IPM

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is repositioning IPM as a high-value enterprise infrastructure firm focused on the intersection of cybersecurity, secure cloud migration, and AI computing. Revenue growth of 13% was driven by sustained demand in highly regulated industries, though GAAP recognition was hampered by temporary supply chain disruptions in hardware components. The 64% surge in procurement revenue reflects aggressive customer investment in servers and storage to support business-critical AI applications. A significant margin compression occurred due to a large customer order being split across two periods, where rising component and freight costs turned the second half of the fulfillment into a loss. Managed IT services, the company's core recurring revenue engine, grew 8.4% and is viewed as the primary vehicle for long-term customer retention and predictable cash flow. Management attributes the decline in related-party revenue from NewtekOne to that client's specific internal initiatives to reduce overall information technology spending. The company maintains a debt-free balance sheet with $7.5 million in cash, which management views as a strategic advantage for pursuing consolidation in a fragmented MSP market. Management reaffirmed its primary financial goal of achieving positive adjusted EBITDA by the fourth quarter of 2026. Deferred revenue of $4.5 million is expected to be recognized in future quarters as supply chain constraints ease and product installations are completed. To mitigate future execution risk, the company is broadening its supplier ecosystem and diversifying distributor relationships to handle accelerating AI infrastructure demand. The strategic roadmap prioritizes using project-based procurement as an entry point to convert customers into long-term, high-margin managed service contracts. The extended Phoenix data center agreement through 2032 provides significant discounted capacity to support growth in private cloud and disaster recovery segments. Supply chain constraints for memory, CPUs, and GPUs created a disconnect between robust customer bookings and actual revenue recognition. Professional services revenue experienced a 47.3% decrease, which management characterized as a timing issue related to customer engagement schedules rather than a structural decline. The company reported a net loss of $1.4 million for the quarter, widened from $1.1 million in the prior year, largely due to the specific high-cost fulfillment of a delayed large-scale order. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is utilizing case studies and referrals from existing clients to penetrate the legal and finance sectors. A strong pipeline is currently being developed across health care, energy, private equity, manufacturing, and retail verticals. Management clarified that constraints only affect the unpredictable, lower-margin procurement business and have no impact on the services segment. The company has already diversified its vendor and manufacturer relationships to solve for future component shortages. The 47% decline in professional services was attributed to resource constraints and summer timing issues. Management expects these timing issues to ease as the summer months conclude, citing a significant remaining pipeline. The facility provides a 100% uptime guarantee and significant capacity at a heavily discounted rate negotiated through 2032. IPM is using hyperconverged assets to maximize power and space efficiency for future client onboardings in private cloud and AI segments.

Image source: The Motley Fool. Tuesday, Aug. 11, 2026 at 4:30 p.m. ET Chief Executive Officer - Jason Katz President - Jared Mills Chief Financial Officer - Kara Jenny Investor Relations - Joe Diaz Operator: Good afternoon, and welcome to the Q2 26 Financial Results Conference Call for Intelligent Protection Management Corp. Better known as IPM, for the quarter ended on 06/30/2026. 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: 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 06/30/2026. As the operator indicated, my name is Joe Diaz. I am 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. 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 2000, including forward looking statements about future results of operations, business strategies and plans, IPM's relationship with the 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 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 is contained in IPM's filings with the SEC. Including its annual report on Form 10-K for the year ended 12/31/2025. You should refer to and consider these factors when relying on such forward looking information. The company does not undertake an 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. 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 was posted on the Investor Relations section of the company's website at www.ipm.com. I am joined today by Jason Katz, IPM's chief executive officer Jared Mills, IPM's president, and Kara Jenny, IPM's CFO. 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 would like to turn the call over to Jason Katz. Jason, take it away. Jason Katz: Good afternoon, everyone, and thank you for joining us today. We delivered another quarter of solid execution in sustained momentum across our core business and strategic initiatives. The second quarter of 26 reinforced what we believe is becoming increasingly clear. IPM is evolving into a higher value enterprise infrastructure company built around recurring managed services enterprise cybersecurity, and cloud infrastructure. While this quarter's results reflected temporary supply chain disruption, that delayed revenue recognition and compressed margins on 1 large customer order. The underlying fundamentals of the business continue to improve. During the quarter, demand remained healthy. New customer additions remained robust. Our recurring revenue base continued to expand, Our customer pipeline continued to grow. And perhaps most importantly, the secular trends driving our business have never been stronger. Today, organizations are facing 3 transformational technology priorities simultaneously. First, cybersecurity has become mission critical. Second, enterprises continue migrating workloads into secure cloud environments. And third, artificial intelligence is fundamentally changing the enterprise computing landscape. We operate at the intersection of all 3. As a result, we believe our position in the enterprise infrastructure landscape creates a compelling long term growth opportunity. During the second quarter, revenue increased nearly 13% to $6.5 million while revenue in the first half of 26 increased 14% to $12.8 million. This increase reflects sustained demand for secure, scalable, managed technology solutions across highly regulated industries. Top line growth itself is extremely important, and the quality of growth continues to be driven by new customer additions and expanded services sold to existing clients. it is important to remember that bookings, billings, and GAAP revenue each measure different aspects of our business. Bookings reflect customer commitments and billings reflect amounts invoiced to customers. Under GAAP, however, revenue is recognized only when we satisfy our performance obligations and transfer control of the promised goods or services to the customer. As a result, there can be a timing difference between when we book or bill an order and when that activity is recognized as revenue. Those amounts are recorded as deferred revenue on our balance sheet and are recognized as GAAP revenue over time as the related services are delivered or contractual obligations are fulfilled. As of 06/30/2026, deferred revenue was $4.5 million compared to $3.9 million at 12/31/2025. Our managed information technology business the foundation of our company, grew more than 8% year over year. We believe this recurring revenue business generates long term customer relationships, predictable cash flows and multiple opportunities to expand wallet share over time. At this point, let me turn the call over to Kara Jenny, our chief financial officer, for a review of the 3- and 6 month financial results. Kara? Kara Jenny: Thank you, Jason. For the 3 months ended June 30, 2026, total revenue increased by approximately 13% to $6.5 million from $5.7 million for the 3 months ended 06/30/2025. This increase was driven by increased management information technology revenue attributed to both new customers as well as the expansion of services sold to existing customers and an increase in procurement revenue related to the sale of AI related equipment to customers. Partially offset by decreases in professional services revenue and subscription revenue. Total revenue by revenue component for the second quarter ended 06/30/2026 was as follows. Managed IT technology revenue, which consists of revenue from our managed IT security services, and managed IT backup and disaster solutions, as well as web hosting, was $3.8 million, an increase of 8.4% from Q2 25. Procurement revenue was $2 million, an increase of 64% from Q2 25. Professional services revenue was $363 thousand a decrease of 47.3% from Q2 25. And subscription revenue was $249 thousand a decrease of 10.5% from Q2 25. Revenue from NewtekOne, a related party and a large customer, was impacted by its ongoing initiatives to reduce information technology spending. We partially offset this decline in revenues through growth in recurring revenue from customers who are not related parties, including the addition of new customer relationships and expanding service contracts during the period. During the 3 months ended 06/30/2026, we experienced supply chain constraints affecting the availability of memory, CPU, and GPU components. These constraints extended product lead times compared to historical levels. Resulting in delays between customer bookings and product shipments. As a result, a portion of booked orders during the quarter remained unrecognized as revenue pending fulfillment and delivery. For which we expect to recognize in future quarters as the underlying products and services are shipped and installed. In addition, during the quarter, a significant customer order was delayed and fulfilled across 2 reporting periods due to supply chain constraints affecting both our vendor and distribution channel. These constraints