix [Dec-2025 Updated]

You're trying to make sense of Intrusion Inc.'s late 2025 position, and frankly, the numbers tell a story of high-stakes tension: the company is posting a strong 31% YoY revenue growth, yet it's sitting on a $2.1 million net loss for Q3 2025. We've mapped their portfolio using the BCG Matrix, revealing that while stable Consulting services with a 77% gross margin are funding the operation, the core Intrusion Shield product remains a high-risk Question Mark fighting for share. Let's break down exactly where the capital is flowing and which assets are truly set to become Stars-or which ones you might need to cut loose.

Background of Intrusion Inc. (INTZ)

Intrusion Inc. (INTZ) is a cybersecurity company headquartered in Plano, Texas, with roots tracing back to its founding in 1983. The company offers its customers access to an exclusive threat intelligence database that holds historical data, known associations, and reputational behavior for Internet Protocol addresses.

The core of Intrusion Inc.'s offering centers on its solutions, which include INTRUSION Shield, a zero trust reputation-based Software as a Service (SaaS) product designed to inspect and stop dangerous network connections. They also provide INTRUSION TraceCop, a big data tool for forensic investigations, and INTRUSION Savant, a network monitoring solution. Intrusion Inc. serves US federal, state, and local government entities, along with mid-market to large enterprises, utilizing a direct sales force and value-added resellers.

As of late 2025, the company's strategy heavily involves expanding its work under a significant contract with the U.S. Department of Defense (DoD), which drives revenue through both its Shield technology and associated consulting services. This focus on critical infrastructure protection has contributed to consistent top-line expansion.

Financially, Intrusion Inc. reported its third quarter 2025 results for the period ending September 30, 2025. Total revenues for Q3 2025 reached approximately $2.0 million, marking a 31% increase year-over-year and representing the sixth consecutive quarter of revenue improvement. The gross profit margin remained strong at 77% for the quarter.

Despite the revenue growth, the company posted a net loss of $2.1 million, or $0.10 per share, in the third quarter of 2025, which was flat compared to the prior year's performance. Operating expenses for that quarter were $3.6 million. On the balance sheet, following a receivable collection on October 1st, the combined cash and short-term investment position stood at $7.5 million, which management believed was sufficient to fund operations into early 2026.

A key product milestone in 2025 was the launch of Intrusion Shield Cloud on the AWS Marketplace, intended to simplify deployment and accelerate customer acquisition, especially among smaller businesses. The company, led by CEO Tony Scott, is also anticipating the launch of a Shield build for Microsoft Azure.

Intrusion Inc. (INTZ) - BCG Matrix: Stars

You're looking at the high-growth segment of Intrusion Inc.'s portfolio, which, by the strict definition of the matrix, doesn't yet house a true Star because the entire business unit is currently a net loss. Intrusion Inc. posted a net loss of $2.1 million for the third quarter of 2025. Still, the characteristics pointing toward Star potential are quite evident in the top-line performance and key contract anchors.

The primary metric suggesting Star status is the company's market growth trajectory. Intrusion Inc. achieved a year-over-year revenue growth of 31% in Q3 2025, marking the sixth consecutive quarter of sequential top-line improvement. This high growth rate is exactly what you look for in a Star, as it indicates strong market acceptance and a rapidly expanding market space, even if it currently consumes cash to fuel that expansion.

Product stickiness, a key trait for a future Cash Cow, is strongly suggested by the customer retention figures. Intrusion Inc. reported near-zero customer churn during the period. That near-zero figure is a powerful indicator that the installed base finds substantial, recurring value in the Shield technology, which is essential for sustaining market share as the market matures.

The most concrete Star-like anchor is the government business, specifically the Department of Defense (DoD) engagement. The expansion of the DoD contract resulted in a cash injection of an additional $3.0 million received subsequent to the quarter end. This positions a core part of the business within a high-growth, high-commitment government sector, often a precursor to establishing a dominant market share position.

Here's a quick look at the Q3 2025 financial snapshot that frames this high-growth, high-investment quadrant:

The current investment posture reflects the need to support this high growth, which is why the net loss remains flat year-over-year at $2.1 million. Management is clearly pouring resources into scaling the business, evidenced by operating expenses rising to $3.6 million in the quarter. The strategy here is to invest heavily now to solidify market leadership before the high-growth phase slows down.

The elements supporting the Star thesis are:

• Sixth consecutive quarter of sequential top-line growth.
• Launch of Intrusion Shield Cloud on the AWS Marketplace.
• Strong momentum from the PortNexus partnership.
• Total liquidity post-DoD collection stands at $7.5 million.
• The DoD infrastructure monitoring product is management's most successful product currently.

If Intrusion Inc. can maintain this 31% growth rate while successfully migrating the revenue mix toward the higher-margin Shield product-which saw only a modest year-over-year increase to $0.5 million-and then see the market growth decelerate, this segment is positioned to become a Cash Cow. Finance: draft 13-week cash view by Friday.

Intrusion Inc. (INTZ) - BCG Matrix: Cash Cows

You're looking at the segment that provides the bedrock for Intrusion Inc. (INTZ) right now, the one that acts like the classic Cash Cow in the BCG framework: high market share in a mature, stable area, generating more cash than it consumes to support the rest of the business. For Intrusion Inc. (INTZ), that's the Consulting and Professional Services unit.

This segment accounted for $1.5 million of the total $2.0 million in Q3 2025 revenue. That's a massive 75% concentration of the top line in this one area. To be fair, the overall Q3 2025 revenue was up 31% year-over-year, marking the sixth sequential quarter of improvement, but the stability comes from this service line. This consulting work provides the most stable, high-margin revenue base, showing a Gross Margin of 77% in Q3 2025, which is what helps fund the necessary Research and Development (R&D) for the newer products. Still, this revenue stream is highly concentrated; for context, U.S. government entities made up 92% of the total revenue back in Q1 2025, showing where that reliable cash flow originates.

