Gross margins have experienced significant compression, declining from historical highs near 69% to 41.2% in 2026Q1, indicating challenges in maintaining pricing power.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 |
|---|
| Sales/Revenue | 24.45M | 23.61M | 1.1M | 962.03K | 10.99M | 13.27M | 12.83M | 15.28M | 20.33M | 24.84M | 20.99M | 12.02M | 13.56M | 12.61M | 19.25M | 19.16M | 6.67M | 3.17M | 3.01M | 424.56K | 92 | 169 | 101 |
| Revenue Growth % | 508.4% | 2049.95% | 14.16% | -91.25% | -17.21% | 3.44% | -16.04% | -24.83% | -18.15% | 18.36% | 74.6% | -11.34% | 7.52% | -34.48% | 0.48% | 187.25% | 110.32% | 5.28% | 609.35% | 461382.61% | -45.56% | 67.33% | - |
| Cost of Goods Sold | 13.22M | 11.27M | 262.89K | 284.89K | 2.82M | 2.72M | 2.57M | 3.17M | 3.61M | 4.86M | 5.02M | 1.7M | 1.86M | 5.04M | 4.49M | 2.59M | 1.58M | 1.42M | 958.36K | 0 | 0 | 0 | 0 |
| COGS % of Revenue | - | 47.74% | 23.94% | 29.61% | 25.69% | 20.49% | 20.05% | 20.77% | 17.76% | 19.57% | 23.9% | 14.16% | 13.72% | 39.93% | 23.31% | 13.51% | 23.71% | 44.9% | 31.82% | - | - | - | - |
| Gross Profit | 11.23M | 12.34M | 835.39K | 677.14K | 8.17M | 10.55M | 10.26M | 12.11M | 16.72M | 19.98M | 15.97M | 10.32M | 11.7M | 7.57M | 14.76M | 16.57M | 5.09M | 1.75M | 2.05M | 424.56K | 92 | 169 | 101 |
| Gross Margin % | 45.94% | 52.26% | 76.06% | 70.39% | 74.31% | 79.51% | 79.95% | 79.23% | 82.24% | 80.43% | 76.1% | 85.84% | 86.28% | 60.07% | 76.69% | 86.49% | 76.29% | 55.1% | 68.18% | 100% | 100% | 100% | 100% |
| Gross Profit Growth % | - | 1377.09% | 23.37% | -91.71% | -22.62% | 2.87% | -15.27% | -27.58% | -16.31% | 25.09% | 54.8% | -11.79% | 54.44% | -48.68% | -10.91% | 225.67% | 191.18% | -14.91% | 383.62% | 461382.61% | -45.56% | 67.33% | - |
| Operating Expenses | 15.09M | 16.34M | 5.96M | 4.37M | 11.82M | 10.03M | 9.02M | 20.72M | 18.06M | 25.64M | 17.72M | 11.72M | 13.44M | 13.07M | 18.12M | 20.23M | 6.26M | 1.83M | 1.12M | 1.34M | 584.83K | 88.39K | 23.26K |
| OpEx % of Revenue | - | 69.2% | 542.39% | 454.74% | 107.6% | 75.59% | 70.27% | 135.6% | 88.83% | 103.22% | 84.41% | 97.48% | 99.14% | 103.61% | 94.12% | 105.62% | 93.86% | 57.78% | 37.17% | 315.82% | 635686.96% | 52300% | 23026.73% |
| Selling, General & Admin | 13.39M | 13.8M | 5.74M | 4.16M | 5.88M | 3.88M | 3.99M | 7.4M | 9.68M | 16.72M | 9.12M | 9.61M | 10.52M | 13.07M | 18.12M | 20.23M | 6.26M | 1.83M | 1.12M | 919.73K | 450.14K | 24.09K | 7.08K |
| SG&A % of Revenue | - | 58.44% | 522.76% | 432.89% | 53.53% | 29.21% | 31.1% | 48.42% | 47.6% | 67.31% | 43.43% | 79.98% | 77.55% | 103.61% | 94.12% | 105.62% | 93.86% | 57.78% | 37.17% | 216.63% | 489284.78% | 14253.25% | 7004.95% |
| Research & Development | 2.46M | 3.25M | 215.54K | 210.23K | 5.93M | 5.39M | 5.03M | 6.56M | 6.59M | 8.92M | 8.6M | 2.1M | 2.93M | 0 | 0 | 0 | 0 | 0 | 0 | 412.1K | 126.59K | 56.2K | 12.37K |
| R&D % of Revenue | - | 13.78% | 19.63% | 21.85% | 54% | 40.62% | 39.16% | 42.94% | 32.42% | 35.9% | 40.98% | 17.5% | 21.59% | - | - | - | - | - | - | 97.06% | 137597.83% | 33253.85% | 12247.52% |
| Other Operating Expenses | -759.11K | -712.38K | 0 | 0 | 7.26K | 765.23K | 0 | 6.76M | 1.79M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 9.05K | 8.1K | 8.1K | 3.81K |