alter the cost structure associated with fulfilling the order. Initial shipment completed in the first quarter of 26 was recognized at expected margins, while the subsequent shipment completed during the second quarter incurred a higher component in freight costs, resulting in a loss on that portion of the order. As a consequence, the combined order resulted in a loss, which contributed to the increase in cost of revenue described below and negatively impacted our results of operations for the 3 months ended 06/30/2026. Net loss for the 3 months ended 06/30/2026 totaled $1.4 million compared to net loss of $1.1 million for the 3 months ended 06/30/2025. Adjusted EBITDA for the 3 months ended 06/30/2026 totaled negative $600 thousand compared to negative $400 thousand for the 3 months ended 06/30/2025. Cash used in operations of $600 thousand for the 3 months ended 06/30/2026 compared to cash used in operations of $900 thousand for the 3 months ended 06/30/2025, primarily related to our sourcing of inventory in connection with the increase in procurement. Procurement revenue. Deferred revenue was $4.5 million as of June 30, which will be recognized as revenue in future quarters as product and or services are installed. And as June 30, had $7.5 million of cash and cash equivalents on our balance sheet and no long term debt. For the 6 months ended 06/30/2026, total revenue increased by 14% to $12.8 million from $11.2 million for the comparable 6 month period in 2025. The increase was driven by increased management information technology revenue, attributed to both new customers as well as the expansion of services sold to existing customers and an increase in procurement revenue related to the sale of AI equipment to customers, partially offset by decreases in professional services revenue and subscription revenue. For the 6 months ended June 30, 2020, revenue totaled $12.8 million compared to 11.2 million for the 6 months ended 06/30/2025. An increase of 14%, primarily attributed to an increase in our managed IT services of 9% compared to the prior period as well as an increase in procurement revenue of 70% compared to the prior year period. Net loss for the 6 months ended 06/30/2026, totaled $2 million compared to net loss of $200 thousand for the 6 months ended 06/30/2025. Adjusted EBITDA for the 6 months ended 06/30/2026 totaled negative $800 thousand compared to negative $900 thousand respectively, for the 6 months ended 06/30/2025. Cash used by operations of $800 thousand for the 6 months ended 06/30/2026, compared to cash provided by operations of $900 thousand for the 6 months ended 06/30/2025, primarily related to our sourcing of inventory in connection with the increased procurement revenue. That concludes my review. I will turn the call back to Jason. Jason Katz: Our objective has never been simply to sell technology. The objective is to become a strategic technology partner that manages increasingly larger portions of our customers' IT environments. That creates recurring revenue, higher customer retention, stronger operating leverage, and greater lifetime customer value. Those are the characteristics that build durable enterprise value. Another major growth driver is infrastructure. We continue to see customers accelerate investments in compute infrastructure required to deploy applications. Procurement revenue increased 64% during the quarter compared to the prior year period. Driven primarily by customers investing in servers, storage, and infrastructure supporting business and AI applications. Although procurement revenue is inherently project based, it often serves the entry point into long term managed service relationships. As customers expand their technology footprint, they increasingly require ongoing cybersecurity cloud management, monitoring, disaster recovery, managed IT support. In other words, today's infrastructure deployment frequently becomes tomorrow's recurring revenue customer. That is exactly the type of customer life cycle we are building. As Kara noted, 1 issue that impacted the industry during the quarter was supply chain availability. Demand significantly exceeded component availability from memory, CPUs, and GPUs. Important point is that the customer demand did not weaken. Orders were booked. Customers remain committed. Revenue recognition was simply delayed because products could not be delivered and installed before the end of the quarter. Those revenues remain in our pipeline and will be recognized as fulfillment occurs in the coming quarters. We have already responded by broadening our supplier ecosystem, expanding relationships with distributors and manufacturers and improving procurement flexibility. These actions should reduce execution risk while allowing us to respond as AI infrastructure demand continues to accelerate. The quarter also included an unusual margin impact associated with 1 large customer order fulfilled across 2 reporting periods. Changes in component pricing and freight costs resulted in a lower than expected gross margin on that project. We view this as an isolated operational event. Not a structural change in our pricing model or competitive positioning. Our balance sheet remains another important differentiator. We ended the quarter with approximately $7.5 million in cash and no long term debt. In today's environment, financial flexibility is a competitive advantage. It enables us to invest organically while simultaneously evaluating strategic acquisitions that can accelerate our growth strategy. Capital allocation remains disciplined and focused on maximizing long term stockholder returns. Our priorities are straightforward. First, invest in initiatives that expand recurring revenue and increase customer lifetime value. Second, pursue strategic acquisitions that strengthen our technology platform, expand geographic reach, or add complementary capabilities. And third, maintain a conservative balance sheet that preserves financial flexibility. We believe this disciplined approach positions us to create stockholder value over time. As we have discussed previously, consolidation opportunities continue to emerge throughout the managed services cybersecurity, and cloud infrastructure markets. Many smaller providers possess attractive customer base but lack the scale, infrastructure, and capital necessary to compete effectively. With our strong balance sheet, proven operating platform, integration experience, we believe IPM is well positioned to act as a consolidator when attractive opportunities arise. We are interested in businesses that increase recurring revenue enhance our technology capabilities, and generate attractive long term returns on invested capital. Our objective with acquisitions is not simply to become larger, but to become a higher quality business. Ultimately, we believe investors should evaluate IPM based on the long term trajectory of business rather than quarterly fluctuations. We believe IPM is positioned to generate sustainable growth, expand profitability over time, and create meaningful long term value for our stockholders. Based on our current outlook and the execution plan we laid out at the start of the year, our goal remains to be positive adjusted EBITDA for the fourth quarter. I would like to thank our employees for their outstanding execution, our customers for their continued confidence, and our stockholders for their ongoing support. We are excited about the opportunities ahead and remain confident in our ability to build a significantly larger and more valuable company. We will now answer a number of questions that have been submitted via email by investors. The first question is demand remains healthy and new customer additions were robust. Can you provide more detail on the types of customers driving that growth? Can you talk about your traction in developing new accounts in the highly regulated industries, including legal, health care, and others. I will send that to Jared. Jared Mills: Thank you, Jason. We are continuing our successful efforts of leveraging a customer we have to acquire customers. With our strength in highly regulated industries and our current repertoire of customers, we have leveraged customer case studies and referrals to go after additional accounts in each vertical area. During the reporting period, we had specific success in legal and finance, and a strong pipeline in health care, energy, private equity, and manufacturing, and retail. Jason Katz: Question number 2. Revenue continues to grow, but it looks like there was a decrease in revenue from a related party. How should we think about that going forward, and what does that mean for the business? I will take that 1. Revenue from NewtekOne, a related party, decreased for the quarter in connection with their ongoing initiatives to reduce their information technology spend. While they are a very important customer, they are just 1 piece of the business, and we demonstrated this quarter that we remain dedicated to not just meeting their evolving needs, but growing the overall business. And it was mentioned supply chain constraints delaying revenue recognition, Have those constraints eased in Q3? And when do you expect normalization, Jason? The constraints affected the procurement revenue, which as we have mentioned previously, is by nature an unpredictable business with lower gross margins than the rest of the business, We have substantial capacity in every other area of the business and no concerns with supply chain from a services perspective. In addition, we recently diversified our distributor, vendor, partner, manufacturer relationships to better solve for any future constraints in procurement side of the business. As I also mentioned, it is important to remember that bookings, billings, and GAAP revenue each measure different aspects of our business. Amounts recorded as deferred revenue on our balance sheet are recognized as GAAP revenue over time as the related services are delivered or contractual obligations are fulfilled. As of 06/30/2026, deferred revenue was $4.5 million. An increase of 600 thousand or $600 thousand over 12/31/2025. Jared Mills: Professional services declined 47%. Is this structural or a timing related issue? Jared? Professional services bookings are strong and growing. However, customer timing and resource constraints can occasionally cause delays in customer engagements, which can have an impact on billing during any given period. The good news is IPM has a significant pipeline, and we expect the timing issues to ease as the summer months come to a close. And Jared, the Phoenix data center agreement which was extended through 2032, how much capacity does this provide, and what utilization levels do you expect? Our data center in Phoenix is Tier 3 and institute certified with a 100% uptime guarantee. IPM was able to negotiate a heavily discounted rate for significant capacity of which we are seeing steady customer growth in private cloud, dedicated private cloud, private cloud AI, and managed backup and disaster segments of the business. IPM is able to leverage hyperconverged assets to maximize the use of our power and space, giving us significant leverage as a business for future client onboardings. Operator: Okay. Well, that concludes our Q&A session for today. We will look forward to talking with you again after the conclusion of our third quarter. Have a great rest of your day. Thank you very much. This does conclude today's conference. And you may disconnect your lines at this time. Thank you for your participation. