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…
Earnings analysis · 10-Q
INTT earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
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%,…
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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.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
What stood out
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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.
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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.
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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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.
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.