INTT earnings analysis
What we found in INTT's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
InTest delivered strong revenue growth in the second quarter, led by Electronic Test and Auto/EV, with revenue up 25.5% year over year to $35.313 million. However, gross margin declined 210 basis points to 40.5%, sequential orders fell 9.2%, and operating cash flow declined by $1.8 million year over year. Liquidity improved, but the newly disclosed material weakness in internal controls and ongoing supply-chain and covenant risks temper the operating momentum.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue accelerated year over year
- Revenue was $35.313 million, up $7.183 million, or 25.5%, from $28.130 million a year earlier and up 4.2% from $33.886 million in the prior quarter.
- Electronic Test led segment growth
- Electronic Test revenue increased 55.9% year over year to $21.404 million, while Process Technologies rose 12.6% to $8.090 million. Environmental Technologies declined 19.3% to $5.819 million.
- Auto/EV offset weaker Semi demand
- Auto/EV revenue increased 129.3% year over year to $13.440 million, while Industrial revenue rose 15.1% to $4.356 million. Semi revenue declined 11.1% to $9.058 million.
- Liquidity position improved
- Cash and cash equivalents increased to $22.102 million from $14.216 million at December 31, 2025, while working capital increased to $47.768 million from $42.883 million.
- Backlog remains above prior year
- Backlog was $45.4 million at June 30, 2026, versus $37.9 million a year earlier, although it declined from $53.9 million at December 31, 2025.
- Operations remained cash generative
- Net cash provided by operating activities was $3.0 million for the six months ended June 30, 2026, down $1.8 million year over year. Net cash used in investing activities was $1.0 million, reflecting increased capital expenditures.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Product mix pressured gross margin
- Gross margin fell to 40.5% from 42.6% a year earlier, a decline of 210 basis points, due to unfavorable product mix. The lower margin reflects the risk that growth in lower-margin products can dilute profitability.
- Orders and backlog weakened sequentially
- Orders were $28.871 million, down 9.2% sequentially from $31.785 million, led by a 67.0% decline in Auto/EV orders to $3.549 million. Backlog also declined $8.5 million from December 31, 2025 to $45.4 million.
- Material weakness raises reporting risk
- Management concluded that disclosure controls were not effective because of a material weakness in Alfamation inventory controls. The company revised March 31, 2026 financial statements and stated that remediation is not expected to demonstrate operating effectiveness until fiscal year-end.
- Supply-chain disruptions remain material
- A shipment of components arrived 45 days late during the quarter, and the company maintains only a two-to-three-month safety stock for certain capacitors supplied by a sole-source supplier in Israel.
- Debt covenant and financing exposure
- At June 30, 2026, total debt with M&T was $1.8 million and the fixed-charge coverage waiver had expired. The company’s ability to draw on the Term Note was extended only through August 28, 2026.
- Working-capital absorption reduced cash flow
- Operating cash flow was $3.0 million for the first six months, a decrease of $1.8 million year over year, driven primarily by accounts receivable and accounts payable changes as revenue growth outpaced collections.
What they reported.
What the company itself reported, taken out of the document.
- Gross margin
- 40.5%
- Operating margin
- 1.0%
- Segment
- Electronic Test: $21.404 million, up 55.9% year over year.
- Segment
- Environmental Technologies: $5.819 million, down 19.3% year over year.
- Segment
- Process Technologies: $8.090 million, up 12.6% year over year.
What they said about what is next.
The 10-Q does not provide quantitative revenue or EPS guidance. It states that short-term working-capital requirements are estimated at $8.0 million-$10.0 million and that available liquidity is expected to support requirements for the next twelve months.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 11, 2026
- InTest Corporation reported significant growth in Q1 2026, with a revenue of $33.9 million, up 27.2% year-over-year, and EPS of $0.16, surpassing estimates. The company showed improved gross margins due to operational…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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