Earnings call transcript: Intelligent Protection Management Q2 2025 sees revenue surge

Intelligent Protection Management Corp (IPM) reported robust growth in its Q2 2025 earnings call, with revenue reaching $5.7 million, a significant increase from the previous year’s $300,000. Despite the net loss of $1.1 million, the company’s financial performance showed improvement, with adjusted EBITDA narrowing to negative $400,000 from negative $900,000. The market reacted positively, with IPM shares rising 4.71% to close at $1.91, although they dipped slightly in aftermarket trading. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 1.71, and notably holds more cash than debt on its balance sheet, positioning it well for future growth.

Key Takeaways

• Revenue surged to $5.7 million in Q2 2025, up significantly from $300,000 the previous year.
• Net loss improved to $1.1 million from $1.3 million.
• Stock price increased by 4.71% following the earnings announcement.
• The company launched new AI-powered solutions and expanded its cybersecurity services.

Company Performance

Intelligent Protection Management demonstrated strong performance in Q2 2025, driven by substantial revenue growth across its business segments. The company’s strategic focus on cybersecurity and cloud infrastructure has positioned it well in the market, particularly in sectors such as legal, healthcare, and finance. The recent acquisition of Newtek Technology Solutions and the divestiture of non-core applications have streamlined operations and enhanced its service offerings.

Financial Highlights

• Revenue: $5.7 million, up from $300,000 year-over-year.
• Six-month revenue: $11.2 million, compared to $500,000 in the prior year.
• Net loss: $1.1 million, improved from $1.3 million.
• Adjusted EBITDA: Negative $400,000, improved from negative $900,000.
• Cash and equivalents: $8.3 million, including $1 million in restricted cash.

Earnings vs. Forecast

The company reported earnings per share (EPS) in line with forecasts, with a revenue forecast of $5.9 million closely matching the actual revenue of $5.7 million. This alignment with expectations reflects a stable financial trajectory and effective management strategies.

Market Reaction

Following the earnings announcement, IPM’s stock price rose by 4.71% to $1.91, indicating investor confidence in the company’s performance and strategic direction. However, aftermarket trading saw a slight decline of 0.52%, bringing the price to $1.9. The stock remains within its 52-week range of $1.52 to $5.5, suggesting room for further growth.

Outlook & Guidance

Looking ahead, Intelligent Protection Management aims to achieve positive adjusted EBITDA by early 2026. The company plans to maintain its focus on expense reduction and marketing initiatives while continuing to expand its cybersecurity and cloud infrastructure services. The guidance for future quarters remains optimistic, with projected revenue growth and stable EPS forecasts. InvestingPro data shows analysts have set a target price of $6.00 per share, suggesting significant upside potential, while the company’s Financial Health Score of 1.76 (FAIR) indicates stable fundamentals. Discover more exclusive insights and detailed financial metrics with InvestingPro’s comprehensive analysis tools.

Executive Commentary

"Our job is to protect the heart and soul of virtually all businesses today, their data, client information, intellectual property, financial data," stated CEO Jason Katz, emphasizing the company’s commitment to cybersecurity. Katz also highlighted the company’s growth strategy, saying, "We expect those advantages to become more apparent in the quarter and years to come."

Risks and Challenges

• Potential tariff increases, though expected to have minimal impact, could affect costs.
• The competitive landscape in cybersecurity and cloud services remains challenging.
• Economic uncertainties and market volatility may impact future growth.

Q&A

During the earnings call, analysts inquired about the company’s growth strategy and the impact of tariffs. Management reassured that tariffs would have a minimal effect and highlighted a referral program and cross-selling as key growth drivers.

Full transcript - Intelligent Protection Management Corp (IPM) Q2 2025:

Conference Operator: Greetings, and welcome to the Intelligent Protection Management Corporation’s Second Quarter twenty twenty five Results Conference Call. At this time, all participants are placed on a listen only mode. Please note, this conference is being recorded. I will now turn the conference over to your host, Mr. Joe Diaz of Lithium Partners.

