Intelligent Protection Management (IPM) investor relations material

Executive summary

• Q1 2026 revenue increased 15.2% year-over-year to $6.4 million, driven by strong managed IT and procurement revenue, while professional services and subscription revenue declined.

• Loss from operations decreased by over 42% to $0.8 million, reflecting operational improvements and efficiency.

• Net loss was $0.7 million in Q1 2026 versus net income of $0.8 million in Q1 2025, due to a prior-year non-recurring tax benefit.

• Adjusted EBITDA improved by over 65% year-over-year, reaching negative $0.2 million.

• Key operational highlights included a Phoenix data center lease extension through 2032, a strategic AI partnership, and achieving SOC 2 Type 1 compliance.

Financial highlights

• Q1 2026 revenue was $6,354,751, up 15.2% from $5,518,038 in Q1 2025.

• Core managed IT services revenue grew 19% to $3.4 million; procurement revenue rose 78.4% to $1.7 million.

• Professional services revenue declined 33.5% to $483,000; subscription revenue fell 9.7% to $254,000.

• Loss from operations was $0.8 million, down from $1.3 million in Q1 2025.

• Cash and cash equivalents totaled $8.1 million with no long-term debt as of March 31, 2026.

Outlook and guidance

• Focus remains on expanding AI capabilities and managed services through strategic partnerships.

• Plans to accelerate AI solution adoption and enhance core platforms in the second half of 2026.

• Continued pursuit of organic growth and potential M&A opportunities to drive shareholder value.

• Management expects sufficient liquidity for at least one year, with a focus on operational efficiency and growth initiatives.