Intelligent Protection Management Q4 2025 Earnings Report

Intelligent Protection Management EPS Results

• Actual EPS: -$0.05
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Intelligent Protection Management Revenue Results

• Actual Revenue: $6.13 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Intelligent Protection Management Announcement Details

• Quarter: Q4 2025
• Date: 3/17/2026
• Time: After Market Closes
• Conference Call Date: Tuesday, March 17, 2026
• Conference Call Time: 4:30PM ET

Intelligent Protection Management (NASDAQ:IPM) (NASDAQ:IPM) is a managed technology solutions provider focused on cybersecurity and cloud infrastructure. IPM provides dedicated server hosting, cloud hosting, data storage, managed security, backup and disaster recovery, and other related services, including consulting and implementing technology solutions for enterprise and commercial clients across the United States. IPM's other products include ManyCam. IPM has an over 20-year history of technology innovation and holds 8 patents. For more information, please visit: www.ipm.com.

Intelligent Protection Management Q4 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: IPM hit an important liquidity and profitability inflection — adjusted EBITDA turned positive in Q4 2025 (+$5k), net loss narrowed 42% year-over-year, cash from operations was positive for the quarter and full year, and the company finished with $8.4 million in cash and no long-term debt.
• Negative Sentiment: Despite progress, the company remains unprofitable on a GAAP basis for 2025 with an operating loss of $4.7 million and full-year adjusted EBITDA of -$1.1 million.
• Positive Sentiment: Business scale and demand show traction — full-year revenue was $23.6 million, managed IT revenue totaled $14.8 million, core managed IT rose 7% sequentially in Q4, the firm manages >10,000 devices, and it has a $3.9 million deferred revenue backlog.
• Positive Sentiment: Strategic and operational milestones position IPM for growth — the NTS acquisition was integrated without disruption, the company achieved SOC 2 Type 1 compliance, extended its Phoenix data center license through 2032, and announced partnerships (AltiGen, MindsDB, IT Ally) plus new AI and Aura offerings.

Presentation

[Operator]

Good afternoon, and welcome to the Q4 2025 financial results conference call for Intelligent Protection Management Corporation, better known as IPM, for the quarter and year ended on December 31, 2025. At this time, all participants have been placed on a listen-only mode. Let me turn the floor over to Joe Diaz of Lytham Partners. Joe, please proceed.

[Joe Diaz, Managing Partner at Lytham Partners]

Good afternoon, and welcome to all participating on today's call to review the financial and operating results of IPM for the fourth quarter and year ended December 31, 2025. As the operator indicated, my name is Joe Diaz. I'm with Lytham Partners. We are the investor relations representative for IPM. By now, everyone should have access to the earnings results press release, which was issued after the close of market today. This call is being webcast and will be available for replay.

[Joe Diaz, Managing Partner at Lytham Partners]

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 plan, IPM's relationships with its customers, as well as market and potential growth opportunities. In addition, management may make forward-looking statements in response to your questions.

[Joe Diaz, Managing Partner at Lytham Partners]

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.

[Joe Diaz, Managing Partner at Lytham Partners]

A detailed discussion of such risks and uncertainties is contained in IPM's filings with the SEC, including its annual report on Form 10-K for the year ended December 31, 2025. 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 its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

[Joe Diaz, Managing Partner at Lytham Partners]

On this call, management will refer to adjusted EBITDA, a non-GAAP measure that, when used in combination with GAAP results, provides 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 on the investor relations section of the company's website at www.ipm.com.

[Joe Diaz, Managing Partner at Lytham Partners]

As previously disclosed, on January 2, 2025, IPM completed its acquisition of Newtek Technology Solutions, Inc., or NTS, from NewtekOne, Inc. The company also divested its Paltalk, Camfrog, and Vumber applications and certain assets and liabilities related to such applications to Meteor Mobile Holdings, Inc., which are referred to as the transferred assets. I'm joined today by Jason Katz, IPM's Chief Executive Officer, Jared Mills, IPM's President, and Kara Jenny, IPM's CFO.

[Joe Diaz, Managing Partner at Lytham Partners]

After Jason's remarks, we will hear from Kara, then we will conclude with investor questions that were sent in advance of today's call. At this time, I'd like to turn the call over to Jason Katz. Jason, take it away.

[Jason Katz, CEO at Intelligent Protection Management Corp]

Thanks, Joe, and good afternoon, everyone. We greatly appreciate you taking the time to join us on today's call. We completed our first year of operations following our acquisition of NTS. It was a very good first year operating as a managed technology solutions provider. During 2025, we streamlined our service operations and our technology vendor partner licensing and manufacturing cost centers.

[Jason Katz, CEO at Intelligent Protection Management Corp]

We made significant progress on a number of key metrics, including managed recurring revenue growth, expense optimization, and risk management. In the fourth quarter, revenue from our core business, Managed IT, that's excluding web hosting, increased sequentially by 7%. Net loss narrowed by 42% and adjusted EBITDA was positive. Cash flow from operations was positive for both the quarter and the full year.

