0001036262-26-000012
SEC filinginTEST Corporation reported revenue of $113.8 million for fiscal year 2025, generating gross profit of $48.9 million. However, the company recorded an operating loss of $3.7 million and a net loss of $2.5 million for the period. Despite the net loss, the company generated positive operating cash flow of $7.3 million. The balance sheet shows total assets of $151.3 million, with stockholders' equity of $103.6 million and total liabilities of $47.7 million. The company's cash position, including restricted cash, was $45.3 million at year-end. Key strategic developments included the acquisition of Alfamation S.p.A. in March 2024 for approximately $21.9 million, which expanded the company's presence in the Auto/EV, Life Sciences, and specialty consumer electronics markets.
inTEST Corporation reported revenue of $113.8 million for fiscal year 2025, with cost of revenue totaling $64.9 million, resulting in gross profit of $48.9 million. The company incurred total operating expenses of $52.6 million, comprising selling expenses of $16.8 million, engineering and product development expenses of $9.4 million, general and administrative expenses of $22.2 million, amortization of acquired intangible assets of $3.3 million, and charges of $850,000. This led to an operating loss of $3.7 million. After accounting for interest expense of $450,000, other income of $953,000, and an income tax benefit of $695,000, the company recorded a net loss of $2.5 million for the year.
The company's primary market remains the semiconductor industry, although it is strategically expanding into other target markets including Auto/EV, Defense/Aerospace, Industrial, Life Sciences, Safety/Security and Other. The acquisition of Alfamation S.p.A. in March 2024 for approximately $21.9 million represents a strategic move to strengthen the company's position in the Auto/EV, Life Sciences, and specialty consumer electronics markets. The company notes that these target markets are typically less cyclical than the semiconductor market. However, due to the specialized nature of its product offerings, the company does not anticipate developing meaningful market shares in most of these markets.
The company achieved a gross margin of 43.0% for fiscal year 2025, calculated from revenue of $113.8 million and gross profit of $48.9 million. Operating margin was negative 3.3%, reflecting the operating loss of $3.7 million on revenue of $113.8 million. The company recorded inventory obsolescence charges of $0.8 million during 2025, consistent with its policy of reviewing inventories quarterly and recording charges based on established excess and obsolete inventory criteria. The company did not record any impairment charges related to goodwill, indefinite-lived intangible assets, or long-lived assets during 2025, with goodwill standing at $32.4 million at year-end.
The company generated positive operating cash flow of $7.3 million for fiscal year 2025, despite the net loss of $2.5 million. Key adjustments included depreciation and amortization of $6.8 million and changes in working capital components. Investing activities used $1.6 million primarily for purchases of property and equipment, while financing activities used $8.2 million mainly for repayments of short-term borrowings and long-term debt. The balance sheet shows total assets of $151.3 million, including current assets of $78.6 million with cash and cash equivalents of $14.2 million and restricted cash of $3.8 million. Total liabilities were $47.7 million, with stockholders' equity of $103.6 million.
The company continues to focus on strategic growth in target markets beyond semiconductors, particularly Auto/EV, Defense/Aerospace, Industrial, Life Sciences, Safety/Security and Other. The acquisition of Alfamation S.p.A. represents a key component of this strategy. Management acknowledges that orders and revenue in all markets served have varied in the past and expects significant variation in the future as the company works to build presence in current markets and establish new markets for its products. The company maintains disclosure controls and procedures that were deemed effective as of December 31, 2025, with no material changes in internal control over financial reporting during the period.