Intrusion (INTZ) Q2 2026 earnings summary

Executive summary

• Q2 2026 saw 64% sequential revenue growth to $1.5 million, but revenue declined 22% year-over-year due to delays in government contract renewals and lower INTRUSION Shield sales.

• The VigilAigent acquisition added $3.5 million in annual recurring revenue, expanded the customer base, and enhanced AI-driven cybersecurity capabilities.

• Signed a $4 million annual contract with the state of Texas for critical infrastructure protection.

• Net loss increased to $2.6 million for the quarter, reflecting lower revenues and higher operating expenses.

• The company is focused on building recurring revenue, expanding commercial reach, and leveraging AI-driven solutions.

Financial highlights

• Q2 2026 revenue was $1.5 million, up 64% sequentially but down 22% year-over-year; six-month revenue was $2.3 million.

• Gross profit margin was 66% for Q2 2026, down from 76% in Q2 2025.

• Operating expenses totaled $3.4 million in Q2 2026, down $0.8 million sequentially.

• Net loss was $2.6 million ($0.13 per share) for Q2 2026.

• Cash and cash equivalents stood at $0.2 million as of June 30, 2026.

Outlook and guidance

• Management expects continued improvement in financial results and revenue quality in the second half of 2026, with a goal of achieving profitability and positive cash flow in 2027.

• Revenue growth is expected from government and commercial contracts, recurring VigilAigent revenue, and new market expansion.

• Substantial doubt exists about the ability to continue as a going concern within one year due to ongoing losses and negative cash flows.

• Plans to raise additional funds through public or private financings, including an ATM program, but no assurance of success.

• PortNexus partnership and new integrations are expected to contribute meaningful revenue starting in 2027.