Executive Summary

Q3 2025 delivered 11% year-over-year revenue growth to $2.959M, the second consecutive quarter of double-digit YoY growth; however, revenue missed S&P Global consensus of $3.100M, while EPS (-$0.03) and EBITDA outperformed estimates, reflecting disciplined cost control and mix . Revenue estimate $3.100M*, EPS estimate -$0.0333*, EBITDA estimate -$0.146M*.
Gross margin was 41.8%, down sequentially from 45.0% in Q2, as mix shifted and order timing normalized post a strong Q2; net loss improved to $0.336M from $0.523M YoY, and Adjusted EBITDA improved to -$0.062M from -$0.248M YoY .
Capital structure actions (conversion of all Series A Preferred into common and a 50% common stock dividend) removed overhang and increased liquidity, a notable potential stock reaction catalyst for micro-cap liquidity and investor alignment .
Strategic momentum: two SBIR grants ($200k FDA; $175k USDA) and an LOI to acquire a UK manufacturing/engineering asset (up to ~$1.9M) expand pipeline and EU footprint; management frames 2026 as a transformative period aiming for consistent profitability and scale .
Management reiterated the trajectory toward profitability and growth into 2026 without formal numeric guidance; sequential Q3 normalization after a strong Q2 suggests order-flow variability, but structural initiatives and grants support medium-term margin and revenue vectors .

What Went Well and What Went Wrong

What Went Well

Double-digit YoY revenue growth (+10.8%) to $2.959M, second consecutive quarter of double-digit YoY growth; net loss narrowed and Adjusted EBITDA improved YoY, indicating operating leverage and cost discipline .
Strategic and financial positioning strengthened: conversion of all Series A Preferred into common and a 50% common-stock dividend “simplify our capital structure, improve liquidity,” per CEO Steven N. Bronson .
Innovation and pipeline expansion: awarded $200k FDA SBIR and $175k USDA SBIR grants; LOI for UK acquisition complements Calman Technology and extends European manufacturing capacity .

What Went Wrong

Revenue missed S&P Global consensus ($2.959M vs $3.100M*), and sequential revenue fell vs Q2 ($3.414M), reflecting order timing and product mix normalization after a strong prior quarter . Revenue estimate $3.100M*.
Gross margin compressed sequentially to 41.8% from 45.0% in Q2, driven by mix; management cited higher force-sensing and printed electronics offset by lower gas-sensor sales, which can swing margins .
No formal numeric guidance (revenue, margins, tax, OpEx) for Q4/FY; limited Street coverage (one estimate) constrains estimate visibility and may increase volatility on prints . Primary EPS and Revenue # of estimates = 1*.

Financial Results

Q3 2025 vs Estimates

Metric	Q3 2025 Estimate	Q3 2025 Actual
Revenue ($USD Millions)	$3.100*	$2.959
Diluted EPS ($USD)	-$0.0333*	-$0.03
EBITDA ($USD Millions)	-$0.146*	-$0.084
Adjusted EBITDA ($USD Millions)	n/a	-$0.062

Values retrieved from S&P Global.*

Quarterly Trend (oldest → newest)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$2.664	$3.414	$2.959
Gross Margin %	35.6%	45.0%	41.8%
Net Income ($USD Millions)	-$0.805	$0.100	-$0.336
Diluted EPS ($USD)	-$0.09	—	-$0.03
Adjusted EBITDA ($USD Millions)	-$0.623	$0.323	-$0.062

YoY Comparison

Metric	Q3 2024	Q3 2025
Revenue ($USD Millions)	$2.671	$2.959
Gross Margin %	41.4%	41.8%
Net Income ($USD Millions)	-$0.523	-$0.336
Diluted EPS ($USD)	-$0.04	-$0.03
Adjusted EBITDA ($USD Millions)	-$0.248	-$0.062

KPIs

KPI ($USD Thousands unless noted)	Q1 2025	Q2 2025	Q3 2025
Engineering, R&D Expense	434	363	354
SG&A Expense	1,364	1,109	1,197
Total Operating Expenses	1,798	1,472	1,551
Weighted Avg Shares (Basic/Diluted)	9,864	9,864	14,813

No segment revenue breakdown disclosed in the provided materials .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Profitability trajectory	FY 2026	Return to profitability; double-digit organic revenue growth targeted	Entering 2026 from strength; moving toward consistent profitability and scale	Maintained (directional)
Gross margin direction	2H 2025	Expect continued YoY revenue and gross margin improvements	Not reiterated numerically; continued operational momentum	Maintained (directional)
Dividend policy	Q3 2025	None disclosed	50% common stock dividend issued	Introduced
Formal numeric guidance (Revenue, EPS, OpEx, OI&E, Tax)	Q4/FY	Not provided	Not provided	Maintained (no formal guidance)

Management provided directional commentary but no numeric ranges in the period reviewed .

