Free cash flow remains structurally negative with only two positive quarters out of the last ten, and the company's decision to pay dividends despite a $543K cash burn in 2026Q1 appears difficult to justify.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | -384K | -112K | -367K | -116K | -915K | 231K | 39K | 2K | 1.58M | 2.05M | 1.89M | 2.14M | 1.01M | -533K | -124K | -1.24M | 70K | -1.05M | -3.72M | -2.4M | -9.97M | -4.18M | -1.26M | -3.53M | 451K | 245K | -85K | 2.86M | -500K | -3M | -1.3M |
| Operating CF Margin % | - | -0.94% | -3.14% | -0.83% | -12.21% | 3.09% | 0.57% | 0.03% | 17.73% | 18.34% | 15.87% | 20.33% | 9.8% | -7.06% | -1.93% | -24.85% | 0.87% | -10.82% | -14.53% | -12.41% | -27.53% | -10.94% | -3.55% | -11.38% | 1.8% | 0.97% | -0.25% | 10.18% | -2.26% | -15.63% | -9.63% |
| Operating CF Growth % | 953.98% | 69.48% | -216.38% | 87.32% | -496.1% | 492.31% | 1850% | -99.87% | -22.82% | 8.48% | -11.79% | 112.31% | 288.93% | -329.84% | 90% | -1871.43% | 106.67% | 71.77% | -55.19% | 75.97% | -138.35% | -232.94% | 64.43% | -883.59% | 84.08% | 388.24% | -102.97% | 672.4% | 83.33% | -130.77% | 0% |
| Net Income | -1.15M | -1.61M | -1.98M | -383K | 1.67M | -734K | 113K | -457K | 622K | 1.26M | 2.89M | 1.7M | 1.52M | -22K | 102K | -1.61M | -1.06M | -7.81M | -3.31M | -9.63M | -11.76M | -8.3M | -2.28M | 1.07M | -4.26M | -2.01M | 3.11M | 2.11M | 400K | 0 | 500K |
| Depreciation & Amortization | 905K | 907K | 892K | 863K | 248K | 281K | 293K | 443K | 199K | 190K | 65K | 56K | 80K | 124K | 143K | 180K | 300K | 570K | 560K | 627K | 555K | 989K | 609K | 593K | 805K | 773K | 688K | 630K | 500K | 700K | 600K |
| Stock-Based Compensation | 43K | 43K | 34K | 15K | 15K | 20K | 26K | 75K | 102K | 122K | 119K | 89K | -34K | 42K | 37K | 0 | 0 | 0 | 0 | 3.04M | 4.23M | 108K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -418K | -424K | -165K | -83K | -131K | 519K | 0 | 0 | 23K | 182K | -675K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.35M | 0 | -79K | 0 | 0 | 1.3M | -701K | -600K | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -8K | -7K | 48K | 11K | -2.46M | -187K | 9K | 0 | -311K | -182K | 686K | 113K | -43K | 61K | 34K | 1.38M | 1.61M | 12.47M | 6.43M | 63K | 1.48M | 2.07M | -1.23M | 176K | -144K | 332K | 158K | 214K | 100K | 200K | 200K |
| Working Capital Changes | 242K | 984K | 808K | -539K | -263K | 332K | -402K | -59K | 677K | 474K | -1.2M | 272K | -551K | -696K | -403K | -1.19M | -780K | -6.28M | -7.4M | 1.15M | -4.49M | 1.03M | 1.65M | -5.37M | 2.75M | 1.85M | -3.44M | -90K | -1.5M | -3.9M | -2.6M |
| Change in Receivables | -48K | 131K | 538K | -291K | 216K | 33K | -383K | 50K | 594K | 352K | -117K | 229K | -291K | -677K | -230K | 60K | 1.08M | 1.99M | 160K | -1.49M | 1.07M | -1.22M | -22K | 0 | 261K | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -113K | 260K | 465K | 284K | -286K | 66K | 99K | 144K | 124K | 73K | -274K | 61K | -343K | 47K | -72K | -350K | 290K | 3.8M | 770K | 1.99M | -4.02M | 705K | -1.25M | -1.63M | 1.5M | 933K | -1.51M | -1.13M | -1.3M | -1.8M | -1.5M |
| Change in Payables | 278K | 430K | 47K | 87K | -209K | 88K | -31K | -86K | 49K | -69K | -160K | 11K | 161K | -35K | 9K | -3.94M | -6.38M | -17.08M | -19.62M | -1.51M | -1.4M | 90K | 1.44M | 0 | 522K | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -27K | -56K | -491K | -4.88M | 735K | -159K | -90K | -233K | -3.15M | -429K | -230K | -68K | -130K | -83K | -40K | -180K | -130K | -160K | -690K | 1.32M | 7.39M | 2.54M | -1.1M | -820K | 1.94M | -2.87M | -714K | -633K | -800K | -600K | -600K |
