Interlink Electronics Reports 14.7% Revenue Decline in Q1 2025

Interlink Electronics, Inc. reported a decline in financial performance for the first quarter of 2025, with revenue totaling $2.664 million, down 14.7% from $3.124 million in the same period of 2024. The company's gross profit also decreased to $949,000, representing a gross margin of 35.6%, compared to 40.1% in the prior year. The net loss for the quarter was $805,000, slightly higher than the loss of $741,000 reported in the first quarter of 2024. The loss applicable to common stockholders was $905,000, resulting in an unchanged loss per share of $0.09.

The decrease in revenue was attributed to lower shipments of force-sensing and gas-sensing products, driven by reduced customer demand across custom markets. Notably, revenue from the medical sector fell by 39.7%, while the industrial sector saw a 13% decline. In contrast, revenue from standard products increased by 19.5%, indicating a shift in customer purchasing patterns. Operating expenses decreased to $1.798 million from $2.004 million, primarily due to lower engineering and research and development costs, which fell by 24.7% to $434,000.

Interlink's balance sheet as of March 31, 2025, showed total assets of $12.472 million, down from $13.116 million at the end of 2024. Current assets decreased to $6.394 million, with cash and cash equivalents at $2.585 million, down from $2.950 million. The company’s total liabilities increased slightly to $2.707 million, with current liabilities rising to $1.592 million. Stockholders' equity also declined to $9.765 million from $10.493 million, reflecting the net loss incurred during the quarter.

Strategically, Interlink completed the acquisition of Conductive Transfers in December 2024, enhancing its capabilities in wearable technology and printed electronics. This acquisition is expected to contribute to future growth, particularly in the medical and automotive sectors. The company continues to focus on expanding its product offerings and geographic reach, with operations in the U.S., China, the U.K., and other regions.

Looking ahead, Interlink anticipates that its existing cash reserves will support ongoing operations, although it may seek additional capital if necessary. The company remains committed to exploring strategic partnerships and investments in research and development to drive innovation and meet evolving market demands.