Intrusion (INTZ) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 saw significant product milestones, including debt elimination, new product launches, and expanded cloud offerings.

• Revenue growth was driven by a major U.S. Department of War contract, but Q4 was impacted by a contract extension delay due to government shutdown and geopolitical events.

• Strategic investments in sales, marketing, and R&D were made to position for sustainable growth and profitability.

• Partnerships, notably with PortNexus, expanded reach into education and law enforcement markets.

Financial highlights

• Full-year 2025 revenue was $7.1 million, up 23% year-over-year.

• Q4 revenue was $1.5 million, down 25% sequentially and 12% year-over-year due to delayed government contract funding.

• Q4 gross margin was 74%; full-year gross margin was 76%, down 93 basis points from 2024.

• Q4 net loss was $2.8 million ($0.14/share); full-year net loss was $9.1 million ($0.46/share), both higher than prior year.

• Cash and equivalents at year-end were $3.6 million.

Outlook and guidance

• Expectation to recognize delayed government contract revenue in the first half of 2026, with high margin impact.

• Anticipates further expansion of critical infrastructure solutions and Shield offerings in 2026.

• Targeting break-even operations by Q3 2026, contingent on new contract wins and no further government shutdowns.

• Continued investment in sales and marketing, with some cost efficiencies expected in other areas.