Interlink Electronics Reports Third Quarter 2026 Results

Quarterly sales growth accompanied lower gross margin, while the pending acquisition remains dependent on financing and other conditions.

Rhea-AI Summary

Interlink Electronics (Nasdaq: LINK) reported third-quarter 2026 revenue of $3.059 million, with higher sales but a lower gross margin. Revenue rose 3.4% year over year, while gross margin fell to 37.3% from 41.8%. Net loss narrowed to $316,000 from $336,000; diluted loss per share was $0.02 versus $0.03. Nine-month revenue rose 9.6% to $9.903 million, and net loss narrowed to $406,000 from $1.041 million.

The company expects its pending acquisition to close before year-end, subject to due diligence, documentation and financing. It projects combined 2026 revenue of $50 million and over $4 million in adjusted EBITDA, a non-GAAP earnings measure, on a pro forma basis reflecting the combination. Interlink also established a 4,000-square-foot smart-textile research center in Rotherham, UK, and added a 10,000-square-foot printing facility in Irvine, Scotland.

16 points · 1 major

PositiveiHow this balance works

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0 major · 9 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Company projects combined 2026 pro forma revenue of $50 million and adjusted EBITDA over $4 million.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Pending acquisition is expected to close before year-end 2026.
• Moderate pointQ3 2026 revenue rose 3.4% to $3.059 million year over year.
• Moderate pointNine-month net loss narrowed to $406,000 from $1.041 million a year earlier.
• Moderate pointNine-month gross profit increased 11.4% to $4.150 million year over year.
• Moderate pointNine-month operating loss narrowed to $572,000 from $1.096 million a year earlier.
• Moderate pointNine-month adjusted EBITDA turned positive at $79,000, versus negative $361,000 a year earlier.

9 minor points

• Minor pointNine-month 2026 revenue rose 9.6% to $9.903 million year over year.
• Minor pointQ3 net loss narrowed to $316,000 from $336,000 a year earlier.
• Minor pointQ3 diluted loss per share improved to $0.02 from $0.03 a year earlier.
• Minor pointNine-month diluted loss per share improved to $0.03 from $0.09 a year earlier.
• Minor pointNine-month gross margin increased to 41.9% from 41.2% a year earlier.
• Minor pointEngineering, research and development expenses fell to $316,000 in Q3 and $881,000 over nine months, from $354,000 and $1.151 million.
• Minor pointQ3 selling, general and administrative expenses decreased to $1.194 million from $1.197 million a year earlier.
• Minor pointNew 4,000-square-foot research center in Rotherham supports smart-textile research, development and prototyping.
• Minor pointAdded 10,000-square-foot Irvine facility is dedicated to high-volume conductive transfer printing and medical and diagnostics electrodes.

Negative

• Moderate pointQ3 gross margin declined to 37.3% from 41.8%, reflecting higher Calman production costs and product mix.
• Moderate pointQ3 adjusted EBITDA deteriorated to negative $176,000 from negative $61,000 a year earlier.
• Moderate pointCash and equivalents declined to $2.262 million at September 30, 2026, from $2.724 million at December 31, 2025.
• Minor pointAcquisition remains subject to satisfactory due diligence, necessary documentation and availability of financing.
• Minor pointQ3 gross profit fell 7.8% to $1.142 million year over year.

4 minor points

• Minor pointQ3 operating loss widened to $368,000 from $313,000 a year earlier.
• Minor pointNine-month selling, general and administrative expenses rose to $3.841 million from $3.670 million a year earlier.
• Minor pointCurrent lease liabilities increased to $464,000 from $324,000; long-term leases rose to $659,000 from $493,000 since year-end.
• Minor pointStockholders’ equity decreased to $8.754 million at September 30, 2026, from $9.221 million at December 31, 2025.

Key Figures

Projected combined revenue: $50 million Projected combined Adjusted EBITDA: Over $4 million Revenue: $3.06 million vs. $2.96 million +5 more

Projected combined revenue

$50 million

2026 pro forma; pending acquisition

Projected combined Adjusted EBITDA

Over $4 million

2026 pro forma; pending acquisition

Revenue

$3.06 million vs. $2.96 million

Q3 2026 vs. Q3 2025

Gross margin

37.3% vs. 41.8%

Q3 2026 vs. Q3 2025

Net loss

$316,000 vs. $336,000

Q3 2026 vs. Q3 2025

Adjusted EBITDA

($176,000) vs. ($61,000)

Q3 2026 vs. Q3 2025

Net loss

$406,000 vs. $1,041,000

First nine months of 2026 vs. first nine months of 2025

Adjusted EBITDA

$79,000 vs. ($361,000)

First nine months of 2026 vs. first nine months of 2025

Previous Earnings Reports

2 past events · Latest: Aug 13

Same Type 2 events

1. Aug 13

   Q2 earnings

   24h Move

   -2.1%

   Q2 revenue and adjusted EBITDA grew; acquisition expected to close by end October.

