INTEST Swings to Loss Amidst Revenue Decline, Diversification Efforts Continue

TL;DR

**INTT is bleeding cash and losing money; their diversification isn't paying off fast enough to offset the semiconductor downturn.**

AI Summary

INTEST CORP reported a significant decline in financial performance for the three and nine months ended September 30, 2025. Revenue decreased by 13.3% to $26.236 million for the three months ended September 30, 2025, compared to $30.272 million in the prior year period. For the nine months, revenue fell 13.8% to $81.003 million from $94.087 million. The company swung to a net loss of $0.938 million for the three-month period, down from net earnings of $0.495 million in 2024, and a net loss of $3.770 million for the nine-month period, a substantial drop from net earnings of $1.387 million in 2024. Operating expenses saw a slight decrease, primarily due to lower general and administrative expenses, but restructuring costs of $0.645 million were incurred for the nine months ended September 30, 2025, compared to none in the prior year. Cash and cash equivalents decreased to $16.230 million as of September 30, 2025, from $19.830 million at December 31, 2024, though total cash, cash equivalents and restricted cash increased to $21.097 million from $17.972 million at the beginning of the nine-month period. The company continues its strategy of diversifying markets beyond the cyclical Semiconductor sector, including Auto/EV and Defense/Aerospace, to reduce volatility.

Why It Matters

This filing reveals INTEST CORP's struggle with declining revenue and a shift to net losses, which directly impacts investor confidence and the company's ability to fund future growth. The significant drop in the Semiconductor market, a historically large segment for INTT, highlights the vulnerability of companies heavily reliant on cyclical industries. For employees, this could signal potential restructuring or hiring freezes, as evidenced by the $0.645 million in restructuring costs. Customers might see this as a sign of market weakness, potentially affecting future orders or pricing. In a competitive landscape, INTT's diversification strategy into Auto/EV and Defense/Aerospace is crucial for long-term stability, but current results show the transition is challenging.

Risk Assessment

Risk Level: high — The company reported a net loss of $3.770 million for the nine months ended September 30, 2025, a significant deterioration from net earnings of $1.387 million in the prior year. Revenue also declined by 13.8% to $81.003 million over the same period, indicating a substantial downturn in core business performance. Furthermore, the company incurred $0.645 million in restructuring costs, suggesting ongoing operational challenges.

Analyst Insight

Investors should exercise caution and thoroughly evaluate INTT's ability to execute its diversification strategy and return to profitability. Monitor future filings for signs of stabilization in revenue and a reduction in net losses, particularly within the Electronic Test segment. Consider the impact of the cyclical Semiconductor market on INTT's long-term prospects.

Financial Highlights

debt To Equity

0.46

revenue

$26.236M

operating Margin

-4.55%

total Assets

$148.277M

total Debt

$8.869M

net Income

($0.938M)

eps

($0.08)

gross Margin

41.90%

cash Position

$16.230M

revenue Growth

-13.3%

Revenue Breakdown

Key Numbers

• $26.236M — Revenue for three months ended Sep 30, 2025 (Decreased from $30.272M in 2024, a 13.3% decline)
• $81.003M — Revenue for nine months ended Sep 30, 2025 (Decreased from $94.087M in 2024, a 13.8% decline)
• ($0.938M) — Net loss for three months ended Sep 30, 2025 (Compared to net earnings of $0.495M in 2024)
• ($3.770M) — Net loss for nine months ended Sep 30, 2025 (Compared to net earnings of $1.387M in 2024)
• $0.645M — Restructuring costs for nine months ended Sep 30, 2025 (No restructuring costs in the prior year period)
• $16.230M — Cash and cash equivalents as of Sep 30, 2025 (Decreased from $19.830M at Dec 31, 2024)
• $21.097M — Total cash, cash equivalents and restricted cash at Sep 30, 2025 (Increased from $19.830M at Dec 31, 2024, due to restricted cash)
• ($0.08) — Basic loss per common share for three months ended Sep 30, 2025 (Compared to basic earnings per share of $0.04 in 2024)
• ($0.31) — Basic loss per common share for nine months ended Sep 30, 2025 (Compared to basic earnings per share of $0.11 in 2024)

