Q3 FY2026
Filed Nov 12, 2026Intrusion reports Q3 2026 revenue of $2,680 thousand, up 36% year over year and 84% sequentially, with a net loss attributable to Intrusion of $(2,901) thousand
Revenue rose on the first full quarter of VigilAigent and the State of Texas contract, but gross margin fell to 55% from 77% a year earlier, operating loss widened to $(2,798) thousand, interest expense rose to $(397) thousand, cash was $400 thousand at September 30, 2026, and stockholders' equity was $2,848 thousand at that date. The company states that the October 2026 capital actions lifted equity above $5.0 million and that its Nasdaq bid price compliance period was extended by 180 days.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, Q3 2026GAAP | $2.68M | 84% | 36% |
| Revenue, nine months 2026GAAP | $5.02M | – | – |
| Cost of revenue, Q3 2026GAAP | $1.20M | – | – |
| Cost of revenue, nine months 2026GAAP | $1.92M | – | – |
| Gross profit, Q3 2026GAAP | $1.48M | – | – |
| Gross profit, nine months 2026GAAP | $3.10M | – | – |
| Gross profit margin, Q3 2026GAAP | 55% | – | – |
| Total operating expense, Q3 2026GAAP | $4.3M | $0.8 million increase | $0.6 million increase |
| Sales and marketing, Q3 2026GAAP | $1.27M | – | – |
| Sales and marketing, nine months 2026GAAP | $4.27M | – | – |
| Research and development, Q3 2026GAAP | $1.51M | – | – |
| Research and development, nine months 2026GAAP | $4.11M | – | – |
| General and administrative, Q3 2026GAAP | $1.49M | – | – |
| General and administrative, nine months 2026GAAP | $3.58M | – | – |
| Operating loss, Q3 2026GAAP | −$2.80M | – | – |
| Operating loss, nine months 2026GAAP | −$8.86M | – | – |
| Interest expense, Q3 2026GAAP | −$397K | – | $0.4 million increase |
| Interest expense, nine months 2026GAAP | −$518K | – | – |
| Other income, net, Q3 2026GAAP | $113K | – | – |
| Other income, net, nine months 2026GAAP | $140K | – | – |
| Net loss, Q3 2026 (before noncontrolling interests)GAAP | −$3.08M | – | – |
| Net loss, nine months 2026 (before noncontrolling interests)GAAP | −$9.24M | – | – |
| Net loss attributable to Intrusion, Inc., Q3 2026GAAP | −$2.90M | – | – |
| Net loss attributable to Intrusion, Inc., nine months 2026GAAP | −$9.05M | – | – |
| Net loss per share, basic and diluted, Q3 2026GAAP | $(0.12) | – | – |
| Net loss per share, basic and diluted, nine months 2026GAAP | $(0.41) | – | – |
| Cash and cash equivalents, September 30, 2026GAAP | $400K | – | – |
| Total assets, September 30, 2026GAAP | $12.43M | – | – |
| Total stockholders' equity, September 30, 2026GAAP | $2.85M | – | – |
Capital returns
- No share repurchases or cash dividends are reported in the release.
- On October 29, 2026, the Company exchanged $4.0 million of outstanding debt for Series B preferred stock, a transaction the release describes as a debt-for-equity exchange.
- The release refers to a recently completed warrant inducement transaction and sales of a limited number of shares through the at-the-market (ATM) facility. Neither amount is quantified in the release.
- The release states that management and Board cash compensation was voluntarily exchanged for equity. The amount is not quantified.
What drove it
- Company explanation: revenue growth was driven by the first full quarter of revenue contributions from the VigilAigent acquisition and the State of Texas contract.
- Company explanation: the gross profit margin decline primarily reflects changes in revenue and product mix, including the addition of lower-margin managed services revenue from VigilAigent.
- Company explanation: operating expense rose by $0.8 million sequentially and $0.6 million year over year. The release states that VigilAigent contributed approximately $0.8 million of operating expenses.
