Intrusion(INTZ -4.71%) reported second-quarter 2025 results on August 12, 2025, featuring sequential revenue growth to $1.9 million (+6% QoQ, +28% YoY), near-zero customer churn, and an expanded $3 million Department of Defense (DOD) contract. Management highlighted several upcoming product launches and stated sufficient liquidity into early 2026, setting the stage for a nuanced discussion of product momentum, government contracting, and channel strategy.
Critical infrastructure focus drives Intrusion contract expansion
The $3 million extension and expansion of the Department of Defense contract marks a significant increase in scope over previous quarters and expands the use of Intrusion Shield for operational technology (OT) protection, coinciding with U.S. government acknowledgment of elevated cyber risk in sectors like water and energy. DOD-related work accounted for most of the revenue upside, illustrating institutional demand for advanced threat prevention beyond commercial IT.
"Our progress in growing this portion of our portfolio was recently highlighted by the $3 million extension and expansion of our contract with the Department of Defense, and that's already generating incremental revenue for us. We continue to see critical infrastructure protection of operational technology environments as a highly promising market opportunity for Intrusion Inc."
-- Tony Scott, President and Chief Executive Officer
This boosts its medium-term addressable market.
Intrusion posts fifth straight sequential revenue gain as Shield adoption grows
The company achieved its fifth consecutive quarter of sequential revenue growth, with the Shield segment rising to $500,000, an increase of $100,000 compared to the prior quarter and $200,000 compared to the prior year period, supported by new contract wins and steady consulting contributions. Customer churn remained near zero during the period.
"A few key highlights in the second quarter were yet another quarter of consistent revenue growth with Q2 marking the fifth quarter in a row of delivering sequential top-line growth, near-zero customer churn, which we view as a testament to the value of our offerings, operational deployment of our Shield critical infrastructure monitoring and protection capability, which expands the breadth and use of our core technology."
-- Tony Scott, President and Chief Executive Officer
Sustained multi-quarter revenue momentum and reduced churn highlight improvements in execution, enhancing visibility for long-term adoption of the Shield platform and supporting valuation re-rating potential.
Intrusion accelerates cloud marketplace and channel investments
Product launches on the AWS Marketplace (August 2025) and incoming Azure Marketplace presence aim to access broader commercial segments, while recent reseller restructuring targets improved partner productivity and managed service provider (MSP) reach. Operating expenses increased $100,000 sequentially, reflecting disciplined but rising investment in sales, marketing, and R&D.
"We completed development work for our release of Intrusion Shield technology into the AWS marketplace. We've seen encouraging results from our Q2 efforts on social media and other platforms of awareness and engagement, and enthusiastic reception for our technology with our solution partner PortNexus with respect to MyFlare Alert, the next-generation solution for improving response to safety incidents in schools and other vulnerable public institutions."
-- Tony Scott, President and Chief Executive Officer
These moves diversify revenue sources and reduce dependence on any one customer set.
Looking Ahead
Management confirmed plans to launch ShieldCloud on the AWS Marketplace in August and on Microsoft Azure later in 2025. While no explicit timeline was given for profitability, leadership reiterated a near-term goal of achieving cash flow breakeven, contingent on contract conversion. Capital sufficiency was stated through early 2026, with no anticipated need for near-term fundraising.
