Interlink Electronics (LINK) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 2026 increased 10.4% year-over-year to $3.77 million, driven by higher shipments in the medical, standard, force-sensing, and printed electronics markets, offset by declines in industrial, automotive, and gas sensor sales.

• Gross profit rose to $1.67 million, with gross margin slightly down to 44.4% due to product and customer mix.

• Net income for Q2 2026 was $248,000, up from $100,000 in Q2 2025, reflecting improved operating leverage and a return to profitability.

• Operating expenses decreased as a percentage of revenue, with R&D costs down 27.8% and SG&A up 5% year-over-year.

• Announced a strategic acquisition expected to close by October 2026, anticipated to expand operations and boost revenues and earnings.

Financial highlights

• Q2 2026 revenue: $3.77 million (up 10.4% year-over-year); six-month revenue: $6.84 million (up 13%).

• Q2 2026 net income: $248,000 (EPS $0.02); six-month net loss: $90,000 (EPS $(0.01)), improved from $705,000 loss in H1 2025.

• Gross margin for Q2 2026: 44.4% (down from 45.0% in Q2 2025); six-month gross margin: 44.0% (up from 40.9%).

• Cash and cash equivalents at June 30, 2026: $1.83 million; working capital: $4.7 million; no debt.

• Q2 2026 Adjusted EBITDA: $421,000 (up from $323,000 in Q2 2025); H1 2026 Adjusted EBITDA: $255,000 (up from $(300,000) in H1 2025).

Outlook and guidance

• Management expects continued focus on revenue growth in strategic markets, gross margin expansion, and disciplined capital allocation.

• Pending acquisition expected to be transformative, with completion targeted by end of October 2026.

• Existing cash balances are expected to be sufficient for current operations; additional capital or debt financing may be sought if circumstances change or to support acquisition.