Intrusion Inc. reported a decline in financial performance for the second quarter of 2026, with revenues of $1.5 million, a decrease of 22% compared to $1.9 million in the same period of 2025. For the first half of 2026, revenues totaled $2.3 million, down 36% from $3.6 million in the prior year. The company's gross profit also fell to $1.0 million for the quarter, representing a gross margin of 66.4%, down from 76.4% in the previous year. The net loss attributable to Intrusion Inc. increased to $2.6 million for the quarter, compared to a loss of $2.0 million in the same period last year.
The company experienced significant changes in its operational metrics, particularly in its consulting services and product revenues. Consulting revenues were $1.3 million for the three months ended June 30, 2026, compared to $1.4 million in the same period of 2025. The INTRUSION Shield product, which was launched to enhance cybersecurity offerings, generated only $0.1 million in revenue for the quarter, down from $0.5 million in the prior year. The decline in revenues was attributed to delays in contract extensions with the U.S. Department of War, affecting both consulting and product sales.
In a strategic development, Intrusion Inc. announced the acquisition of OW Cyber, LLC, doing business as VigilAigent, for a total purchase price of $2.0 million, with the first closing completed on June 29, 2026. This acquisition is expected to enhance Intrusion's cybersecurity capabilities and expand its customer base, as VigilAigent provides managed security services to approximately 1,000 customers. The acquisition is structured in two closings, with the second closing contingent on regulatory approvals and other conditions.
Operationally, the company reported a total of 22,758 shares of common stock outstanding as of June 30, 2026, an increase from 20,117 shares at the end of 2025. The company’s cash and cash equivalents decreased significantly to $0.2 million from $3.6 million at the end of the previous fiscal year. The company continues to face challenges with cash flow, reporting net cash used in operating activities of $5.4 million for the first half of 2026, compared to $3.3 million in the same period of 2025.
Looking ahead, Intrusion Inc. expressed concerns regarding its ability to continue as a going concern, citing ongoing losses and negative cash flows. The company plans to seek additional financing through public or private offerings to support its operations. However, it acknowledged the uncertainty surrounding its ability to secure such funding on favorable terms. The management's outlook remains cautious as it navigates these financial challenges while aiming to leverage the recent acquisition to bolster its market position.
About INTRUSION INC
Intrusion Inc. is a cybersecurity firm specializing in threat intelligence and reputation-based security solutions. Its flagship product, INTRUSION Shield, offers Zero Trust network protection through SaaS, cloud, and endpoint solutions, blocking malicious connections. The company leverages a proprietary internet database to detect threats, primarily serving government agencies and expanding into commercial markets with a focus on advanced threat detection and network security.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.
View the complete official filing on the SEC website.
Read on SEC.gov