Intrusion Inc.

What they do

Intrusion offers cybersecurity products and services leveraging a proprietary threat intelligence database of over 8.5 billion IP addresses. Its main product, INTRUSION Shield, is a SaaS solution that blocks malicious network connections. The company also provides INTRUSION TraceCop, a big data tool with IP intelligence, and Savant. Historically focused on government entities, it released its first commercial product in 2021.

Revenue drivers

• INTRUSION Shield — SaaS-based Zero Trust solution; includes on-premise, cloud, and endpoint variants. It is the primary commercial product.
• INTRUSION TraceCop — Big data IP intelligence tool used for forensic investigations; historically sold to government entities.
• Government contracts — Revenue has been significantly tied to U.S. government contracts, with recent delays in a key Department of War contract impacting results.
• VigilAigent — Acquired June 2026, adding approximately $3.5 million in annual recurring revenue from multi-year contracts, though minimal contribution in Q2 2026.

Recent performance

For Q2 2026, revenue was $1.5 million, up 64% sequentially but down 22% year-over-year, with the decline attributed to delays in a key U.S. government contract. Gross margin was 66%, down from 74% in Q1 2026 and 76% in Q2 2025. Net loss for Q2 2026 was $2.6 million, or $(0.13) per share, versus a $2.0 million loss in Q2 2025. Cash and cash equivalents were $0.2 million as of June 30, 2026. The VigilAigent acquisition added $17,000 in revenue and a net loss of $14,000 for the quarter.

Strategy

Management is focused on integrating VigilAigent to create an AI-native cybersecurity platform, with identified potential annualized operating cost synergies of over $3 million. The company is expanding its sales pipeline and commercial platform, aiming to serve larger enterprise customers. It also signed a $4 million annual contract with the state of Texas for threat intelligence and critical infrastructure protection. The stated goal is to transition to profitability in fiscal year 2027.

Risks

• Going concern — The company has substantial doubt about its ability to continue as a going concern due to recurring losses and negative operating cash flows.
• Liquidity — Cash and equivalents were only $0.2 million as of June 30, 2026, requiring additional financing.
• Government contract dependency — Revenue is heavily dependent on U.S. government contracts; delays in the Department of War contract have caused significant revenue declines.
• Acquisition risk — The VigilAigent second closing is subject to conditions including stockholder and Nasdaq approvals, and may not occur by the August 30, 2026 deadline.

Outlook

Management expects a steady improvement in financial results in the second half of 2026, driven by the VigilAigent acquisition and improved revenue quality. They are optimistic that a meaningful portion of the delayed Department of War revenue will be realized in future periods, pending award timing and funding approvals. The company remains on track to achieve profitability in fiscal year 2027.