Intrusion Inc. reported its third‑quarter 2025 results, posting revenue of $2.0 million—up 31% from $1.55 million a year earlier and beating the consensus estimate of $1.91 million. The growth was driven by a 40% increase in consulting revenue, largely from expanded contracts with the U.S. Department of Defense, and a 20% rise in Shield product sales as the company rolled out its new cloud‑based offering on the AWS Marketplace.
The company’s net loss widened slightly to $0.10 per share, matching the consensus estimate of –$0.10 and remaining flat against the same period a year ago. The loss was driven by a $0.4 million increase in operating expenses, primarily due to higher share‑based compensation, merit‑based salary increases, and staffing adjustments aimed at supporting the new product line. Despite the loss, gross profit margin held steady at 77%, reflecting strong pricing power in the high‑margin Shield segment.
Intrusion’s management highlighted the strategic importance of the DoD contract expansion and the AWS Marketplace launch. CEO Tony Scott said the quarter “continued to make meaningful progress toward sustainable growth and long‑term profitability,” noting that the revenue gains were “largely driven by our recent contract expansion with the U.S. Department of Defense.” He added that disciplined investment and customer‑base growth remain priorities as the company works to convert top‑line momentum into profitability.
Analysts noted that while the revenue beat was encouraging, the flat net loss and rising operating costs signaled that the company is still investing heavily to scale its cloud offerings. The market reaction—an after‑hours decline—was largely attributed to investor focus on the continued loss rather than the revenue upside, underscoring the premium placed on profitability in the cybersecurity sector.
Looking ahead, Intrusion did not provide new quantitative guidance for the next quarter or fiscal year, but the company’s cash position improved to $7.5 million after a $3.0 million DoD contract extension, giving it sufficient liquidity to fund operations through early 2026. The company’s strategic moves—expanding its cloud portfolio and deepening government relationships—are positioned to support future revenue growth, though the path to profitability remains a key focus for management and investors alike.
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