Sir, the floor is yours.

Joe Diaz, Investor Relations Representative, Litham Partners: Good afternoon, and welcome to all participating on today’s call to review the financial and operating results of IPM for the second quarter ended 06/30/2025. As the operator indicated, my name is Joe Diaz with Litham Partners. We are the Investor Relations representative for IPM. By now, everyone should have access to the earnings press release, which was issued after the close of market today. This call is being webcast and will be available for replay.

During the course of this call, management will include statements that are considered forward looking within the meaning of the Private Securities Litigation Reform Act of 1995, including forward looking statements about future results of operations, business strategies and plans, our relationships with our customers, as well as market and potential growth opportunities. In addition, management may make additional forward looking statements in response to your questions. Forward looking statements are based on management’s current knowledge and expectations as of today and are subject to certain risks, uncertainties and assumptions related to factors that may cause actual results to differ materially from those anticipated in the forward looking statements. These expectations and beliefs may not ultimately prove to be correct. A detailed discussion of such risks and uncertainties are contained in the company’s filings with the SEC, including its annual report on Form 10 ks for the year ended 12/31/2024.

You should refer to and consider these factors when relying on such forward looking information. The company does not undertake and expressly disclaims any obligation to update or alter the forward looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. On this call, management will refer to adjusted EBITDA, a non GAAP measure that when used in combination investors with additional analytical tools to understand the company’s operations. For adjusted EBITDA, management has provided a reconciliation to the most directly comparable GAAP financial measure in the earnings press release, which has been posted to the Investor Relations section of the company’s website at www.ipm.com. At this time, I’d like to turn the call over to IPM’s Chief Executive Officer, Jason Katz.

After Jason’s remarks, we will hear from IPM’s CFO, Kara Jenny, and we will conclude with investor questions that were emailed to the company in advance of this conference call. Jason, the floor is yours.

Jason Katz, Chief Executive Officer, Intelligent Protection Management Corporation (IPM): Thanks, Joe, and good afternoon, everyone. We greatly appreciate you taking the time to join us on today’s call. As previously disclosed on 01/02/2025, we completed our acquisition of Newtek Technology Solutions, Inc, or NTS, from Newtek One Inc, and we divested our PalTalk, Camfrog and Bumba applications and certain assets and liabilities related to such applications to Meteor Mobile Holdings Inc. This marks our second quarter following the acquisition of NTS and divestiture of our core video chat products. We are pleased with the sequential progress made during our first two operational quarters after these transactions and our successful rebranding to Intelligent Protection Management Corp, or what we refer to as IPM.

During this period, we’ve laid the groundwork from sales, marketing, accounting and human capital to position IPM to be poised for growth for the benefit of our customers, employees and shareholders. Since the closing of the transactions in January, we have successfully integrated our operations and serviced our existing customers without interruption. Moving forward, we believe we are now well positioned to grow the company through the expansion of our services offerings to our existing legacy NTS customers, while cross selling our ManyCam software and varying new services to our historical web hosting customer base. We expect this strategy to lead to further growth and enhancement of our operational efficiencies, all focused on driving stockholder value. Today more than ever, cybersecurity and cloud infrastructure are critical to protecting sensitive data, ensuring business continuity, and securing a digital economy in an era of growing cyber threats.

We have an exciting opportunity to build out a company that can become one of the leading managed technology solutions providers with a focus on cybersecurity and cloud infrastructure. As we see it, our job is to protect the heart and soul of virtually all businesses today, their data, client information, intellectual property, financial data, among other things. There are a lot of bad players out there, individual hackers, criminal organizations, hospital governments looking to attack American corporations and citizens. I have spent the better part of my career in the technology managed services business, as have the majority of the IPM senior management team. The deep industry experience has led us to provide a white glove high touch service to our clients.

