Intrusion Inc. (INTZ): Business Model Canvas [Dec-2025 Updated]

You're looking for a clear, no-nonsense map of Intrusion Inc.'s business model right now, and honestly, the Q3 2025 numbers tell a compelling, if concentrated, story: they banked $2.0 million in revenue with a fantastic 77% gross margin, largely fueled by their focus on pre-breach prevention for the U.S. Government. As a former analyst, I see a clear pivot toward channel sales via partners like PortNexus, balancing their deep R&D investment in things like OT Defender against their $7.5 million cash position. If you want to see precisely how their value proposition of real-time protection translates across their customer segments and what that means for their cost structure, check out the full nine-block breakdown we've laid out for you below.

Intrusion Inc. (INTZ) - Canvas Business Model: Key Partnerships

You're looking at how Intrusion Inc. (INTZ) structures its external relationships to get its security products to market, which is crucial when you see their overall Shield revenues were only $0.5 million in the third quarter of 2025, even as total revenue hit $2.0 million for that same period.

The Key Partnerships block is where Intrusion Inc. (INTZ) multiplies its reach beyond its direct sales force. They are clearly focused on embedding their technology where customers already operate, which is smart for a company with operating expenses of $3.6 million in Q3 2025.

PortNexus for Shield Endpoint/MyFlare solution

The relationship with PortNexus, utilizing their MyFlare platform, is noted for driving 'Strong momentum for Shield Endpoint product.' This partnership is strategically aimed at the education and public sectors, where the CEO noted the sales cycle is 'remarkably short,' suggesting a recipe for fast, repeatable revenue.

Amazon Web Services (AWS) Marketplace for Shield Cloud distribution

Intrusion Inc. (INTZ) achieved a significant milestone by launching Intrusion Shield Cloud in the AWS Marketplace in October 2025. This move is intended to drive long-term growth and incremental revenue by positioning the enforcement engine where innovation is happening. While the general availability was announced in Q2 2025, management expected revenue contributions from this channel to begin in the second half of 2025. This is a key vector for shifting the revenue mix away from consulting, which accounted for $1.5 million of the Q3 2025 total revenue of $2.0 million.

Channel partners and Managed Service Providers (MSPs/MSSPs)

Intrusion Inc. (INTZ) is actively working on a revamp of its channel program and pricing mechanics specifically for MSPs/MSSPs. This focus on the channel is essential because reaching the mid-market and SMB segments is 'really hard' without strong partnerships. While we don't have Intrusion Inc.'s specific partner numbers, the broader market context shows the caliber of partners they aim to work with; the average company on the 2025 Channel Partners MSP 501 list reported $29.4 million in total revenue and $16 million in recurring revenue.

Technology partners for future Azure cloud integration

The strategy includes expanding the cloud marketplace footprint to Microsoft's Azure Cloud platform. As of the Q3 2025 earnings call on November 11, 2025, the company was preparing for the launch of Shield Cloud on Azure 'later this quarter or early in the first quarter of 2026.'

Here's a quick look at the key partnership initiatives and relevant data points:

The company's ability to execute on these partnerships directly impacts its ability to grow Shield revenues beyond the $0.5 million seen in Q3 2025, which is the goal to shift the revenue mix.

Intrusion Inc. (INTZ) - Canvas Business Model: Key Activities

You're looking at the core actions Intrusion Inc. (INTZ) is taking to keep the lights on and grow, based on their late 2025 operational snapshot. It's all about execution right now, especially turning those government wins into repeatable commercial success.

Developing and enhancing INTRUSION Shield and TraceCop products.

The Shield product suite is clearly the engine, driving the top line. For the third quarter of 2025, Shield revenues specifically totaled $0.5 million. Intrusion Inc. achieved its sixth sequential quarter of revenue improvement, with total Q3 2025 revenue hitting $2.0 million, a 31% increase year-over-year. This product focus is working, evidenced by maintaining near 0 customer churn during the period. The company also made a key move to broaden reach by launching Intrusion Shield Cloud on the AWS Marketplace in August 2025, with an Azure Marketplace presence anticipated later in 2025.

