Intelligent Protection Management Corp. Q3 FY2025 earnings call

• Acquired Newtek Technology Solutions on 01/02/2025 and rebranded to IPM.
• Successfully integrated operations and serviced existing customers post-acquisition.
• Focus on positioning IPM as a consistently performing company, with focus on cybersecurity and cloud infrastructure.
• Entered reseller agreement with MindsDB for AI capabilities, collaborated with IT Ally.
• Board approved stock repurchase plan; purchased 46,658 shares in 2025 for $88,250.
• Launched Aura, an AI-powered online safety tool. Initiated Heroes program offering 10% discount to certain groups.
• Jury awarded $65.7 million in patent litigation against Webex, Cisco Webex, and Cisco Systems; final judgment in favor of IPM, but net proceeds subject to post-trial proceedings.
• Transitioned NTS assets from a bank company division to an independent publicly traded managed services tech company.

For the three months ended 09/30/2025, managed information technology revenue was $3.8 million, procurement revenue was $1.7 million, professional services revenue was $500,000, and subscription revenue was $300,000. For the nine months ended 09/30/2025, managed information technology revenue was $10.9 million, procurement revenue was $3.9 million, professional services revenue was $1.9 million, and subscription revenue was $800,000. Revenue contribution percentages aren't explicitly stated in the transcript but the absolute figures are as above.

• Focus to grow existing customer base with similar services to leverage existing infrastructure.
• Strategic interest in acquiring sole proprietor lifestyle-type managed service provider businesses with attractive EBITDA multiples to add devices under management and recurring revenue.
• Current capital structure is clean with sufficient cash to run business for at least the next twelve months; would consider financing accretive acquisitions if needed.

• Forward-looking statements are subject to risks, uncertainties, and assumptions that may cause actual results to differ materially from anticipated. Detailed risks in SEC filings, including annual report on Form 10-Ks.
• Uncertainties regarding the exact net proceeds from patent litigation award due to post-trial motions or appeals.

Q: Are there any bolt-on acquisitions that would make sense to expand the business or new service offerings that you would like to see added to IPM in the coming years?

A: Acquiring sole proprietor lifestyle-type managed service provider businesses with attractive EBITDA multiples would be strategic, as it could immediately add devices under management and monthly recurring revenue, leveraging existing infrastructure.

Q: Can you comment briefly on the recent AWS outages? What does IPM bring to the table that others can't?

A: We offer potential solutions that mitigate public cloud outages. IPM's use of private data centers and private cloud means customers were generally not affected by recent AWS outages; we protect smarter.

Q: Can you please comment on the capital structure of the company right now? Will there be a need to raise additional capital in the next couple of years, 2026 or 2027 going forward?

A: We have a very clean capital structure and sufficient cash to run our business for at least the next twelve months. If we found an acquisition that was accretive and required financing, we would definitely consider doing that.