Intrusion Revenue Rises 36% to $2.68 Million in Third Quarter

Key Facts

Intrusion said on November 12, 2026, that revenue was $2.68 million in the third quarter ended September 30, up 36% from $1.966 million in the same period last year. The company said revenue grew 84% compared with the second quarter, reflecting the first full quarter of VigilAigent's contribution. Sales rose alongside a net loss attributable to the company of $2.901 million, compared with a loss of $2.094 million a year earlier. Basic and diluted loss per share was $0.12, versus $0.10 in the third quarter of 2025. The results therefore showed revenue growth but larger year-over-year losses.

Against market expectations, the company reported an adjusted loss of $0.12 per share, compared with Zacks' forecast of a $0.07 loss. Zacks estimated the negative earnings surprise at 71.43%. This adjusted measure differs from the net loss reported in the company's statement, but indicates that the per-share loss was greater than the consensus estimate cited by Zacks. Meanwhile, the reported figures showed clear annual and sequential revenue growth. Accordingly, the comparison between results and expectations centers on revenue exceeding the plan while adjusted per-share loss was wider than expected.

Intrusion attributed the sales improvement to the first full quarter of VigilAigent's contribution and its contract with the state of Texas. Its chief executive said revenue from the company's core business was near the year-earlier level, driven primarily by the state contract. VigilAigent contributed $0.8 million in revenue, while the company's statement described Intrusion's core business as stable. This means the acquisition added sales during the quarter, while the core business's performance was supported by the government contract. In the second quarter, revenue was $1.5 million, up 64% from the prior quarter but down 22% year over year, according to the company's results published through Nasdaq.

Revenue growth was not matched by an improvement in gross margin: the margin was 55% in the third quarter, compared with 66% in the second quarter and 77% in the same period of 2025. The company attributed the decline to changes in the mix of revenue and products, including the addition of lower-margin VigilAigent managed services. Operating expenses were $4.3 million, up $0.8 million from the prior quarter and $0.6 million from the third quarter of last year. VigilAigent expenses accounted for about $0.8 million of operating expenses. The company said losses from Intrusion's core operations declined year over year by about $0.2 million, or 5%, excluding VigilAigent expenses.

Higher interest costs related to the company's debt also contributed to the loss pressures. Interest expense was $0.397 million in the third quarter of 2026, compared with $0.017 million a year earlier. Intrusion said the $0.4 million increase in interest expense on the notes, along with higher operating expenses, contributed to the wider net loss. On cost controls, the company said it reduced headcount, contractor spending and discretionary marketing. It also replaced some cash compensation for management and the board with shares to preserve cash. Cash and cash equivalents were $0.4 million on September 30, 2026.

The company also faces Nasdaq's minimum bid-price requirement of $1. Intrusion said it exchanged $4.0 million of debt due on October 29 for Series B preferred shares, and that other capital transactions lifted shareholders' equity to more than $5.0 million. It added that it received a further 180-day extension to regain compliance with the price requirement. Its second-quarter filing showed a high reliance on U.S. government entities, which accounted for 93.5% of revenue in that quarter and 91.3% of first-half revenue, compared with 95.5% and 93.6% in the corresponding periods of 2025. Second-quarter results also showed Shield product revenue of $0.1 million, versus $0.5 million a year earlier. The company linked the continued delay in extending its Department of War contract to the timing of federal funding and procurement.

Before its third-quarter results, the company said the VigilAigent acquisition added about $3.5 million in annual recurring revenue and that it signed a $4 million annual contract with the state of Texas. It had also stated a goal of moving to profitability in fiscal 2027. In the market, INTZ shares closed at $0.586 on November 11, the day before the results announcement. The company said a results conference call would be held on November 12 at 5:00 p.m. Eastern Time, with a replay available through November 26. The available closing data did not include the share-price move after the announcement.