Intelligent Protection Management Corp. Q1 FY2026 earnings call

• Core Growth and Market Traction

  • IPM achieved solid 15%+ top-line year-over-year growth to open 2026, driven by 19% growth in core managed IT services (from both new customer acquisition and existing customer service expansion) and 78.4% procurement revenue growth. Procurement revenue is typically uneven year-round and stronger early in the calendar year, aligned with customer budget cycles.
  • The company is gaining traction targeting highly regulated verticals including healthcare, legal, finance, and banking, where it claims competitive advantages over peers through refined, more efficient business development and marketing.

• Strategic Partnerships and AI Integration

  • Management is advancing integration of IPM's full portfolio of IT solutions including managed IT security, secure private cloud hosting, backup/disaster recovery, professional services, and web hosting.
  • IPM is forming strategic third-party partnerships to integrate artificial intelligence and predictive analytics into its existing platform, allowing customers to leverage AI-driven insights without migrating from their current data environments. The new partnership with Missouri Therapeutics specifically supports development of advanced AI capabilities to improve automation, system integration, workflow efficiency, and scalability, with the goal of strengthening customer retention and long-term growth.

• Operational and Strategic Milestones

  • IPM extended its Phoenix data center co-location agreement through August 2032 with a leading industry provider.
  • The company achieved SOC 2 Type 1 compliance, a key milestone demonstrating its commitment to customer data security for cybersecurity and cloud infrastructure offerings.
  • Management will continue evaluating strategic mergers and acquisitions of synergistic assets/companies that can be acquired at reasonable valuations to drive higher returns for shareholders, alongside ongoing organic growth.

• Capital Update

  • All 50,000 shares authorized under the May 2025 stock repurchase plan were fully repurchased by the end of Q1 2026, for a total of $83,491.

For the quarter ended March 31, 2026, IPM's total revenue was $6.4 million, a 15.2% increase from Q1 2025's $5.5 million total revenue.

1. Core Managed IT Services: Revenue of $3.4 million, representing a 19% year-over-year increase, and contributing 53.1% of total Q1 2026 revenue. This segment includes managed IT security services and managed backup and disaster recovery solutions.
2. Procurement: Revenue of $1.7 million, representing a 78.4% year-over-year increase, and contributing 26.6% of total Q1 2026 revenue.
3. Professional Services: Revenue of $483,000, representing a 33.5% year-over-year decrease, and contributing 7.5% of total Q1 2026 revenue.
4. Subscription: Revenue of $254,000, representing a 9.7% year-over-year decrease, and contributing 4.0% of total Q1 2026 revenue.

Overall operating loss for Q1 2026 was $0.8 million, a 42% reduction from the $1.3 million operating loss in Q1 2025. Net loss was $0.7 million (compared to $0.8 million net income in Q1 2025, which included a $2.1 million non-recurring tax benefit). Adjusted EBITDA improved 65% year-over-year to negative $0.2 million, from negative $0.5 million in Q1 2025. As of March 31, 2026, the company held $8.1 million in cash and cash equivalents (including $1.0 million restricted cash) and had no long-term debt.

Management did not issue specific quantified full-year or quarterly guidance in this call, but reaffirmed confidence in IPM's position to build on its solid Q1 2026 performance through the remainder of 2026. It outlined directional priorities for growth: execution of AI partnership and adoption initiatives in the second half of 2026, after laying groundwork for AI integration and partner evaluation in the first half of the year, and continued enhancement of core managed services and hosting platforms to support evolving customer technology needs.

Management noted that all forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from current expectations. A detailed breakdown of material risks is included in IPM's SEC filings, including the 2025 Form 10-K. No new material risks or ongoing operational failures were specifically discussed on the call.

Q: What differentiates IPM's services for customers in highly regulated markets like healthcare, legal, finance, and banking?

A: IPM originated as the technology division of a bank, so it was built purpose-built for operating in highly regulated industries. It offers 24/7 security coverage through its MSSP and vCISO offerings, led by teams with deep specialized experience in these sectors. Its secure managed private hosting gives customers strong control over data privacy, and the recent achievement of SOC 2 Type 1 compliance further reinforces its commitment to data protection for regulated clients.

Q: Where does management see the most compelling opportunities to accelerate growth in the second half of 2026?

A: After spending the first half of 2026 evaluating AI technologies and partners, the second half focus will shift to execution. This includes expanding AI solutions through additional strategic partnerships, supporting customer adoption of these AI tools, and leveraging IPM's AI data readiness service to build a strong foundation for successful customer AI initiatives. Management will also continue enhancing core managed services and hosting platforms to support growing, more complex customer technology needs.

Q: What is the current mix of revenue contribution from new vs existing customers, and how is this mix trending?

A: IPM continues prioritizing adding new customer logos in regulated industries including legal, finance, healthcare, manufacturing, and energy, which is growing its MSSP and private cloud business lines. It is also focused on expanding service penetration within its existing customer base by offering additional managed service and security solutions. Strong customer response to both efforts drove overall managed services revenue growth for IPM in Q1 2026.