Intrusion Inc. (INTZ): History, Ownership, Mission, How It Works & Makes Money

As a decision-maker navigating the volatile cybersecurity landscape, how do you defintely assess a niche player like Intrusion Inc. (INTZ), which is up against giants but still carving out its own space? You need to look past the small market capitalization and focus on the operational trajectory, which shows the company achieved its sixth sequential quarter of revenue improvement in Q3 2025, bringing its last twelve months' revenue to $7.29 million on the strength of its proprietary INTRUSION Shield platform. The real question is: can a company with a Q3 2025 revenue of only $2.0 million and a net loss of $2.1 million truly scale its 31% year-over-year growth, especially with a major Department of Defense contract expansion in the mix? Let's break down the history, ownership, and the mechanics of how this AI-driven threat intelligence firm works and makes money.

Intrusion Inc. (INTZ) History

Intrusion Inc. has a long, winding history, starting far from today's cybersecurity focus, but its recent pivot to the Intrusion Shield platform is the story that matters for investors. You need to look past the 1983 start to the transformative decisions made in the last five years, especially the critical balance sheet clean-up in early 2025, which gave the company runway into 2026.

Given Company's Founding Timeline

Year established

1983

Original location

Richardson, Texas, USA. The company later relocated its headquarters to Plano, Texas.

Founding team members

G. Ward Paxton Jr. and T. Joe Head.

Initial capital/funding

While the initial 1983 funding is not public, the company, then named Optical Data Systems, raised $17.1 million in its 1992 Initial Public Offering (IPO), which valued the company at $99 million.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's trajectory has been defined by two major pivots: the 2000 shift to cybersecurity and the modern, post-2020 focus on the Intrusion Shield platform. The Shield product, which uses a proprietary threat intelligence database (TraceCop) of over 8.5 billion IP addresses, is the key to their future.

The most critical recent moment was the financial restructuring in the first quarter of 2025. This was a defintely necessary step. The company cleaned up its capital structure by generating $14.5 million in proceeds and fully retiring $10.1 million of Series A Preferred Stock, eliminating debt through a common stock exchange. This provided the cash to fund operations into 2026, removing the near-term need to raise additional capital in 2025.

The recent growth is tied to execution on the Shield strategy, especially in the critical infrastructure and government sectors. Here's the quick math:

• Q3 2025 Revenue: $2.0 million, an increase of 31% year-over-year.
• Q3 2025 Gross Margin: 77%, showing strong product profitability despite a net loss of $2.1 million.
• Post-Q3 Liquidity: Cash and short-term investments totaled $7.5 million after collecting a $3.0 million receivable from a Department of Defense contract on October 1, 2025.

Also, the launch of Intrusion Shield Cloud on the AWS Marketplace in October 2025 is a major distribution play, and they are preparing a launch on Microsoft Azure for late 2025 or early 2026. This is how they scale a product that has achieved near-zero customer churn, a testament to its value in the market.

To understand the full scope of their current direction, you should review their forward-looking strategy: Mission Statement, Vision, & Core Values of Intrusion Inc. (INTZ).

Intrusion Inc. (INTZ) Ownership Structure

Intrusion Inc.'s ownership structure is highly concentrated among company insiders, which is a critical factor for investors to understand the firm's governance and long-term strategy.

This heavy insider control, totaling over three-quarters of the outstanding shares, means that a small group of individuals, including founders and key executives, holds significant power over all major corporate decisions, including mergers and acquisitions.

Intrusion Inc.'s Current Status

Intrusion Inc. (INTZ) is a publicly traded cybersecurity company, primarily listed on the Nasdaq Capital Market (NASDAQ:INTZ). As of November 2025, the stock was trading around $1.37 per share.

The company is focused on scaling its core product, Intrusion Shield, a next-generation network security platform. For the third quarter of 2025, the company reported revenue of approximately $2.0 million, marking a 31% year-over-year increase, but still posted a net loss of $2.1 million, or $0.10 per share.

Here's the quick math: the trailing twelve months (TTM) revenue ending September 30, 2025, stood at $7.29 million, showing growth but also highlighting the ongoing challenge to reach profitability. For a deeper dive into the numbers, you can check out Breaking Down Intrusion Inc. (INTZ) Financial Health: Key Insights for Investors.