| Operating Income | -3.86M | -4M | -5.12M | -3.7M | -3.66M | 519.49K | 1.24M | -8.62M | -1.34M | -5.66M | -1.74M | -1.4M | -1.74M | -5.49M | -3.36M | -3.66M | -1.17M | -84.78K | 933.88K | -916.31K | -584.74K | -88.22K | -23.16K |
| Operating Margin % | -15.79% | -16.95% | -466.32% | -384.35% | -33.29% | 3.91% | 9.68% | -56.37% | -6.59% | -22.78% | -8.31% | -11.64% | -12.86% | -43.54% | -17.44% | -19.13% | -17.57% | -2.67% | 31.01% | -215.82% | -635586.96% | -52200% | -22926.73% |
| Operating Income Growth % | - | 21.87% | -38.51% | -1.06% | -804.31% | -58.2% | 114.42% | -542.86% | 76.32% | -224.57% | -24.6% | 19.76% | 68.23% | -63.61% | 8.41% | -212.67% | -1282.24% | -109.08% | 201.92% | -56.7% | -562.84% | -280.97% | - |
| EBITDA | -1.15M | -1.04M | -4.22M | -2.79M | -2.91M | 964.75K | 1.92M | -7.83M | 647.01K | -3.53M | -341.31K | -1.23M | -1.56M | -5.32M | -3.2M | -3.61M | -1.15M | -65.13K | 946.51K | -909.9K | -576.64K | -80.12K | -19.34K |
| EBITDA Margin % | -4.71% | -4.42% | -383.89% | -290.33% | -26.46% | 7.27% | 14.95% | -51.24% | 3.18% | -14.2% | -1.63% | -10.25% | -11.52% | -42.16% | -16.65% | -18.86% | -17.29% | -2.05% | 31.43% | -214.31% | -626782.61% | -47407.1% | -19152.48% |
| EBITDA Growth % | 72.08% | 75.23% | -50.95% | 3.94% | -401.39% | -49.71% | 124.5% | -1310.45% | 118.34% | -933.52% | 72.3% | 21.12% | 70.61% | -65.87% | 11.29% | -213.29% | -1670.58% | -106.88% | 204.02% | -57.79% | -619.74% | -314.17% | - |
| D&A (Non-Cash Add-back) | 2.71M | 2.96M | 905.4K | 904.51K | 751.17K | 445.26K | 675.81K | 783.57K | 1.99M | 2.13M | 1.4M | 167.16K | 181.68K | 174.64K | 151.01K | 51.18K | 18.67K | 19.65K | 12.63K | 6.41K | 8.1K | 8.1K | 3.81K |
| EBIT | -3.6M | -4M | -4.41M | -3.7M | -3.65M | 1.28M | 1.24M | -1.86M | 451.13K | -5.66M | -1.74M | -1.4M | -1.74M | -5.49M | -3.36M | -3.66M | -1.15M | -46.1K | 943.16K | -916.31K | -584.74K | -88.22K | -23.16K |
| Net Interest Income | 319.82K | 340.83K | 569.02K | 639.61K | 74.89K | 133 | 7.12K | 156.42K | 81.18K | 41.72K | -60.03K | -1.54M | -30.9K | 5.81K | 21.52K | 28.86K | 4.47K | 11.44K | 3.18K | 2.69K | -2.04K | -4.56K | -1.82K |
| Interest Income | 319.82K | 340.83K | 569.02K | 639.61K | 74.89K | 133 | 7.12K | 156.42K | 81.18K | 41.72K | 0 | 0 | 0 | 5.81K | 21.52K | 31.28K | 8.2K | 16.27K | 9.28K | 6.08K | 3.91K | 307 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 60.03K | 1.54M | 30.9K | 0 | 0 | 2.42K | 3.73K | 4.83K | 6.1K | 3.39K | 5.95K | 4.87K | 1.83K |
| Other Income/Expense | 144.75K | -281.94K | 715.28K | 982.66K | 74.89K | 814.57K | 128.95K | -468.94K | -662.77K | -5.22K | 291.07K | 101.68K | 86.22K | 1.48M | -674.69K | 2.07M | 17.36K | 33.84K | 3.18K | 2.69K | -2.04K | -4.56K | -1.82K |
| Pretax Income | -3.72M | -4.28M | -4.41M | -2.71M | -3.58M | 1.33M | 1.37M | -9.08M | -2M | -5.67M | -1.45M | -1.3M | -1.66M | -4.01M | -4.03M | -1.59M | -1.15M | -50.94K | 937.06K | -913.62K | -586.78K | -92.78K | -24.98K |
| Pretax Margin % | -15.2% | -18.14% | -401.2% | -282.21% | -32.61% | 10.05% | 10.69% | -59.44% | -9.85% | -22.81% | -6.92% | -10.8% | -12.23% | -31.77% | -20.94% | -8.32% | -17.31% | -1.61% | 31.11% | -215.19% | -637808.7% | -54898.82% | -24733.66% |
| Income Tax | -291.32K | -2.33M | -137.59K | -27.95K | -171.66K | 9.95K | 387 | -141.59K | 3K | 228.97K | 0 | 0 | 0 | 0 | 0 | 0 | 12.6K | 50.98K | 140.1K | 1.38K | 0 | 0 | 0 |