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript was available in our document corpus; themes below reflect management commentary across press releases and 8-Ks.

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
AI/technology initiatives	NIEHS SBIR $280k for AI-based air quality forecasting (Q2) ; expanded gas sensor portfolio incl. odor and CO detectors (Q1)	FDA $200k SBIR for electrochemical food-safety sensors; USDA $175k SBIR for AI-powered food quality monitoring	Expanding AI/sensing R&D scope
Supply chain/tariffs/macro	Shift some production from China to Scotland to mitigate tariffs (Q1) ; FX tailwind via stronger GBP benefiting Calman (Q2)	No new tariff update; continued EU footprint expansion via LOI	Diversifying footprint; FX/mix variable
Product performance	Q2 strength in gas sensors and printed electronics; force-sensing anticipated rebound (Q2)	Q3 growth from force-sensing and printed electronics; lower gas-sensor sales offset	Mix shift; gas-sensor variability
Regional trends	Calman Technology (UK/Scotland) contributing; GBP tailwind (Q2)	LOI to add UK manufacturing/engineering asset; strengthened EU presence	EU expansion continuing
Regulatory/legal	NIEHS SBIR (Q2)	FDA and USDA SBIR wins (Q3)	Positive grant momentum
R&D execution	New product introductions in gas sensing (Q1)	Continued R&D focus supported by grants; R&D spend reduced YoY (Q3)	Focused, leveraged R&D

Management Commentary

“We delivered our second consecutive quarter of double-digit year-over-year revenue growth... we secured two competitive U.S. government SBIR grants... we also took important steps to strengthen our balance sheet... converting all outstanding Series A Convertible Preferred Stock into common stock and issuing a 50% common-stock dividend” — Steven N. Bronson, Chairman, President, and CEO .
“We believe the coming year will be a transformative period for Interlink as we move toward consistent profitability and scale” — Steven N. Bronson .
Prior commentary: “Sequential gross margin improvement to 45% reflects disciplined execution and a favorable product mix... we expect continued year-over-year revenue and gross margin improvements in the second half of 2025 and into 2026” — Steven N. Bronson (Q2) .
Prior commentary: “Return to profitability and double-digit organic growth in 2026... shift some production activities to Scotland to reduce the impact of tariffs” — Steven N. Bronson (Q1) .

Q&A Highlights

Q3 2025 earnings call transcript was not available; no Q&A themes could be extracted from our document corpus. We reviewed 8-Ks and press releases for Q3, Q2, and Q1 to synthesize management commentary and trends .

Estimates Context

S&P Global consensus (one estimate) for Q3 2025: Revenue $3.100M*, EPS -$0.0333*, EBITDA -$0.146M*; actuals were Revenue $2.959M, EPS -$0.03, EBITDA -$0.084M, indicating a revenue miss and modest EPS/EBITDA beats versus expectations . Values retrieved from S&P Global.*
Limited coverage (1 estimate each for revenue and EPS) suggests potential for larger revisions and volatility as new information is incorporated.*
Given sequential normalization from a strong Q2 and mix shifts, Street models may reduce near-term revenue run-rate while modestly improving loss expectations, with focus on 2026 trajectory supported by grants, design wins, and capital structure alignment .

Key Takeaways for Investors

Mixed print: YoY growth strong but a modest revenue miss versus S&P consensus; EPS and EBITDA modestly beat, aided by cost control and mix, with sequential margin compression from Q2’s elevated level . Revenue estimate $3.100M*, EPS estimate -$0.0333*, EBITDA estimate -$0.146M*.
Liquidity and alignment improved via preferred conversion and a 50% stock dividend — a notable micro-cap catalyst improving tradability and investor base breadth .
Structural growth vectors strengthening: multiple SBIR grants and a UK LOI expand R&D-backed innovation and EU manufacturing presence, supporting 2026 profitability/margin expansion narratives .
Near-term variability remains: order timing and product mix can swing revenue and margins; watch gas-sensor demand normalization vs. printed electronics/force-sensing momentum .
Estimate sensitivity high due to thin coverage (single analyst); prints can drive outsized reactions — positioning around catalysts (acquisition close, grant milestones, customer production ramps) is key.*
Focus for Q4/FY: evidence of force-sensing rebound, gas-sensor recovery, and sustained gross margin >40% as indicators of execution; any numeric guidance would be stock-moving given current directional-only commentary .
Medium-term thesis: disciplined M&A + organic execution should drive scale, margin expansion, and consistent profitability in 2026; monitor integration quality, tariff/FX dynamics, and customer concentration risks .