Interlink 2025 Q1 Earnings Net Loss Widens Despite Stable EPS

Interlink (LINK) reported its fiscal 2025 Q1 earnings on August 13, 2025. The results showed a revenue decline and an expanded net loss, though management expressed optimism about future performance and strategic growth. Investors reacted positively in the short term, with the stock rising 9.35% in a single trading day.

Interlink’s Q1 2025 earnings report revealed a net loss of $805,000, a 8.6% increase from the $741,000 loss in the same period of 2024, despite maintaining a stable EPS of -$0.09. The results fell short of expectations, and the company did not provide updated guidance, indicating a continuation of current performance levels.

Revenue

Revenue for Interlink’s Q1 2025 decreased by 14.7% year-over-year to $2.66 million from $3.12 million in 2024. The decline was driven by softness in the Medical and Industrial segments. The Medical segment reported $714,000 in revenue, while the Industrial segment brought in $589,000. The Consumer segment saw minimal revenue at $11,000, and the Standard segment accounted for $1.35 million. Together, these segments make up the company’s total revenue of $2.66 million.

Earnings/Net Income

Interlink’s Q1 2025 earnings showed a net loss of $805,000, representing a 8.6% increase in losses compared to $741,000 in Q1 2024. The stable EPS of -$0.09 highlights continued financial challenges, with the company failing to turn a profit in the quarter.

Price Action

The stock price of Interlink has shown mixed performance, jumping 9.35% during the latest trading day and climbing 6.15% during the most recent full trading week. However, it has dropped 8.00% month-to-date, reflecting ongoing market uncertainty.

Post-Earnings Price Action Review

Following the earnings release, a strategy of buying LINK when the results beat expectations and selling after 30 days resulted in a -19.81% return, significantly underperforming the 53.98% benchmark return. The strategy’s poor performance was underscored by a maximum drawdown of 0.00%, a Sharpe ratio of -0.45, and a volatility of 20.42%.

CEO Commentary

Steven N. Bronson, Chairman, President, and CEO, highlighted strong Q2 2025 performance with 18% year-over-year revenue growth driven by gas-sensor shipments, printed electronics demand, and the Conductive Transfers acquisition. He emphasized improved gross margins to 45% and a positive net income of $100,000, underscoring disciplined execution and operating leverage. Bronson noted momentum in gas-sensor and printed electronics product lines and an anticipated rebound in force-sensing demand. He also mentioned evaluating a robust M&A pipeline to align with long-term goals. His tone was optimistic, with confidence in 2026 as a defining year for top-line growth, margin expansion, and consistent profitability.

Guidance

The company expects continued year-over-year revenue and gross margin improvements in the second half of 2025 and into 2026. Management anticipates a steady rebound in the force-sensing business as demand normalizes. A $1 million revenue contribution is expected in 2026 from the integrated sensing solution with a top-10 global OEM, with meaningful expansion projected beyond 2026. The company also expects to benefit from ongoing customer momentum with Fortune 500 clients and may pursue strategic acquisitions that align with long-term goals and enhance shareholder value.

Additional News

On August 14, 2025, Nigerian newspaper Punch reported that Super Falcons players had not received a promised $100,000 payment, according to Ajibade. The Federal Government approved nine new private universities, and a Lagos woman was remanded in custody for allegedly falsifying a foreign currency declaration. Additionally, the Nigerian government denied involvement in a prepaid meter scheme in Badagry. These developments highlight ongoing economic and political developments in Nigeria that could impact business operations and investor sentiment.