Interlink Electronics (LINK) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue increased 17.8% year-over-year to $3.41 million, driven by higher demand in industrial, automotive, and gas-sensor markets, as well as contributions from acquisitions.

• Gross profit rose to $1.54 million, with gross margin steady at 45%, supporting $323,000 in adjusted EBITDA and $100,000 net income, reversing a prior-year net loss.

• Operating expenses decreased, mainly due to lower engineering, R&D, headcount, and compensation costs.

• Secured a major design win with a top-10 global OEM, with pre-production underway and $1 million revenue expected in 2026.

• Awarded a $280,000 SBIR grant to develop advanced air quality monitoring using gas sensing and AI.

Financial highlights

• Six-month revenue was $6.08 million, up 0.9% year-over-year.

• Six-month net loss narrowed to $705,000 from $1.05 million in the prior year.

• Cash and cash equivalents at June 30, 2025, were $2.3 million, with $1.5 million held by foreign subsidiaries.

• Working capital stood at $5.0 million, and there was no outstanding debt.

• Preferred stock dividends of $200,000 were paid in the first half of 2025.

Outlook and guidance

• Management expects continued year-over-year revenue and gross margin improvements in the second half of 2025 and into 2026, with 2026 projected as a defining year for growth and profitability.

• Additional capital may be sought if circumstances change, potentially through equity or debt financing.