Interlink Electronics Reports 10.4% Revenue Growth in Q2 2026

Interlink Electronics, Inc. reported a notable increase in financial performance for the second quarter of 2026, with revenues reaching $3.77 million, a 10.4% increase from $3.41 million in the same period of 2025. For the first half of 2026, total revenues amounted to $6.84 million, up 12.6% from $6.08 million in the prior year. The company achieved a net income of $248,000 for the second quarter, compared to a net income of $100,000 in the same quarter of 2025. However, for the first half of 2026, Interlink reported a net loss of $90,000, an improvement from a loss of $705,000 in the first half of 2025.

The company's gross profit for the second quarter was $1.67 million, representing a gross margin of 44.4%, slightly down from 45.0% in the previous year. The increase in gross profit was attributed to higher revenues, although the gross margin percentage decreased due to changes in product and customer mix. Operating expenses for the second quarter were $1.43 million, down from $1.47 million in the same quarter of 2025, reflecting a reduction in engineering, research, and development costs, which fell to $262,000 from $363,000 year-over-year.

Interlink has made strategic advancements, including the acquisition of Calman in 2023 and Conductive Transfers Limited in 2024, which have expanded its capabilities in customized membrane keypads and printed electronics. These acquisitions are expected to enhance the company's vertical integration and broaden its intellectual property portfolio, particularly in European markets. The company continues to focus on revenue growth in targeted markets, emphasizing higher-margin, application-specific solutions.

Operationally, Interlink's customer base remains diverse, with significant revenue contributions from the medical sector, which accounted for 33.8% of total revenue in the second quarter of 2026, up from 29.8% in the previous year. However, revenues from the industrial sector decreased, reflecting reduced demand for gas-sensing products. The company reported a total of $1.83 million in cash and cash equivalents as of June 30, 2026, down from $2.72 million at the end of 2025, with working capital of $4.7 million and no outstanding debt.

Looking ahead, Interlink Electronics aims to maintain its focus on revenue growth and operational efficiencies while navigating market conditions. The company anticipates that its ongoing investments in product development and strategic acquisitions will position it favorably for future growth, despite the challenges posed by fluctuating demand and market dynamics.