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

Securing and executing large U.S. Department of Defense (DoD) contracts.

The government sector is a massive driver of current financial activity. In the second quarter of 2025, Intrusion Inc. secured an additional $3.0 million for continued Department of Defense contract support. This funding is directly tied to operational deployment and threat analysis. The Q3 2025 revenue increase of 31% year-over-year was largely driven by the expansion of work performed under this Department of Defense contract, which utilizes both Shield technology and consulting services. The company's liquidity position was bolstered on October 1st when it received $3.0 million in cash from trade receivables related to this DoD work, bringing the combined cash and short-term investment position to $7.5 million.

Investing in R&D for critical infrastructure protection (OT Defender).

While a specific R&D spend number for OT Defender isn't itemized, the activity is funded through operational spending and contract execution. The Department of Defense contract extension explicitly funds the operational deployment of critical infrastructure monitoring tools. For Q3 2025, operating expenses were $3.6 million, which management noted reflects continued strategic investments to drive growth. The company remains committed to disciplined spending while investing to support growth over the coming quarters.

Key investment focus areas include:

• Funding operational deployment of critical infrastructure monitoring tools.
• Deepening research-driven threat analysis capabilities.
• Continued strategic investment reflected in $3.6 million Q3 2025 operating expenses.

Revamping go-to-market strategy for channel sales.

The focus is definitely shifting to expand beyond the heavy government concentration seen in Q1 2025, where sales to U.S. government entities represented 92% of revenues. The company is actively working to accelerate customer acquisition through partners. In Q2 2025, management noted reseller restructuring aimed at improving partner productivity and Managed Service Provider (MSP) reach. A specific example of this channel activity is the strong momentum seen with the partner PortNexus, which is advancing the deployment of the MyFlareAlert platform using Intrusion Inc.'s Shield Endpoint product. The company also launched Shield Cloud on the AWS Marketplace to access broader commercial segments.

Here are the operational expense trends that support these sales and marketing efforts:

• Q2 2025 Operating Expenses: $3.5 million.
• Q3 2025 Operating Expenses: $3.6 million (up $0.1 million sequentially).
• Q1 2025 saw a 'new commercial go-to-market partnership.'

Intrusion Inc. (INTZ) - Canvas Business Model: Key Resources

You're looking at the core assets Intrusion Inc. (INTZ) relies on to deliver its cyberattack prevention services as of late 2025. These aren't just line items on a balance sheet; they are the engine for their value proposition.

The most immediate tangible resource is liquidity. As of October 1, 2025, following a $3.0 million cash receipt from a trade receivable related to a contract extension, the combined cash and short-term investments position stood at approximately $7.5 million. This figure is comprised of the $2.5 million in cash and cash equivalents and $2.0 million in short-term investments in U.S. Treasuries reported on September 30, 2025. Management stated this liquidity was believed sufficient to fund operations through the end of 2025 and into early 2026.

The competitive edge for Intrusion Inc. is heavily weighted on its proprietary data and the technology stack built upon it. This forms the foundation for their reputation-based security approach.

The technology stack is being actively expanded into cloud marketplaces. For example, the launch of Intrusion Shield Cloud on the AWS Marketplace was cited as a meaningful milestone for long-term growth, with plans for a Microsoft Azure marketplace launch also in the works.

Human capital is critical, especially given the nature of the business, which includes specialized consulting services alongside product sales. The firm's expertise is concentrated in cybersecurity consulting and engineering personnel who support the deployment and use of their technology, particularly for government contracts.

