Key Highlights

  • Third-quarter 2026 Revenue was USD 2.7 million, up 84% sequentially and 36% year over year.
  • VigilAigent contributed USD 0.8 million, or 28% of consolidated revenue.
  • Net loss attributable to Intrusion was USD 2.9 million, or USD 0.12 per share.
  • USD 4.0 million of Debt was exchanged for Series B preferred stock on October 29.

Intrusion (NASDAQ:INTZ) reported third-quarter 2026 revenue of USD 2.7 million, against an estimate of USD 2.10 million. Net loss per share was USD 0.12, against an estimate of a loss of USD 0.07. The Nasdaq Capital Market-listed company sells Cybersecurity products and services, and the quarter was its first full period including its VigilAigent acquisition.

President and Chief Executive Officer Tony Scott said revenue growth was driven by the company's contract with the State of Texas and the first full quarter of revenue from VigilAigent. He said the company continues to work on stabilizing its business, integrating VigilAigent and advancing its growth strategy.

Revenue and Customer Mix

Chief Financial Officer Kimberly Pinson said revenue of USD 2.7 million was up 84% sequentially and 36% from the prior-year quarter. VigilAigent contributed USD 0.8 million, or 28% of consolidated revenue, while revenue from pre-acquisition Intrusion was USD 1.9 million, a decrease of USD 48,000, or 2%.

U.S. government customers represented 67% of third-quarter revenue, against 97% in the prior-year quarter, and Shield revenue represented 5% of consolidated revenue, against 25%. For the first nine months of 2026, consolidated revenue was USD 5.0 million, down 11% from USD 5.6 million.

Management said revenue from the USD 3.9 million Texas state agency contract awarded in May has fully offset the loss of Department of War revenue. It said the Texas engagement has so far generated consulting revenue and may create opportunities for Shield deployments, though additional awards are not guaranteed.

Margins, Expenses and Net Loss

Gross profit Margin was 55%, against 66% in the second quarter of 2026 and 77% in the prior-year period. The company said the decrease primarily reflects changes in revenue and product mix, including lower-margin managed services revenue from VigilAigent and lower-margin consulting work under the state agency contract. VigilAigent contributed approximately USD 0.2 million of gross profit at a 23% margin.

Operating expenses were USD 4.3 million, against USD 3.6 million a year earlier and up USD 0.8 million sequentially, with VigilAigent contributing about USD 0.8 million. Pre-acquisition operating expenses were USD 3.4 million, a decrease of USD 0.2 million, or 5%, from the prior-year quarter, and included unplanned professional services and severance associated with staffing reductions that management described as one-time.

Management listed recent cost steps: eliminating five full-time positions, voluntary reductions in cash compensation for senior management and board members in exchange for equity, ending the use of certain contractors and cutting discretionary sales and Marketing spending.

Net loss attributable to Intrusion was USD 2.9 million, or USD 0.12 per share, against USD 2.1 million, or USD 0.10 per share. Management said the increase reflected higher consolidated operating expenses and financing costs, with interest expense of USD 397,000, against USD 17,000.

Liquidity and Strategy

Cash and cash equivalents were USD 0.4 million at September 30, 2026. On October 29, 2026, the company exchanged USD 4.0 million of outstanding debt for Series B preferred stock.

Scott said the company is pursuing additional opportunities in Texas and engaging other state and local agencies, and said it has met with federal agencies about its critical infrastructure solution. He also described its partner PortNexus and the MyFlare Alert public safety solution, which he said is deployed in nine dispatch centers and four schools in Texas, two dispatch centers and three schools in Iowa and four dispatch centers in Missouri. He said Stephanie Lendecky is assuming Leadership of commercial sales activities, including the VigilAigent business.