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Intrusion Incurs Loss in Q2 Despite 28% Top-Line Growth, Stock Jumps

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Key Takeaways

  • INTZ's Q2 revenue rose 28% year over year to $1.9M, beating the consensus estimate of $1.8M.
  • New clients and expanded DoD work drove the fifth consecutive quarter of revenue growth.
  • DoD added $3M in funding to expand Shield-based monitoring and threat analysis capabilities.

Intrusion Inc. ((INTZ - Free Report) ) incurred a second-quarter 2025 loss of 10 cents per share compared with a loss of 53 cents a year ago. However, the bottom line was wider than the Zacks Consensus Estimate of a loss of 9 cents.

Quarterly revenues reached $1.9 million, marking a 28% increase year over year and a 6% rise sequentially. The Zacks Consensus Estimate for revenues was pegged at $1.8 million. The sequential growth was driven by both new customers and expanded work with existing clients, especially the Department of Defense (“DoD”), which is utilizing Intrusion Shield and related consulting services. This marks the fifth consecutive quarter of revenue growth. This steady upward trend highlights management’s effective execution of growth strategies, aided by new customer acquisitions and increased product adoption.

During the quarter, Intrusion secured an additional $3 million from the DoD to bolster operational deployment of its infrastructure monitoring tools and expand research-driven threat analysis. This funding not only deepens the company’s defense-sector engagement but also demonstrates its growing role in safeguarding high-value government systems.

Strength in the Shield Product Suite bodes well. The company credits much of its recent success to advancements in its Intrusion Shield technology, especially in safeguarding critical infrastructure, which is increasingly vulnerable due to ransomware attacks, supply chain risks and other systemic threats. The DoD contract extension provides a steady revenue stream and a platform for future expansion within federal cybersecurity programs.

Intrusion Inc. Price, Consensus and EPS Surprise

Intrusion Inc. Price, Consensus and EPS Surprise

Intrusion Inc. price-consensus-eps-surprise-chart | Intrusion Inc. Quote

Consulting revenues in the second quarter reached $1.4 million, flat sequentially and up by $0.2 million on a year-over-year basis.

Shield revenues for the second quarter totaled $0.5 million, marking an increase of $0.1 million sequentially and $0.2 million year over year. The upside was mainly driven by work completed under the previously announced DoD contract.

In response to the results, INTZ’s shares gained 5.5% in trading and closed the session at $1.91 on Aug. 12. Shares are also up 4.2% in the pre-market trading today. Shares of the company have gained 33.6% in the past year compared with the Zacks Computer-Networking industry's growth of 55.7%.

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Image Source: Zacks Investment Research

Other Details

Gross margin remained flat year over year at 76%. This stability reflects the scalability of Intrusion’s business model, though management notes margins may fluctuate depending on product mix.

Operating expenses came in at $3.5 million, up from $3.1 million in the prior-year quarter. The increase likely reflects strategic investments in R&D, sales and marketing to fuel long-term growth. INTZ is expected to further expand investments in product development and sales and marketing to accelerate customer base growth, which would lead to increased operating expenses.

Operating loss totaled $2.1 million compared with an operating loss of $2 million in the prior-year quarter.

Balance Sheet

As of June 30, 2025, Intrusion had $4.7 million in cash and cash equivalents compared with $10.7 million as of March 31.

INTZ’s Zacks Rank

INTZ currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Performance of Other Companies

NETGEAR, Inc. ((NTGR - Free Report) ) reported second-quarter 2025 non-GAAP earnings per share of 6 cents, beating the Zacks Consensus Estimate of a loss of 16 cents. The company incurred a non-GAAP loss of 74 cents per share in the year-ago quarter. NETGEAR generated net revenues of $170.5 million, beating the consensus estimate by 5.3%. The figure also surpassed the company’s guidance of $155-$170 million. Revenues rose 18.5% on a year-over-year basis and 5.2% sequentially.

Cadence Design Systems ((CDNS - Free Report) ) reported second-quarter 2025 non-GAAP earnings per share (EPS) of $1.65, which beat the Zacks Consensus Estimate by 5.1%. The bottom line increased 28.9% year over year, exceeding management’s guidance of $1.55-$1.61.

Revenues of $1.275 billion beat the Zacks Consensus Estimate by 1.3% and increased 20.3% year over year. The figure beat CDNS’s view of $1.25-$1.27 billion. The top line was driven by broad-based demand for its solutions, especially the AI-driven portfolio, amid robust design activity.

SAP SE ((SAP - Free Report) ) reported second-quarter 2025 non-IFRS earnings of €1.50 ($1.70) per share, climbing 37% from the year-ago quarter. The Zacks Consensus Estimate was pegged at $1.63 per share.

Driven by robust cloud growth, disciplined cost control and expanding AI capabilities, SAP reported total revenues of €9.03 billion ($10.24 billion) on a non-IFRS basis, representing a 9% year-over-year increase (up 12% at constant currency). The Zacks Consensus estimate was pegged at $10.37 billion.


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