Intelligent Protection Management Corp. Q4 FY2025 earnings call

Jason mentioned that 2025 was the first full year of operations following the acquisition of NTS as a managed technology solutions provider, which was a good year. They streamlined service operations and cost centers, with core business managed IT revenue up 7% sequentially in Q4, net loss narrowed by 42%, adjusted EBITDA positive, cash flow from operations positive, and cash and cash equivalents $8.4 million with no long-term debt as of Dec 31, 2025. They have important differentiators, competitive advantages in highly regulated vertical markets. From customer service, managed clients benefit from VIP high-touch experience. In 2025, all major clients were retained with near zero churn in new markets. Successfully integrated NTS, extended Phoenix data center license agreement to Aug 31, 2032, achieved SOC 2 Type 1 compliance, collaborated with Ultigen Technologies, MindsDB, IT Ally, approved stock repurchase plan, launched Aura AI-powered online safety solution, and initiated Heroes program.

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. Managed information technology revenue was $3.9 million and $14.8 million for the fourth quarter and year end respectively. Procurement revenue was $1.5 million and $5.4 million respectively. Professional services revenue was $0.4 million and $2.3 million respectively. Subscription revenue was $0.3 million and $1.1 million respectively. Operating loss from continuing operations for the fourth quarter 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 $2.1 million. Adjusted EBITDA for the three months ended December 31, 2025 was positive $5,000. Adjusted EBITDA for the full year ended December 31, 2025 was negative $1.1 million. As of December 31st, 2025, IPM had cash and cash equivalents totaling $8.4 million and no long-term debt. Cash provided by continuing operations for the full year ended December 31, 2025 was $1.1 million. Deferred revenue of $3.9 million was reported for the full year ended December 31, 2025. More than 10,000 devices were under management at December 31st, 2025.

Management is highly focused on continuing to grow the business organically and through strategic acquisitions that they believe will be accretive to the long-term growth strategy. They are also excited about the opportunities to incorporate various aspects of AI into their operations and product offerings to deliver greater value to customers.

Uncertainties facing the industry come from the evolving threat landscape and broader macroeconomic factors. Cybersecurity threats from bad actors overseas targeting critical infrastructure, and uncertainties around issues such as tariffs and other policy developments.

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

A: Some of the highlights include continued growth in the managed IT portion, meaningful reduction in net loss, and positive adjusted EBITDA in Q4 2025. Challenges include evolving threat landscape and broader macroeconomic factors. Looking ahead, focused on growing business organically and through strategic acquisitions and incorporating AI.

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

A: It's about good old-fashioned customer service, investing in high touch, building relationships, providing a white glove VIP experience where customers speak directly to account team members.

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

A: Renewed lease agreement with data center partner extending to 2032, which gives stability and capacity for growth, allowing leverage of operational expertise and flexibility to support organic growth and new opportunities in managed services.