Intelligent Protection Management (IPM) Q1 2025 earnings summary

Executive summary

• Completed acquisition of Newtek Technology Solutions (NTS) and divested legacy consumer applications, transforming focus to managed technology solutions in cloud infrastructure and cybersecurity sectors.

• Successfully integrated NTS operations, maintaining uninterrupted customer service and positioning for growth through expanded offerings and cross-selling.

• Revenue for Q1 2025 surged to $5.5 million from $0.3 million in Q1 2024, driven by new business lines.

• Net income reached $0.8 million, reversing a $0.5 million loss in Q1 2024, aided by a $2.1 million tax benefit.

• Entered into a referral arrangement with NewtekOne and became an accredited partner for HPE Private Cloud AI.

Financial highlights

• Total revenue for Q1 2025 was $5.5 million, up from $0.3 million in Q1 2024, reflecting a 1931.9% increase post-NTS acquisition.

• Net income for Q1 2025 was $0.8 million, compared to a net loss of $0.5 million in Q1 2024, including a $2.1 million tax benefit.

• Loss from continuing operations was $1.3 million in Q1 2025, including $0.3 million in one-time transaction expenses.

• Adjusted EBITDA was negative $0.5 million for both Q1 2025 and Q1 2024.

• Net cash from operating activities was $1.7 million; cash and equivalents stood at $9.7 million as of March 31, 2025, with no long-term debt.

Outlook and guidance

• Positioned for growth through expanded service offerings, cross-selling, and leveraging the NewtekOne referral arrangement.

• Exploring merger and acquisition opportunities and defending intellectual property to further scale growth.

• Plans to incorporate AI features into secure private cloud offerings.

• Management expects liquidity to be sufficient for at least one year.

• Next financial results update expected in early to mid-August 2025.