2. Nov 12

   Q3 earnings

   24h Move

   -15.9%

   Q3 revenue grew, gross margin rose, and net loss narrowed year over year.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

pro forma, adjusted ebitda, non-GAAP financial measure

3 terms

pro forma financial

"for 2026 on a pro forma basis"

Pro forma refers to financial information that is prepared based on estimates or adjustments to show what a company's results might look like under certain scenarios, such as new projects or acquisitions. It helps investors understand the potential impact of future events by providing a clear, hypothetical view of financial performance, much like a weather forecast shows possible future conditions.

adjusted ebitda financial

"Adjusted EBITDA, a non-GAAP financial measure"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-GAAP financial measure financial

"Adjusted EBITDA, a non-GAAP financial measure"

A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Pending Transformative Acquisition Expected to Close in Q4

FREMONT, Calif., Nov. 12, 2026 (GLOBE NEWSWIRE) -- Interlink Electronics, Inc. (Nasdaq: LINK) (“Interlink” or the “Company”), a global leader in sensor technology and printed electronic solutions, today reported its results for the quarter ended September 30, 2026.

Pending Transformative Acquisition

Subject to satisfactory completion of due diligence, execution of all necessary documentation, and availability of financing, we currently anticipate that the acquisition described in our May 11, 2026 release will close before year-end. This transformative transaction is projected to result in a combined $50 million in revenue and over $4 million in Adjusted EBITDA for 2026 on a pro forma basis.

Q3 2026 Highlights

• We established a new 4,000-square-foot R&D center for next-generation smart functional textiles at the Advanced Manufacturing Park (AMP) in Rotherham, UK. The center will drive research, product development, and rapid prototyping using our award-winning Conductive Transfer process to build solutions that integrate sensors, microelectronics, and embedded intelligence for smart textile applications. Interlink joins a prestigious ecosystem at the AMP alongside industry leaders like Boeing, Rolls-Royce, and McLaren Automotive.
• We also added a 10,000-square-foot facility adjacent to our Irvine, Scotland footprint, dedicated to high-volume conductive transfer printing and high-volume printed electrodes for medical and diagnostics applications. This expansion will enable us to serve the emerging opportunities in both the medical and wearables markets.
  
  

“We continue to invest in our business and take the necessary steps to drive long-term growth,” said Steven N. Bronson, Chairman, President, and CEO. “We feel confident that our existing technologies and capabilities, coupled with adding additional sales and marketing resources, will position us for organic growth in the coming years.”

Consolidated Financial Results

(Amounts in thousands except per share data and percentages)

			Three Months Ended September 30,																		Nine Months Ended September 30,
			2026					2025					$ ∆			% ∆					2026					2025					$ ∆		% ∆
Revenue		$	3,059				$	2,959				$	100			3.4		%		$	9,903				$	9,037				$	866		9.6	%
Gross profit		$	1,142				$	1,238				$	(96	)		(7.8	)	%		$	4,150				$	3,725				$	425		11.4	%
Gross margin			37.3		%			41.8		%											41.9		%			41.2		%
(Loss) from operations		$	(368	)			$	(313	)											$	(572	)			$	(1,096	)
Net (loss)		$	(316	)			$	(336	)											$	(406	)			$	(1,041	)
Net (loss) applicable to common stockholders		$	(316	)			$	(436	)											$	(406	)			$	(1,341	)
Earnings (loss) per common share – diluted		$	(0.02	)			$	(0.03	)											$	(0.03	)			$	(0.09	)
Adjusted EBITDA		$	(176	)			$	(61	)											$	79				$	(361	)

Revenue for the third quarter of 2026 increased 3% to $3.06 million, compared to $2.96 million in the third quarter of 2025, and for the first nine months of 2026 increased 10% to $9.90 million, compared to $9.04 million in the first nine months of 2025. The revenue increase for the quarter was driven by higher shipments of our force-sensing and gas‑sensor products, partially offset by lower sales of our Calman printed electronics products. The revenue increase for the first nine months of the year was driven by higher shipments of our force-sensing products, partially offset by lower sales of our gas‑sensor and Calman printed electronics products. Revenues fluctuate periodically in response to changes in customer demand, which can vary with order flow and production cycles, affecting both the timing and volume of shipments.