Intrusion Inc.'s Ownership Breakdown

The company's ownership is dominated by insiders, which is unusual for a publicly traded firm and suggests that decision-making is tightly controlled by the founding and executive teams. This high level of insider ownership can align management's interests with long-term shareholder value, but it can also limit the influence of institutional and retail investors.

Honestly, with insiders holding over three-quarters of the shares, they defintely call the shots.

Intrusion Inc.'s Leadership

The company is steered by a management team with deep experience in cybersecurity and government contracting, a key area for the firm's business. The average tenure of the management team and the board of directors is approximately four years, providing a blend of experience and continuity.

• Tony Scott: President & CEO. Appointed in November 2021, his prior experience includes executive leadership in cybersecurity for the federal government and multi-billion corporations. His total yearly compensation is $425.00K.
• Kimberly Pinson: Chief Financial Officer (CFO). She has over 25 years of experience leading finance functions for global software and technology companies.
• Anthony J. LeVecchio: Executive Chairman of the Board. He was appointed to this role in August 2021 and also serves as a director.
• Joe Head: Chief Technology Officer (CTO) and Co-founder. Having served as a director since the company's inception in 1983, his long-standing technical vision is central to the product strategy.

The leadership's focus remains on leveraging their government and enterprise relationships to drive adoption of Intrusion Shield, especially following the expansion of work under a U.S. Department of Defense contract that utilizes both their Shield technology and consulting services.

Intrusion Inc. (INTZ) Mission and Values

You're looking past the stock ticker to understand the company's true north, and that's smart. Intrusion Inc.'s core purpose is to equip IT teams with actionable, real-time threat intelligence to proactively shut down cyberattacks, moving them beyond reactive defense.

Intrusion Inc.'s Core Purpose

A company's mission and values tell you where they're willing to spend capital and take risks. For a cybersecurity firm, this cultural DNA is defintely critical, especially when the threat landscape is evolving faster than their balance sheet. Intrusion Inc. is clear: their focus is on empowering the defender, not just selling a black box solution.

Official Mission Statement

The mission is centered on enablement, giving IT professionals the tools to be proactive. They aren't just selling software; they're selling the ability to act decisively, which is a huge shift in the security mindset.

• Empower IT teams with the technology, insights, and resources needed to proactively identify and stop malicious activities within their networks.
• Provide access to a threat intelligence database containing the reputational behavior of over 8.5 billion Internet Protocol (IP) addresses.
• Improve threat hunting capabilities and secure networks by helping teams quickly and accurately identify the threats that pose the greatest risk.

Vision Statement

The vision is a dual mandate: technical leadership and financial stability. CEO Tony Scott's statements in early 2025 confirmed the strategic pivot to focus on 'sustainable growth and profitability' after strengthening the balance sheet.

• Establish Intrusion Inc. as a global leader in threat intelligence, pioneering new approaches to network security.
• Advance the journey toward sustainable growth and long-term profitability, a goal management reiterated following the Q3 2025 results.
• Commit to continuous innovation, developing cutting-edge threat detection and prevention technologies that adapt to the evolving threat landscape.

To be fair, achieving that sustainable growth is a work in progress; while Q3 2025 revenue was approximately $2.0 million, up 31% year-over-year, the company still reported a net loss of $2.1 million for the quarter. You can read more about this strategic direction here: Mission Statement, Vision, & Core Values of Intrusion Inc. (INTZ).

Intrusion Inc. Slogan/Tagline

The company's taglines cut straight to the value proposition, focusing on both the technical benefit and the financial advantage for the client. One clean one-liner: they stop threats using data the government trusts.

• Protect your company from the inside out.
• Useable threat intelligence for less cost.
• See untrustworthy communications, instantly.

Intrusion Inc. (INTZ) How It Works

Intrusion Inc. operates by deploying a real-time, autonomous cyberattack prevention platform that uses proprietary global internet intelligence to stop malicious network traffic before it can do damage. The core of their system is a massive, continuously updated database of bad actors and risky connections, which allows their software to block threats that traditional security tools often miss.