Here's the quick math on personnel as of the end of 2024, which informs the current structure:

• Total Employees (as of December 31, 2024): 50
• Full-Time Employees (as of December 31, 2024): 45
• Consulting Revenue Contribution (Q3 2025): $1.5 million

What this estimate hides is the specific breakdown between engineering, sales, and pure consulting roles in late 2025, though operating expenses increased by $0.4 million year-over-year in Q3 2025, partly due to 'minor changes to staffing'. The expertise required to secure contracts like the U.S. Department of Defense award is a non-replicable asset.

Finance: draft 13-week cash view by Friday.

Intrusion Inc. (INTZ) - Canvas Business Model: Value Propositions

You're looking at how Intrusion Inc. delivers unique value to its customers, which is the core of their business model. It's not just about stopping attacks; it's about stopping them before they happen, especially where it matters most.

Real-time, Pre-Breach Cyberattack Prevention (Shield)

The primary value proposition centers on the Shield technology, which focuses on prevention rather than just detection after the fact. This is a key differentiator in the market. For the third quarter of 2025, revenue specifically attributed to the Shield product line was approximately $500,000, which represented an increase of about $100,000 year-over-year. Intrusion Inc. achieved its sixth sequential quarter of top-line growth in Q3 2025, indicating consistent demand for its offerings. The company also expanded its reach by launching Intrusion Shield Cloud on the AWS Marketplace.

Here's a quick look at how Shield revenue stacks up against the total revenue for Q3 2025:

Protection for Operational Technology (OT) and Critical Infrastructure

A significant part of the value delivered is specialized protection for Operational Technology (OT) and critical infrastructure environments. This focus is validated by substantial government contracts. For instance, the company received an additional $3.0 million in funding from the U.S. Department of Defense (DoD) in July 2025 to support ongoing research and the deployment of critical infrastructure monitoring tools. This same DoD contract expansion drove revenue growth, with the company shipping over 230 units of its critical infrastructure device. The DoD award is described as the company's most successful product at this particular point.

The value extends through specific product support:

• Funding supports OT Defender, Shield, and analytical services.
• Deployment of monitoring technologies for safeguarding critical infrastructure.
• The cumulative revenue for the first three quarters of 2025 reached $5.61 million.

Decoupled Solution Integrates with Existing Firewalls

Intrusion Inc. offers a solution designed to work within existing security stacks, which lowers the barrier to adoption for enterprises already invested in major security platforms. While direct integration statistics with specific vendors like Cisco or Palo Alto aren't explicitly detailed in the latest reports, the strategy is evident through platform availability. The launch of Intrusion Shield Cloud on the AWS Marketplace is a concrete step toward broad integration across modern infrastructure. Furthermore, partner-driven adoption of Shield Endpoint via PortNexus shows the solution is being embedded into other platforms, such as the MyFlareAlert platform used in education and law enforcement sectors.

High Product Stickiness Demonstrated by Near-Zero Customer Churn

The stickiness of the value proposition is directly reflected in customer retention metrics. For the third quarter of 2025, the company reported experiencing near zero customer churn. This level of retention strongly suggests that once deployed, the solution provides indispensable, high-value protection that customers are unwilling to lose. This is a powerful indicator of product-market fit, especially when contrasted with the net loss reported for the quarter, which was $2.1 million. The company's liquidity position, which stood at $7.5 million in combined cash and short-term investments as of October 1, 2025, is intended to fund operations through the remainder of 2025 and into early 2026.

The stickiness is further supported by the fact that revenue has improved sequentially for six consecutive quarters as of Q3 2025.

Finance: draft 13-week cash view by Friday.

Intrusion Inc. (INTZ) - Canvas Business Model: Customer Relationships

You're looking at how Intrusion Inc. (INTZ) manages its most valuable asset-its customers-as of late 2025. The relationship structure is heavily weighted toward high-value, long-term government engagements, supplemented by new, scalable cloud distribution channels.

