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Intrusion (INTZ)
NASDAQ:INTZ
US Market
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Intrusion (INTZ) AI Stock Analysis

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Intrusion

(NASDAQ:INTZ)

Rating:55Neutral
Price Target:
$2.00
▼(-9.50%Downside)
Intrusion's overall score is primarily impacted by financial challenges, including consistent losses and cash flow issues. Positive technical indicators and revenue growth offer some upside potential, but valuation concerns and dependency on government contracts remain significant risks.
Positive Factors
Market Opportunities
The company has indicated that Shield should become available on the AWS marketplace, which could be a meaningful accelerant to revenue.
Revenue Growth
Acceleration in revenue could be a material driver of INTZ shares.
Negative Factors
Industry Competition
Risks include product concentration in Shield, dilution risk, and high levels of industry competition.
Product Monetization
Investor optimism has been somewhat offset by frustration over the inability to monetize the Shield product.

Intrusion (INTZ) vs. SPDR S&P 500 ETF (SPY)

Intrusion Business Overview & Revenue Model

Company DescriptionIntrusion Inc., together with its subsidiaries, develops, markets, and supports entity identification, data mining, cybercrime, and advanced persistent threat detection products in the United States. It offers INTRUSION Shield, a cybersecurity solution based on security-as-a-service solution to identify and stop Zero-Day and ransomware attacks. The company also provides INTRUSION TraceCop, a big data tool that contains an inventory of network selectors and enrichments to support forensic investigations; and INTRUSION Savant, a network monitoring solution that uses the data available in TraceCop to identify suspicious traffic in real-time. In addition, it engages in the resale of standard commercially available computers and servers from various vendors; and provision of pre-and post-sales support services, such as network security design, system installation, and technical consulting services. It serves US federal government entities, state and local government entities, and companies ranging from mid-market to large enterprises through a direct sales force and value-added resellers. The company was formerly known as Intrusion.com, Inc. and changed its name to Intrusion Inc. in November 2001. Intrusion Inc. was founded in 1983 and is headquartered in Plano, Texas.
How the Company Makes MoneyIntrusion, Inc. generates revenue primarily through the sale of its cybersecurity products and services. The company's key revenue streams include licensing fees for its software solutions, subscription fees for ongoing access to its threat detection platforms, and professional services related to cybersecurity consulting and support. Significant partnerships with government agencies and private enterprises contribute to its earnings by expanding its customer base and enhancing its product offerings. Additionally, Intrusion may engage in strategic collaborations to enhance its technological capabilities and market reach.

Intrusion Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q1-2025)
|
% Change Since: 76.80%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted positive growth in revenue and new partnerships, as well as a strengthened balance sheet. However, it also pointed out challenges such as continued net losses, flat Shield revenues year-over-year, and dependency on government contracts. The sentiment is cautiously optimistic with the potential for growth, but tempered by existing financial challenges.
Q1-2025 Updates
Positive Updates
Fourth Consecutive Quarter of Revenue Growth
Intrusion, Inc. reported a 6% sequential increase in total revenues for the first quarter of 2025, marking the fourth consecutive quarter of revenue growth.
New Product Launch and Partnerships
Intrusion is piloting a new product in the Shield family and announced a new partnership with PortNexus, integrating Intrusion Shield Endpoint into their MyFlare and PledgePlus solutions.
Strong Cash Position
Intrusion strengthened its balance sheet with a cash position of $10.7 million as of March 31, 2025, and eliminated all outstanding debt, removing the need for additional capital in 2025.
Increased Demand for Products
The company reported strong demand for its products, both domestically and in the Asia-Pacific region, driven by an enhanced marketing and channel strategy.
Significant Increase in Consulting Revenues
Consulting revenues increased by $0.7 million year-over-year, driven by new contracts, including with the United States Department of Defense.
Negative Updates
Continued Net Loss
Intrusion reported a net loss of $2.1 million for the first quarter of 2025, compared to a net loss of $1.7 million in the same period of 2024.
Flat Year-Over-Year Shield Revenue
Shield revenues for the first quarter were $0.4 million, remaining flat on a year-over-year basis despite a sequential increase.
Decrease in Gross Profit Margin
Gross profit margin decreased to 76% in the first quarter of 2025 from 80% in the first quarter of 2024, primarily due to product mix.
Dependency on Government Contracts
Sales to U.S. government entities represented 92% of revenues, reflecting a high dependency on government contracts, which could pose risks if federal budgets are not passed.
Challenges in Achieving Break-Even
Despite sequential revenue growth, the company still needs significant revenue increases to reach a break-even point.
Company Guidance
During Intrusion, Inc.'s first-quarter 2025 earnings call, the company reported a 6% sequential increase in revenue, reaching $1.8 million, and a 57% year-over-year increase. The growth was attributed to new contracts, including a notable one with the Department of Defense, which now contributes to 92% of revenue. The gross profit margin was 76%, down from 80% the previous year, primarily due to product mix changes. Operating expenses increased to $3.4 million, driven by professional fees and a one-time settlement. The net loss for the quarter was $2.1 million, compared to $1.7 million the previous year. The company improved its financial position, with cash and equivalents rising to $10.7 million from $0.1 million a year ago, and eliminated $10.1 million in preferred stock. Intrusion is focused on launching its Shield Cloud product on the AWS marketplace and expanding its market presence in the Asia-Pacific region. Additionally, the company is revamping its channel program and intends to hire a channel sales leader to enhance revenue management and bookings. With a strong cash position, Intrusion aims to fund its operations through 2025 and anticipates further growth through new partnerships, including with PortNexus, and ongoing government contracts.