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. IPM (IPM) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Revenue: $6.5 million for Q2 2026, up nearly 13% year-over-year; $12.8 million for the first half of 2026, up 14% year-over-year. Managed IT Technology Revenue: $3.8 million in Q2 2026, up 8.4% year-over-year. Procurement Revenue: $2 million in Q2 2026, up 64% year-over-year; up 70% for the first half of 2026. Professional Services Revenue: $363,000 in Q2 2026, down 47.3% year-over-year. Subscription Revenue: $249,000 in Q2 2026, down 10.5% year-over-year. Net Loss: $1.4 million for Q2 2026, compared to a net loss of $1.1 million in Q2 2025; $2 million for the first half of 2026, compared to a net loss of $0.2 million in the prior-year period. Adjusted EBITDA: Negative $0.6 million for Q2 2026, compared to negative $0.4 million in Q2 2025; negative $0.8 million for the first half of 2026, compared to negative $0.9 million in the prior-year period. Cash Flow: Cash used in operations of $0.6 million for Q2 2026, compared to $0.9 million used in Q2 2025; $0.8 million used in the first half of 2026, compared to $0.9 million provided in the prior-year period. Deferred Revenue: $4.5 million as of June 30, 2026, compared to $3.9 million at December 31, 2025. Cash Position: $7.5 million in cash and cash equivalents as of June 30, 2026, with no long-term debt. Warning! GuruFocus has detected 5 Warning Signs with IPM. Is IPM fairly valued? Test your thesis with our free DCF calculator. Release Date: August 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue increased nearly 13% year-over-year to $6.5 million in Q2 2026, with first-half revenue up 14% to $12.8 million. Managed IT revenue, the core recurring business, grew over 8% year-over-year, driven by new customer additions and expanded services to existing clients. Procurement revenue surged 64% year-over-year, reflecting strong demand for AI-related infrastructure and compute equipment. Deferred revenue increased to $4.5 million, up from $3.9 million at year-end 2025, indicating a healthy pipeline of future revenue to be recognized. The company maintains a strong balance sheet with $7.5 million in cash and no long-term debt, providing financial flexibility for strategic acquisitions and organic investments. Management reaffirmed its goal of achieving positive adjusted EBITDA in the fourth quarter of 2026, signaling confidence in improving profitability. Net loss widened to $1.4 million in Q2 2026, compared to a net loss of $1.1 million in the same period last year. Adjusted EBITDA remained negative at -$0.6 million for the quarter, slightly worse than the -$0.4 million in Q2 2025. Supply chain constraints for memory, CPUs, and GPUs delayed revenue recognition and compressed margins on a large customer order, leading to a loss on that portion of the order. Revenue from related party NewtekOne declined due to their ongoing initiatives to reduce IT spending, partially offsetting growth from other customers. Professional services revenue dropped 47% year-over-year, and subscription revenue also declined by 10.5%. Cash used in operations increased to $0.8 million for the first half of 2026, compared to cash provided by operations of $0.9 million in the prior year period, due to inventory sourcing for procurement revenue. Q: Revenue continues to grow, but it looks like there was a decrease in revenue from a related party. How should we think about that going forward and what does that mean for the business?A: Jason Katz (CEO): Revenue from NewtekOne, a related party, decreased for the quarter in connection with their ongoing initiatives to reduce their information technology spend. While they are a very important customer, they are just one piece of the business, and we demonstrated this quarter that we remain dedicated to not just meeting their evolving needs but growing the overall business. Q: It was mentioned supply chain constraints delayed revenue recognition. Have those constraints eased in Q3 and when do you expect normalization?A: Jason Katz (CEO): The constraints affected procurement revenue, which is by nature an unpredictable business with lower gross margins than the rest of the business. We have substantial capacity in every other area of the business and no concerns with supply chain from a services perspective. We recently diversified our distributor, vendor partner, and manufacturer relationships to better solve for any future constraints on the procurement side. It's important to remember that bookings, billings, and GAAP revenue each measure different aspects of our business. As of June 30, 2026, deferred revenue was $4.5 million, an increase of $600,000 over December 31, 2025. Q: Demand remains healthy and new customer additions were robust. Can you provide more detail on the types of customers driving that growth? Can you talk about your traction in developing new accounts in the highly regulated industries, including legal, healthcare and others?A: Jared Mills (President): We are continuing our successful efforts of leveraging a customer we have to acquire customers. With our strength in highly regulated industries and our current repertoire of customers, we've leveraged customer case studies and referrals to go after additional accounts in each vertical area. During the reporting period, we had specific success in legal and finance and a strong pipeline in healthcare, energy, private equity, manufacturing and retail. Q: Professional services declined 47%. Is this structural or a timing-related issue?A: Jared Mills (President): Professional services bookings are strong and growing. However, customer timing and resource constraints can occasionally cause delays in customer engagements, which can have an impact on billing during any given period. The good news is IPM has a significant pipeline, and we expect the timing issues to ease as the summer months come to a close. Q: The Phoenix Data Center Agreement, which was extended through 2032, how much capacity does this provide and what utilization levels do you expect?A: Jared Mills (President): Our data center in Phoenix is Tier 3 and institute certified with 100% uptime guarantee. IPM was able to negotiate a heavily discounted rate for significant capacity, of which we are seeing steady customer growth in private cloud, dedicated private cloud AI, and managed backup and DR segments of the business. IPM is able to leverage hyper-converged assets to maximize the use of our power and space, giving us significant leverage as a business for future client onboardings. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Continued Momentum - Q2 total revenue UP 13%;Sustained Growth - Six-month total revenue UP 14% JERICHO, NY / ACCESS Newswire / August 11, 2026 / Intelligent Protection Management Corp. ("IPM," "we," "us," "our" or the "Company") (Nasdaq:IPM), a managed technology solutions provider focused on enterprise cybersecurity and cloud infrastructure, today announced its financial results for the three months and the six months ended June 30, 2026. Management Discussion Jason Katz, Chairman and Chief Executive Officer, said, "Financial results for the second quarter of 2026 were solid despite supply chain constraints, achieving a 13% increase in total revenue to $6.5 million compared to last year's second quarter. For the six months ended June 30, 2026, total revenue increased 14% to $12.8 million. We achieved double-digit revenue growth by generating new customers, expanding sales to existing customers and investing strategically for future growth. Our performance underscores the strength and value of our "white glove" managed technology solutions in highly regulated industries. As customers increasingly recognize the security, reliability and scalability of our platform, we believe we remain well positioned to capitalize on growing market demands. "In the second quarter", Mr. Katz continued, "we had a strong increase of 64% in procurement revenues, as customers focused on building out their infrastructure as quickly as possible to execute on their AI initiatives. Customer procurement by its nature is uneven and dependent on many unpredictable factors. In that regard, we have invested in expanding our procurement and fulfillment infrastructure to better serve our clients. "We experienced supply chain constraints during the quarter, which affected the availability of memory, CPU and GPU components throughout the quarter. These conditions extended product lead times, resulting in delays between customer bookings and product shipments. Consequently, a portion of booked orders remained unrecognized as of the end of June 30, 2026 as revenue pending fulfillment and delivery in future quarters. Going forward, we are better prepared to manage this part of our business in a more effective way and on a more timely basis, as we are adding additional distributors, vendors, partners and manufacturers to further diversify our sources. "During the quarter we continued to add new customer relationships and service contracts, as we remain dedicated to building a diversified customer base to reduce concentration in a handful of customers. Additionally, during the first half of 2026, we further