[Jason Katz, CEO at Intelligent Protection Management Corp]

As of December 31, 2025, we had cash and cash equivalents totaling $8.4 million and no long-term debt. We have important differentiators that set us apart from our industry competitors, large and small, and have significant competitive advantages over those peers that lack our level of expertise in highly regulated vertical markets, including legal, healthcare, finance, and banking. Our success in these markets represents a large opportunity in the coming years.

[Jason Katz, CEO at Intelligent Protection Management Corp]

From a customer service perspective, our managed clients benefit from a VIP high-touch experience with a dedicated technology manager as a single point of contact, as opposed to competitors in our industry that use automated voice response to phone calls, telephonic menus and handing off service calls to agents in call centers in foreign countries, all of which can be frustrating and can impact the customer experience. We don't do any of that.

[Jason Katz, CEO at Intelligent Protection Management Corp]

Our clients speak directly to their IPM account team members who deeply understand the client's needs and business goals. This is an important IPM customer service advantage that fuels our superior customer loyalty. So much so that in 2025, we retained all major clients while entering new markets with near zero churn. Since the January 2025 acquisition of NTS, we have successfully integrated NTS into IPM's mission, vision, and operations, and serviced our customers without interruptions or downtime.

[Jason Katz, CEO at Intelligent Protection Management Corp]

We are well-positioned to grow the company through the expansion of our service offerings to existing legacy NTS customers, new customers, and our historical web hosting customer base. We continue to advance operationally with a focus on efficiency, and at the same time, we manage expense with the goal of driving value for all of our stakeholders.

[Jason Katz, CEO at Intelligent Protection Management Corp]

For full year 2025, we extended our Phoenix data center license agreement with an industry-leading provider through August 31, 2032, reinforcing a long-standing strategic relationship supporting our continued focus on scalable, secure, and highly reliable digital infrastructure. We successfully achieved SOC 2 Type 1 compliance, a key milestone in our ongoing commitment to safeguarding customer data and delivering trusted cybersecurity and cloud infrastructure solutions.

[Jason Katz, CEO at Intelligent Protection Management Corp]

We announced a collaborative growth initiative with AltiGen Technologies to refer integrated communications, AI-driven analytics, and managed security and hosting solutions to their respective customers. We entered into a reseller agreement with MindsDB, a leading open source AI platform, to provide its current and future customers with sophisticated AI capabilities. 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.

[Jason Katz, CEO at Intelligent Protection Management Corp]

In May 2025, our board of directors approved a stock repurchase plan for up to $400,000 of outstanding common stock, which plan expires on the one-year anniversary of such date. Pursuant to the repurchase plan since inception, we have purchased 151,258 shares at an average price of $1.99. There were no shares repurchased in the fourth quarter of 2025.

[Jason Katz, CEO at Intelligent Protection Management Corp]

We commenced offering Aura, a leading AI-powered online safety solution for business, families, and individuals designed to help minimize the impact of data breaches, scams, and other online threats to businesses and consumers. Finally, we initiated our Heroes Program to provide a 10% discount on all IPM products and services to all existing and future military, first responder, healthcare, teacher, and veterinary business owners.

[Jason Katz, CEO at Intelligent Protection Management Corp]

Having our company transition to a pure play managed services technology provider over the course of the year has been gratifying. We look forward to many opportunities to dramatically expand our business in the coming years. With that, let me turn over the call to Kara Jenny, our CFO, for a summary of our financial results for the fourth quarter and full year 2025. Following Kara's remarks, we'll move into the Q&A and answer questions that were submitted via email prior to this call. Kara, it's all yours.

[Kara Jenny, CFO at Intelligent Protection Management Corp]

Thanks, Jason. For the three months ended December 31st, 2025, revenue totaled $6.1 million. On a sequential basis, total revenue decreased 1.7% from the third quarter of 2025. Revenue for the full year ended December 31st, 2025 totaled $23.6 million. Total revenue by revenue component for the fourth quarter and year ended December 31st, 2025 were as follows.

[Kara Jenny, CFO at Intelligent Protection Management Corp]

Managed information technology revenue was $3.9 million and $14.8 million, respectively. Procurement revenue was $1.5 million and $5.4 million, respectively. Professional services revenue was $0.4 million and $2.3 million, respectively, and subscription revenue was $0.3 million and $1.1 million, respectively. Operating loss from continuing operations for the fourth quarter ended December 31st, 2025 totaled $0.8 million.

[Kara Jenny, CFO at Intelligent Protection Management Corp]

Operating loss from continuing operations for the full year ended December 31st, 2025 totaled $4.7 million. Net loss for the three months ended December 31st, 2025 totaled $0.6 million. Net loss for the full year ended December 31st, 2025 totaled $2 million. We recorded an income tax benefit during the first quarter of 2025 of approximately $2.1 million in connection with our acquisition of NTS and the divestiture of our Paltalk, Camfrog and Vumber applications.

