Intrusion (INTZ) investor relations material

Executive summary

• Revenue for Q1 2026 declined 50% year-over-year to $0.9 million, primarily due to delays in a key U.S. government contract extension and lower Shield sales.

• Net loss widened to $3.6 million ($0.18 per share), up from $2.1 million in the prior year, driven by lower revenue and higher operating expenses.

• Operating expenses increased to $4.2 million, reflecting higher sales, R&D, and G&A costs.

• Signed a new $4 million annual contract with the state of Texas and launched the P.O.S.S.E. program for law enforcement cybersecurity.

• Cash and cash equivalents stood at $1.4 million as of March 31, 2026, with negative working capital of $0.9 million.

Financial highlights

• Q1 2026 revenue was $0.9 million, down from $1.8 million in Q1 2025, with consulting revenues at $0.8 million and Shield revenues at $0.1 million.

• Gross profit margin was 74%–74.2%, slightly lower than the prior year due to product mix.

• Operating loss for Q1 2026 was $3.6 million.

• Cash used in operations was $1.8 million in Q1 2026.

• No sales of common stock under ATM or SEPA programs during the quarter.

Outlook and guidance

• Management anticipates improvement in results throughout 2026, driven by new contracts, expanded partnerships, and increased adoption of solutions.

• Expects to transition to profitability by the end of fiscal year 2026.

• Sequential quarterly improvement is expected as sales pipeline and word-of-mouth momentum build.

• Revenue concentration among government customers and ongoing risks related to contract timing and funding remain.

• Substantial doubt exists about the ability to continue as a going concern without additional financing.