strengthened our competitive position by achieving SOC 2 Type 1 compliance, extending our Phoenix data center agreement through 2032 and accelerating AI integration through our partnership with MASORI Therapeutics. These advancements enhance our ability to deliver secure, enterprise-grade infrastructure and AI-driven automation, elevating our position as a trusted partner." Mr. Katz, concluded, "As I have indicated previously, we continue to explore and evaluate strategic opportunities, including, but not limited to, potential mergers or acquisitions of other entities or assets that are synergistic to our businesses and expand our market leadership. With a strong balance sheet, no long-term debt and a growing pipeline, we believe we are well positioned to move aggressively and integrate operations that are synergistic with our core operations and can be acquired at reasonable valuations to provide greater returns for our loyal stockholders. We are confident in our ability to build on our momentum and deliver strong results throughout the remainder of 2026 as well as deliver shareholder value." Financial Highlights: Q2 2026 1Adjusted EBITDA is a non-GAAP financial measure. Please see the discussion below under the heading "Use of Non-GAAP Financial Measures" and the reconciliation at the end of this release for additional information. Financial Results: Three and Six months ended June 30, 2026 For the three months ended June 30, 2026, total revenue increased by 13% to $6.5 million from $5.7 million for the three months ended June 30, 2025. This increase was driven by increased managed information technology revenue, attributed to both new customers, as well as the expansion of services sold to existing customers, and an increase in procurement revenue related to sales of AI-related equipment to customers, partially offset by decreases in professional services revenue and subscription revenue. Total revenue by revenue component for the second quarter ended June 30, 2026, was as follows: Managed information technology revenue, which consists of revenue from our managed IT security services, managed backup and disaster solutions and web hosting, was $3.8 million, an increase of 8.4% from Q2 2025. Procurement revenue was $2.0 million, an increase of 64.0% from Q2 2025. Professional services revenue was $363,055, a decrease of 47.3% from Q2 2025. Subscription revenue was $249,490, a decrease of 10.5% from Q2 2025. Revenue from NewtekOne, Inc., a related party, was impacted by its ongoing initiatives to reduce information technology spending. We partially offset this decline in revenue through growth in recurring revenue from customers who are not related parties, including the addition of new customer relationships and service contracts during the period. Net loss for the three months ended June 30, 2026 totaled $1.4 million compared to net loss of $1.1 million for the three months ended June 30, 2025; Adjusted EBITDA for the three months ended June 30, 2026 totaled negative $0.6 million compared to negative $0.4 million for the three months ended June 30, 2025; Cash used in operations totaled $0.6 million for the three months ended June 30, 2026 compared to cash used in operations of $0.9 million for the three months ended June 30, 2025, primarily related to our sourcing of product in connection with the increased procurement revenue; Deferred revenue was $4.5 million as of June 30, 2026, which will be recognized as revenue in future quarters as products and/or services are installed; and At June 30, 2026 we had $7.5 million of cash and cash equivalents on our balance sheet and no long-term debt. For the six months ended June 30, 2026, total revenue increased by 14% to $12.8 million from $11.2 million for the comparable six-month period in 2025. The increase was driven by increased managed information technology revenue, attributed to both new customers as well as the expansion of services sold to existing customers, and an increase in procurement revenue related to sales of AI-related equipment to customers, partially offset by decreases in professional services revenue and subscription revenue. For the six months ended June 30, 2026, revenue totaled $12.8 million compared to $11.2 million for the six months ended June 30, 2025, an increase of 14%, primarily attributed to an increase in our managed IT services of 9% compared to the prior year period, as well as an increase in procurement revenue of 70% compared to the prior year period; Net loss for the six months ended June 30, 2026 totaled $2.0 million, compared to net loss of $0.2 million for the six months ended June 30, 2025; Adjusted EBITDA for the six months ended June 30, 2026 totaled negative $0.8 million, compared to negative $0.9 million for the six months ended June 30, 2025; and Cash used by operations of $0.8 million for the six months ended June 30, 2026 compared to cash provided by operations of $0.9 million for the six months ended June 30, 2025, primarily related to our sourcing of inventory in connection with the increased procurement revenue. Items Affecting Our Results for the Second Quarter During the three months ended June 30, 2026, we experienced supply chain constraints affecting the availability of memory, CPU and GPU components. These constraints extended product lead times compared to historical levels, resulting in delays between customer bookings and product shipments. As a result, a portion of booked orders during the quarter remained unrecognized as revenue pending fulfillment and delivery, which we expect to recognize in future quarters as the underlying products and services are shipped and installed. During the six months ended June 30, 2026, a significant customer order was delayed and fulfilled across two reporting periods due to supply chain constraints affecting both our vendor and distribution channel. These constraints altered the cost structure associated with fulfilling the order. The initial shipment, completed in the first quarter, was recognized at expected margins, while the subsequent shipment, completed during the second quarter, incurred higher component and freight costs, resulting in a loss on that portion of the order. As a result, the combined order resulted in a loss, which contributed to the increase in cost of revenue for the period. Operational Highlights: Three and Six months ended June 30, 2026: Expanded our sales organization by adding a dedicated territory focused on the Phoenix metropolitan area and broader West Coast market, which includes an established customer base and industry expertise. Management believes this expansion positions us to pursue additional revenue opportunities and support future growth. Executed an extension of our existing Phoenix data center colocation license agreement with an industry-leading data center provider through August 2032. Entered into a strategic collaboration with MASORI Therapeutics ("MASORI"), an advanced artificial intelligence ("AI") platform designed to accelerate results by reducing cost, complexity, and time for small and medium AI models, allowing organizations to save significantly by decreasing necessary code development and providing AI-related benefits. 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. Repurchased 50,000 shares of common stock during the first quarter of 2026, under our stock repurchase plan for an aggregate of $83,491. As of June 30, 2026, all shares of common stock available for repurchase under the stock repurchase plan had been repurchased and such plan had expired. Conference Call Access The Company will conduct a conference call for all interested parties on Tuesday, August 11, 2026, at 4:30 p.m. Eastern Time to discuss its financial results and address stockholder questions submitted in advance of the conference call. To participate in this call, please dial (888) 506-0062 or (973) 528-0011, access code: 127631 or listen via a live webcast, which is available in the Investors section of the Company's website at https://investors.ipm.com/ or https://www.webcaster5.com/Webcast/Page/2856/54297. A replay of the call will be available by visiting https://investors.ipm.com/ for the next 90 days or by calling (877) 481-4010 or (919) 882-2331, replay access code 54297 through Tuesday, August 25, 2026. If you would like to submit a question, please send an email with your question to [email protected] prior to the call. IPM will do its best to answer all appropriate questions. About IPM Intelligent Protection Management Corp. (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 FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements anticipated in such statements. Forward-looking statements may be identified by words such as "aim," "anticipates," "believes," "building," "continue," "could," "drive," "estimates," "expects," "extent," "focus," "forecasts," "goal," "guidance," "intends," "may," "might," "outlook," "plan," "position," "probable," "progressing," "projects," "prudent," "seeks," "should," "steady," "target," "view," "will" or "would" or the negative of these words and phrases or similar words or phrases. Forward-looking statements in this press release may include, but are not limited to, the anticipated benefits of the Company's strategic collaboration with MASORI; the expected ability of the Company's customers to adopt, implement, and realize efficiencies from AI solutions offered through the relationship; the Company's ability to serve as a hosting partner for third-party AI platforms and to deliver such technology to its client base; the Company's expectations of future plans, priorities and focus; the Company's expectations regarding its procurement, professional services and subscriptions businesses contributing to the Company's overall results; the Company's potential growth opportunities; the Company's plans, objectives, strategies, expectations, and intentions; and other statements that are not statements of historical fact. The following factors, among others, could cause actual results to differ materially from those set forth in the forward-looking statements: the possibility of security vulnerabilities, cyber-attacks and network disruptions, including breaches of data security and privacy leaks, data loss, and business interruptions; the Company's ability to operate its secure private cloud through its data centers; the intense competition in the industry in which the Company operates and its ability to effectively compete with existing competitors and new market entrants; the impact of supply constraints, including those related to components of the Company's procurement services; the Company's ability to consummate favorable acquisitions and effectively integrate any companies or businesses that the Company acquires; the impact of adverse economic and market conditions, including those related to fluctuations in inflation and geopolitical conflicts; the Company's reliance on a limited number of customers for its revenues and income; the Company's ability to attract new customers, retain existing customers and sell additional services to customers; the Company's ability to protect its intellectual property rights; and other events outside of the Company's control. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission ("SEC"), including the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's website at www.sec.gov. All forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement was made, except to the extent required by applicable securities laws. Investor Contacts: Joe Dorame, Roger WeissLytham Partners, LLC602-889-9680E: [email protected] INTELLIGENT PROTECTION MANAGEMENT CORP.CONDENSED CONSOLIDATED BALANCE SHEETS INTELLIGENT PROTECTION MANAGEMENT CORP.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited) INTELLIGENT PROTECTION MANAGEMENT CORP.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited) Use of Non-GAAP Financial Measures The Company has provided in this release Adjusted EBITDA, a non-GAAP financial measure, to supplement the consolidated financial statements, which are prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). Adjusted EBITDA is defined as net income (loss) adjusted to exclude interest (income) expense, net, other (income) expense, net, income tax (benefit) expense, depreciation and amortization expense, stock-based compensation expense, net loss from discontinued operations, impairment loss in connection with the Divestiture and litigation expenses relating to the Cisco ManyCam Litigation (as defined below). Prior to the fiscal quarter ended September 30, 2025, the Company did not exclude litigation expenses related to the Cisco ManyCam Litigation in calculating Adjusted EBITDA as they were not material. However, after reevaluation, the Company has determined that presenting Adjusted EBITDA without excluding such costs provides less valuable information about the Company's core operations. As a result, beginning with the fiscal quarter ended September 30, 2025, litigation expenses related to the Cisco ManyCam Litigation are now excluded from the calculation of Adjusted EBITDA. Management uses Adjusted EBITDA internally in analyzing the Company's financial results to assess operational performance and to determine the Company's future capital requirements. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. The Company believes that both management and investors benefit from referring to Adjusted EBITDA in assessing its performance and when planning, forecasting and analyzing future periods. The Company believes Adjusted EBITDA is useful to investors and others to understand and evaluate the Company's operating results and it allows for a more meaningful comparison between the Company's performance and that of competitors. Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider this performance measure in isolation from or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are that Adjusted EBITDA does not reflect, among other things: cash capital expenditures for assets underlying depreciation and amortization expense that may need to be replaced or for new capital expenditures; interest income, net; other expense, net; the potentially dilutive impact of stock-based compensation; the provision for income taxes; litigation expenses incurred in connection with our patent defense against Cisco Systems, Inc. and Cisco Technology, Inc. (the "Cisco ManyCam Litigation"); and net loss from discontinued operations. Other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure. Because of these limitations, you should consider Adjusted EBITDA along with other financial performance measures, including total revenues, subscription revenue, deferred revenue, net income (loss), cash and cash equivalents, restricted cash, net cash used in operating activities and our financial results presented in accordance with GAAP. SOURCE: Intelligent Protection Management Corp. View the original press release on ACCESS Newswire

This article first appeared on GuruFocus. Release Date: May 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Intelligent Protection Management Corp (NASDAQ:IPM) reported a 7% sequential increase in revenue from its core managed IT business in the fourth quarter. The company achieved a significant 42% reduction in net loss and reported positive adjusted EBITDA for the fourth quarter. IPM maintained a strong cash position with $8.4 million in cash and cash equivalents and no long-term debt as of December 31, 2025. The company successfully integrated New Tech Technology Solutions (NTS) into its operations, enhancing its service offerings and market reach. IPM achieved SOC 2 Type 1 compliance, reinforcing its commitment to cybersecurity and data protection. Total revenue for the fourth quarter decreased by 1.7% sequentially, indicating some challenges in maintaining consistent growth. The company reported an operating loss of $0.8 million for the fourth quarter and $4.7 million for the full year. Despite improvements, IPM still recorded a net loss of $0.6 million for the fourth quarter and $2 million for the full year. Adjusted EBITDA for the full year was negative $1.1 million, highlighting ongoing profitability challenges. The evolving threat landscape and macroeconomic factors, such as cybersecurity threats and policy uncertainties, pose risks to the company's operations. Warning! GuruFocus has detected 5 Warning Signs with IPM. Is IPM fairly valued? Test your thesis with our free DCF calculator. Q: Jason, this was a great 1st 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? A: 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. 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. 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. We're 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. Q: Jared, as President of the company, IPM customer churn is nearly nonexistent. How does IPM do that? A: 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. We invest heavily into the idea that people want to talk to people and ideally the same people they talked to yesterday. That means we build relationships and that means we're high-touch. And 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 nonexistent. Q: Jason, can you give us an update on how you think about the company's excess lease data center capacity and how best to exploit it? A: 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. 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. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Revenue growth of over 15% was primarily driven by a 19% increase in core managed IT services and a significant 78.4% surge in procurement revenue. Procurement revenue strength was attributed to customers replacing existing hardware and initiating new projects aligned with early-year budget cycles. Managed IT growth resulted from a balanced mix of new customer acquisitions and the expansion of service portfolios within the existing client base. The company is focusing business development on highly regulated sectors like healthcare, legal, and finance, where its banking-derived DNA provides a competitive advantage. Operational losses narrowed by over 42% due to improved revenue flow and ongoing efforts to enhance internal operational efficiencies. Strategic AI integration is being pursued through partnerships, such as MindsDB, to embed predictive analytics and automation into existing customer data environments. The achievement of SOC 2 Type 1 compliance serves as a critical validation of the company's cybersecurity and data safeguarding capabilities for enterprise clients. Management expects to shift from AI evaluation to execution in the second half of 2026, focusing on customer adoption of AI data readiness services. The company intends to pursue inorganic growth through the acquisition of synergistic entities available at reasonable valuations to enhance stockholder returns. Future revenue recognition is supported by a deferred revenue balance of $4.7 million, to be realized as products and services are installed. Strategic focus remains on penetrating the existing customer base with additional security-related solutions and managed service offerings. The Phoenix data center colocation license extension through August 2032 provides long-term infrastructure stability for cloud hosting operations. The year-over-year shift from net income to a net loss was primarily due to the absence of a $2.1 million non-recurring tax benefit recognized in the prior year. Procurement revenue is expected to remain uneven throughout the year as it is heavily dependent on fluctuating customer hardware replacement cycles and budget timing. The company completed its stock repurchase plan during the quarter, with all available shares under the May 2025 authorization now repurchased. Professional services revenue experienced a 33.5% decrease, and subscription revenue declined by 9.7% compared to the prior year period. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted the company was purpose-built as the former technology division of a bank, specifically designed for high-compliance environments. Competitive advantages include 24/7 security coverage via MSSP and vCISO offerings, alongside secure private hosting for enhanced data privacy control. The strategy involves leveraging new AI partnerships to help customers realize value from predictive analytics and automation. Focus will be placed on 'AI data readiness' services to provide the necessary foundation for client-side AI initiatives. Growth is being driven by adding new logos in sectors like manufacturing and energy while simultaneously upselling security solutions to the current base. Strong customer response to managed service and security offers contributed significantly to the Q1 managed services revenue growth.

