Strategic Moves Position Interlink for Transformative 2026 Growth

Interlink Electronics (LINK) is positioning itself for a transformative 2026 after reporting robust third-quarter 2025 results and unveiling strategic moves to strengthen its financial and operational foundations. The sensor technology firm, which saw revenue rise 11% year-over-year to $3.0 million, is leveraging government grants, capital restructuring, and a potential U.K. acquisition to drive long-term growth.

The company's third-quarter performance marked its second consecutive quarter of double-digit revenue growth, driven by increased shipments of force-sensing products and printed electronics at its Calman Technology subsidiary. Gross margin expanded to 41.8%, up 40 basis points from the prior year, while the net loss narrowed to $336,000, compared to $523,000 in the same period in 2024.

Interlink also announced a 50% common-stock dividend and the conversion of all Series A preferred stock into common shares, aiming to simplify its capital structure and enhance liquidity.

A key catalyst for the company's optimism is its recent acquisition of two U.S. government SBIR grants totaling $375,000 from the FDA and USDA to develop food safety and quality monitoring technologies. These grants underscore Interlink's expanding role in high-growth markets and align with its strategy to capitalize on industry trends such as digital supply chain modernization. Additionally, the firm signed a letter of intent to acquire a U.K.-based engineering and manufacturing company, a move that could bolster its European presence and diversify its product offerings.

Management, led by CEO Steven Bronson, emphasized the company's momentum. "We are entering 2026 from a position of strength," Bronson stated, highlighting the combination of organic growth, strategic partnerships, and a "transformative period" of M&A activity according to management. Analysts have taken notice: Jaeson Schmidt of Lake Street maintains a Buy rating on Interlink with a $28 price target, while the stock's median price target stands at $8.67, a 38% premium to recent levels according to Finimize.

The path to profitability, however, remains conditional on sustained revenue growth and successful integration of the proposed U.K. acquisition. Interlink's adjusted EBITDA remained negative at $(62,000) for the quarter, reflecting ongoing operational costs despite improved margins according to financial reports. The company's reliance on grant funding and its history of net losses also pose risks, with dependencies on continued government support and market adoption of its sensor solutions.

Investor sentiment is bolstered by broader trends in the semiconductor-adjacent sector, where demand for smart sensors and IoT-enabled monitoring systems is surging. Interlink's focus on food safety, a market expected to grow as regulatory scrutiny intensifies, positions it to benefit from long-term tailwinds according to market analysts. Meanwhile, its capital actions-reducing preferred stock overhang and boosting liquidity-aim to attract a wider investor base.

As the firm navigates its 2026 roadmap, stakeholders will closely watch quarterly revenue trends, the progress of the U.K. acquisition, and the impact of its grant-funded projects on profitability. For now, Interlink's blend of innovation, strategic acquisitions, and capital discipline has positioned it as a compelling play in the evolving sensor technology landscape.