Interlink Electronics (LINK 3.01%), a sensor solutions and printed electronics specialist, posted its second quarter fiscal 2025 results on August 13, 2025. The company’s revenue (GAAP) reached $3.4 million. Earnings per share (GAAP) landed at break-even ($0.00), reversing a $(0.04) GAAP loss per diluted share in Q2 2024. These figures reflect gains in profitability and operational efficiency, driven by growth in the company’s gas-sensor and printed electronics offerings. The quarter’s delivery was materially stronger than anticipated, mainly via improved sales mix and cost controls, setting up Interlink with momentum for the second half of the year.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $0.00 | ($0.08) | ($0.04) | n/m |
| Revenue (GAAP) | $3.4 million | $2.8 million | $2.9 million | 17.2 % |
| Gross Margin | 45.0 % | 45.0 % | 0.0 pp | |
| Adjusted EBITDA | $0.32 million | ($0.08 million) | n/m |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Business Overview and Areas of Focus
Interlink Electronics delivers advanced sensor solutions and printed electronics for a wide range of industries. Its main technologies include force-sensing resistor sensors (FSR sensors), piezoelectric components, and custom hybrid printed electronics. By targeting complex human-machine interaction (HMI) and Internet of Things (IoT) applications, it builds solutions for industrial, medical, automotive, and consumer electronics customers.
The company’s growth strategy relies on innovation, intellectual property, and targeted acquisitions. Interlink owns a patent portfolio with 30 patents and 15 more pending. Acquisitions of businesses like Calman Technology and Conductive Transfers have expanded its reach into new markets such as Europe and strengthened its presence in printed electronics. These moves, along with its focus on developing customer relationships and delivering high-margin, custom technologies, are considered critical success factors for the company’s future.
Quarterly Performance and Key Developments
Interlink grew revenue by 18% year-over-year. Revenue exceeded analyst expectations by over $0.6 million. This performance was notable after a soft start to the fiscal year, with six-month GAAP revenue essentially flat versus the comparable prior period (Q2 YTD 2025: $6.1 million; Q2 YTD 2024: $6.0 million). The period’s surge was powered by demand for its gas-sensor and printed electronics products, bolstered by progress in integrating the Conductive Transfers and Calman Technology acquisitions. ““Revenue increased 18% year-over-year, driven by higher gas-sensor shipments, stronger printed electronics demand through our Calman Technology subsidiary, and contributions from our recent Conductive Transfers acquisition,” the company stated.
The company’s gross margin (GAAP) held steady at 45.0%, matching the prior-year rate but marking a sharp rebound from the 35.6% gross margin result posted in Q1 2025. This margin improvement came from higher sales volumes and a favorable shift in product mix. Meanwhile, operating expenses fell compared to Q2 2024, with research and development spending trimmed to $363,000 compared to $510,000 in Q2 2024, and selling, general and administrative expense essentially unchanged. These factors, plus ongoing cost controls, helped move net income (GAAP) to $100,000, after a $307,000 loss a year earlier. Adjusted EBITDA, a non-GAAP profitability measure backing out non-cash costs and taxes, was $323,000 compared to $(80,000) in the prior-year period.
Product innovation remained a focus. Notably, it secured a significant “design win” with a division of a top-ten global original equipment manufacturer (OEM) for an integrated sensing program. This engagement is expected to begin pre-production in the upcoming quarter and generate about $1 million in revenue for FY2026, with further growth projected in later years.
However, not all areas grew. The force-sensing product category saw weaker demand, offsetting some of the gains elsewhere. Segment volatility remains a theme, but management signaled expectations for this business to recover. International sales, supported by a stronger British pound and momentum from Calman Technology’s UK operations, contributed to the overall revenue lift. The quarter also benefited from a $280,000 government grant under the Small Business Innovation Research (SBIR) program, directed at developing an artificial intelligence-powered air quality monitoring system.
Balance Sheet and Financial Position
As of June 30, 2025, Interlink reported $2.3 million in cash and equivalents (GAAP), down from $2.95 million (GAAP) at December 31, 2024. Total liabilities (GAAP) decreased to $2.47 million as of June 30, 2025. Inventory (GAAP) declined to $1.65 million at June 30, 2025 from $2.01 million at December 31, 2024.
The company continues to manage costs carefully, curbing headcount and compensation, and lower R&D expenditures. “The improvement in net income (GAAP) was driven by higher revenue and lower operating expenses, reflecting reduced headcount and related compensation costs," it shared.
Outlook and Forward Guidance
Looking ahead, management expects continued improvements in both revenue and gross margin through the second half of FY2025 and into FY2026, supported by momentum in its primary product lines. The executive team highlighted a robust pipeline of opportunities and said it is pursuing further strategic acquisitions.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
