Intrusion (INTZ) Stock Forecast & Price Target

Intrusion Inc. has demonstrated a significant increase in revenue from its product line, with Intrusion Shield recording a 49% rise in revenue for Q3 compared to Q2 and showing a year-over-year revenue increase of 22.6% in Q4. The company has also secured major contracts, including a $1 million agreement for Secure Electronic Transmission Services for the upcoming Philippines midterm elections, which enhances its growth prospects. Despite minor fluctuations in revenue estimates, management remains optimistic about continued improvements in gross margins and operating expenses, indicating a potential for future profitability.

Intrusion Inc. has experienced a sequential decline in Shield revenue, dropping from approximately $0.5 million in 3Q24 to about $0.4 million, leading to a reduced full-year revenue outlook for 2025. The ongoing struggles in generating consistent revenue from Shield, despite the growing cybersecurity market, raise concerns regarding the company's longer-term revenue potential. Additionally, as Intrusion integrates more consulting business, there are indications that gross margins might face pressure, further compounding doubts about the company's near-term financial health and growth trajectory.