Intrusion (INTZ) Q2 2026 earnings summary

Executive summary

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

• Net loss increased to $2.6 million ($0.13 per share) for the quarter, reflecting lower revenues and higher operating expenses.

• Acquired 60% of VigilAigent for $2.0 million, adding $3.5 million in annual recurring revenue and expanding commercial reach, with an agreement to acquire the remaining 40% pending regulatory approvals.

• Signed a $4 million annual contract for cyber threat intelligence with the state of Texas.

• Identified over $3 million in annualized cost synergies from the VigilAigent integration.

Financial highlights

• Q2 2026 revenue: $1.5 million, up 64% sequentially, down 22% year-over-year; six-month revenue: $2.3 million (down from $3.6 million prior year).

• 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 for Q2 2026 was $2.6 million ($0.13 per share), compared to $2 million ($0.10 per share) in Q2 2025.

• 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 profitability targeted for 2027.

• PortNexus program and VigilAigent acquisition expected to drive revenue growth, with PortNexus contributing meaningfully in 2027.

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