Key Players & Entities

• INTEST CORP (company) — Registrant
• NYSE American (regulator) — Exchange where INTT common stock is traded
• Alfamation S.p.A. (company) — Acquired by INTEST CORP in March 2024
• Acculogic Inc. (company) — Acquired by INTEST CORP in December 2021
• Semiconductor (market) — Largest single market for INTEST CORP
• Auto/Electric Vehicle (market) — Diversification target market for INTEST CORP
• Defense/Aerospace (market) — Diversification target market for INTEST CORP
• Mount Laurel, New Jersey (location) — Headquarters of InTest Corporation
• SEC (regulator) — Securities and Exchange Commission

FAQ

Risk Factors

• Semiconductor Market Volatility [high — market]: The Semiconductor market, historically the largest for InTest, is characterized by rapid technological change, competitive pricing, and cyclical demand. This volatility can significantly impact the company's results of operations.
• Diversification Strategy Dependence [medium — market]: The company is actively diversifying into markets like Auto/EV and Defense/Aerospace to reduce reliance on the Semiconductor sector. The success of this diversification strategy is crucial for mitigating revenue volatility.
• Product and Customer Mix Changes [medium — operational]: Significant changes in the mix of products sold and customer base can lead to substantial variations in consolidated gross margin from period to period.
• Cash Position Decline [medium — financial]: Cash and cash equivalents decreased by $3.6 million to $16.230 million as of September 30, 2025, from $19.830 million at December 31, 2024, indicating a reduced liquidity buffer.
• Restructuring Costs [low — operational]: The company incurred $0.645 million in restructuring costs for the nine months ended September 30, 2025, compared to none in the prior year, impacting profitability.

Industry Context

InTest operates in diverse markets including Semiconductors, Auto/EV, Defense/Aerospace, Industrial, Life Sciences, and Safety/Security. The Semiconductor market, a historical stronghold, is known for its rapid technological shifts and cyclical demand. The company's strategy to diversify into Auto/EV and Defense/Aerospace aims to mitigate the volatility inherent in the Semiconductor sector.

Regulatory Implications

The company operates under standard SEC reporting requirements for publicly traded companies. No specific new regulatory risks or compliance issues were highlighted in this 10-Q filing beyond general market and operational risks.

What Investors Should Do

1. Monitor diversification strategy effectiveness
2. Analyze operating expense trends
3. Evaluate cash flow and liquidity
4. Assess gross margin stability

Glossary

ATE

Automated Test Equipment, used in the semiconductor industry for testing integrated circuits. (InTest's Environmental Technologies segment sells products to the ATE sector, highlighting its connection to this specialized market.)

Restricted cash

Cash that is not freely available for use because it is pledged as collateral or subject to other restrictions. (An increase in restricted cash contributed to the rise in total cash, cash equivalents, and restricted cash, though it does not improve operational liquidity.)

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair value of its net assets. (Goodwill represents a significant portion of InTest's assets ($32.314 million), reflecting past acquisitions.)

Right-of-use assets

Assets that represent a lessee's right to use an underlying asset for the lease term, typically related to operating leases. (These assets, valued at $9.646 million, are part of InTest's long-term assets and are related to its lease obligations.)

Deferred revenue

Revenue that has been received by a company but has not yet been earned. (An increase in customer deposits and deferred revenue ($6.559 million) and deferred revenue net of current portion ($1.106 million) suggests future revenue streams or unfulfilled obligations.)

Year-Over-Year Comparison

Compared to the prior year, InTest Corp. has experienced a significant downturn in financial performance. Revenue for the three months ended September 30, 2025, declined 13.3% to $26.236 million, and the company swung to a net loss of $0.938 million from a profit of $0.495 million. For the nine-month period, revenue fell 13.8% to $81.003 million, and the net loss widened substantially to $3.770 million from a profit of $1.387 million. New restructuring costs of $0.645 million were incurred, contributing to the negative results. While total assets decreased slightly, goodwill increased, and cash and cash equivalents saw a notable reduction.