Every one of our clients has a dedicated technology manager as a single point of contact. We do not use voice response telephonic menus or handoff service calls to agents in call centers in foreign countries. Our clients speak directly to their IPM account team in The United States, people that are familiar with the needs of their business and the history of their account. This is an important IPM advantage. We have significant technological expertise and we operate in a large and growing market where IPM is industry certified, including legal, healthcare and finance, giving us another significant competitive advantage versus our peers.

We expect those advantages to become more apparent in the quarter and years to come. Focusing in on the just completed second quarter, IPM was selected by Hewlett Packard Enterprise to be an accredited partner for its HPE Private Cloud AI solution. We initiated a collaboration with IT Ally, a trusted business and technology services provider focused on lower middle market private equity firms and their portfolio companies. Also during the quarter, the board approved the stock repurchase plan for up to $400,000 of our outstanding common stock. And IPM commenced offering Aura, a leading AI powered online safety solution for individuals and families designed to help minimize the impact of data breaches, scams, and other online threats on consumers.

In regard to our previously disclosed patent litigation, on 08/29/2024, a jury awarded us 65,700,000 in a jury verdict in connection with a lawsuit against Webex Communications, Cisco Webex LLC and Cisco Systems in the US District Court for the Western District of Texas. On 10/08/2024, an order granting a motion for final judgment was entered into by the court in connection with the lawsuit. The final judgment was entered in our favor in the amount of the award and started the time for filing any post trial motions or appeals. The exact amount of the award proceeds to be received by us will be determined based on a number of factors and will reflect the deduction of significant litigation related expenses, including legal fees. As we have previously indicated, we estimate that we would receive no more than one third of the gross proceeds in connection with the awards, subject to post trial proceedings, including any potential appellate court proceedings by Cisco.

We have not recorded any gain contingency in connection with this award. Having our NTS assets transition from being a division of a larger banking company to a company focused on technology managed services over the course of the first six months of 2025 has been gratifying. We look forward to many opportunities to dramatically expand our business in the coming years. With that, let me turn the call over Kara Jenney, our CFO, for a summary of our financial results for the second quarter and the six months ended 06/30/2025. Following Kara’s remarks, we’ll move into the Q and A portion and answer questions that were submitted via email prior to this call.

I’ll hand it to you, Cara.

Kara Jenny, Chief Financial Officer, Intelligent Protection Management Corporation (IPM): Thank you, Jason. As Jason indicated, we acquired the operations of NTS on 01/02/2025, and rebranded our company to Intelligent Management Protection Corp, or IPM. The quarterly financial comparisons of IPM and the former NTS as a division of NewtekOne are not comparable from a GAAP perspective. IPM financials will become comparable on a GAAP basis as of the 2026. For the three months ended 06/30/2025, revenue totaled $5,700,000 compared to $300,000 for the prior year period.

On a sequential basis, revenue increased 4% from the 2025. Revenue for the six months ended 06/30/2025, totaled $11,200,000 compared to $500,000 in the prior year period. Total revenue by revenue stream for the three and six month periods ended 06/30/2025, were as follows: Managed Information Technology revenue was $3,500,000 and $7,100,000 respectively procurement revenue was $1,200,000 and $2,200,000 respectively professional services revenue was $700,000 and $1,400,000 respectively and subscription revenue was $300,000 and $600,000 respectively. Net loss from continuing operations for the three months ended 06/30/2025, totaled $1,100,000 compared to a net loss of $1,300,000 for the three months ended 06/30/2024. Net loss from continuing operations for the six months ended 06/30/2025, totaled $200,000 compared to a net loss from continuing operations of $1,600,000 for the prior six months ended 06/30/2024.

