Intrusion (NASDAQ:INTZ) CEO Tony Scott outlined the company’s cybersecurity strategy, recent contract wins and financial outlook during a presentation at the Sidoti Virtual Conference, emphasizing the company’s focus on blocking threats based on reputation rather than relying solely on traditional firewall detection methods.
Scott said Intrusion’s core product, Intrusion Shield, is designed to add a layer of protection beyond conventional firewalls. He said most firewall technology filters out known bad actors when traffic includes some type of malicious payload, while Intrusion’s approach is to block communications from actors it identifies as bad regardless of whether a malicious payload is detected.
CEO Highlights Threat Intelligence Database
Scott said the company’s technology is built on a database containing more than 8.5 billion records, developed from decades of observing internet behavior and using algorithms, machine learning and artificial intelligence. He said Intrusion has built what it views as a broad index of IP addresses, domain names and actors across the web.
One distinction Scott highlighted is the company’s practice of retaining historical threat data. He said bad actors are increasingly resurrecting older techniques and infrastructure that many modern cybersecurity systems may no longer prioritize.
“In our case, we remember everything and we’re consistent about blocking bad actors, no matter how old they’ve been around or how long they’ve been around,” Scott said.
Scott also said Intrusion has long worked with the U.S. federal government, beginning in 1996, and continues to provide consulting services to federal customers. The company launched Shield as a commercial product in mid-2021 and has since expanded from hardware appliances for on-premise environments into cloud workloads and endpoint protection, including AWS, Microsoft Azure, Windows, macOS, Android and iOS environments.
Recent Contracts Include Texas and Defense Work
Scott pointed to a recently awarded $4 million contract from the state of Texas to deliver cyber threat technology. During the question-and-answer session, he said the contract has a one-year term and would be somewhat heavier in the first few months because of deliverables, though he said investors could conservatively think about the revenue being spread over 12 months.
He also cited a $3 million Department of Defense contract received in 2025 to support critical infrastructure. Scott said Intrusion is deployed at approximately 240 water wells in Guam and telecom facilities, protecting that portion of critical infrastructure from threats.
Scott said the company expects more “large ticket awards” in 2026 based on its technology and the value it can provide. He also said Intrusion has expanded beyond its historical federal government base into state and local governments and commercial enterprises, with a goal of increasing recurring revenue.
Cash Flow Positive Target Reiterated
Scott said Intrusion expects to be cash flow positive near the end of the year and profitable from that point forward. In response to a question about the revenue level needed to break even, he said the figure is “somewhere between $10 million and $12 million,” depending on the contracts signed.
Scott said the company completed a series of transactions in late 2025 that eliminated about $10 million of debt after raising about $14 million over several days. He also said Intrusion completed a $3 million secured note financing at the end of the first quarter and start of the second quarter of 2026.
“We don’t see a need to raise additional capital in 2026, absent some other significant event like an acquisition or other kind of activity like that,” Scott said.
Scott said revenue was down slightly in the fourth quarter and first quarter of 2026, attributing the decline to one government contract that had been expected to renew in late 2025 but had been delayed in the federal procurement process. He said the company still expects the contract to come, though the timing remains uncertain. He added that even if it does not, the Texas contract and other opportunities in the pipeline should have a negligible effect on 2026 earnings.
AI Seen as Both Threat and Opportunity
Scott said artificial intelligence is increasing both the volume and effectiveness of cyberattacks, including polymorphic attacks, zero-day attacks and attacks that may not include malware payloads. He said Intrusion is also investing in AI to improve defenses and help security operations teams prioritize alerts.
He described the cybersecurity market as facing a shortage of skilled labor, particularly for organizations operating 24/7 security operations centers. Scott said AI can help filter large volumes of alerts and direct human analysts to the most serious issues.
Scott also highlighted Intrusion’s dashboards, which he said help analysts see traffic blocked by the company’s technology, affected devices, domain requests, frequency of requests and geographic indicators tied to malicious traffic. He said newer AI summary reports are intended to prioritize information and recommend follow-up actions.
Competition and Partnerships
Asked about competitors, Scott said Intrusion has been unable to identify another company that does exactly what it does. He said large cybersecurity companies often claim to include reputation-based tools, but he said Intrusion’s benchmarks show stronger performance in detecting zero-day threats and blocking “call home” activity.
“We love firewalls. We think they’re great. We think they’re necessary. They just don’t do everything that is needed in a modern world,” Scott said.
Scott also discussed the company’s relationship with PortNexus and the P.O.S.S.E. Program, a school safety initiative. He said PortNexus has licensed Intrusion’s technology for a system designed to provide situational awareness during school emergencies by activating cameras and sending alerts to registered mobile phones. Intrusion provides network protection for the system, and Scott said the program is deployed in about four or five locations in Iowa, with more planned.
On mergers and acquisitions, Scott said he is “always looking for the right thing,” particularly opportunities that could drive significant growth. He said any potential acquisition target may come from the AI space, where he sees technologies maturing in areas relevant to Intrusion’s market.
About Intrusion (NASDAQ:INTZ)
Intrusion Inc, a cybersecurity company in the United States. The company offers its customers access to threat intelligence database, which contains the historical data, known associations, and reputational behavior of Internet Protocol addresses. It offers INTRUSION Shield, a zero trust reputation-based Software as a Service solution that inspects and kills dangerous network connections. 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.