Intrusion Financial Statement Overview

Summary
Intrusion faces significant financial challenges with consistent net losses, high operating expenses, and negative cash flow, despite high gross margins and improved equity. The reliance on external financing suggests potential liquidity risks.
Income Statement
35
Negative
Intrusion's income statement shows a challenging financial trajectory. The company has consistently reported net losses over the years, with a negative net profit margin of -127.4% for TTM. Revenue growth has been inconsistent, with a slight increase of 11.2% from 2023 to 2024 but a decline from previous highs in 2022. The gross profit margin for TTM is 75.9%, indicating good control over cost of sales, but operating expenses are too high, as evidenced by negative EBIT and EBITDA margins.
Balance Sheet
40
Negative
The balance sheet of Intrusion reflects moderate financial stability with some areas of concern. The debt-to-equity ratio has improved in TTM at 0.15, due to increased equity, but leverage remains a risk. The equity ratio is 74.5%, suggesting a strong equity base relative to assets. The company has made significant strides in improving its financial position from negative equity in prior years, but liabilities remain a concern.
Cash Flow
30
Negative
Intrusion's cash flow statement indicates persistent negative free cash flow, with a worsening trend in TTM (-26.6% growth rate). The operating cash flow to net income ratio is -0.84, reflecting operational inefficiencies. The company has been heavily reliant on financing activities to maintain liquidity. The free cash flow to net income ratio is also negative, highlighting the cash flow challenges.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.77M5.61M7.53M7.28M6.62M
Gross Profit4.43M4.35M4.17M4.65M3.91M
EBITDA-6.14M-10.34M-12.26M-17.76M-5.99M
Net Income-7.79M-13.89M-14.54M-18.04M-6.29M
Balance Sheet
Total Assets11.51M6.25M9.28M9.23M19.88M
Cash, Cash Equivalents and Short-Term Investments4.85M139.00K3.02M4.10M16.70M
Total Debt2.73M12.93M11.32M3.50M3.01M
Total Liabilities5.26M15.80M13.49M5.31M4.22M
Stockholders Equity6.25M-9.55M-4.21M3.92M15.66M
Cash Flow
Free Cash Flow-6.83M-9.21M-14.67M-17.71M-5.50M
Operating Cash Flow-6.29M-7.77M-13.19M-16.56M-5.18M
Investing Cash Flow-1.81M-1.45M-1.48M-1.15M-320.00K
Financing Cash Flow12.81M6.34M13.58M5.10M18.87M

Intrusion Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.21
Price Trends
50DMA
1.95
Positive
100DMA
1.54
Positive
200DMA
1.39
Positive
Market Momentum
MACD
0.05
Positive
RSI
52.13
Neutral
STOCH
21.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INTZ, the sentiment is Positive. The current price of 2.21 is below the 20-day moving average (MA) of 2.28, above the 50-day MA of 1.95, and above the 200-day MA of 1.39, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 52.13 is Neutral, neither overbought nor oversold. The STOCH value of 21.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INTZ.

Intrusion Risk Analysis

Intrusion disclosed 25 risk factors in its most recent earnings report. Intrusion reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Intrusion Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
55
Neutral
$41.18M-133.62%18.07%85.59%
51
Neutral
AU$1.55B2.02-31.50%3.11%16.21%-7.40%
VHVHC
$73.07M-39.67%
XYXYZ
76
Outperform
$40.60B16.7912.93%4.60%425.38%
75
Outperform
$5.00B28.3040.23%9.58%12.41%
64
Neutral
$5.63B-22.21%13.34%13.71%
$31.87M-215.99%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
INTZ
Intrusion
2.21
0.89
67.42%
VHC
Virnetx Holding
18.93
13.50
248.62%
QLYS
Qualys
139.55
-3.00
-2.10%
VRNS
Varonis Systems
50.57
3.60
7.66%
XYZ
Block
70.73
2.63
3.86%
CISO
Cerberus Cyber Sentinel Corp
1.15
0.55
91.67%

Intrusion Corporate Events

Private Placements and Financing
Intrusion Enters $50M Market Offering Agreement
Positive
Jun 12, 2025

On June 12, 2025, Intrusion, Inc. entered into an At The Market Offering Agreement with H.C. Wainwright & Co., LLC, allowing the company to issue and sell up to $50 million of its common stock. This agreement enables Intrusion to raise capital through market offerings, potentially enhancing its financial flexibility and market positioning, while also providing indemnification to the sales agent against certain liabilities.

The most recent analyst rating on (INTZ) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Intrusion stock, see the INTZ Stock Forecast page.

Private Placements and FinancingRegulatory Filings and Compliance
Intrusion to Terminate Stock Offering by June 11
Neutral
Jun 12, 2025

Intrusion has filed a prospectus supplement to its registration statement, allowing it to offer and sell up to $50 million in common stock through B. Riley as the sales agent. However, as of the current report date, no shares have been sold, and the company plans to terminate the offering following June 11, 2025, without any further sales.

The most recent analyst rating on (INTZ) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Intrusion stock, see the INTZ Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 16, 2025