[Kara Jenny, CFO at Intelligent Protection Management Corp]

Adjusted EBITDA for the three months ended December 31st, 2025 was +$5,000. Adjusted EBITDA for the full year ended December 31st, 2025 was -$1.1 million. As of December 31st, 2025, IPM had no long-term debt, and cash and cash equivalents totaled $8.4 million, which included $1 million of restricted cash.

[Kara Jenny, CFO at Intelligent Protection Management Corp]

Cash provided by continuing operations for the full year ended December 31st, 2025 was $1.1 million. We reported deferred revenue of $3.9 million for the full year ended December 31st, 2025, which will be recognized as revenue in future quarters as product and/or services are installed. We had more than 10,000 devices under management at December 31st, 2025, representing the number of endpoints, servers, and network devices that are outsourced to us under managed service agreements. That concludes my comments, and we will now move on to addressing online submitted questions.

[Joe Diaz, Managing Partner at Lytham Partners]

Jason, this was a great first year for IPM as a managed technology solutions provider. What did you consider the highlights of the year? What were your biggest challenges, and what are your expectations for 2026 and 2027?

[Jason Katz, CEO at Intelligent Protection Management Corp]

As I mentioned, we're very pleased with our performance in our first full year as a managed technology solutions provider following the acquisition. Some of the highlights include the continued growth in the managed IT portion of our business, a meaningful reduction in our net loss, and the progress we've made at the EBITDA line.

[Jason Katz, CEO at Intelligent Protection Management Corp]

Notably, we reported positive adjusted EBITDA in the fourth quarter of 2025, which we view as an important milestone for the company. In terms of challenges, much of the uncertainty facing our industry comes from the evolving threat landscape and broader macroeconomic factors. Cybersecurity threats from bad actors overseas continue to target critical infrastructure, and there are also uncertainties around issues such as tariffs and other policy developments.

[Jason Katz, CEO at Intelligent Protection Management Corp]

While we have not been directly impacted by these factors, our team remains very focused on proactively managing risk and ensuring that we are all well positioned to respond to potential changes in the operating environment. Looking ahead to 2026 and 2027, our team is highly focused on continuing to grow the business, both organically and where appropriate, through strategic acquisitions that we believe will be accretive to our long-term growth strategy.

[Jason Katz, CEO at Intelligent Protection Management Corp]

We are also very excited about the opportunities to incorporate various aspects of AI into our operations and product offerings. We believe these technologies will allow us to deliver greater value to our customers by helping them operate more efficiently, accelerate their growth, and stay ahead in an increasingly dynamic technology landscape.

[Joe Diaz, Managing Partner at Lytham Partners]

Jared, as President of the company, IPM customer churn is nearly non-existent. How does IPM do that?

[Jared Mills, President at Intelligent Protection Management Corp]

This is such a great question because it speaks to the heart of who IPM is as a company. We're just as passionate about customer service and the overall customer experience as we are about reliability and security. It's what made this company great, and it's our David and Goliath story. How does a small American micro-cap public company earn the business we earn and keep the business we keep? It's good old-fashioned customer service.

[Jared Mills, President at Intelligent Protection Management Corp]

We invest heavily into the idea that people wanna talk to people, and ideally the same people they talked to yesterday. That means we build relationships, and that means we're high touch. The result of that is a white glove VIP experience that quite frankly, you can't get anywhere else. We care about the customer more than the technology here, and for that reason, our churn is nearly non-existent.

[Joe Diaz, Managing Partner at Lytham Partners]

Jason, can you give us an update on how you think about the company's excess leased data center capacity and how best to exploit it?

[Jason Katz, CEO at Intelligent Protection Management Corp]

Sure. We're very pleased to have renewed our lease agreement with one of the premier data center partners in the country, extending that relationship through 2032. That long-term partnership gives us the stability and capacity we need to support our growth plans. Their state-of-the-art facility not only enables us to scale our infrastructure as demand increases, but it also allows us to leverage their operational expertise and reliability in servicing our customers.

[Jason Katz, CEO at Intelligent Protection Management Corp]

From a strategic standpoint, this capacity gives us flexibility to support both organic growth and new opportunities within our managed services offerings. Overall, we believe the partnership positions us very well to deliver continued value to our customers while supporting sustainable growth for the business.

[Joe Diaz, Managing Partner at Lytham Partners]

Okay. That concludes our Q&A session. Let me turn the call over to Jason for closing remarks. Jason?

[Jason Katz, CEO at Intelligent Protection Management Corp]

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 will talk with you again to review our 2026 first quarter results. Have a great day.

[Operator]

This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

Participants

Executives

• Jared Mills, President
• Jason Katz, CEO
• Kara Jenny, CFO

Analysts

• Joe Diaz, Managing Partner at Lytham Partners