The company's model is built on a subscription basis for its flagship product, Intrusion Shield, and also generates significant revenue from high-level cybersecurity consulting services, particularly for government clients. For the third quarter of 2025, their total revenue was approximately $2.0 million, with consulting services contributing the majority at $1.5 million. Breaking Down Intrusion Inc. (INTZ) Financial Health: Key Insights for Investors

Intrusion Inc.'s Product/Service Portfolio

Intrusion Inc. focuses on two primary offerings: a next-generation network security platform and an advanced threat intelligence database that powers it. This dual-product strategy ensures both proactive defense and deep analytical insight for clients.

Intrusion Inc.'s Operational Framework

The company's operations are centered on turning proprietary threat intelligence into actionable, real-time network enforcement. This is a high-margin business; the gross profit margin for Q3 2025 was a strong 77%.

• Intelligence Engine: The TraceCop database is continuously updated, acting as a global internet 'blacklist' and risk profile source. It's what makes their threat detection defintely unique.
• Autonomous Enforcement: Intrusion Shield integrates this intelligence directly into the network flow, automatically blocking malicious outbound and inbound traffic without requiring human intervention for every alert. This is the 'Protect' mode.
• Channel-Focused Sales: Intrusion Inc. is expanding its reach through partnerships, such as with PortNexus for the Shield Endpoint product, targeting Managed Service Providers (MSPs) and Managed Security Service Providers (MSSPs).
• Cloud Distribution: The launch of Intrusion Shield Cloud on the AWS Marketplace in Q3 2025 simplifies deployment and increases the addressable market for commercial customers.
• Government Contracts: A significant portion of revenue comes from high-value contracts, notably the expanded work with the U.S. Department of Defense for critical infrastructure monitoring, which drives both Shield technology and consulting revenue.

Intrusion Inc.'s Strategic Advantages

Intrusion Inc. competes by offering a fundamentally different approach to network security-prevention based on reputation, not just signature or behavior analysis. This is a critical distinction in a crowded market.

• Proprietary Data Moat: The TraceCop database is a massive, multi-year collection of global internet intelligence, which is difficult for competitors to replicate quickly. This data is their true competitive edge.
• Zero-Day and Unknown Threat Prevention: By blocking connections to IP addresses with a known bad history or high reputational risk, Intrusion Shield can stop threats that have never been seen before (Zero-Day threats) before they execute.
• High-Value Government Client Base: The deep, expanded relationship with the U.S. Department of Defense provides a stable revenue stream and a powerful validation of the technology's effectiveness in securing critical infrastructure.
• Capital Position: Following strategic financial moves in early 2025 and subsequent contract receipts, the company had total cash and short-term investments of $7.5 million post-Q3 2025, which gives them runway to fund operations into early 2026 and invest in sales growth.

Intrusion Inc. (INTZ) How It Makes Money

Intrusion Inc. generates its revenue primarily by selling its proprietary cybersecurity platform, Intrusion Shield, as a subscription service, and through high-value consulting services, particularly to government entities. The company's financial engine is currently heavily weighted toward its service-based contracts, which provide the cash flow to fund the expansion of its core technology product.

Intrusion Inc.'s Revenue Breakdown

The company's top-line revenue for the third quarter of 2025 (Q3 2025) was approximately $2.0 million, marking its sixth consecutive quarter of sequential growth and a strong 31% year-over-year increase. This growth is largely driven by expansion in government contracts.

Here's the quick math: Consulting revenue hit $1.5 million in Q3 2025, up $0.4 million year-over-year, while Shield Revenue, which includes the core technology subscription, was $0.5 million. The Consulting segment, which includes services related to the U.S. Department of Defense (DoD) contract, is the dominant revenue driver right now.

Business Economics

The economics of Intrusion Inc.'s business model are defined by a high gross margin on its product mix, but also by a high operating expense base that keeps the company in a net loss position. The long-term goal is to shift the revenue mix more toward the Shield product's recurring subscription model, which scales better.