- Company explanation: excluding VigilAigent, operating expenses from legacy Intrusion operations decreased approximately $0.2 million, or 5%, year over year.
- Company explanation: the release says the company reduced headcount, contractor and discretionary marketing spending, and exchanged a portion of management and Board cash compensation for equity to conserve cash.
- Company explanation: the net loss increase primarily reflects higher operating expenses and a $0.4 million increase in interest expense related to the notes payable.
- Company explanation: the CEO states that revenue in the legacy business approached prior-year levels, driven primarily by the State of Texas contract.
Concerns
- Cash and cash equivalents were $400 thousand at September 30, 2026, down from $3,624 thousand at December 31, 2025.
- Total stockholders' equity was $2,848 thousand at September 30, 2026. The release states that the October 2026 transactions lifted equity to more than $5.0 million, which is the basis for the Nasdaq extension.
- The company's forward-looking statements cautionary language lists the ability to continue as a going concern among the statements subject to risk.
- Gross profit margin was 55%, against 66% in Q2 2026 and 77% in the prior year period.
- Operating loss for Q3 2026 was $(2,798) thousand, compared with $(2,136) thousand a year earlier. Nine-month operating loss was $(8,863) thousand, compared with $(6,315) thousand.
- Interest expense was $(397) thousand in Q3 2026, compared with $(17) thousand a year earlier, and $(518) thousand for nine months, compared with $(67) thousand.
- Current notes payable of $3,292 thousand and accounts payable of $2,065 thousand at September 30, 2026 are materially higher than at December 31, 2025.
- The company is still working to regain compliance with the $1.00 minimum bid price requirement. The release says it qualified for an additional 180-day extension.
What to watch
- Whether gross margin recovers from 55% as VigilAigent's managed services mix changes over subsequent quarters.
- Operating expense trajectory, including the legacy cost reductions the company cites and the roughly $0.8 million of quarterly opex attributed to VigilAigent.
- Cash position and funding needs after $400 thousand of cash at September 30, 2026, given that the release does not quantify the warrant inducement or ATM proceeds.
- Whether stockholders' equity remains above the $5.0 million level the company says it reached after the October 2026 transactions.
- Interest expense trends following the $4.0 million debt-for-equity exchange and the remaining notes payable.
- Progress on the pipeline the CEO describes, including expansion of existing partnerships and government relationships and entry into new markets. The release gives no quantified pipeline figures.
- Nasdaq minimum bid price compliance within the extended 180-day period.
Balance sheet and cash flow
- Cash and cash equivalents were $400 thousand at September 30, 2026, compared with $3,624 thousand at December 31, 2025. The release describes cash as $0.4 million.
- Total stockholders' equity was $2,848 thousand at September 30, 2026, compared with $7,277 thousand at December 31, 2025. After the October 2026 transactions, the release states that stockholders' equity increased to more than $5.0 million.
- Notes payable, current portion, were $3,292 thousand at September 30, 2026, and notes payable, noncurrent portion, were $1,479 thousand. Both are reported on separate lines, and no combined total is printed.
- Notes payable were nil at December 31, 2025, per the balance sheet.
- Accounts payable, trade, were $2,065 thousand at September 30, 2026, compared with $492 thousand at December 31, 2025.
- Accounts receivable, net, were $1,076 thousand at September 30, 2026, compared with $131 thousand at December 31, 2025.
- Total assets were $12,433 thousand at September 30, 2026, compared with $10,387 thousand at December 31, 2025. Goodwill was $4,407 thousand at September 30, 2026, against nil at December 31, 2025.
- Operating cash flow and free cash flow are not reported in the release. The release contains no cash flow statement.