Q1 2026 Total Revenue increased by over 15% compared to Q1 2025 Deploying AI-solutions to unlock key growth opportunities JERICHO, NY / ACCESS Newswire / May 12, 2026 / Intelligent Protection Management Corp. ("IPM," "we," "us," "our" or the "Company") (Nasdaq:IPM), a managed technology solutions provider focused on enterprise cybersecurity and cloud infrastructure, today announced its financial results for the three months ended March 31, 2026. Management Discussion Jason Katz, Chairman and Chief Executive Officer of IPM, said, "We are off to a good start in 2026 with solid top line growth, as total revenue increased by over 15%. The increase in revenue was fueled by a 19% increase in our core managed information technology services and a 78.4% increase in procurement revenue in the first quarter of 2026. Managed IT revenue for the quarter was driven by a mix of new customers and the expansion of services sold to existing customers. Procurement revenue can be uneven throughout the year as it is the result of our customers both replacing existing hardware as well as purchasing new hardware in connection with new projects, which projects are traditionally tied to customer budgets that are often higher early in the calendar year. We are gaining traction in our business development efforts as our team takes steps to become more efficient and effective in marketing our services in highly regulated businesses, particularly in the healthcare, legal, finance and banking markets, where we believe we have competitive advantages over our peers. Loss from operations decreased by over 42% compared to the prior year period. The year-over-year change from net income to net loss of 182% was primarily driven by the absence of the non-recurring tax benefit recognized in the prior year period. Management believes that Adjusted EBITDA is another useful measure in assessing our performance, which improved year over year by 65% due to stronger revenue and continued operational efficiencies. "We remain focused on advancing the integration of our comprehensive portfolio of IT solutions for managed IT security services, secure private cloud hosting, managed backup and disaster recovery, professional services, web hosting and other managed services. Additionally, we are expanding functionality through strategic partnerships that we believe accelerate our customers' AI capabilities and strengthen our long-term growth profile. "We are collaborating with third parties to integrate artificial intelligence and predictive analytics capabilities into our platform, enabling customers to leverage AI-driven insights within existing data environments. In addition, our partnership with MASORI Therapeutics is designed to support advanced AI in order to provide accelerated results that enhance automation and system integration capabilities, improving workflow efficiency and scalability. These partnerships are intended to strengthen our technology offerings, accelerate scalable growth, strengthen customer retention and enhance the long-term value we deliver across our platform for our client base. We are highly focused on being a trusted advisor delivering successful outcomes and creating value for our customers." Mr. Katz concluded, "In addition to growing our business organically, we continue to explore strategic opportunities, including, but not limited to, potential mergers or acquisitions of other entities or assets that are synergistic to our businesses. We believe we are well positioned to integrate operations that are synergistic with our core operations that can be acquired at reasonable valuations to provide greater returns for our loyal stockholders. We look forward to building on our solid first quarter results throughout the rest of calendar 2026." Financial Highlights: Q1 2026 1Adjusted EBITDA is a non-GAAP financial measure. Please see the discussion below under the heading "Use of Non-GAAP Financial Measures" and the reconciliation at the end of this release for additional information. Operational Results: Q1 2026 For the three months ended March 31, 2026, revenue totaled $6.4 million compared to $5.5 million for the three months ended March 31, 2025, an increase of 15.2%. This increase was attributed to an increase in our core managed IT services (discussed below) of 19% compared to the prior year period, as well as an increase in procurement revenue of 78.4% compared to the prior year period. Total revenue by revenue component for the first quarter ended March 31, 2026, were as follows: Loss from operations for the three months ended March 31, 2026 was $0.8 million compared to $1.3 million for the three months ended March 31, 2025. Loss from operations for three months ended March 31, 2026 included $0.5 million of non-cash expense, consisting primarily of amortization and depreciation compared to $0.9 million of non-cash expense for the three months ended March 31, 2025. Net loss for the three months ended March 31, 2026 totaled $0.7 million compared to net income of $0.8 million for the three months ended March 31, 2025. Net income in 2025 was attributed to recording an income tax benefit during the first quarter of 2025 of approximately $2.1 million in connection with our acquisition of Newtek Technology Solutions, Inc. and the divestiture of our former video chat applications in January 2025. Adjusted EBITDA for the three months ended March 31, 2026, totaled negative $0.2 million compared to negative $0.5 million at March 31, 2025. At March 31, 2026, we had $8.1 million of cash and cash equivalents, including $1.0 million of restricted cash on our balance sheet and no long-term debt. We had cash used by operations of $0.2 million for the three months ended March 31, 2026 compared to cash provided by operations of $1.7 million for the three months ended March 31, 2025. Deferred revenue was $4.7 million as of March 31, 2026, which will be recognized as revenue in future quarters as products and/or services are installed. Recent Developments: Executed an extension of our existing Phoenix data center colocation license agreement with an industry-leading data center provider through August 2032. Entered into a strategic collaboration with MASORI Therapeutics ("MASORI"), an advanced artificial intelligence ("AI") platform that accelerates results by reducing cost, complexity, and time for small and medium AI models, allowing organizations to save significantly by decreasing necessary code development and providing AI-related benefits. 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. During the first quarter of 2026, 50,000 shares of common stock were repurchased under our stock repurchase plan for an aggregate of $83,491. As of March 31, 2026, all shares of common stock available for repurchase under the plan had been repurchased. Conference Call Access The Company will conduct a conference call for all interested parties on Tuesday, May 12, 2026, at 4:30 p.m. Eastern Time to discuss its financial results and address stockholder questions submitted in advance of the conference call. To participate in this call, please dial (888) 506-0062 or (973) 528-0011, access code: 957253 or listen via a live webcast, which is available in the Investors section of the Company's website at https://investors.ipm.com/ or https://www.webcaster5.com/Webcast/Page/2856/53935. A replay of the call will be available by visiting https://investors.ipm.com/ for the next 90 days or by calling (877) 481-4010 or (919) 882-2331, replay access code 53935 through Tuesday, May 26, 2026. If you would like to submit a question, please send an email with your question to [email protected] prior to the call. IPM will do its best to answer all appropriate questions. About IPM Intelligent Protection Management Corp. (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 FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements anticipated in such statements. Forward-looking statements may be identified by words such as "aim," "anticipates," "believes," "building," "continue," "could," "drive," "estimates," "expects," "extent," "focus," "forecasts," "goal," "guidance," "intends," "may," "might," "outlook," "plan," "position," "probable," "progressing," "projects," "prudent," "seeks," "should," "steady," "target," "view," "will" or "would" or the negative of these words and phrases or similar words or phrases. Forward-looking statements in this press release may include, but are not limited to, the anticipated benefits of the Company's strategic collaboration with MASORI; the expected ability of the Company's customers to adopt, implement, and realize efficiencies from AI solutions offered through the relationship; the Company's ability to serve as a hosting partner for third-party AI platforms and to deliver such technology to its client base; the Company's expectations of future plans, priorities and focus; the Company's expectations regarding its