Dedicated Account Management for High-Value Government Contracts

The relationship with the U.S. government, specifically the Department of Defense (DoD), is the cornerstone of Intrusion Inc.'s current revenue base. This necessitates a highly dedicated, direct account management approach to service these mission-critical needs, which include support for OT Defender, Shield, and analytical services.

The financial commitment from this segment is substantial and recurring, as evidenced by recent funding events:

This concentration means that relationship health is directly tied to federal budget cycles and performance satisfaction within the DoD framework. The company views this segment as offering more stable, long-term income.

Automated Self-Service via Cloud Marketplaces (AWS)

To diversify relationships beyond direct government sales and drive product adoption, Intrusion Inc. is pushing its offerings through automated, self-service digital channels. This shift aims to reduce the friction of initial procurement for commercial and other cloud-native customers.

The key move here was the formal availability of their product:

• Intrusion Shield Cloud launched in AWS Marketplace on October 7, 2025.
• The company planned for a Microsoft Azure marketplace launch later in 2025.
• The goal is to drive long-term growth and incremental revenue through these marketplaces.

This strategy is designed to capture revenue from customers who prefer to procure security solutions directly through their existing cloud spend commitments.

Partner-Driven Relationships Through MSPs/MSSPs

For broader market reach, Intrusion Inc. is actively refining its go-to-market approach to better support channel partners, specifically Managed Security Service Providers (MSPs) and Managed Security Service Providers (MSSPs). This involves adjusting the commercial terms to fit partner economics.

The relationship adjustments include:

• Revamping the channel program and pricing mechanics for MSPs/MSSPs.
• Evolving pricing mechanics to suit MSP/MSSP monthly pricing models.
• Maintaining current price levels while easing adoption for partners.

This focus suggests a move toward scalable, indirect sales relationships where partners manage the day-to-day customer interaction.

Strong Retention Indicated by Near-Zero Churn

Customer stickiness is a critical indicator of value realization, and Intrusion Inc. has reported strong performance in this area, which supports the long-term viability of its recurring revenue base, particularly for the Shield product line.

The retention metrics reported through mid-2025 include:

• Achieved fifth sequential quarter of revenue improvement (as of Q2 2025).
• Reported near-zero customer churn as of Q2 2025.
• Shield revenue saw growth in Q3 2025, offsetting the loss of a major customer.

You need to keep an eye on how the new Shield Cloud revenue contribution in the second half of 2025 compares to the revenue lost from that major customer.

Intrusion Inc. (INTZ) - Canvas Business Model: Channels

You're looking at how Intrusion Inc. (INTZ) gets its cybersecurity intelligence and prevention products, like Intrusion Shield, into the hands of its customers as of late 2025. The channel strategy is heavily weighted toward the public sector, but there's clear movement into commercial cloud distribution.

Direct sales to U.S. government entities (DoD contract expansion)

Direct sales to the U.S. government remain the bedrock of Intrusion Inc.'s revenue generation. This channel is characterized by deep, mission-critical relationships, exemplified by the recent contract activity. The company highlighted an expanded $3 million Department of Defense (DoD) contract extension during the second quarter of 2025, which is already generating incremental revenue. This government focus is not new; for the three months ended September 30, 2025, sales to U.S. government entities accounted for 96.7% of total revenues. For the nine months ended September 30, 2025, this figure was 94.7% of total revenues. The Q3 2025 revenue growth of 31% year-over-year was largely attributed to this contract expansion for critical infrastructure solutions. This channel demonstrates a high degree of customer retention, with management noting near-zero customer churn in Q2 2025.

Cloud marketplaces like AWS Marketplace for Shield Cloud

A key strategic push for channel expansion involves public cloud marketplaces, designed to broaden commercial reach. Intrusion Inc. completed development work for its Intrusion Shield technology release into the AWS Marketplace during the second quarter of 2025. The launch of Intrusion Shield Cloud on the AWS Marketplace occurred in the third quarter of 2025, which the CEO views as a meaningful milestone for long-term growth. Furthermore, the company is planning for an Azure Marketplace presence later in the year, post-Q3 2025. This move is intended to drive incremental revenue by making the product easily accessible to a wider set of commercial cloud users.

