Interlink Electronics Eyes $50M Revenue as Transformative Acquisition Nears

Key Points

• Interlink Electronics is pursuing rapid growth through product development and acquisitions after returning to break-even. Its portfolio spans force sensors, gas and air-quality monitoring, printed electronics, smart textiles and wearable technologies.
• The company expects to close a pending acquisition within 60 to 90 days. The target generated more than $33 million in revenue last year, and completion could lift Interlink’s current-year revenue to nearly $50 million, moving it toward its longer-term $100 million goal.
• Interlink is targeting emerging applications including AI-driven air-quality and wildfire detection, robotics and medical devices. CEO Steven Bronson said the company’s combination of sensors, software, firmware and proprietary algorithms may support stronger margins and differentiate it from commoditized sensor providers.

Interlink Electronics NASDAQ: LINK is moving beyond its turnaround phase and pursuing growth through a combination of internal product development and acquisitions, Chief Executive Officer Steven Bronson said during a fireside chat hosted by Lytham Partners.

Bronson said the company initially focused on the promise of its core force-sensing technology after two business units representing most of its revenue had been sold before he took control. He said Interlink reached break-even within a year after previously operating at a loss.

“We are in a very high-growth mode, both organically and through acquisitions,” Bronson said. “We are very bullish on the long-term prospects of the company.”

Portfolio Expansion Across Sensors and Printed Electronics

Over the past year, Interlink has continued investing in its gas, environmental and air-quality businesses, including both sensor and instrument operations. Bronson said the company has expanded the range of gases its products can measure and is introducing new gas-measurement instruments.

The company also acquired Conductive Transfers, a smart-textile and wearable-technology business, in December 2024. Bronson said Interlink recently opened a product development and research-and-development center intended to pursue larger commercial opportunities in that market.

In Scotland, Interlink’s printed-electronics and membrane-keypad business, acquired through Calman Technology in March 2023, has experienced momentum in printed electrodes, according to Bronson. He said the technology supports miniaturization for biomedical applications, including products used before RNA and DNA testing.

Bronson also pointed to growing opportunities in home healthcare and point-of-care devices, where printed electrodes can be used to analyze chemistry. He said Interlink’s capabilities include ink and substrate expertise as well as high-volume precision manufacturing.

AI, Air Quality and Robotics Applications

Bronson said Interlink already participates in applications related to artificial intelligence, including air-quality monitoring. The company has developed firmware, software and algorithms designed to use readings from multiple gas measurements to produce what he described as a “true air quality index.”

He also said an SBIR grant supported development of a low-cost sensor platform for early wildfire detection. The platform uses AI to identify readings above normal levels that could indicate the beginning of a wildfire, potentially enabling faster response by first responders.

While sensors are sometimes viewed as commoditized hardware, Bronson said Interlink differentiates itself by combining sensor and printed-electronics development with internally developed firmware, software and proprietary algorithms. He said this integrated approach can support higher margins and provide intellectual-property protection.

In robotics, Bronson said Interlink currently supplies force sensors for a medical application involving pinch detection, a safety function. He said the company sees “physical AI” as a potential growth area and expects future acquisitions could broaden its exposure to AI-related applications.

Growth Target and Pending Acquisition

Bronson said Interlink is pursuing both organic growth and acquisitions as it works toward a previously stated $100 million revenue target. He said it is difficult to assign a precise percentage of future growth to either source.

The company recently announced a non-binding letter of intent for an acquisition that Bronson said it expects to close within 60 to 90 days, barring unforeseen obstacles. He said the acquisition target generated more than $33 million in revenue last year, compared with Interlink’s $12 million in revenue during the same period.

Assuming the transaction closes, Bronson said Interlink could approach $50 million in revenue in the current calendar year. He characterized the potential transaction as transformative and said it would place the company near the halfway point toward its $100 million goal.

Regarding financing, Bronson said Interlink has completed four smaller acquisitions using cash on hand and aims to buy businesses at fair or attractive valuations. He said the company generally retains acquired teams and facilities rather than stripping out technology or customer relationships, an approach he said helps reduce integration risk.

Bronson added that Interlink believes the target’s cash flow could support debt at what he described as a low or reasonable debt-to-EBITDA ratio.

Diversification and Share Liquidity

Bronson said Interlink’s diversification across technologies, products and customers helps insulate its cash flow from lengthy qualification timelines in medical and automotive markets. He cited the company’s force-sensing relationship with Varian Medical, now part of Siemens Healthineers, which he said has lasted more than 30 years in radiation-oncology equipment.

He acknowledged that his substantial ownership stake can create concerns about public float and trading liquidity. Bronson said improved financial execution, revenue growth and earnings growth should ultimately support both liquidity and share-price performance. He added that Interlink could consider raising additional equity capital as the business expands if needed.

Looking ahead, Bronson said the pending acquisition and Interlink’s role in providing sensors for AI, supercomputing and data-analytics applications could be important catalysts. “Without sensors being able to retrieve that data, there is nothing to process,” he said.

About Interlink Electronics (NASDAQ:LINK)

Interlink Electronics, Inc is a California-based company specializing in the design, development and manufacture of human interface technologies. The company's core focus is on force-sensing and touch-sensitive solutions that enable intuitive control and feedback in electronic devices. Interlink holds proprietary intellectual property in the field of force-sensing resistors (FSRs) and related sensor technologies, giving it a distinct position in the market for tactile input components.

Interlink's product portfolio includes thin-film force-sensing resistors, membrane keypads, touchpads and programmable touch-feedback modules.

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