INTZ · Intrusion Inc.

Intrusion Inc. reported first quarter 2026 results that reflected significant headwinds from federal funding and procurement delays. Revenue dropped 50% year-over-year to $0.9 million, primarily due to a delay in a key U.S. government contract with the Department of War. Despite the revenue decline, gross profit margin remained healthy at 74%, down only slightly from the prior year, indicating stable product mix. Operating expenses increased by $0.8 million to $4.2 million, driven by higher sales and marketing and R&D investments, contributing to a net loss of $3.6 million ($0.18 per share) compared to a net loss of $2.1 million ($0.11 per share) in the same quarter last year. Management expressed confidence that the delayed revenue will be recovered in future periods as federal funding resumes. The company highlighted several positive developments: a $4 million contract with a state government agency for cyber threat intelligence and critical infrastructure protection, a $3 million secured financing agreement entered in early April to strengthen liquidity, and the launch of the P.O.S.S.E Program in partnership with PortNexus. As of March 31, 2026, cash and cash equivalents stood at $1.4 million, but the subsequent $3 million financing provides additional runway. CEO Tony Scott reiterated the company's expectation to achieve profitability by the end of fiscal 2026, supported by sales momentum and new contracts. The press release also included cautionary language regarding forward-looking statements and provided details for a conference call held on May 14, 2026.