Gross margin for the third quarter of 2026 was 37.3%, a decrease from 41.8% for the third quarter of 2025. The decrease in gross margin was due to higher materials and production expenses for our Calman printed electronics products, and changes in the mix of our products and services. Gross margin for the first nine months of 2026 was 41.9%, compared with 41.2% for the first nine months of 2025. The slight increase in gross margin was due to higher revenue and changes in the mix of our products and services.

Net income/loss for the third quarter of 2026 was a loss of $316,000, compared to a loss of $336,000 in same quarter last year, and for the first nine months of 2026 was a loss of $406,000, compared to a loss of $1,041,000 in the first nine months of 2025. The improvement in net income/loss for the nine-month period was driven primarily by higher revenue and lower operating expenses.

Adjusted EBITDA, a non‑GAAP financial measure, for the third quarter of 2026 was $(176,000), versus $(61,000) in the same quarter last year, and for the first nine months of 2026 was $79,000, versus $(361,000) in the first nine months of 2025.

About Interlink Electronics, Inc.

Interlink Electronics is a leading provider of sensors and printed electronic solutions, boasting 40 years of success in delivering mission-critical technologies across diverse markets. Our customers, including global blue-chip companies, trust our products and solutions, which span various markets, including medical, industrial, automotive, wearables, IoT, and other specialty markets. Our expertise in materials science, manufacturing, embedded electronics, firmware, and software enables us to create custom solutions tailored to our customers’ unique needs.

We serve our international customer base from our corporate headquarters and proprietary gas sensor production and product development facility in Fremont, California (Silicon Valley area); our advanced printed-electronics manufacturing center in Shenzhen, China; and our multiple facilities in Irvine, Scotland, and our smart textile and wearables product development footprint located in the Evolution Advanced Manufacturing Park in Rotherham, England.

For more information, please visit www.InterlinkElectronics.com.

Forward Looking Statements

This release contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be generally identified by phrases such as “thinks,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” and similar words. Forward-looking statements in our press releases include statements about our projected financial and operating performance, our acquisition program, our strategy and prospects, and our opportunities for organic growth and synergies. Forward-looking statements are not guarantees of future performance and are inherently subject to uncertainties and other factors which could cause actual results to differ materially from the forward-looking statement. Such statements are based upon, among other things, assumptions made by, and information currently available to, management, including management’s own knowledge and assessment of the company’s industry, R&D initiatives, competition and capital requirements. Other factors and uncertainties that could affect the company’s forward-looking statements include, among other things, the following: the failure to satisfy closing conditions for the pending acquisition; integration risks for acquired businesses; our success in predicting new markets and the acceptance of our new products; efficient management of our infrastructure; the pace of technological developments and industry standards evolution and their effect on our target product and market choices; the effect of outsourcing technology development; changes in the ordering patterns of our customers; a decrease in the quality and/or reliability of our products; protection of our proprietary intellectual property; competition by alternative sophisticated as well as generic products; continued availability of raw materials for our products at competitive prices; disruptions in our manufacturing facilities; risks of international sales and operations including fluctuations in exchange rates and tariffs; compliance with regulatory requirements applicable to our manufacturing operations; and customer concentrations. Additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements are described under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most recent Annual Report (Form 10-K) or Quarterly Report (Form 10-Q) filed with the Securities and Exchange Commission. Forward-looking statements are made as of the date of the respective release, and we expressly disclaim any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measure

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with United States generally accepted accounting principles (“GAAP”), we use the following non-GAAP financial measure: Adjusted EBITDA. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We define Adjusted EBITDA for a particular period as net income (loss) before interest, taxes, depreciation and amortization, and as further adjusted for stock-based compensation expense.

We use this non-GAAP financial measure for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that this non-GAAP financial measure provides meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our core business operating results, such as amortization expense related to our recent acquisitions. We believe that both management and investors benefit from referring to this non-GAAP financial measure in assessing our performance and when planning, forecasting, and analyzing future periods. This non-GAAP financial measure also facilitates management’s internal comparisons to our historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe this non-GAAP financial measure is useful to investors both because (1) it allows for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) it is used by our investors to help them analyze the health of our business.

There are a number of limitations related to the use of non-GAAP financial measures. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their relevant financial measures in accordance with GAAP.