Analysis
Intrusion reported Q3 2026 revenue of $2,680 thousand, up 36% year over year from $1,966 thousand and up 84% sequentially. The company attributes the increase to the first full quarter of VigilAigent revenue and the State of Texas contract, and the CEO says legacy revenue approached prior-year levels. The release does not print the Q2 2026 revenue figure, so the sequential growth cannot be checked against a dollar amount in the document. Nine-month revenue was $5,021 thousand, against $5,614 thousand a year earlier.
Profitability weakened on several lines. Gross profit was $1,477 thousand, nearly flat with $1,505 thousand a year earlier, while cost of revenue rose to $1,203 thousand from $461 thousand. Gross profit margin fell to 55%, from 66% in Q2 2026 and 77% in the prior year period. The company says the decline reflects a mix shift toward lower-margin managed services from VigilAigent. Total operating expense was $4.3 million, up $0.8 million sequentially and $0.6 million year over year. The release attributes approximately $0.8 million of operating expense to VigilAigent and says legacy operating expense fell about 5% year over year. Operating loss was $(2,798) thousand, against $(2,136) thousand a year earlier. Interest expense was $(397) thousand, against $(17) thousand, and the net loss attributable to Intrusion was $(2,901) thousand, or $(0.12) per share, against $(2,094) thousand, or $(0.10) per share.
The balance sheet shows strain. Cash was $400 thousand at September 30, 2026, against $3,624 thousand at December 31, 2025. Stockholders' equity was $2,848 thousand, against $7,277 thousand at year end. Notes payable were $3,292 thousand current and $1,479 thousand noncurrent, and accounts payable rose to $2,065 thousand from $492 thousand. The release states that the $4.0 million debt-for-equity exchange completed on October 29, 2026, together with a warrant inducement and ATM sales, lifted stockholders' equity above $5.0 million. The company says this allowed it to qualify for a 180-day Nasdaq extension on the minimum bid price requirement. The release does not quantify the warrant or ATM proceeds, and it provides no cash flow statement.
The release gives no forward guidance for revenue, margins, expenses or tax. Management's outlook is qualitative, pointing to pipeline opportunities and a stated commitment to profitability. Compared with the prior period, the main changes are the addition of VigilAigent revenue and cost, a lower gross margin, higher interest expense and a sharply smaller equity base. The figures that most merit attention are the gross margin trend, the cash balance, the debt and payables position, and whether the October capital actions hold equity above the threshold the company cites.
Management, verbatim
Our third quarter results represent an important step forward for Intrusion as we continued to stabilize our business, integrate VigilAigent's capabilities with our existing platform, and execute on our growth strategy.
Tony Scott, President & Chief Executive Officer
We believe that these opportunities could meaningfully support future sustainable revenue growth.
Tony Scott, President & Chief Executive Officer
Looking ahead, we remain committed to disciplined execution as we work toward achieving profitability and creating long-term value for our shareholders.
Tony Scott, President & Chief Executive Officer
Not in the filing
stated, not guessed- No forward guidance for revenue, gross margin, operating expenses or tax rate is given in the release.
- Q2 2026 revenue in dollars is not printed, so the sequential revenue change cannot be tied to a dollar figure.
- Year-over-year dollar change in revenue is not printed; only the 36% percentage is given.
- Year-over-year change for cost of revenue, gross profit and gross margin is not printed.
- Prior-year total operating expense in dollars is not printed; only the $0.6 million change is given.
- Prior-year and prior-quarter comparisons for operating loss, net loss, EPS and nine-month lines are not printed as changes.
- Operating cash flow, investing cash flow and free cash flow are not reported.
- Amounts of the warrant inducement and ATM sales are not quantified.
- Value of the voluntary exchange of cash compensation for equity is not quantified.
- Stockholders' equity after the October 2026 transactions is given only as more than $5.0 million, with no exact figure.
- Segment or geographic revenue breakdown is not reported.
- No non-GAAP measures or reconciliations are provided.
- Share repurchases and dividends are not reported.
- No combined debt total is printed; notes payable are reported as separate current and noncurrent lines.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.