Interlink Electronics — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue for the three months ended September 30, 2026, was $3.059 million, a 3.4% increase from $2.959 million in the same period in 2025.
• Revenue for the nine months ended September 30, 2026, was $9.903 million, a 9.6% increase from $9.037 million in the same period in 2025.
• Gross profit for the three months ended September 30, 2026, was $1.142 million, a 7.8% decrease from $1.238 million in 2025; gross margin was 37.3% compared to 41.8% in 2025.
• Gross profit for the nine months ended September 30, 2026, was $4.150 million, an 11.4% increase from $3.725 million in 2025; gross margin was 41.9% compared to 41.2% in 2025.
• Net loss for the three months ended September 30, 2026, was $316,000, compared to a net loss of $336,000 in 2025.
• Net loss for the nine months ended September 30, 2026, was $406,000, compared to a net loss of $1.041 million in 2025.
• Adjusted EBITDA for the three months ended September 30, 2026, was a loss of $176,000, compared to a loss of $61,000 in 2025.
• Adjusted EBITDA for the nine months ended September 30, 2026, was a profit of $79,000, compared to a loss of $361,000 in 2025.
• Cash and cash equivalents as of September 30, 2026, were $2.262 million, down from $2.724 million as of December 31, 2025.
• Total liabilities as of September 30, 2026, were $2.616 million, up from $2.517 million as of December 31, 2025.
• Accumulated deficit as of September 30, 2026, was $54.201 million, up from $53.795 million as of December 31, 2025.

Guidance and Future Outlook:

• The pending transformative acquisition is expected to close before year-end 2026, subject to due diligence, documentation, and financing.
• The combined entity is projected to generate $50 million in revenue and over $4 million in Adjusted EBITDA for 2026 on a pro forma basis.
• Management expressed confidence that existing technologies, capabilities, and additional sales and marketing resources will position the company for organic growth.

Business Segments and Product Lines:

• Revenue growth in Q3 2026 was driven by higher shipments of force-sensing and gas-sensor products, partially offset by lower sales of Calman printed electronics products.
• Revenue growth for the first nine months of 2026 was driven by higher shipments of force-sensing products, partially offset by lower sales of gas-sensor and Calman printed electronics products.
• Established a new 4,000-square-foot R&D center in Rotherham, UK, focused on next-generation smart functional textiles using the Conductive Transfer process.
• Added a 10,000-square-foot facility adjacent to the Irvine, Scotland footprint dedicated to high-volume conductive transfer printing and printed electrodes for medical and diagnostics applications.

Market and Competitive Landscape:

• The company serves diverse markets including medical, industrial, automotive, wearables, IoT, and specialty markets.
• Interlink Electronics is part of a prestigious ecosystem at the Advanced Manufacturing Park (AMP) in Rotherham alongside industry leaders such as Boeing, Rolls-Royce, and McLaren Automotive.

Risks and Challenges:

• Revenue fluctuates periodically due to changes in customer demand, order flow, and production cycles.
• The decrease in Q3 gross margin was attributed to higher materials and production expenses for Calman printed electronics products and changes in product mix.
• Forward-looking statements note risks including failure to satisfy closing conditions for the pending acquisition, integration risks, competition, raw material availability, and international operational risks.

Management Commentary and Tone:

• Steven N. Bronson, Chairman, President, and CEO, stated, "We continue to invest in our business and take the necessary steps to drive long-term growth."
• Management highlighted confidence in the company's ability to achieve organic growth through technology and expanded sales resources.

Other Key Points:

• The company reported a net loss applicable to common stockholders of $316,000 for Q3 2026 and $406,000 for the nine months ended September 30, 2026.
• Diluted earnings per share were $(0.02) for Q3 2026 and $(0.03) for the nine months ended September 30, 2026.
• The company operates facilities in Fremont, California; Shenzhen, China; Irvine, Scotland; and Rotherham, England.
• Adjusted EBITDA is defined as net income (loss) before interest, taxes, depreciation, and amortization, adjusted for stock-based compensation expense.