INTERLINK ELECTRONICS INC (LINK)
NASDAQInformation TechnologyHardware, Equipment & PartsSnapshot 2026-09-04
$5.40-5.26%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologyHardware, Equipment & PartsSnapshot 2026-09-04
Intact: The reason to own it still holds.
Interlink Electronics designs and sells force sensing technologies. Analysts expect revenue to grow about 26% next year to $16.7 million. The company recently beat earnings several times. Inclusion in the Russell Microcap Index may attract more investors.
The company is still loss-making with negative free cash flow. Revenue guidance is missing, creating uncertainty. The recent sharp stock selloff shows investor doubts. Failed acquisition talks add risk.
The price is about 55% below our fair value near $10. Analysts expect 26% revenue growth, which the market seems to fairly price given risks.
Breaks if: Management instability or major execution failures reported
Breaks if: EPS remains negative beyond FY26
Breaks if: Revenue falls below $16.7 million in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround story as LINK aims to achieve consistent profitability while managing high risk. The current thesis state reflects cautious optimism, with management focusing on revenue growth and strategic acquisitions.
The market seems to have priced in a low expectations gap, indicating that LINK is viewed as justified in its current valuation despite being loss-making. There is a durable premium compared to peers, suggesting that investors are willing to pay more for LINK relative to similar companies.
Management's focus on achieving consistent profitability is evident, with recent revenue growth and a swing to net income in the latest quarter. However, the company is still loss-making, and the near-term risk of missing earnings remains a factor to watch.
The long-term thesis hinges on LINK's ability to maintain revenue growth and successfully integrate its strategic acquisition. Additionally, external factors such as potential interest rate cuts by the Fed and performance from sector bellwethers could significantly impact LINK's trajectory.
Over the next 1 to 3 years, LINK's success will depend on its execution of growth strategies and external market conditions. Not investment advice.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. Interlink Electronics reported Q2 earnings that beat estimates. EPS was $0.020, compared to an expected -$0.027. Revenue was $3.77M, exceeding the $3.1M estimate. This suggests higher profitability and growth expectations for the company. There are no new threats to the thesis.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.