8-K: InTest Corp Reports 25.5% Q2 Revenue Growth

InTest Corporation announced strong second quarter 2026 financial results, with revenue up 25.5% year-over-year to $35.3 million, driven by the Auto/EV market.

Summary

• InTest Corporation reported second quarter 2026 revenue of $35.3 million, a 25.5% increase year-over-year.
• Net earnings were $0.5 million, or $0.04 per diluted share, a significant increase from the prior year.
• Adjusted EBITDA (Non-GAAP) was $2.2 million, up 73.7% year-over-year.
• The company's backlog stood at $45.4 million, up 19.8% year-over-year.
• Full-year 2026 revenue outlook is reiterated at $135 million to $140 million.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive report, with strong year-over-year revenue growth and significant improvements in net earnings and adjusted EBITDA, indicating a healthy recovery and positive momentum.

Positives

• Second quarter revenue increased by 25.5% year-over-year to $35.3 million.
• Third consecutive quarter of sequential revenue growth and second straight quarter of year-over-year growth above 25%.
• Net earnings increased by 194.2% year-over-year to $0.5 million.
• Adjusted EBITDA increased by 73.7% year-over-year to $2.2 million.
• Backlog grew by 19.8% year-over-year to $45.4 million.
• Semiconductor orders increased significantly, up 56% sequentially and 64% year-over-year.
• Non-semiconductor markets contributed approximately 74% of revenue, driving strong Adjusted EBITDA growth.

Negatives

• Gross margin declined by 280 basis points sequentially to 40.5% and 210 basis points year-over-year, attributed to a shift in product mix towards lower-margin Auto/EV revenue.
• Operating expenses increased by $1.0 million year-over-year due to higher selling, general, and administrative, and engineering expenses.
• Second quarter orders of $28.9 million decreased sequentially by 9.2%.

Risks

• The impact of inflation on the Company's business and financial condition.
• Indications of a change in the market cycles in the semi market or other markets served.
• Changes in business conditions and general economic conditions both domestically and globally.
• Changes in U.S. and/or foreign trade policy, rising interest rates, and fluctuation in foreign currency exchange rates.
• Changes in the demand for semiconductors.
• Access to capital and the ability to borrow funds or raise capital.
• Changes in the rates and timing of capital expenditures by customers.
• Potential impact of a material weakness in the Company's internal controls over financial reporting.

Future Outlook

The company reiterates its full-year 2026 revenue outlook of $135 million to $140 million. For the third quarter of 2026, revenue is projected to be between $33.0 million and $35.0 million, with a gross margin of approximately 44%.

Management Comments

• "We delivered second-quarter revenue of $35.3 million, up 25.5% year-over-year, our third consecutive quarter of sequential growth and our second straight quarter of year-over-year growth above 25%."
• "Strong Auto/EV project delivery and the diversification we have built across our end markets powered the result, with non-semiconductor markets contributing approximately 74% of revenue that drove an approximate 74% increase in Adjusted EBITDA year-over-year. This is the diversified growth profile we are building for InTest."
• "Our leading indicators point to a strengthening second half. Semiconductor orders were the standout and have increased approximately 56% sequentially and approximately 64% year-over-year, making the second quarter our strongest Semi order intake in six quarters as the demand we have been building into our funnel has started to convert into orders."
• "Above all, our goal is to convert the commercial momentum we are seeing into steadier Adjusted EBITDA growth as we gain operating leverage and continue to scale the business. This is where our focus rests for the balance of the year."

Industry Context

StockSavvy.ai notes that InTest's strong performance, particularly in the Auto/EV sector, aligns with broader industry trends of increasing electronic content in vehicles. The rebound in semiconductor orders also suggests a potential recovery in that key market, which is crucial for many technology-focused companies.

Stakeholder Impact

• Shareholders: Positive impact due to improved financial performance, increased net earnings, and strong revenue growth, potentially leading to increased shareholder value.
• Employees: Potential for increased job security and opportunities due to company growth and positive outlook.
• Customers: Continued supply of innovative test and process technology solutions, with a focus on key markets like Auto/EV and Semiconductor.
• Suppliers: Increased demand for components and services due to higher production volumes.

Next Steps

• Focus on converting commercial momentum into steadier Adjusted EBITDA growth.
• Gain operating leverage and continue to scale the business.
• Continue to monitor and adapt to market conditions in key sectors like Auto/EV and Semiconductor.

Key Dates

Recommendation

The company shows strong recovery and growth, particularly in revenue and adjusted EBITDA. However, the decline in gross margin due to product mix and increased operating expenses warrant a cautious approach. While the outlook is positive, further sustained improvement in margins and consistent order growth across all segments would be needed to justify a stronger buy recommendation.

Keywords

InTest Corporation, Q2 2026, Revenue Growth, Auto/EV, Semiconductor, Backlog, Adjusted EBITDA, Financial Results