• Gross Profit Margin: The Q3 2025 gross profit margin stood at a healthy 77%, which is typical for high-value cybersecurity software and services. This shows the cost of delivering the product and service (cost of goods sold) is low relative to the price.
• Pricing Model: The Shield product uses a subscription-based model, which is the industry standard for software-as-a-service (SaaS). The recent launch of Mission Statement, Vision, & Core Values of Intrusion Inc. (INTZ). Shield Cloud on the Amazon Web Services (AWS) Marketplace and planned launch on Microsoft Azure are key moves to broaden this recurring revenue base.
• Customer Concentration: A significant portion of the current revenue growth is tied to a contract expansion with the U.S. Department of Defense. While government contracts are stable, this concentration creates a single-customer risk that investors defintely need to track.
• Churn: The company reported near-zero customer churn, which is a powerful indicator of the value customers see in the Shield and consulting offerings.

Intrusion Inc.'s Financial Performance

While the top-line growth is encouraging, the company remains focused on managing its burn rate as it invests in growth. You're seeing a classic growth-stage trade-off: strong revenue momentum but not yet profitability.

• Q3 2025 Net Loss: The net loss for the third quarter of 2025 was $2.1 million, which was flat compared to the prior year period.
• Operating Expenses (OpEx): Operating expenses were $3.6 million in Q3 2025, an increase of $0.4 million year-over-year, driven by strategic investments in sales and marketing to accelerate customer acquisition.
• Liquidity: As of September 30, 2025, the company had $4.5 million in cash and short-term investments. Critically, subsequent to the quarter end, a $3.0 million payment from the DoD contract was received, increasing the combined cash and short-term investments to $7.5 million. Management believes this is sufficient to fund operations into early 2026.
• Full-Year 2025 Forecast: Analysts currently forecast the full-year 2025 revenue to be around $7.29 million, with a projected net loss of approximately $8.191 million.

Intrusion Inc. (INTZ) Market Position & Future Outlook

Intrusion Inc. is currently a niche player in the massive cybersecurity market, strategically pivoting from government consulting to a scalable, subscription-based product model centered on its Intrusion Shield platform. The company is focused on converting its deep, proprietary threat intelligence-developed over decades of government work-into commercial revenue, a move that drove a 31% year-over-year revenue increase to $2.0 million in the third quarter of 2025.

The near-term outlook is a race for scale: management has secured a cash runway into early 2026 with $7.5 million in combined cash and short-term investments, but sustained profitability remains elusive given the Q3 2025 net loss of $2.1 million. The company's success hinges on rapid adoption of its cloud-based offerings and leveraging new channel partnerships to penetrate the broader enterprise and education markets.

Competitive Landscape

In the vast global network security market, which is projected to be around $24.95 billion in 2025, Intrusion Inc. holds a fractional share, competing against giants with multi-billion dollar revenues. Intrusion's strength is its unique data set, but its market presence is dwarfed by the industry leaders, a reality that dictates a niche-focused growth strategy.

Opportunities & Challenges

You need to look at Intrusion Inc.'s future through two lenses: the massive market opportunity driven by increasing cybercrime costs-projected to reach $10.5 trillion globally by 2025-and the execution risk of a small-cap firm trying to capture that value.

Industry Position

Intrusion Inc. is positioned as an emerging, specialized threat prevention vendor, not a broad platform provider. Its competitive edge is its proprietary threat intelligence database, TraceCop, which is built on years of collecting global internet intelligence and supporting government entities. This is defintely a unique asset.

The company's strategy is currently focused on leveraging this unique data to drive adoption of its Intrusion Shield products across three key areas:

• Government/Critical Infrastructure: Expanding the existing Department of Defense contract, which utilizes both Shield technology and consulting services.
• Cloud-Native Enterprises: Driving ease of adoption and reach by launching on major cloud marketplaces like AWS.
• Endpoint Security: Targeting specific, high-growth verticals like the K-12 education market through specialized partners.

The move to a cloud-first model is smart, as cloud deployments already held 51.80% of the network security market share in 2024 and are forecast to expand at a 15.80% CAGR. To understand the investor perspective on this growth story, you should read Exploring Intrusion Inc. (INTZ) Investor Profile: Who's Buying and Why?