Reseller and channel partner network (e.g., PortNexus)

The reseller and channel partner network is being actively built out to increase sales pipeline and reach. A specific example of channel success is the strong momentum seen with the Shield Endpoint product through its solution partner, PortNexus. This partnership is advancing the deployment of the MyFlareAlert platform, and management anticipates further adoption in the quarters following September 30, 2025. The company has been focused on building out this platform to progress customer prospects through the sales lifecycle. The 2024 annual report indicated that commercial sales, which would include channel activity, represented 16.2% of total revenue.

Direct sales force targeting large commercial and critical infrastructure

While the government segment dominates, direct sales efforts are focused on large commercial enterprises, particularly those in critical infrastructure, which aligns with the DoD focus. The Shield product segment showed specific growth metrics in Q2 2025. Shield revenues reached $500,000 in Q2 2025, which was an increase of $100,000 sequentially and $200,000 compared to the prior year period. Consulting revenues, which often involve direct engagement, were $1.4 million in Q2 2025. Here's the quick math on the revenue mix from Q2 2025, showing the split between direct/consulting and product sales:

The overall revenue for Q3 2025 was approximately $2.0 million, showing continued sequential improvement. What this estimate hides is the exact split between pure direct sales force wins and channel partner contributions within the commercial segment, though the PortNexus momentum suggests channel sales are growing.

Finance: draft 13-week cash view by Friday.

Intrusion Inc. (INTZ) - Canvas Business Model: Customer Segments

You're looking at the core of Intrusion Inc. (INTZ)'s revenue engine, which, as of late 2025, is overwhelmingly concentrated in the public sector, though commercial expansion is a stated priority. Honestly, the reliance on government contracts is the single biggest factor influencing near-term financial stability and risk assessment.

The customer segments are clearly defined by their relationship with the U.S. government and their need for advanced cyberattack prevention, particularly around critical assets.

The company is actively working to shift this mix, but the government segment remains the bedrock. Here's the quick math: a 96.7% concentration in a single sector creates significant exposure to federal budget cycles, which management noted previously caused deal delays. What this estimate hides is the exact split between Federal vs. State/Local within that 96.7%.

The focus on specific high-value sectors outside of the general government bucket is clear:

• Critical Infrastructure operators: This area is viewed as a highly promising market due to escalating risks from ransomware and supply chain threats targeting vital assets.
• Education and Law Enforcement sectors: Momentum is being built through the PortNexus partnership, which is embedding the Shield Endpoint product.
• Large commercial and manufacturing enterprises: These entities, referred to as large conglomerates, are a target for expansion, supported by new channel program mechanics for Managed Security Service Providers (MSSPs).

The growth in Shield revenues, which was $0.4 million in Q1 2025, is expected to come from these non-consulting, product-focused segments, including the launch of Shield Cloud on the AWS Marketplace in Q2 2025, with expected revenue contributions in the second half of 2025.

Finance: draft 13-week cash view by Friday.

Intrusion Inc. (INTZ) - Canvas Business Model: Cost Structure

You're looking at the cost side of Intrusion Inc. (INTZ) as of late 2025. The focus here is on the spending required to keep the lights on and, more importantly, to fuel the growth they are targeting with Intrusion Shield.

The High operating expenses (OpEx) of $\mathbf{\$3.6 \text{ million}}$ in Q3 2025 set the baseline for ongoing costs. This figure represents a $\mathbf{\$0.4 \text{ million}}$ increase compared to the third quarter of 2024, showing spending is ramping up to support the business expansion. To be fair, this OpEx level resulted in a net loss of $\mathbf{\$2.1 \text{ million}}$ for the same quarter.

