Intrusion Inc.

Second quarter 2026 revenue was $1.5 million, up 64% sequentially and down 22% from the prior year quarter. Gross profit margin was 66% versus 76% in the prior-year period. Operating expenses were $3.4 million, down $0.8 million sequentially and up $0.1 million year over year. Net loss was $2.6 million, or $0.13 per share, compared with a net loss of $2.0 million, or $0.10 per share, in Q2 2025. Cash and cash equivalents were $0.2 million at June 30, 2026. During the quarter, Intrusion entered into two note purchase agreements with Streeterville for notes with $3.7 million aggregate original principal amount and received $3.3 million in cash proceeds. Looking ahead, management expects continued revenue improvement through the rest of 2026 from the State of Texas contract, PortNexus, additional government and commercial opportunities, and recurring revenue from VigilAigent; no formal quarterly or full-year numeric guidance was given.

Tony Scott framed Q2 as a pivotal quarter and said the company made its most significant growth step yet by acquiring VigilAigent. He positioned the deal as a move toward an AI-native cybersecurity platform, with the company now split between commercial execution through VigilAigent and tailored government-focused work through Intrusion. His tone was optimistic but conditional, emphasizing disciplined execution, more M&A as part of the strategy, and a goal of transitioning Intrusion to profitability in 2027.

Kimberly Pinson focused on the quarter’s numbers and liquidity. She highlighted the $1.5 million of revenue, 66% gross margin, $3.4 million of operating expenses, and $2.6 million net loss, and tied the year-over-year revenue decline mainly to delayed Department of War funding. On liquidity, she said cash and cash equivalents were $0.2 million at quarter end and that the company raised $3.3 million through Streeterville notes to support operations and short-term liquidity needs; she also said the company expects to keep pursuing additional capital through public or private financings, including the ATM.

Analysts pressed on whether VigilAigent was fully integrated, future acquisitions, PortNexus’s commercial opportunity, and whether management could commit to a cash-flow-positive timeline. Scott said the teams were already combining offerings, but that the commercial market and the customized government market would be sold through different channels; he also said future M&A is part of the strategy. On cash flow, he would not commit to a specific quarter, but said the company expects to be cash flow positive in 2027 and that his goal is Q1, while noting prior comments about fourth-quarter run-rate positivity were still the target but not likely for the quarter itself.