Interlink Electronics (LINK) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 was $2.66 million, down 14.7% year-over-year, with declines in all custom markets but growth in standard products.

• Net loss widened to $805,000 from $741,000 in Q1 2024, reflecting lower sales and gross margin.

• Q1 2025 marked the low point of a transitional year, with strategic execution focused on returning to profitability and double-digit organic growth in 2026.

• Expanded gas sensor portfolio and secured a major design win with a division of a top 10 global OEM, expected to generate nearly $1 million in revenue in 2026.

• Operational discipline and customer momentum are laying the groundwork for a strong 2026.

Financial highlights

• Revenue: $2.66 million (Q1 2025), down from $3.12 million (Q1 2024).

• Gross margin decreased to 35.6% from 40.1% year-over-year, primarily due to lower revenues and changes in product/customer mix.

• Net loss: $805,000 (Q1 2025) vs. $741,000 (Q1 2024).

• Adjusted EBITDA was $(623,000), compared to $(508,000) in Q1 2024.

• EPS: $(0.09) basic and diluted, unchanged year-over-year.

Outlook and guidance

• Management expects to continue paying monthly dividends on preferred stock and believes current cash is sufficient for ongoing operations.

• Pre-production for the major OEM design win begins in Q3 2025, with significant revenue expected in 2026 and further expansion anticipated in 2027 and beyond.

• Double-digit organic revenue growth and a return to profitability are expected in 2026, supported by margin recovery.

• Strategic acquisitions remain under evaluation to complement organic growth.

• No material changes to risk factors or critical accounting policies were reported.