procurement, professional services and subscriptions businesses contributing to the Company's overall results; the Company's potential growth opportunities; the Company's plans, objectives, strategies, expectations, and intentions; and other statements that are not statements of historical fact. The following factors, among others, could cause actual results to differ materially from those set forth in the forward-looking statements: the possibility of security vulnerabilities, cyber-attacks and network disruptions, including breaches of data security and privacy leaks, data loss, and business interruptions; the Company's ability to operate its secure private cloud through its data centers; the intense competition in the industry in which the Company operates and its ability to effectively compete with existing competitors and new market entrants; the Company's ability to consummate favorable acquisitions and effectively integrate any companies or businesses that the Company acquires; the impact of adverse economic and market conditions, including those related to fluctuations in inflation and geopolitical conflicts; the Company's reliance on a limited number of customers for its revenues and income; the Company's ability to attract new customers, retain existing customers and sell additional services to customers; the Company's ability to protect its intellectual property rights; and other events outside of the Company's control. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission ("SEC"), including the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's website at www.sec.gov. All forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement was made, except to the extent required by applicable securities laws. Investor Contacts: Joe Dorame, Roger Weiss Lytham Partners, LLC 602-889-9680 E: [email protected] INTELLIGENT PROTECTION MANAGEMENT CORP. CONDENSED CONSOLIDATED BALANCE SHEETS INTELLIGENT PROTECTION MANAGEMENT CORP. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) INTELLIGENT PROTECTION MANAGEMENT CORP. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Use of Non-GAAP Financial Measures The Company has provided in this release Adjusted EBITDA, a non-GAAP financial measure, to supplement the consolidated financial statements, which are prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). Adjusted EBITDA is defined as net income (loss) adjusted to exclude interest (income) expense, net, other (income) expense, net, income tax (benefit) expense, depreciation and amortization expense, stock-based compensation expense, net loss from discontinued operations, impairment loss in connection with the Divestiture and litigation expenses relating to the Cisco ManyCam Litigation (as defined below). Prior to the fiscal quarter ended September 30, 2025, the Company did not exclude litigation expenses related to the Cisco ManyCam Litigation in calculating Adjusted EBTIDA as they were not material. However, after reevaluation, the Company has determined that presenting Adjusted EBITDA without excluding such costs provides less valuable information about the Company's core operations. As a result, beginning with the fiscal quarter ended September 30, 2025, litigation expenses related to the Cisco ManyCam Litigation are now excluded from the calculation of Adjusted EBITDA. Management uses Adjusted EBITDA internally in analyzing the Company's financial results to assess operational performance and to determine the Company's future capital requirements. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. The Company believes that both management and investors benefit from referring to Adjusted EBITDA in assessing its performance and when planning, forecasting and analyzing future periods. The Company believes Adjusted EBITDA is useful to investors and others to understand and evaluate the Company's operating results and it allows for a more meaningful comparison between the Company's performance and that of competitors. Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider this performance measure in isolation from or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are that Adjusted EBITDA does not reflect, among other things: cash capital expenditures for assets underlying depreciation and amortization expense that may need to be replaced or for new capital expenditures; interest income, net; other expense, net; the potentially dilutive impact of stock-based compensation; the provision for income taxes; litigation expenses incurred in connection with our patent defense against Cisco Systems, Inc. and Cisco Technology, Inc. (the "Cisco ManyCam Litigation"); and net loss from discontinued operations. Other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure. Because of these limitations, you should consider Adjusted EBITDA along with other financial performance measures, including total revenues, subscription revenue, deferred revenue, net income (loss), cash and cash equivalents, restricted cash, net cash used in operating activities and our financial results presented in accordance with GAAP. SOURCE: Intelligent Protection Management Corp. View the original press release on ACCESS Newswire

Net Loss improved by 89% in Q4 compared to prior year period, reports Positive Adjusted EBITDA1 for Q4; Cash flow positive from operations for the full year and fourth quarter of 2025 JERICHO, NY / ACCESS Newswire / March 17, 2026 / Intelligent Protection Management Corp. ("IPM," "we," "us," "our" or the "Company") (Nasdaq:IPM), a managed technology solutions provider focused on enterprise cybersecurity and cloud infrastructure, today announced its financial results for the three months and year ended December 31, 2025. Management Discussion Jason Katz, Chairman and Chief Executive Officer of IPM, said, " We completed our first year of operations following the acquisition of Newtek Technology Solutions. During 2025, we made significant progress in a number of key areas, including revenue growth, expense optimization and risk management. In the fourth quarter, revenue in our core business, Managed information technology revenue (excluding web hosting), increased sequentially by 7%, net loss declined by 42%, and Adjusted EBITDA1 was positive. Cash flow from operations was positive for both the quarter and the full year, and as of December 31, 2025, we had cash and cash equivalents totaling $8.4 million and no long-term debt." Mr. Katz concluded, "We are pleased with the results of our first full year operating as a managed technology solutions provider. We believe we have important differentiators that set us apart from our industry competitors and have significant competitive advantages over our peers in highly regulated vertical markets, including legal, healthcare, finance and banking markets. We provide our customers with a high-touch experience with dedicated technology managers as a single point of contact, as opposed to the majority of competitors in our industry. We do not utilize voice response, telephonic menus or transferal of off service calls to agents in call centers in foreign countries. Our clients speak directly to their IPM account team members who understand our clients' needs and goals. This is an important IPM customer service advantage that fuels our superior customer retention. We look forward to the opportunities ahead in 2026 as we execute on our plan to grow revenue both organically and through potential acquisitions, while optimizing expenses." Financial Highlights: Q4 2025 and the Year Ended December 31, 2025 1 Adjusted EBITDA is a non-GAAP financial measure. Please see the discussion below under the heading "Use of Non-GAAP Financial Measures" and the reconciliation at the end of this release for additional information. As previously disclosed, on January 2, 2025, the Company completed its acquisition of Newtek Technology Solutions, Inc. ("NTS") from NewtekOne, Inc. and the sale of its "Paltalk", "Camfrog" and "Vumber" applications and certain assets and liabilities related to such applications (the "Transferred Assets") to Meteor Mobile Holdings, Inc. (together, the "Transactions"). Following the Transactions, the Company's business is focused on cybersecurity and cloud infrastructure. For the purposes of this earnings release and the financial information provided herein, revenue and income from operations for the three months and year ended December 31, 2025 primarily reflect the operations acquired from NTS, while assets and liabilities related to the Transferred Assets are presented as held for sale/discontinued operations, and the results of operations related to the Transferred Assets are presented as discontinued operations. For the three months ended December 31, 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 31, 2025 totaled $23.6 million. Total revenue by revenue component for the fourth quarter and year ended December 31, 2025 were as follows: Operating loss from continuing operations for the three months ended December 31, 2025 totaled $0.8 million. Operating loss from continuing operations for the full year ended December 31, 2025 totaled $4.7 million. Net loss for the three months ended December 31, 2025 totaled $0.6 million. Net loss for the full year ended December 31, 2025 totaled $2.0 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. Adjusted EBITDA1 for the three months ended December 31, 2025 was positive $5.0 thousand. Adjusted EBITDA for the full year ended December 31, 2025 was negative $1.1 million. As of December 31, 2025, we had no long-term debt, and cash and cash equivalents totaled $8.4 million (including $1.0 million of restricted cash). Cash provided by continuing operations for the full year ended December 31, 2025 was $1.1 million. We reported deferred revenue of $3.9 million for full year 2025, which will be recognized as revenue in future quarters as products and/or services are installed. We had more than 10,000 devices under management at December 31, 2025, representing the number of endpoints, servers and network devices that are outsourced to us under managed services agreements. Recent developments include: Executed an extension of our existing Phoenix data center license agreement with an industry-leading provider through August 31, 2032. The extension reinforces a long-standing strategic relationship and supports our continued focus on scalable, secure, and highly reliable digital infrastructure. Achieved SOC Type 1 Compliance, a key milestone in our ongoing commitment to safeguarding customer data and delivering trusted cybersecurity and cloud infrastructure solutions. Engaged with partners to enhance our Managed IT Security Services, Secure Private Cloud Hosting, and Professional Services with artificial intelligence features and data readiness benefits that we believe help customers achieve faster operational results, smarter strategic decisions and better business outcomes. Conference Call Access The Company will conduct a conference call for all interested parties on Tuesday, March 17, 2026, at 4:30 p.m. Eastern Time to discuss its financial results and address stockholder questions submitted in advance of the conference call. To participate in this call, please dial (888) 506-0062, or (973) 528-0011 access code: 670919 or listen via a live webcast, which is available in the Investors section of the Company's website at https://investors.ipm.com/ or https://www.webcaster5.com/Webcast/Page/2856/53606. A replay of the call will be available by visiting https://investors.ipm.com/ for the next 90 days or by calling (877) 481-4010 or (919) 882-2331, replay access code 53606 through Tuesday, March 31, 2026. If you would like to submit a question, please send an email with your question to [email protected] prior to the call. IPM will do its best to answer all appropriate questions. About IPM Intelligent Protection Management Corp. (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 FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements anticipated in such statements. Forward-looking statements may be identified by words such as "aim," "anticipates," "believes," "building," "continue," "could," "drive," "estimates," "expects," "extent," "focus," "forecasts," "goal," "guidance," "intends," "may," "might," "outlook," "plan," "position," "probable," "progressing," "projects," "prudent," "seeks," "should," "steady," "target," "view," "will" or "would" or the negative of these words and phrases or similar words or phrases. Forward-looking statements in this press release may include, but are not limited to, the Company's expectations of future plans, priorities and focus; the Company's expectations regarding its procurement, professional services and subscriptions businesses contributing to the Company's overall results; the Company's potential growth opportunities; the Company's plans, objectives, strategies, expectations, and intentions; and other statements that are not statements of historical fact. The following factors, among others, could cause actual results to differ materially from those set forth in the forward-looking statements: the possibility of security vulnerabilities, cyber-attacks and network disruptions, including breaches of data security and privacy leaks, data loss, and business interruptions; the Company's ability to operate its secure private cloud through its data center licenses; the intense competition in the industry in which the Company operates and its ability to effectively compete with existing competitors and new market entrants; the Company's ability to consummate favorable acquisitions and effectively integrate any companies or businesses that the Company acquires; the impact of adverse economic and market conditions, including those related to fluctuations in inflation and geopolitical conflicts; the Company's reliance on a limited number of customers for its revenues and income; the Company's ability to attract new customers, retain existing customers and sell additional services to customers; the Company's ability to protect its intellectual property rights; and other events outside of the Company's control. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission ("SEC"), including the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's website at www.sec.gov. All forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement was made, except to the extent required by applicable securities laws. Investor Contacts: Joe Dorame, Roger Weiss Lytham Partners, LLC 602-889-9680 E: [email protected] INTELLIGENT PROTECTION MANAGEMENT CORP. CONSOLIDATED BALANCE SHEETS INTELLIGENT PROTECTION MANAGEMENT CORP. CONSOLIDATED STATEMENTS OF OPERATIONS INTELLIGENT PROTECTION MANAGEMENT CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS Use of Non-GAAP Financial Measures The Company has provided in this release Adjusted EBITDA, a non-GAAP financial measure, to supplement the consolidated financial statements, which are prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). Adjusted EBITDA is defined as net income (loss) adjusted to exclude interest (income) expense, net, other (income) expense, net, income tax (benefit) expense, depreciation and amortization expense, stock-based compensation expense, net loss from discontinued operations, impairment loss in connection with the Divestiture and litigation expenses relating to the Cisco ManyCam Litigation (as defined below). Prior to the fiscal quarter ended September 30, 2025, the Company did not exclude litigation expenses related to the Cisco ManyCam Litigation in calculating Adjusted EBTIDA as they were not material. However, after reevaluation, the Company has determined that presenting Adjusted EBITDA without excluding such costs provides less valuable information about the Company's core operations. As a result, beginning with the fiscal quarter ended September 30, 2025, litigation expenses related to the Cisco ManyCam Litigation are now excluded from the calculation of Adjusted EBITDA. Management uses Adjusted EBITDA internally in analyzing the Company's financial results to assess operational performance and to determine the Company's future capital requirements. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. The Company believes that both management and investors benefit from referring to Adjusted EBITDA in assessing its performance and when planning, forecasting and analyzing future periods. The Company believes Adjusted EBITDA is useful to investors and others to understand and evaluate the Company's operating results and it allows for a more meaningful comparison between the Company's performance and that of competitors. Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider this performance measure in isolation from or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are that Adjusted EBITDA does not reflect, among other things: cash capital expenditures for assets underlying depreciation and amortization expense that may need to be replaced or for new capital expenditures; interest income, net; other expense, net; the potentially dilutive impact of stock-based compensation; the provision for income taxes; litigation expenses incurred in connection with our patent defense against Cisco Systems, Inc. and Cisco Technology, Inc. (the "Cisco ManyCam Litigation"); and net loss from discontinued operations. Other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure. Because of these limitations, you should consider Adjusted EBITDA along with other financial performance measures, including total revenues, subscription revenue, deferred revenue, net income (loss), cash and cash equivalents, restricted cash, net cash used in operating activities and our financial results presented in accordance with GAAP. SOURCE: Intelligent Protection Management Corp. View the original press release on ACCESS Newswire