inTEST (INTT) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $35.3 million, up 26% year-over-year and 4% sequentially, marking the third consecutive quarter of sequential growth and the second consecutive quarter of over 25% year-over-year growth.

• Net earnings for Q2 2026 were $0.5 million, reversing a prior year loss, with adjusted EBITDA of $2.2 million, up 73% year-over-year.

• Growth was broad-based, led by Auto/EV and strong semiconductor order intake, with non-semi markets contributing about 74% of revenue.

• Orders in Q2 2026 were $28.9 million, up 4% year-over-year but down 9% sequentially; backlog at quarter-end was $45.4 million, up 20% year-over-year but down 12% sequentially.

• A material weakness in internal controls at Alfamation™ was identified and is under remediation, with Q1 2026 financials revised.

Financial highlights

• Gross margin for Q2 2026 was 40.5%, down 210 basis points year-over-year due to a higher mix of lower-margin Auto/EV projects.

• Operating expenses were $13.9 million, down sequentially, reflecting the absence of Q1 restructuring costs.

• Adjusted EPS was $0.09 per diluted share, including a $0.02 discrete tax benefit from stock option exercises; GAAP EPS was $0.04.

• Cash and equivalents ended at $22.1 million, up $6.4 million from Q1, with $6.3 million generated from operations.

• Free cash flow for Q2 2026 was $5.9 million; working capital at quarter-end was $47.8 million.

Outlook and guidance

• Q3 2026 revenue projected at $33–$35 million, gross margin around 44%, and operating expenses $13.8–$14.2 million.

• Full-year 2026 revenue guidance raised to $135–$140 million, representing about 21% growth at midpoint over 2025.

• Full-year gross margin expected at approximately 43%, with operating expenses of $55–$57 million and capex 1–2% of revenue.

• Guidance excludes acquisitions and restructuring costs and assumes stable macroeconomic conditions.