Intelligent Protection Management (NASDAQ:IPM) presented its business strategy and recent financial performance at the Lytham Partners Spring 2026 Investor Conference, with Founder and Chief Executive Officer Jason Katz emphasizing the company’s shift toward managed IT, cybersecurity and cloud infrastructure services.
Katz said IPM provides managed technology solutions to enterprise, commercial and small- to medium-sized business customers, with a focus on cybersecurity, managed cloud hosting, secure private cloud, managed backup and disaster recovery, professional services, procurement and web hosting. He said the company’s legacy web hosting business includes about 15,000 customers, which IPM views as a base for upselling other services.
Shift From Software to Managed IT
Katz said IPM acquired Newtek Technology Solutions in January 2025 for $4 million in cash and 4 million shares of stock, later renaming the business IPM. He described the acquired company as a more than 20-year-old business with more than 50 employees and 17,000 customers.
IPM was previously a software company, but Katz said management determined that managed IT and managed cybersecurity represented a better market opportunity. The company also divested its original video conferencing business for $1.4 million, with potential earn-outs of up to $5 million over the next three and a half years.
“We’ve been very focused on, A, building the revenue, but B, also doing that profitably,” Katz said. “Very important to be able to show profitable growth.”
Revenue Growth and Balance Sheet
Katz said IPM generated $23.6 million in revenue in 2025, its first year operating the acquired IT services business. He said the first quarter of 2026 was the company’s strongest revenue quarter, with revenue of $6.4 million, up 15%. Managed information technology revenue, which Katz described as recurring term-contract revenue, increased 19%.
Katz also highlighted growth in deferred revenue, which he said indicates demand and financial performance. He said procurement revenue also increased, though he noted that procurement tends to be lower-margin and “a little lumpy.”
The company reported positive EBITDA in the fourth quarter of 2025, Katz said. He also said IPM generated $1.1 million in cash in 2025 despite an operating loss and EBITDA loss for the year.
As of the end of the first quarter, Katz said IPM had $8.1 million in cash and no long-term debt. He also said the company has a $1 million credit facility with Newtek.
Cloud, Security and Data Center Positioning
Katz said IPM differentiates itself from large public cloud providers such as Amazon, Google and Microsoft Azure by offering comprehensive, end-to-end service for businesses that may not have in-house IT staff. He said IPM offers U.S.-based management and staff, U.S. data centers, 24/7 support, certified security leadership and the ability to provide on-site professionals anywhere in the United States within two hours.
He said IPM supports private cloud, public cloud and hybrid cloud environments, and highlighted the company’s private cloud infrastructure as a point of differentiation. Katz said gross margins are “dependable” and “predictable” in the 50% to 55% range.
The company recently extended its lease in a data center through 2032, Katz said. He said the facility has excess capacity and power, which he described as important given rising demand tied to artificial intelligence and broader data center constraints. Katz also said IPM does not charge bandwidth consumption fees, contrasting that approach with public cloud providers.
Katz said IPM is SOC 2 Type 1 certified and CIS certified, which he said are important for serving regulated industries, including FDIC-registered banks. He also said NewtekOne, the bank from which IPM acquired the business, remains the company’s largest customer and refers business to IPM.
AI Readiness and M&A Strategy
Katz said IPM has formed a group focused on helping companies prepare their data for artificial intelligence. He said companies are often not ready for AI because their data is not organized or accessible enough to support AI use cases.
IPM also views mergers and acquisitions as a core part of its growth strategy, Katz said. He said many managed IT businesses are smaller local operators, and IPM believes it can acquire them at attractive multiples and integrate them into its existing platform.
Patent Verdict Remains Pending
Katz also discussed IPM’s remaining patent portfolio, saying the company retains eight patents. He noted that one patent was asserted against Cisco Systems’ Webex video conferencing platform, resulting in a $65.7 million jury verdict nearly two years ago.
Cisco has appealed the verdict, and Katz said IPM expects a resolution sometime in 2027. He said the company has previously disclosed that it would not receive more than one-third of any eventual amount, with interest potentially added.
Katz said insider ownership, including himself and his family, is about 26%, while Newtek owns about 30%.
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.
