inTEST (INTT) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $33.9 million, up 27% year-over-year, with 69% from non-semi markets led by Defense/Aerospace, Life Sciences, and Auto/EV.

• Gross margin improved to 45.5%, up 400 basis points year-over-year, driven by favorable mix, higher volume, and efficiency gains.

• Net income was $0.8 million, reversing a prior year loss; adjusted EBITDA was $3.2 million (9.3% margin); adjusted EPS was $0.16.

• Orders increased 25% year-over-year to $31.8 million; backlog rose 36% to $51.8 million, with about half deliverable beyond Q2.

• CEO transition completed, incurring $0.7 million in restructuring costs; new CEO prioritizing operational leverage and efficiency.

Financial highlights

• Revenue increased $7.2 million year-over-year, with growth in Defense/Aerospace, Life Sciences, Auto/EV, and Semi; Industrial declined sequentially.

• Gross profit was $15.4 million, with gross margin at 45.5% and operating income at $1.0 million, reversing a prior year loss.

• Adjusted EBITDA margin was 9.3%; net margin improved to 2.3%; diluted EPS was $0.06.

• Cash and equivalents at quarter-end were $15.7 million; working capital was $43.8 million.

• Free cash flow was negative $4.0 million, reflecting increased operating and capital expenditures.

Outlook and guidance

• Q2 2026 revenue projected at $32–$34 million, gross margin ~45%, operating expenses $13.8–$14.2 million.

• Full-year 2026 revenue guidance raised to $130–$135 million, gross margin ~45%, operating expenses $55–$57 million, capex 1–2% of revenue.

• Effective tax rate expected at 18–19.2%.

• Guidance excludes potential acquisitions and assumes no material macroeconomic or geopolitical changes.