| Effective Tax Rate % | 7.84% | 54.32% | 3.12% | 1.03% | 4.79% | 0.75% | 0.03% | 1.56% | -0.15% | -4.04% | 0% | 0% | 0% | 0% | 0% | 0% | -1.09% | -100.09% | 14.95% | -0.15% | 0% | 0% | 0% |
| Net Income | -3.43M | -1.96M | -8.43M | -1.07M | -3.41M | 1.32M | 1.37M | -8.38M | -3.8M | -5.89M | -1.45M | -1.3M | -1.66M | -4.01M | -4.03M | -1.59M | -1.17M | -101.92K | 796.96K | -915K | -586.78K | -92.78K | -24.98K |
| Net Margin % | -14.01% | -8.29% | -767.22% | -110.95% | -31.05% | 9.98% | 10.69% | -54.83% | -18.68% | -23.73% | -6.92% | -10.8% | -12.23% | -31.77% | -20.94% | -8.32% | -17.5% | -3.21% | 26.46% | -215.51% | -637808.7% | -54898.82% | -24733.66% |
| Net Income Growth % | 51.93% | 76.78% | -689.46% | 68.72% | -357.7% | -3.44% | 116.36% | -120.69% | 35.58% | -305.72% | -11.94% | 21.72% | 58.62% | 0.61% | -152.99% | -36.51% | -1045.1% | -112.79% | 187.1% | -55.93% | -532.45% | -271.4% | - |
| Net Income (Continuing) | -3.43M | -1.96M | -4.27M | -2.69M | -3.41M | 1.32M | 1.37M | -8.94M | -2.01M | -5.89M | -1.45M | -1.3M | -1.66M | -4.01M | -4.03M | -1.59M | -1.17M | -101.92K | 796.96K | -915K | -586.78K | -92.78K | -24.98K |
| Discontinued Operations | 0 | 0 | -4.16M | 1.62M | 0 | 0 | 0 | 562.63K | -1.79M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.26 | -0.15 | -0.91 | -0.12 | -0.35 | 0.17 | 0.20 | -1.22 | -0.56 | -0.91 | -0.26 | -1.05 | -1.40 | -3.50 | -3.50 | -1.40 | -1.40 | -0.11 | 0.82 | -1.05 | -0.82 | -0.12 | -0.04 |
| EPS Growth % | 47.81% | 83.52% | -658.33% | 65.71% | -305.88% | -15% | 116.39% | -117.86% | 38.46% | -250% | 75.24% | 25% | 60% | 0% | -150% | 0% | -1172.73% | -113.41% | 178.1% | -28.05% | -583.33% | -200.75% | - |
| EPS (Basic) | - | -0.15 | -0.91 | -0.12 | -0.35 | 0.17 | 0.20 | -1.22 | -0.56 | -0.91 | -0.26 | -1.05 | -1.40 | -3.50 | -3.50 | -1.40 | -1.40 | -0.11 | 0.93 | -1.05 | -0.82 | -0.12 | -0.04 |
| Diluted Shares Outstanding | 13.07M | 3.99M | 9.23M | 9.22M | 9.64M | 7.81M | 6.89M | 6.87M | 6.72M | 6.45M | 5.58M | 1.13M | 1.12M | 1.11M | 1.1M | 1.07M | 944.36K | 927.98K | 968.2K | 828.03K | 712.63K | 642.44K | 625.7K |
| Basic Shares Outstanding | 4M | 3.99M | 9.23M | 9.22M | 9.64M | 7.77M | 6.88M | 6.87M | 6.72M | 6.45M | 5.58M | 1.13M | 1.12M | 1.11M | 1.1M | 1.07M | 944.36K | 927.98K | 893.19K | 828.03K | 712.63K | 642.44K | 625.7K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Persistent negative operating margins
As indicated by the quarterly financial data, IPM experienced a massive revenue surge, yet the underlying organic growth appears muted, suggesting that the reported 2049.95% year-over-year increase is likely driven by non-recurring structural changes or acquisitions rather than sustainable demand for its legacy social platforms.
The dramatic shift in revenue scale from the $2M range to over $6M per quarter warrants caution, as it does not correlate with a corresponding improvement in operational efficiency. Investors should monitor whether these new revenue streams possess the same recurring characteristics as the core virtual gifting business or if they represent one-time consulting engagements.
