Intelligent Protection Management Corp. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the three months ended September 30, 2026, increased 75.5% year-over-year to $10,950,145 from $6,238,019 in the prior year period.
• Total revenue for the nine months ended September 30, 2026, increased 36.0% year-over-year to $23,767,438 from $17,478,656 in the prior year period.
• Procurement revenue for the three months ended September 30, 2026, surged 271% to $6,301,744, while professional services revenue rose 14.5% to $545,317; subscription revenue declined 10.4% to $243,886, and managed information technology revenue increased 1.8% to $3,859,198.
• For the nine months ended September 30, 2026, procurement revenue increased 157.8% to $10,046,322, managed information technology revenue rose 6.7% to $11,582,012, professional services revenue decreased 26.4% to $1,391,672, and subscription revenue fell 10.2% to $747,432.
• Net loss for the three months ended September 30, 2026, was $779,378, a 28.0% improvement from $1,083,070 in the prior year period.
• Net loss for the nine months ended September 30, 2026, was $2,791,090, an increase of 110.7% from $1,324,568 in the prior year period.
• Loss from operations for the three months ended September 30, 2026, was $886,077, narrowing from $1,435,762 in the prior year period (38.3% improvement).
• Loss from operations for the nine months ended September 30, 2026, was $3,166,630, narrowing from $3,899,388 in the prior year period (18.8% improvement).
• Adjusted EBITDA for the three months ended September 30, 2026, was positive $159,201, compared to negative $260,121 in the prior year period (161.2% improvement).
• Adjusted EBITDA for the nine months ended September 30, 2026, was negative $535,753, compared to negative $1,120,667 in the prior year period (52.2% improvement).
• Net cash provided by operating activities for the three months ended September 30, 2026, was $5,644,041, a 4,142.5% increase from $133,037 in the prior year period.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $4,857,311, a 391.1% increase from $989,142 in the prior year period.
• Deferred revenue stood at $4,928,490 as of September 30, 2026, up from $3,878,114 as of December 31, 2025.
• The company reported $12.5 million in cash and cash equivalents as of September 30, 2026, with no long-term debt.

Business Segments and Product Lines:

• Core managed services revenue from non-affiliated customers increased 33% year-over-year for the three months ended September 30, 2026.
• Core managed information technology services revenue from non-affiliated customers increased 34% year-over-year for the nine months ended September 30, 2026.
• Revenue from related party NewtekOne, Inc. declined due to the customer's initiatives to reduce IT spending, partially offset by growth in recurring revenue from non-affiliated customers.
• The company launched IPM GO, an AI virtual assistant hosted within its private cloud infrastructure to manage web-based engagement solutions.
• The company expanded its sales organization by adding a dedicated territory for the Phoenix metropolitan area and broader West Coast market.
• The company executed an extension of its Phoenix data center colocation license agreement through August 2032.
• The company achieved SOC 2 Type 1 compliance.

Other Key Points:

• In October 2026, the company entered into a unit purchase agreement to acquire Advanced Technology Distributors Inc. (AdTech) for up to $2.7 million, subject to adjustments.
• Acquisition-related expenses associated with the AdTech transaction totaled approximately $195,000 for the three months ended September 30, 2026, and $277,844 for the nine months ended September 30, 2026.
• The company repurchased 50,000 shares of common stock in the first quarter of 2026 for an aggregate of $83,491; the stock repurchase plan expired as of September 30, 2026.
• The company incurred litigation expenses of $317,818 for the three months and $802,288 for the nine months related to the Cisco ManyCam Litigation.
• Management noted that standard procurement gross margins trend lower than the rest of the business, but procurement services serve as an entry point for broader customer relationships.
• The company aims to convert procurement and professional services opportunities into recurring engagements, though conversion depends on customer needs and execution.