Interlink Narrows Loss but Misses Revenue Hurdle as Expansion Plans Take Shape

Interlink Electronics (Nasdaq: LINK) reported third-quarter 2025 results on Nov. 12, 2025, with revenue rising 11% year-over-year to $3.0 million, driven by higher shipments of force-sensing products and printed electronics at its Calman Technology subsidiary. The company's gross margin improved to 41.8%, a 40-basis-point increase from the prior year, while the net loss narrowed to $336,000 compared to $523,000 in the third quarter of 2024. Despite these improvements, revenue fell short of some expectations by $0.24 million, according to Seeking Alpha.

The firm's strategic moves, including converting all Series A preferred stock into common stock and issuing a 50% stock dividend, aim to simplify its capital structure and enhance liquidity. These actions align with broader efforts to strengthen the balance sheet, supported by $1.55 million in operating expenses and a gross margin of nearly 42%. Interlink also secured SBIR grants from the FDA and USDA for food safety innovations, bolstering its financial flexibility.

Looking ahead, Interlink's management highlighted a transformative 2026 outlook. CEO Steven N. Bronson emphasized momentum across product lines, a growing pipeline of acquisition opportunities, and strategic partnerships as key drivers. A Letter of Intent (LOI) for a U.K. acquisition was disclosed, signaling potential expansion into new markets. The company's median price target of $8.67, a 38% premium to recent levels, reflects optimism about its path to profitability.

While the net loss and adjusted EBITDA remain negative, the sequential improvement in operating metrics underscores progress toward operational profitability. Analysts note that sustained double-digit revenue growth, successful integration of the U.K. acquisition, and continued grant awards will be critical to achieving this goal. Interlink's focus on smart sensors and digital monitoring positions it to capitalize on industry trends, particularly in food safety and industrial applications.