The reduction in net loss was attributed to IPM recording an income tax benefit during the first quarter of approximately $2,100,000 in connection with the aforementioned transactions. Net loss for the three months ended 06/30/2025, totaled $1,100,000 compared to a net loss of $800,000 for the three months ended 06/30/2024. Net loss for the six months ended 06/30/2025, totaled $200,000 compared to a net loss of $1,100,000 for the six months ended 06/30/2024. Adjusted EBITDA for the three months ended 06/30/2025, was negative 400,000.0 compared to negative 900,000.0 for the three months ended 06/30/2024, while adjusted EBITDA for the six months ended 06/30/2025, was negative 900,000.0 compared to negative $1,400,000 for the six months ended 06/30/2024. As of 06/30/2025, we had no long term debt and cash or cash equivalents included 8,300,000.0 including $1,000,000 of restricted cash.

Cash provided by operations for the six months ended 06/30/2025, was $900,000 compared to cash used in continuing operations for the six months ended 06/30/2024, of $100,000 IPM reported deferred revenue of $3,900,000 to be recognized as revenue in future quarters as products and or services are installed. We will now move on to questions.

Joe Diaz, Investor Relations Representative, Litham Partners: Thanks, Kara. The first question submitted by investors has to do with restricted cash. Help us understand the $1,000,000 in restricted cash. Are the funds prepayments by customers or tied to any specific obligations or covenants? Why is it classified as restricted cash?

Jason Katz, Chief Executive Officer, Intelligent Protection Management Corporation (IPM): It’s a great question. As we discussed at the end of last quarter, we entered into a credit agreement with an affiliate of NewtekOne Inc. That provides for a secured revolving line of credit. Line of credit is collateralized by a CD in the amount of $1,000,000 So we’ve classified it as restricted cash as of 06/30/2025. There were no amounts borrowed on the line of credit or due on the line.

Joe Diaz, Investor Relations Representative, Litham Partners: Okay. You’ve spoken about various ways to increase revenues, including cross selling existing clients, new Check One referrals, free security evaluations and potential M and A transaction. Can you discuss which activity you might expect to generate the most traction for the remainder of the year?

Jason Katz, Chief Executive Officer, Intelligent Protection Management Corporation (IPM): Sure. I’m excited about the referral program we have in place. Even in its infancy, we’ve started to see introductions start to cultivate. We stand by our products and services and believe that word-of-mouth is an easy cost effective way to promote them.

Joe Diaz, Investor Relations Representative, Litham Partners: How should we think about growth and margin improvement over the next six to twelve months? What do you think provides the best way for an outsider to judge the company’s progress?

Jason Katz, Chief Executive Officer, Intelligent Protection Management Corporation (IPM): Well, with the understanding that revenue can be lumpy due to revenue recognition, our aim is to continue to increase top line consecutive growth and to continue to improve adjusted EBITDA with the goal towards being adjusted EBITDA positive by early twenty twenty six. In addition, we’re always looking for ways to reduce expenses as well as marketing initiatives to achieve that goal.

Joe Diaz, Investor Relations Representative, Litham Partners: What effect, if any, could the current proposed tariff increases have on IPM’s business?

Jason Katz, Chief Executive Officer, Intelligent Protection Management Corporation (IPM): Well, we’ve evaluated our customer base and the services we’re providing to them and do not anticipate that an increase in tariffs would have a material impact on our business in fiscal twenty twenty five. We will continue to stay on top of the issue like others in the industry and reassess based on the changing landscape.

Joe Diaz, Investor Relations Representative, Litham Partners: Okay, that concludes our Q and A session here for today. Let me turn the call back over to Jason for closing remarks. Jason?

Jason Katz, Chief Executive Officer, Intelligent Protection Management Corporation (IPM): Thanks, everyone, for your support and for joining us today. We’re very grateful for your interest in our business. We look forward to updating the market on our progress as we continue to execute on our business plan. We expect to report our third quarter and nine months twenty twenty five results in early to mid November. Have a great day.

Conference Operator: Thank you, ladies and gentlemen. This does conclude today’s conference. You may disconnect your lines at this time and we thank you for your participation.

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