Intrusion Inc. reported its financial results for the third quarter of 2025, revealing a revenue increase of 31% to $1.97 million compared to $1.50 million in the same period last year. For the nine months ending September 30, 2025, revenue reached $5.61 million, a 37% rise from $4.10 million in 2024. The growth in revenue was primarily driven by an increase in consulting services, which amounted to $1.5 million for the quarter and $4.2 million year-to-date, up from $1.1 million and $2.9 million, respectively, in the prior year. This increase is attributed to work performed under a Department of Defense contract awarded in late 2024, which offset a significant loss of a major customer for the INTRUSION Shield product.
The company's gross profit for the third quarter was $1.51 million, representing a gross margin of 76.6%, slightly down from 77.1% in the previous year. For the nine-month period, gross profit was $4.28 million, with a margin of 76.2%. Operating expenses increased to $3.64 million for the quarter and $10.59 million year-to-date, compared to $3.20 million and $9.72 million in 2024. The rise in operating expenses was primarily due to higher sales and marketing costs, research and development expenses, and general administrative costs, which included increased share-based compensation and merit increases.
Intrusion's net loss for the third quarter was $2.09 million, a slight decrease from a loss of $2.05 million in the same quarter of 2024. For the nine-month period, the net loss was $6.23 million, compared to $5.83 million in the prior year. The company noted that the increase in net loss was influenced by a significant interest credit recorded in the previous year, which was not repeated in 2025. As of September 30, 2025, Intrusion had cash and cash equivalents of $2.53 million and short-term investments of $2.00 million, totaling $4.53 million available for operations.
Operationally, Intrusion has seen a shift in its revenue concentration, with sales to U.S. government entities comprising 96.7% of total revenues for the third quarter, up from 85.9% in the prior year. This change reflects the loss of a major commercial customer and the addition of government contracts. The company continues to focus on expanding its customer base and enhancing its product offerings, including the INTRUSION Shield cybersecurity solution, which is designed to protect against cyber threats.
Looking ahead, Intrusion anticipates that government sales will remain a significant portion of its revenue, although it acknowledges the risks associated with government contracts, including potential disruptions in appropriations. The company is actively seeking to secure additional financing and improve its operational cash flow to support its business strategy and growth initiatives.
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.
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