Key Financial Figures

• $0.01 — ich Registered Common Stock, par value $0.01 per share INTT NYSE American Indicate

Filing Documents

• intt-20250930.htm (10-Q) — 1994KB
• intt-20250930xex311.htm (EX-31.1) — 9KB
• intt-20250930xex312.htm (EX-31.2) — 9KB
• intt-20250930xex321.htm (EX-32.1) — 5KB
• intt-20250930xex322.htm (EX-32.2) — 5KB
• 0001036262-25-000029.txt ( ) — 11333KB
• intt-20250930.xsd (EX-101.SCH) — 65KB
• intt-20250930_cal.xml (EX-101.CAL) — 91KB
• intt-20250930_def.xml (EX-101.DEF) — 317KB
• intt-20250930_lab.xml (EX-101.LAB) — 848KB
• intt-20250930_pre.xml (EX-101.PRE) — 619KB
• intt-20250930_htm.xml (XML) — 2086KB

Financial Statements

Financial Statements 1 Consolidated Balance Sheets as of September 30, 2025 (Unaudited) and December 31, 2024 1 Unaudited Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024 2 Unaudited Consolidated Statements of Comprehensive Earnings (Loss) for the three and nine months ended September 30, 2025 and 2024 3 Unaudited Consolidated Statements of Stockholders ' Equity for the three and nine months ended September 30, 2025 and 2024 4 Unaudited Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 38 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 51 Item 4.

Controls and Procedures

Controls and Procedures 51 PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 51 Item 1A.

Risk Factors

Risk Factors 52 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 52 Item 3. Defaults Upon Senior Securities 52 Item 4. Mine Safety Disclosures 52 Item 5. Other Information 52 Item 6. Exhibits 52

SIGNATURES

SIGNATURES 53 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

Item 1. FINANCIAL STATEMENTS InTest CORPORATION CONSOLIDATED BALANCE SHEETS September 30, December 31, 2025 2024 (In thousands, except share and per share data) (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 16,230 $ 19,830 Restricted cash 4,867 — Trade accounts receivable, net of allowance for credit losses of $ 395 and $ 423 , respectively 20,893 29,495 Inventories 28,001 26,837 Prepaid expenses and other current assets 5,101 2,650 Total current assets 75,092 78,812 Property and equipment, net of accumulated depreciation of $ 9,762 and $ 8,830 , respectively 4,722 4,457 Right-of-use assets, net 9,646 10,767 Goodwill 32,314 30,744 Intangible assets, net 25,670 26,376 Deferred tax assets — 67 Other assets 833 1,065 Total assets $ 148,277 $ 152,288 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ 6,533 $ 7,494 Current portion of operating lease liabilities 2,064 1,989 Accounts payable 7,448 7,991 Customer deposits and deferred revenue 6,559 4,989 Accrued expenses and other current liabilities 9,845 9,485 Total current liabilities 32,449 31,948 Operating lease liabilities, net of current portion 7,902 9,021 Long-term debt, net of current portion 2,336 7,538 Contingent consideration, net of current portion 431 825 Deferred revenue, net of current portion 1,106 1,432 Deferred tax liabilities 436 — Other liabilities 1,747 1,734 Total liabilities 46,407 52,498 Commitments and Contingencies Stockholders' equity: Preferred stock, $ 0.01 par value; 5,000,000 shares authorized; no shares issued or outstanding — — Common stock, $ 0.01 par value; 20,000,000 shares authorized; 12,564,225 and 12,457,658 shares issued, respectively; 12,482,148 and 12,378,276 shares outstanding, respectively 125 124 Additional paid-in capital 58,994 57,658 Retained earnings 41,317 45,087 Accumulated other comprehensive earnings (loss) 2,393 ( 2,137 ) Treasury stock, at cost; 82,077 and 79,

