Interlink 2025 Q1 Earnings Misses Targets as Net Loss Worsens by 8.6%

Interlink Electronics (LINK) reported its fiscal 2025 Q1 earnings on May 13th, 2025. The company missed earnings expectations, with an EPS of -$0.09 compared to an estimated -$0.06. Despite challenges, Interlink is optimistic about returning to profitability in 2026, supported by anticipated double-digit organic revenue growth. Management is focused on executing strategic plans, including evaluating acquisition opportunities, to enhance the company's financial performance and market position.

Revenue
The total revenue of Interlink decreased by 14.7% to $2.66 million in 2025 Q1, down from $3.12 million in 2024 Q1.

Earnings/Net Income
Interlink maintained stable EPS at $-0.09 in 2025 Q1 compared to 2024 Q1. Meanwhile, the company's net loss widened to $-805,000 in 2025 Q1, representing an 8.6% increase from the $-741,000 loss recorded in 2024 Q1. The EPS reflects ongoing financial challenges.

Price Action
The stock price of Interlink has climbed 3.68% during the latest trading day, has edged down 2.09% during the most recent full trading week, and has dropped 5.70% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing Interlink Electronics (LINK) shares after its revenue drop quarter-over-quarter on the financial report release date and holding for 30 days has consistently underperformed the market. Over the past five years, this approach has generated a return of -21.01%, starkly contrasting with the benchmark return of 33.67%. This indicates substantial losses, with an excess return of -54.69% and a CAGR of -7.53%. The strategy has also demonstrated high risk and negative returns, evidenced by a maximum drawdown of -93.71% and a low Sharpe ratio of -0.05. It significantly lags behind the market average, with a return of -49.64% compared to a benchmark return of 95.08%, resulting in an excess return of -144.71%. The consistent underperformance suggests the strategy may not effectively respond to market conditions or the company's circumstances. Investors may need to explore alternative strategies that better align with the company's performance and broader market trends.

CEO 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. The company is committed to building a more scalable, innovation-driven business, with recent customer wins and new products indicating that their strategy is gaining traction. Notably, advancements in the gas sensor product line are expected to enhance relevance in high-value environmental and safety applications. The CEO emphasized operational strength and flexibility in adapting to trade dynamics while pursuing organic growth and monitoring M&A opportunities.

Guidance
Interlink expects to return to profitability in 2026, supported by double-digit organic revenue growth and a recovery in gross margins. While prioritizing organic execution, the company is evaluating a pipeline of strategic acquisition opportunities. Management anticipates that 2026 will be a breakout year, driven by profitability, margin expansion, and sustained revenue growth, laying a foundation for durable, long-term value creation.

Additional News
Interlink Electronics is actively expanding its market presence and technological capabilities. Recently, the company announced its participation in the Planet MicroCap Showcase: VEGAS 2025, scheduled for April 22-24, 2025, where CEO Steven Bronson will present operational achievements and future priorities. The company is focusing on growth in environmental sensing and smart textiles. Additionally, Interlink Electronics has acquired UK-based Conductive Transfers, which enhances its offerings in e-textiles and wearables, aligning with its strategic goal to diversify and strengthen its product portfolio. The acquisition marks a significant step in entering high-growth markets and expanding global operations.