Interlink Electronics (LINK) Financials

Interlink Electronics (NASDAQ: LINK) has shown revenue growth in the most recent quarter, but profitability and operating cash flow remain weak. For Q1 2026, the company reported revenue of $3.1 million, up from $2.9 million in Q2 2025 and $2.85 million in Q4 2025. However, the business still posted a net loss and burned cash from operations, which is the bigger story for investors.

• Revenue improved year over year in Q1 2026, rising to $3.07 million from $2.66 million in Q1 2025.
• Gross profit also improved in Q1 2026 to $1.34 million, up from $949,000 a year earlier, showing better top-line efficiency.
• Operating expenses were lower than in the prior-year Q1, with SG&A down and R&D also lower, helping narrow the operating loss.
• Cash and equivalents increased materially versus the prior-year end-2024 level, supported in part by financing activity and balance sheet changes.
• The company continues to carry positive common equity, which gives it more financial flexibility than a balance-sheet-stressed business.
• Q1 2026 earnings per share were still negative at $(0.02), reflecting a loss but an improvement from prior periods with larger losses.
• The company’s asset base remains heavily weighted toward goodwill and intangible assets, so reported equity is partly dependent on acquisition-related accounting values.
• Share count has generally trended higher over the last several quarters, which can dilute future per-share results if continued.
• Depreciation and other non-cash charges continue to play a meaningful role in cash flow, so earnings quality should be watched closely.
• Q1 2026 operating cash flow was negative $543,000, indicating the business is still not self-funding from core operations.
• The company reported a net loss of $338,000 in Q1 2026, extending a pattern of inconsistent profitability.
• Cost of revenue remains high relative to sales, which limits gross margin expansion and leaves little room for error.
• The Q1 2026 cash balance fell by $619,000 during the quarter, reflecting ongoing cash consumption.
• Over the last four years, Interlink has frequently posted quarterly losses and negative operating cash flow, suggesting the turnaround is still in progress.

Longer-term trend: Interlink’s revenue has been relatively stable to modestly higher over the past year, but profitability has been volatile and often negative. The most encouraging development is that the latest quarter showed better revenue and gross profit than the prior year, while expenses were more controlled. Still, until the company produces consistent positive operating cash flow, investors should view the stock as a turnaround story with elevated risk.