0001104659-26-035244
SEC filingInterlink Electronics reported FY 2025 revenue of $11.9M, a 1.8% increase from $11.7M in FY 2024. The company generated a gross profit of $4.6M (38.9% margin), down from $4.8M (41.5% margin) in the prior year, primarily due to product mix changes and currency impacts. Net loss improved to -$1.6M from -$2.0M in FY 2024, reflecting reduced operating expenses. Key performance drivers included strong growth in industrial (+52.3%) and automotive markets, offset by declines in medical (-7.6%) and standard product sales (-24.0%). The company ended the year with $2.7M in cash, $11.7M in total assets, and no debt, while maintaining a focus on higher-margin custom solutions and strategic acquisitions.
Interlink Electronics reported FY 2025 revenue of $11.9M, representing a 1.8% increase from $11.7M in FY 2024. The company improved its net loss to -$1.6M from -$2.0M in the prior year, reflecting reduced operating expenses. Gross profit declined to $4.6M (38.9% margin) from $4.8M (41.5% margin) due to changes in product mix and currency impacts from a strengthened Chinese yuan. Operating loss was -$1.8M compared to -$2.1M in FY 2024. The company ended the period with $2.7M in cash and cash equivalents, total assets of $11.7M, and no debt. Working capital stood at $4.6M, with total stockholders' equity of $9.2M.
Revenue growth was driven by strong performance in industrial markets (+52.3% to $4.0M) and the automotive segment (+100.0% to $0.4M), which benefited from new products and innovation programs. These gains were partially offset by declines in medical revenue (-7.6% to $3.6M) due to lower shipments of traditional force-sensing products, and standard product sales (-24.0% to $3.9M). Geographically, revenue was distributed as follows: United States $5.0M (42%), Asia and Middle East $2.0M (17%), and Europe and other $4.9M (41%). The company's top two customers accounted for 18% and 9% of total revenue respectively, highlighting customer concentration risk.
Gross margin declined to 38.9% from 41.5% in FY 2024, primarily due to changes in product mix and the impact of a strengthened Chinese yuan relative to the U.S. dollar, which increased production costs in China. Operating expenses decreased to $6.5M from $6.9M, driven by lower engineering, research and development costs (-26.7% to $1.5M) due to reduced headcount and consultant expenses, partially offset by higher selling, general and administrative expenses (+2.3% to $5.0M) from the inclusion of Conductive Transfers. Operating margin improved to -15.4% from -17.6% in the prior year.
Net cash used in operating activities was -$0.1M, an improvement from -$0.4M in FY 2024. Cash flows from investing activities used -$0.1M for property and equipment purchases. Financing activities used -$0.1M, consisting of $0.2M from common stock issuance offset by $0.3M in preferred stock dividend payments. The balance sheet shows total current assets of $6.3M (including $2.7M cash, $1.5M accounts receivable, $1.8M inventories) and total current liabilities of $1.7M, resulting in working capital of $4.6M. Total liabilities were $2.5M with no debt, and stockholders' equity was $9.2M.
The company's strategy focuses on becoming a global leader in multi-sensing HMI and gas-sensing solutions through expansion in existing markets, entry into emerging markets, and strategic acquisitions. Management emphasizes higher-margin, application-specific custom solutions developed in collaboration with OEM customers, which often lead to multi-year production programs. Key risks include dependence on a small number of customers, supply chain vulnerabilities, intellectual property protection challenges, and geopolitical uncertainties affecting international operations. The company maintains a vertically integrated manufacturing approach across facilities in Shenzhen, China; Fremont, California; and Irvine, Scotland to control proprietary processes and quality standards.