Interlink Electronics Reports Q1 2025 Result

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Interlink Electronics, Inc., a global leader in sensor technology and printed electronic solutions, reported results for the first quarter ended March 31, 2025.

We believe the first quarter marked the low point of a transitional year. The Company is focused on executing against its strategic priorities and is laying the foundation for a return to profitability and double-digit organic growth in 2026.

Q1 2025 and Recent Operational Highlights

In April, secured a major integrated sensing solution design win with a division of a top 10 global company. Pre-production is scheduled to begin in Q3 2025, with almost $1 million of revenue expected in 2026 and meaningful expansion anticipated in 2027 and beyond.

Expanded the gas sensor product line, launching multiple new and enhanced offerings, including industry-first odor sensors and new 4-Series carbon monoxide detectors, targeting industrial safety, infrastructure, and environmental monitoring applications.

Continued building momentum with new and existing Fortune 500 customers, supported by a scalable product portfolio and strong operational execution.

Strengthened positioning in global markets through ongoing product innovation, disciplined go-to-market execution, and customer engagement across multiple growth verticals.​
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Outlook

In 2026, Interlink expects to return to profitability, underpinned by double-digit organic revenue growth and a continued recovery in gross margins.

While organic execution remains the Company’s top priority, Interlink continues to evaluate a growing pipeline of strategic acquisition opportunities and will act opportunistically when transactions align with long-term goals and enhance shareholder value.

Management Commentary

“Q1 was in line with our expectations and marks the start of a year focused on disciplined execution and steady progress toward our long-term goals,” said Steven N. Bronson, Chairman, President, and CEO. “We’ve entered 2025 with clarity, focus, and a strong commitment to building a more scalable, innovation-driven business. Recent customer wins and new product introductions demonstrate that our strategy is beginning to take hold.

“We’re particularly encouraged by the traction in our gas sensor product line. Our advancements in odor and carbon monoxide detection represent a meaningful step forward and significantly expand our relevance in high-value environmental and safety applications.

“Operationally, we maintain a strong position. Our facility in China offers a low-cost production base, but due to recent tariff fluctuations, we will shift some of our production activities to our facility in Scotland. This move aims to reduce the impact of tariffs on our cost structure and customer pricing. Our diverse global presence and experienced leadership team enable us to adapt to changing trade dynamics while ensuring continuity and high service levels for our customers.

“Our focus remains on executing our organic growth strategy and scaling our core business. At the same time, we’re monitoring a healthy M&A pipeline and will act decisively when opportunities align with our long-term goals. We believe 2026 will be a breakout year for Interlink, driven by profitability, margin expansion, and sustained revenue growth. We’re building a platform for durable, long-term value creation, and we believe the best is yet to come.”

First Quarter 2025 Financial Results

Revenue was $2.6 million, compared to $3.1 million in the first quarter of 2024. The year-over-year decline was primarily due to lower shipments of traditional force-sensor and gas-sensor products. This was partially offset by increased sales from our Calman Technology subsidiary and contributions from Conductive Transfers, which added revenue from smart textiles, conductive inks, and other printed electronics. Revenue was also affected by fluctuations in customer demand, which can vary based on order flow and production cycles, impacting both the timing and volume of shipments.

Gross profit margin was 35.6%, compared to 40.1% in the first quarter of 2024. The year-over-year decline was primarily due to lower revenue and a less favorable product mix.

Net loss for the quarter was $805,000, compared to $741,000 in the same period last year. The increase in net loss was largely driven by lower revenue and gross profit, partially offset by reduced operating expenses resulting from lower headcount and related compensation costs.

Adjusted EBITDA, a non-GAAP financial metric, was $(623,000), compared to $(508,000) in the prior-year period.

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