Intelligent Protection Management (NASDAQ:IPM) used its fourth-quarter earnings call to highlight progress made in its first full year operating as a managed technology solutions provider following the January 2025 acquisition of Newtek Technology Solutions, Inc. (NTS). Management pointed to improving profitability metrics, continued growth in managed IT, and a balance sheet with cash on hand and no long-term debt.
Management highlights operational progress after NTS acquisition
Chief Executive Officer Jason Katz said 2025 marked IPM’s first full year of operations following the NTS acquisition and described it as “a very good first year” as a managed technology solutions provider. Katz said the company streamlined service operations and its technology vendor partner licensing and manufacturing cost centers, while making progress on managed recurring revenue growth, expense optimization, and risk management.
Katz emphasized IPM’s positioning in “highly regulated vertical markets,” including legal, healthcare, finance, and banking, and said the company’s expertise in these areas provides competitive advantages. He also attributed strong customer loyalty to what he described as a “VIP high-touch experience” where clients work directly with a dedicated technology manager and account team members rather than automated systems or outsourced call centers. Katz said IPM retained all major clients in 2025 while entering new markets with “near zero churn.”
Q4 and full-year results: revenue mix, losses, and adjusted EBITDA
Chief Financial Officer Kara Jenny reported fourth-quarter revenue of $6.1 million, down 1.7% sequentially from the third quarter of 2025. Full-year revenue totaled $23.6 million.
Jenny broke out revenue by component for the fourth quarter and full year:
- Managed information technology revenue: $3.9 million (Q4) and $14.8 million (FY)
- Procurement revenue: $1.5 million (Q4) and $5.4 million (FY)
- Professional services revenue: $0.4 million (Q4) and $2.3 million (FY)
- Subscription revenue: $0.3 million (Q4) and $1.1 million (FY)
Operating loss from continuing operations was $0.8 million for the fourth quarter and $4.7 million for the full year. Net loss totaled $0.6 million for the quarter and $2.0 million for the full year.
Jenny also noted that IPM recorded an income tax benefit of approximately $2.1 million in the first quarter of 2025 tied to the acquisition of NTS and the divestiture of the Paltalk, Camfrog and Vumber applications.
Adjusted EBITDA was approximately $5,000 in the fourth quarter and negative $1.1 million for the full year, according to Jenny.
Balance sheet, cash flow, and operating metrics
At year-end, IPM reported cash and cash equivalents of $8.4 million, including $1.0 million of restricted cash, and said it had no long-term debt. Cash provided by continuing operations was $1.1 million for the full year ended December 31, 2025.
Jenny said deferred revenue totaled $3.9 million as of year-end and will be recognized in future quarters as products and/or services are installed. She also reported that IPM had more than 10,000 devices under management at December 31, 2025, representing endpoints, servers, and network devices outsourced under managed service agreements.
Strategic initiatives: security compliance, partnerships, and repurchases
Management highlighted several initiatives and milestones during 2025. Katz said IPM extended its Phoenix data center license agreement with an “industry-leading provider” through August 31, 2032. He also said the company achieved SOC 2 Type 1 compliance, which he described as a key step in safeguarding customer data and delivering trusted cybersecurity and cloud infrastructure solutions.
Katz outlined multiple partnerships and collaborations announced during the year, including initiatives with AltiGen Technologies, a reseller agreement with MindsDB, and a collaboration with IT Ally focused on lower middle market private equity firms and their portfolio companies.
On capital allocation, Katz said IPM’s board approved a stock repurchase plan in May 2025 for up to $400,000 of outstanding common stock, expiring on the plan’s one-year anniversary. He said the company has repurchased 151,258 shares at an average price of $1.99 since inception of the plan, with no shares repurchased in the fourth quarter.
Katz also said IPM began offering Aura, an AI-powered online safety solution, and launched a Heroes Program providing a 10% discount on IPM products and services to certain groups including military, first responders, healthcare, teachers, and veterinary business owners.
Outlook themes: risk management, AI opportunities, and M&A
In prepared Q&A, Katz said highlights of the year included continued growth in managed IT, a meaningful reduction in net loss, and progress toward profitability, citing positive adjusted EBITDA in the fourth quarter as “an important milestone.”
He cited challenges facing the industry including an evolving cybersecurity threat landscape and broader macroeconomic factors, including tariffs and policy uncertainty. Katz said IPM had not been directly impacted, but remains focused on proactively managing risk.
Looking ahead to 2026 and 2027, Katz said the company is focused on organic growth and “where appropriate” strategic acquisitions that it believes will be accretive. He also said IPM is “very excited” about incorporating AI into operations and product offerings to help customers operate more efficiently and stay ahead in a dynamic technology environment.
President Jared Mills attributed IPM’s low churn to what he characterized as relationship-driven, high-touch customer service and a “white glove VIP experience.” Katz, asked about excess leased data center capacity, said the long-term data center partnership provides stability and flexibility to support organic growth and new opportunities within managed services offerings.
IPM said it plans to provide another update when it reports first-quarter 2026 results.
About Intelligent Protection Management (NASDAQ:IPM)
Intelligent Protection Management Corp. engages in the development of communications software to enhance security and privacy solutions for multimedia communication and data transmission. Its solutions include blockchain strategy consulting, blockchain implementation, white label video solutions, and technology licensing. The firm’s product portfolio includes Paltalk and Camfrog. The company was founded by Clifford Lerner and Darrell Lerner on July 19, 2005 and is headquartered in Jericho, NY.