The structure of these expenses points directly to the strategy of driving growth through investment, which is a key component of the Cost Structure block. The company explicitly notes that they may increase investment in product development and sales and marketing to accelerate customer base growth, which will naturally lead to higher operating expenses going forward.

Here's a look at the key financial metrics for Q3 2025 that frame the cost environment:

The Low Cost of Goods Sold (COGS) relative to revenue is evident when you look at the $\mathbf{77\%}$ gross margin. For Q3 2025, with $\mathbf{\$2.0 \text{ million}}$ in revenue, the implied COGS is only about $\mathbf{\$0.46 \text{ million}}$ ($\mathbf{\$2.0 \text{ million}} - (\mathbf{\$2.0 \text{ million}} \times \mathbf{0.77})$). This high margin suggests the cost to deliver the core security service or product is relatively low once the initial development is complete, which is typical for software and subscription-based security offerings.

The drivers behind the year-over-year OpEx increase highlight where the spending is concentrated:

• Higher share-based compensation from Q1 2025 equity grants.
• Timing of merit increases for personnel.
• Minor changes to staffing levels.

The Significant investment in R&D and sales and marketing to drive growth is a major theme. While the exact Q3 breakdown isn't fully itemized, the sequential OpEx increase from Q2 2025 to Q3 2025 ($\mathbf{\$0.1 \text{ million}}$ increase to $\mathbf{\$3.6 \text{ million}}$) was largely attributed to sales and marketing expense related to trade shows and brand awareness programs. This follows the Q2 trend where the sequential OpEx increase was primarily driven by R&D spending for expanding the critical infrastructure monitoring product offering. So, you see spending hitting both the product side and the go-to-market side.

Regarding Costs of personnel, including share-based compensation, the year-over-year OpEx increase of $\mathbf{\$0.4 \text{ million}}$ is directly linked to this category, specifically mentioning higher share-based compensation and merit increases. This is the cost of retaining and rewarding the team building and selling the solutions.

Finance: draft 13-week cash view by Friday.

Intrusion Inc. (INTZ) - Canvas Business Model: Revenue Streams

You're looking at how Intrusion Inc. (INTZ) is bringing in the money as of late 2025, specifically focusing on the third quarter results ending September 30, 2025. It's clear that the revenue mix is heavily influenced by specific, high-value contracts right now.

The total top-line performance for the third quarter of 2025 hit approximately $2.0 million. That revenue number represents a 31% increase year-over-year, marking the sixth sequential quarter of revenue improvement for Intrusion Inc.. To be fair, this growth is not evenly spread across all offerings; a significant portion is tied to one major client relationship.

Here's the quick math on how that $2.0 million broke down:

The consulting services line item accounted for 75% of the total revenue for the quarter, coming in at $1.5 million. This figure was up $0.1 million sequentially and $0.4 million year-over-year.

The product side, driven by INTRUSION Shield, contributed $0.5 million in Shield revenues for the third quarter. This was relatively flat sequentially but still showed growth of approximately $0.1 million compared to the prior year period.

The primary engine driving the sequential revenue increase was the expansion of work performed under the contract with the U.S. Department of Defense (DoD). This DoD award is a major source, utilizing both the Shield technology and the associated consulting services. You see this institutional demand for advanced threat prevention showing up directly in the consulting revenue line.

From a profitability perspective on the recognized revenue, the gross profit margin for the third quarter of 2025 was 77%. This margin percentage was relatively flat compared to the third quarter of 2024, though the company notes that gross margin can vary based on the product mix realized in any given period.

The revenue streams for Intrusion Inc. in Q3 2025 can be summarized by their primary sources:

• Consulting revenue from the DoD contract: $1.5 million.
• INTRUSION Shield product/subscription revenue: $0.5 million.
• Total Q3 2025 revenue: $2.0 million.
• Gross Margin on revenue: 77%.
• Revenue growth driver: U.S. Department of Defense contract expansion.

Finance: draft 13-week cash view by Friday.