Company Contact:
Interlink Electronics, Inc.
Steven N. Bronson, CEO
LINK@IESensors.com
805-623-4184

INTERLINK ELECTRONICS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
		September 30,				December 31,
		2026				2025
		(in thousands)
ASSETS
Current assets
Cash and cash equivalents		$	2,262			$	2,724
Accounts receivable, net			1,654				1,542
Inventories			1,940				1,801
Prepaid expenses and other current assets			298				236
Total current assets			6,154				6,303
Property, plant and equipment, net			444				474
Intangible assets, net			861				1,333
Goodwill			2,541				2,586
Right-of-use assets			1,067				760
Deferred tax assets			218				202
Other assets			85				80
Total assets		$	11,370			$	11,738
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable		$	946			$	985
Accrued liabilities			293				330
Lease liabilities, current			464				324
Accrued income taxes			—				24
Total current liabilities			1,703				1,663
Long-term liabilities
Lease liabilities, long term			659				493
Deferred tax liabilities			254				361
Total long-term liabilities			913				854
Total liabilities			2,616				2,517
Stockholders’ equity
Preferred stock			—				—
Common stock			16				16
Additional paid-in-capital			62,630				62,594
Accumulated other comprehensive income			309				406
Accumulated deficit			(54,201	)			(53,795	)
Total stockholders’ equity			8,754				9,221
Total liabilities and stockholders’ equity		$	11,370			$	11,738

INTERLINK ELECTRONICS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
		(in thousands, except per share data)
Revenue		$	3,059			$	2,959			$	9,903			$	9,037
Cost of revenue			1,917				1,721				5,753				5,312
Gross profit			1,142				1,238				4,150				3,725
Operating expenses:
Engineering, research and development			316				354				881				1,151
Selling, general and administrative			1,194				1,197				3,841				3,670
Total operating expenses			1,510				1,551				4,722				4,821
(Loss) from operations			(368	)			(313	)			(572	)			(1,096	)
Other income (expense), net			(11	)			3				34				33
(Loss) before income taxes			(379	)			(310	)			(538	)			(1,063	)
Income tax expense (benefit)			(63	)			26				(132	)			(22	)
Net (loss)		$	(316	)		$	(336	)		$	(406	)		$	(1,041	)
Net (loss) applicable to common stockholders		$	(316	)		$	(436	)		$	(406	)		$	(1,341	)
Earnings (loss) per common share – basic and diluted		$	(0.02	)		$	(0.03	)		$	(0.03	)		$	(0.09	)
Weighted average common shares outstanding – basic and diluted			15,752				14,813				15,751				14,802

INTERLINK ELECTRONICS, INC. RECONCILIATION OF CONSOLIDATED NET INCOME (LOSS) TO CONSOLIDATED ADJUSTED EBITDA (unaudited)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
		(in thousands)
Net (loss)		$	(316	)		$	(336	)		$	(406	)		$	(1,041	)
Adjustments to arrive at earnings before interest, taxes, depreciation, and amortization (EBITDA):
Interest (income)			(1	)			(5	)			(6	)			(18	)
Income tax expense (benefit)			(63	)			26				(132	)			(22	)
Depreciation expense			42				50				134				144
Amortization expense			140				182				453				540
EBITDA			(198	)			(83	)			43				(397	)
Adjustments to arrive at Adjusted EBITDA:
Stock-based compensation expense			22				22				36				36
Adjusted EBITDA		$	(176	)		$	(61	)		$	79			$	(361	)

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Interlink Electronics’ third-quarter 2026 earnings results?

Interlink reported $3.059 million in revenue and a $316,000 net loss for the quarter ended September 30, 2026. Revenue increased 3.4% year over year, while net loss narrowed from $336,000. Diluted loss per share improved to $0.02 from $0.03.

When does Interlink Electronics expect its pending acquisition to close?

Interlink expects the pending acquisition to close before year-end 2026, subject to satisfactory due diligence, execution of all necessary documentation and availability of financing. The company projects combined 2026 pro forma revenue of $50 million and adjusted EBITDA of over $4 million.

What drove Interlink Electronics’ revenue growth in 2026?

Higher shipments of force-sensing and gas-sensor products drove third-quarter revenue growth, partly offset by lower Calman printed-electronics sales. For the first nine months, higher force-sensing shipments drove growth, partly offset by lower sales of both gas-sensor and Calman printed-electronics products.

How does Interlink Electronics calculate adjusted EBITDA?

Interlink calculates adjusted EBITDA by adjusting net income or loss for interest, income taxes, depreciation, amortization and stock-based compensation. This non-GAAP measure was negative $176,000 for the third quarter of 2026 and positive $79,000 for the first nine months.