Based on reported figures, IPM's gross margin has fluctuated significantly, dropping from historical highs near 69% to 41.2% in 2026Q1, which suggests that the company is struggling to maintain pricing power amidst rising distribution costs and the increasing intensity of platform hosting requirements.
The compression in gross margins implies that the cost of delivering digital services is outpacing the company's ability to monetize its user base. This trend suggests that the platform's reliance on third-party app stores and bandwidth-heavy video streaming may be creating a structural ceiling on profitability that is difficult to overcome.
According to the income statement, IPM continues to report negative operating margins, with the most recent quarter showing a -10.7% margin, indicating that the company has failed to achieve the necessary scale to cover its fixed operating expenses despite the recent expansion in top-line revenue.
The persistence of operating losses suggests that incremental revenue is being consumed by overhead rather than flowing to the bottom line. This lack of operating leverage may indicate that the company's current cost structure is misaligned with its actual revenue-generating capacity, necessitating a potential re-evaluation of its expense discipline.
Analysis of the cost structure reveals that SG&A expenses remain stubbornly high relative to revenue, consistently hovering around $3.3M to $3.6M per quarter, which effectively offsets the gross profit generated and prevents the company from reaching a sustainable break-even point in its current operational configuration.
The high fixed-cost base, particularly in SG&A, suggests that management is maintaining a level of expenditure that is not currently supported by the platform's monetization depth. Without a significant increase in user density or a reduction in administrative overhead, the company may continue to face challenges in achieving consistent profitability.
While the company maintains a low debt-to-equity ratio, the consistent operational burn and negative net income suggest that the current business model may be unsustainable without further capital injections, raising concerns about potential shareholder dilution if the company cannot reach self-sufficiency in the near term.
Short-term observers might focus on the $6.6M cash balance as a buffer, but the recurring nature of the operating losses suggests this runway is finite. The reliance on niche, legacy communities may provide a defensive moat, but it appears insufficient to drive the growth required to justify the current cost structure.
Quick answers to the most common questions about buying IPM stock.
For fiscal year 2025, Intelligent Protection Management Corp. (IPM) reported total revenue of $23.6M. This represents a 23378572.3% increase compared to $0.0M in 2004.
Intelligent Protection Management Corp. (IPM) reported a net loss of $2.0M for the fiscal year ending 2025.
Intelligent Protection Management Corp. (IPM) reported an operating income of $-4.0M, resulting in an operating profit margin of -16.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Intelligent Protection Management Corp. (IPM) generated $12.3M in gross profit for the year, representing a gross profit margin of 52.3%. This demonstrates the company's core pricing power and production efficiency.