IPM earnings analysis
What we found in IPM's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
IPM generated $6.462 million of second-quarter revenue, up 12.9% year over year and above the $6.3519 million consensus estimate, led by procurement revenue of $2.05 million, up 64.0%. Profitability was weak, with diluted EPS of negative $0.10 versus the $0.02 estimate. Supply-chain constraints delayed recognition of booked orders and may pressure margins, while Cisco litigation generated $1.2 million of defense expense and the potential $65.7 million WebEx award remains uncertain. No numeric forward guidance was provided.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue beat and grew 12.9%
- Second-quarter revenue was $6.462 million, up 12.9% year over year and approximately $0.110 million above the $6.3519 million consensus estimate.
- Procurement revenue drove growth
- Procurement revenue increased 64.0% year over year to $2.05 million, making it the primary reported growth driver.
- Potential Cisco litigation recovery
- The Cisco WebEx jury award was $65.7 million; however, the company estimates it would receive no more than one third of gross proceeds after significant litigation-related expenses and remains subject to appellate proceedings.
- Litigation costs remained material
- Management reported approximately $1.2 million of aggregate expense defending the Cisco ManyCam claims, including $0.5 million during the six months ended June 30, 2026.
- Controls remained effective
- Management concluded disclosure controls were effective as of June 30, 2026, and reported no changes in internal control that materially affected, or were reasonably likely to materially affect, reporting controls.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- EPS missed consensus
- Diluted EPS was negative $0.10 versus the $0.02 consensus estimate, a $0.12-per-share shortfall, despite revenue of $6.462 million.
- Supply constraints threaten revenue and margins
- During the six months ended June 30, 2026, supply constraints extended product lead times and left a portion of booked orders unrecognized as revenue at June 30, 2026. The company states that continued constraints could delay revenue recognition, cause losses on orders, and adversely affect gross margins.
- Unquantified Cisco litigation exposure
- The company incurred $1.2 million in aggregate expense defending Cisco ManyCam litigation and has recorded no liability because it does not believe a loss is probable; it also cannot estimate a reasonable possible loss or range of loss.
- Award recovery is uncertain
- The Cisco WebEx award remains subject to post-trial and appellate proceedings, and the company estimates it would receive no more than one third of the $65.7 million gross award after litigation-related expenses.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.1
- Segment
- Procurement revenue: $2.05 million, up 64.0% year over year
- Segment
- Professional services revenue: declined year over year; filing excerpt does not provide the amount
- Segment
- Subscription revenue: declined year over year; filing excerpt does not provide the amount
What they said about what is next.
No numeric revenue or EPS guidance was provided. Management expressed confidence in delivering strong results throughout the remainder of 2026.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 12, 2026
- Intelligent Protection Management reported revenue growth of 15.2% YoY to $6.35 million in Q1 2026, despite experiencing a diluted EPS loss of -$0.05, which was significantly below the expected gain of $0.02.…
- 10-K · March 17, 2026
- IPM completed the acquisition of Newtek Technology Solutions (NTS) on January 2, 2025 and materially shifted from consumer apps to managed IT, secure private cloud and cybersecurity services. 2025 revenues stepped up to…
- 10-Q · November 12, 2025
- IPM’s Q3 2025 results reflect the company’s post-transaction mix shift: total revenue was $6,238,019 for the quarter (vs. $275,420 in Q3 2024), with gross profit of $3,161,686 (about 50.7% margin) and an operating loss…
- 10-Q · August 12, 2025
- IPM’s Q2 2025 results show a large top-line step-up driven by the NTS acquisition: total revenue was $5,722,599 in Q2 2025 versus $271,409 in Q2 2024. Loss per share from continuing operations narrowed to $(0.08) (Q2…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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