Honestly, this service line is the closest thing Intrusion Inc. (INTZ) has to a true Cash Cow. It generates the reliable cash flow needed to cover the $3.6 million in Q3 2025 operating expenses, which are necessary investments to support growth. Because this market is mature and the company has established its position, promotion and placement investments are low here, allowing the company to 'milk' the gains passively, just as the theory suggests. Here's the quick math on that Q3 revenue base:

The goal, as you know, is to use this reliable cash flow to support the Question Marks-the newer product offerings-and maintain this core business. You want to invest just enough into infrastructure to keep this segment efficient and maximize that cash flow. The company is definitely focused on maintaining this level of productivity, evidenced by the strong gross margin.

• Consulting and Professional Services Revenue (Q3 2025): $1.5 million
• Total Q3 2025 Revenue: $2.0 million
• Segment Gross Margin (Q3 2025): 77%
• Total Operating Expenses Covered (Q3 2025): $3.6 million
• Government Revenue Concentration (Q1 2025): 92%

If onboarding takes 14+ days, churn risk rises, but the near-zero churn reported in Q1 suggests the government relationships are sticky. Finance: draft 13-week cash view by Friday.

Intrusion Inc. (INTZ) - BCG Matrix: Dogs

Dogs are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

Legacy products like Intrusion TraceCop and Intrusion Savant, which are not the primary focus for growth, reside within the largest, most established revenue stream that Intrusion Inc. currently reports. For the third quarter of 2025, total revenue was approximately $2.0 million. Within this, the consulting revenue segment, which likely houses the established, older solutions, accounted for $1.5 million of that total. This segment represents a significant 75% of the total quarterly revenue base.

These older solutions likely have low market share and are in slower-growth, niche segments compared to cloud security. The strategic focus is clearly shifting to the newer INTRUSION Shield product, which generated $0.5 million in revenue for the third quarter of 2025. While the consulting revenue grew by $1.0 million year-over-year in Q3 2025, management's stated plan is to shift the revenue mix more toward the Shield product and the commercial sector over time. This indicates the consulting base, where the legacy products reside, is the lower-growth component that Intrusion Inc. is not prioritizing for future investment.

These business units consume resources without contributing meaningfully to the sequential revenue growth trend that is being driven by new Shield adoption and contract expansion. The company is still operating at a loss, with a net loss of $2.1 million for the three months ended September 30, 2025. This loss, despite a strong gross profit margin of 77% in the quarter, suggests that the operational expenses required to support the entire business, including the legacy components, are not being offset by their contribution to new growth.

The high concentration risk on a few government contracts is a Dog-like vulnerability for the overall business model. For the three months ended September 30, 2025, sales to U.S. government entities represented 96.7% of total revenues. This extreme reliance means that the cash flow from the established, legacy-heavy consulting base is tied to the timing and renewal of a very small number of large government awards, which is the definition of a high-risk, low-flexibility position.

Here's a quick look at the revenue composition for Q3 2025:

The operational reality for these legacy components is that they are not the engine for future growth, but rather the base that must be managed while the company invests heavily elsewhere. The company's strategy suggests minimizing the cash trap effect by shifting focus.

• Legacy/Consulting Revenue (Q3 2025): $1.5 million.
• Shield Revenue (Q3 2025): $0.5 million.
• Government Revenue Concentration (Q3 2025): 96.7%.
• Gross Profit Margin (Q3 2025): 77%.
• Net Loss (Q3 2025): $2.1 million.

What this estimate hides is the specific profitability of the legacy products versus the newer Shield offerings, but the strategic pivot away from consulting revenue strongly implies the former are Dogs.

Intrusion Inc. (INTZ) - BCG Matrix: Question Marks

You're looking at the business units with high potential but low current market penetration. For Intrusion Inc. (INTZ), the core focus here is the Intrusion Shield platform, especially the newer Shield Cloud offering. These products are fighting for share in the cloud security market, which is definitely a high-growth area, but Intrusion Inc. still holds a low relative market share against the established giants.

The financial reality of this quadrant is clear: these units consume cash while they build traction. For the third quarter ended September 30, 2025, the revenue specifically attributed to the Shield product line was only about $0.5 million. This figure was flat quarter-over-quarter but represented a year-over-year increase of $0.1 million. To put this into context against the whole company's top line, total Q3 2025 revenue was $2.0 million, with consulting services accounting for the remaining $1.5 million.

The strategy to force market adoption involves significant investment, which directly impacts the bottom line. The launch of Shield Cloud on the AWS Marketplace is a high-investment, high-risk move designed to quickly capture market share in that growing segment. This push for growth is why the company recorded a net loss of $2.1 million for Q3 2025, which was flat compared to the prior year's net loss. The company is spending to gain ground, with operating expenses reaching $3.6 million in the quarter.

The path forward for these Question Marks requires a decision: invest heavily to turn them into Stars, or divest. Intrusion Inc. is clearly choosing the investment route for now, aiming to shift the revenue mix away from consulting and toward the Shield technology. The company is banking on these strategic moves to drive future profitability, supported by a healthy gross profit margin of 77% on total revenue.

These Question Marks demand cash to fuel their growth trajectory. Here's a quick look at the investment and cash position supporting this strategy:

• Shield revenues were $0.5 million, flat sequentially.
• Net loss was $0.10 per share for the quarter.
• Operating expenses of $3.6 million reflect strategic spending.
• The company received a $3.0 million cash collection on October 1st.
• Total liquidity reached $7.5 million after the receivable collection.
• The company plans for an upcoming standalone Shield build for Microsoft Azure integration.