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (1) NATURE OF OPERATIONS InTest Corporation (" InTest, " " we ," " our ," " us " and the " Company "), a Delaware corporation headquartered in Mount Laurel, New Jersey, is a global supplier of innovative test and process technology solutions for use in manufacturing and testing across a wide range of markets including Semiconductors (" Semi "), Auto/Electric Vehicle (" EV "), Defense/Aerospace, Industrial, Life Sciences, Safety/Security and Other. We have three operating segments which are also our reportable segments and reporting units: Electronic Test, Environmental Technologies and Process Technologies. The consolidated entity is comprised of InTest Corporation and our wholly-owned subsidiaries. We manufacture our products in the U.S., Canada, Italy and the Netherlands. Marketing and support activities are conducted worldwide from our facilities in the U.S., Canada, Italy, Germany, Singapore, Malaysia, the Netherlands and the U.K. We operate our business worldwide and sell our products both domestically and internationally. Founded in 1981, we completed our initial public offering in June 1997 and currently trade on the NYSE American exchange under the symbol " INTT ." All of our operating segments have multiple products that we design, manufacture and market to our customers. Due to a number of factors, our products have varying levels of gross margin. The mix of products we sell in any period is ultimately determined by our customers' needs. Therefore, the mix of products sold in any given period can change significantly from the prior period. In addition, we sell our products to a variety of different types of customers with varying levels of discounts and commission expense. As a result of changes in both the mix of products sold as well as customer mix in any given period, our consolidated gross margin can vary significantly from period to period. The Semi market, which includes both the broader

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (Unaudited) In the opinion of management, the accompanying unaudited Consolidated Financial Statements include all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the financial position, results of operations, and changes in cash flows for the interim periods presented. Certain footnote information has been condensed or omitted from these Consolidated Financial Statements. Therefore, these Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and accompanying footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2024 (the " 2024 Form 10-K ") filed on March 13, 2025, with the Securities and Exchange Commission (" SEC "). (b) Reclassifications Certain prior period presentation and amounts have been reclassified to conform with the current period's presentation. These consist of: aggregating the components of property and equipment on the face of the Consolidated Balance Sheets and disclosing the details in the footnotes aggregating accrued wages and benefits, accrued professional fees, accrued sales commissions and other current liabilities into accrued expenses and other current liabilities on the face of the Consolidated Balance Sheets and disclosing the details in the footnotes aggregating our restricted certificates of deposit into other assets on the face of the Consolidated Balance Sheets and disclosing the details in the footnotes disaggregating amortization of acquired intangible assets from general and administrative expenses on the face of our Consolidated Statements of Operations aggregating the net earnings (loss) and other comprehensive earnings (loss) lines into comprehensive earnings (loss) on the face of the Consolidated Statements of Stockholders' Equity aggregating foreign exchange (gain) loss, discount on shares sold under Employee Stock Purchase Plan, proceed

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (Unaudited) (" Acculogic ") and the March 2024 acquisition of Alfamation S.p.A. (" Alfamation "), our Electronic Test segment also sells its products to customers in markets outside the Semi market including the Auto/EV, Defense/Aerospace, Industrial and Life Sciences markets. Our Environmental Technologies segment sells its products to end users and OEMs within the ATE sector of the Semi market. It also sells its products to customers in a variety of other markets other than the Semi market, including the Auto/EV, Defense/Aerospace, Industrial and Life Sciences markets. Our Process Technologies segment sells its products to customers in the wafer production sector within the Semi market. It also sells its products to customers in a variety of other markets other than the Semi market, including the Auto/EV, Defense/Aerospace, Industrial, Life Sciences and Safety/Security markets. (d) Business Combinations Acquired businesses are accounted for using the purchase method of accounting, which requires that the purchase price be allocated to the net assets acquired at their respective fair values. Any excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Fair values of intangible assets are estimated by valuation models prepared by our management and third-party advisors. The assets purchased and liabilities assumed have been reflected in our Consolidated Balance Sheets, and the operating results are included in the Consolidated Statements of Operations and Consolidated Statements of Cash Flows from the date of acquisition. Any change in the fair value of acquisition-related contingent consideration subsequent to the acquisition date, including changes from events after the acquisition date, will be recognized in the Consolidated Statements of Operations in the period of the estimated fair value change. Acquisition-related transaction costs, including le

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (Unaudited) (g) Inventories Inventories are generally valued at cost on a first-in, first-out basis, not in excess of net realizable value, except inventory acquired in a business co

View Full Filing

View this 10-Q filing on SEC EDGAR