Interlink Electronics, Inc.

What they do

Interlink designs and manufactures force-sensing resistor (FSR) technology, piezoelectric sensors, printed electronics, membrane keypads and gas/environmental sensors. It organizes the business into two platforms: Force/Touch Sensing and HMI Solutions, and Gas and Environmental Sensing Solutions. Manufacturing runs through Shenzhen, China and Irvine, Scotland for force-sensing and printed electronics, and Fremont, California for gas sensors and instruments. Revenue is largely custom, OEM-driven work that often converts into multi-year production programs.

Revenue drivers

• Force/Touch Sensing and HMI Solutions — Core platform built on proprietary FSR technology and piezoelectric, printed electronics and membrane keypad products; deployed in vehicle entry, cockpit controls, rugged notebooks, gaming, medical and industrial interfaces.
• Gas and Environmental Sensing Solutions — Entered in 2022 via the SPEC Sensors and KWJ Engineering asset acquisitions; miniaturized electrochemical gas sensors, instruments and monitoring systems for safety, health, air quality and industrial use, based in Fremont, California.
• Calman membrane keypads and printed electronics — Added through the 2023 Calman Technology Limited acquisition; customized membrane keypads, graphic overlays, printed circuits and industrial labeling for automation, instrumentation, process control, diagnostics and defense.
• Conductive Transfers smart textiles — Added through the 2024 asset acquisition of Conductive Transfers Limited and Global Print Solutions Limited; conductive transfer processes for e-textiles, heated garments, protective equipment and medical wearable platforms.

Recent performance

Second quarter 2026 revenue rose 10% to $3.77 million from $3.41 million in Q2 2025, and first-half 2026 revenue rose 13% to $6.84 million from $6.08 million, driven by higher force-sensing and printed electronics shipments partly offset by lower gas-sensor sales. Q2 2026 gross margin was 44.4% versus 45.0% a year earlier, while first-half margin improved to 44.0% from 40.9%. Q2 2026 net income was $248 thousand, or $0.02 diluted EPS, and Adjusted EBITDA was $421 thousand; first-half 2026 net loss was $90 thousand and Adjusted EBITDA was $255 thousand. Full-year 2025 revenue was $11.9 million with a net loss of $1.6 million and gross margin of 38.9%, down from 41.5% in 2024.

Strategy

Management says it is pursuing both organic growth and acquisitions, prioritizing revenue growth in targeted markets, gross margin expansion through product mix and operational efficiency, and disciplined capital allocation. The HMI business is being positioned as integrated subsystems combining sensing hardware with proprietary firmware and signal processing. The company is expanding gas sensing with miniaturized I2C digital-output modules covering over 15 gases and is planning 4-series electrochemical sensors for carbon monoxide, hydrogen sulfide and ozone. It is also pursuing a strategic acquisition announced in May 2026 and exploring debt financing for acquisition and working capital needs.

Risks

• Customer concentration — In 2025 the top two customers accounted for 18% and 9% of revenue respectively, and customers generally provide no firm long-term volume commitments, so losing one could sharply reduce revenue.
• Supply chain dependence — Interlink relies on third-party suppliers for raw material components and warns that shortages could raise costs, cause missed delivery commitments or push customers to other suppliers.
• Persistent losses and cash use — The company reported net losses of $2.0 million in 2024 and $1.6 million in 2025, with negative operating cash flow in each of 2022 through 2025.
• Acquisition and financing execution — The pending acquisition announced in May 2026 is expected to close by end of October 2026 and management is exploring debt financing to fund it, introducing integration and leverage risk.

Outlook

Management expects the pending strategic acquisition, targeted to close by end of October 2026, to significantly expand operations and increase revenues and earnings, and calls it potentially transformative. It plans to launch new 4-series electrochemical gas sensors and digital single- and dual-gas instruments in coming weeks and is showcasing products at WT Conference USA and Electronica. The company says it is exploring debt financing options to support the acquisition strategy and working capital needs.