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Interlink Skyrockets 116% in Six Months: Should You Buy the Stock?

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Interlink Electronics, Inc. (LINK - Free Report) shares have surged 116% over the past six months compared with the industry’s 65.6% growth. The company has outperformed other industry players, including Blink Charging Co. (BLNK - Free Report) and Legrand SA (LGRDY - Free Report) . Shares of Blink Charging and Legrand have rallied 11.4% and 10.2%, respectively, in the same time frame. LINK benefits from improving operating performance, acquisition-led expansion, a diversified sensing portfolio, global manufacturing capabilities and growing exposure to expanding technology applications.

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A Look at LINK’s Business Operations

Interlink is a global provider of advanced sensing technologies and printed electronics solutions for Human-Machine Interface and Internet-of-Things applications. Its portfolio includes force and touch sensors, piezoelectric sensors, rugged HMI products, smart-textile and wearable sensing solutions, and electrochemical gas and environmental sensors, along with related instruments and integrated systems.

LINK serves medical, industrial, automotive, consumer electronics, wearables, environmental monitoring and specialty markets, offering both standard and customized solutions. The company also develops multi-sensing platforms that integrate force, capacitive, resistive and piezoelectric technologies while using proprietary algorithms, firmware and AI to support advanced sensing applications and differentiated customer solutions.

Interlink’s Key Tailwinds

Interlink is benefiting from improving first-half operating performance, supported by higher revenues, stronger gross profit and a narrower loss. Revenues for the first six months of 2026 increased to $6.8 million from $6.1 million a year earlier, while gross profit rose to $3 million from $2.5 million. The operating loss narrowed to $0.2 million from $0.8 million, and the net loss narrowed to $0.1 million from $0.7 million, reflecting better operating leverage and progress toward a more profitable operating base. 

Interlink’s acquisition-led expansion is broadening its technology portfolio and creating cross-selling opportunities across customer bases. Acquisitions have added membrane keypads, conductive textiles, printed electronics and gas-sensing capabilities while strengthening its European presence. Management also highlights a repeatable integration model, with acquired businesses improving gross margins from the mid-teens to above 30% within the first year, supporting the economics of further strategic consolidation. 

The company is positioned across several expanding sensing applications, including industrial, medical, automotive, wearables and environmental monitoring. Its portfolio spans force, piezoelectric, gas and printed-electronics technologies, allowing it to address a wider set of customer needs. Interlink also sees opportunity from smart devices, edge computing, connected infrastructure and AI-enabled technology, while the broader printed and flexible sensors market is projected to grow materially through 2034. 

Interlink’s vertically integrated model and global operating footprint provide another tailwind by combining design, engineering and manufacturing capabilities across the United States, Europe and Asia. This structure can support product customization, quality control and supply-chain responsiveness for OEM customers. Its patent base, technical expertise and history of custom development also strengthen customer relationships, with successful projects often leading to multi-year production programs and improved revenue visibility.

Challenges Persist for LINK’s Business

Interlink Electronics faces several headwinds despite improving operating trends. In the first half of 2026, the company still recorded an operating loss of $0.2 million and a net loss of $0.1 million, indicating that profitability remains uneven. Liquidity also warrants attention, as operating activities used $0.8 million of cash and cash balances declined to $1.8 million from $2.7 million at year-end 2025. Customer concentration adds risk, with two customers accounting for 15% and 14% of first-half revenues. Interlink is also exposed to rapid technological change, customer losses, tariffs, foreign-currency fluctuations, supply shortages and manufacturing disruptions.

Interlink’s Valuation

The company is cheaply priced compared with the industry average. Currently, LINK is trading at 7.25X trailing 12-month EV/sales value, below the industry’s average of 8.93X. However, the metric remains higher than that of the company’s peers, Blink Charging (0.48X) and Legrand (4.07X).

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Conclusion

Despite ongoing profitability, liquidity and customer-concentration risks, Interlink’s improving operating performance, acquisition-led expansion, diversified sensing portfolio and vertically integrated model indicate long-term growth prospects.

Strong fundamentals, coupled with LINK’s undervaluation, present a lucrative opportunity for investors to add the stock to their portfolio. 

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