Interlink Electronics Reports 17.8% Revenue Growth and Net Income Improvement in Q2 2025

Interlink Electronics, Inc. reported its financial results for the second quarter of 2025, revealing a revenue increase of 17.8% to $3.414 million compared to $2.898 million in the same period last year. For the first half of 2025, revenue rose slightly to $6.078 million from $6.022 million in the prior year. The company achieved a net income of $100,000 for the quarter, a significant improvement from a net loss of $307,000 in Q2 2024. However, for the six-month period, Interlink recorded a net loss of $705,000, an improvement from a loss of $1.048 million in the same timeframe last year.

The company’s gross profit for the second quarter increased to $1.538 million, maintaining a gross margin of 45%, consistent with the previous year. Operating expenses decreased to $1.472 million from $1.618 million in Q2 2024, primarily due to reduced engineering, research, and development costs, which fell to $363,000 from $510,000. Selling, general, and administrative expenses remained stable at approximately $1.109 million. The reduction in operating expenses contributed to a positive income from operations of $66,000, compared to a loss of $313,000 in the prior year.

Interlink's strategic developments included the acquisition of Conductive Transfers in December 2024, which expanded its capabilities in wearable technology and printed electronics. This acquisition is expected to enhance product offerings in various markets, including medical and automotive sectors. The company continues to focus on its core competencies in sensor technologies and has made significant investments in research and development, relocating its R&D efforts to a new facility in Camarillo, California.

Operationally, Interlink reported an increase in accounts receivable, reflecting higher shipments during the quarter. The company’s cash and cash equivalents stood at $2.329 million as of June 30, 2025, down from $2.950 million at the end of 2024. The decrease in cash was attributed to cash used in operating activities, which amounted to $409,000 for the first half of 2025. The company has no outstanding debt and continues to pay monthly dividends on its preferred stock, which remains a priority for its financial strategy.

Looking ahead, Interlink Electronics anticipates continued growth driven by demand in the industrial and automotive markets, despite challenges in the medical sector. The company remains committed to leveraging its acquisitions and expanding its product portfolio to meet evolving customer needs. Management expressed confidence in the company’s ability to navigate market fluctuations and maintain operational efficiency, while also exploring potential strategic partnerships to support future growth initiatives.