- Intelligent Protection Management Corp. (IPM, Financial) reported a significant year-over-year revenue increase to $5.5 million in Q1 2025.
- IPM achieved a net income of $0.8 million, a reversal from a $0.5 million loss in Q1 2024.
- IPM holds a strong cash position with $9.7 million and no long-term debt following strategic acquisitions and divestitures.
Intelligent Protection Management Corp. (IPM) has announced its financial results for the first quarter of 2025, marking a pivotal shift as the company transitions to a managed technology solutions provider specializing in cybersecurity and cloud infrastructure. Notably, the company completed the acquisition of Newtek Technology Solutions (NTS) and the sale of its legacy applications, Paltalk, Camfrog, and Vumber, in January 2025. This strategic pivot significantly contributed to the robust financial outcomes this quarter.
The company's revenue saw an impressive rise to $5.5 million, a stark contrast to the $0.3 million in the same quarter of the previous year. This revenue surge is primarily attributed to the integration of NTS operations, a testament to the company's newly adopted business focus.
Despite posting an operating loss of $1.3 million, which included $0.3 million in one-time transaction expenses, IPM reported a net income of $0.8 million. This turnaround from a $0.5 million net loss in Q1 2024 reflects a favorable tax benefit of $2.1 million stemming from the recent business transactions.
In terms of liquidity, IPM maintains a robust financial posture with $9.7 million in cash and no long-term debt as of March 31, 2025. The decrease in cash by $0.9 million since December 2024 primarily covered the $4 million cash outlay for the NTS acquisition, partially offset by $1.7 million generated from operational cash flow and $1.4 million from asset divestitures.
Among other strategic developments, IPM has entered a partnership with Hewlett Packard Enterprise (HPE) as a Private Cloud AI solutions partner, secured a $1 million revolving credit line, and has initiated a stock repurchase plan of $400,000, reflecting management's confidence in the company's valuation amidst its transformation.
As IPM continues to integrate NTS and expand its cybersecurity and cloud infrastructure services, opportunities for cross-selling between NTS and ManyCam customers are on the horizon, reinforcing its growth trajectory in the evolving digital landscape.