| Capital Expenditures | -27K | -56K | -177K | -123K | -42K | -159K | -7K | -141K | -383K | -429K | -230K | -68K | -130K | -83K | -40K | -180K | -130K | -160K | -690K | -277K | -1.01M | -463K | -973K | -643K | -504K | -413K | -640K | -529K | -800K | -600K | -400K |
| CapEx % of Revenue | 0.22% | 0.47% | 1.52% | 0.88% | 0.56% | 2.13% | 0.1% | 1.93% | 4.3% | 3.85% | 1.93% | 0.65% | 1.26% | 1.1% | 0.62% | 3.61% | 1.62% | 1.65% | 2.7% | 1.43% | 2.8% | 1.21% | 2.75% | 2.07% | 2.01% | 1.63% | 1.89% | 1.88% | 3.62% | 3.13% | 2.96% |
| Acquisitions | 0 | 0 | -314K | -4.76M | -1.67M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.46M | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | -83K | -92K | -2.76M | -35K | -39K | 0 | -12K | -6K | 0 | 0 | 0 | 0 | 0 | -51K | -35K | 3M | -123K | -177K | -14K | 0 | -74K | -104K | 0 | 0 | -200K |
| Cash from Financing | 9K | -91K | -400K | -750K | -350K | 4.52M | 186K | -6K | 6K | 34K | 0 | 89K | 16K | 0 | 5K | 0 | 300K | -4.61M | 1.04M | 12.32M | 10K | -368K | 15.35M | 2.06M | -1.36M | -338K | 4.17M | 1.39M | 300K | 4.4M | 2.2M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 186K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4.64M | -156K | -588K | -820K | -618K | -1.4M | -1.37M | 2.73M | -111K | -100K | 300K | 400K |
| Equity Issued (Net) | 135K | 242K | 0 | -350K | 50K | 4.57M | 0 | -6K | -2.76M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 16.16M | 2.59M | 45K | 1.03M | 1.43M | 1.5M | 100K | 3.9M | 1.9M |
| Dividends Paid | -233K | -333K | -400K | -400K | -400K | -48K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | -350K | 0 | 0 | 0 | -6K | -2.76M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 107K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.77M | 34K | 0 | -89K | 16K | 0 | 5K | 0 | 300K | -4.61M | 1.04M | 7.68M | 166K | 220K | 0 | -3.33M | 0 | 0 | 0 | 0 | 300K | 200K | -100K |
| Net Change in Cash | -478K | -226K | -1.35M | -5.79M | -691K | 4.66M | 281K | -263K | -1.67M | 1.76M | 1.58M | 2.05M | 894K | -615K | -159K | -1.42M | 260K | -5.83M | -3.41M | 11.31M | -2.59M | -2.13M | 13.01M | -1.84M | 1.04M | -3.64M | 3.01M | 3.59M | -300K | 400K | 2.2M |
| Free Cash Flow | -411K | -168K | -544K | -239K | -957K | 72K | -51K | -231K | 1.2M | 1.62M | 1.66M | 2.07M | 877K | -616K | -164K | -1.42M | -60K | -1.21M | -4.41M | -2.67M | -10.99M | -4.65M | -2.23M | -4.18M | -53K | -168K | -725K | 2.33M | -1.3M | -3.6M | -1.7M |
| FCF Margin % | -3.34% | -1.41% | -4.66% | -1.71% | -12.77% | 0.96% | -0.74% | -3.16% | 13.43% | 14.5% | 13.93% | 19.69% | 8.53% | -8.16% | -2.56% | -28.46% | -0.75% | -12.47% | -17.23% | -13.84% | -30.32% | -12.16% | -6.3% | -13.46% | -0.21% | -0.66% | -2.14% | 8.3% | -5.88% | -18.75% | -12.59% |
| FCF Growth % | 60.78% | 69.12% | -127.62% | 75.03% | -1429.17% | 241.18% | 77.92% | -119.31% | -26.04% | -2.36% | -20% | 136.03% | 242.37% | -275.61% | 88.45% | -2266.67% | 95.04% | 72.56% | -64.92% | 75.67% | -136.42% | -108.43% | 46.61% | -7781.13% | 68.45% | 76.83% | -131.08% | 279.46% | 63.89% | -111.76% | 5.56% |
| FCF per Share | -0.03 | -0.01 | -0.06 | -0.02 | -0.10 | 0.01 | -0.01 | -0.04 | 0.18 | 0.22 | 0.22 | 0.28 | 0.12 | -0.11 | -0.03 | -0.20 | -0.01 | -0.18 | -0.64 | -0.39 | -1.60 | -0.68 | -0.37 | -0.74 | -0.01 | -0.03 | -0.13 | 0.47 | -0.33 | -1.08 | -0.48 |
| FCF Conversion (FCF/Net Income) | 0.36x | 0.07x | 0.18x | 0.30x | -0.55x | -0.31x | 0.35x | -0.00x | 2.54x | 1.62x | 0.65x | 1.24x | 0.65x | -44.42x | -0.91x | 0.77x | -0.07x | 0.13x | 1.12x | 0.42x | 0.85x | 0.50x | 0.55x | -3.32x | -0.11x | -0.12x | -0.03x | 1.36x | -1.25x | - | -2.60x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 56K | 15K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 83K | 0 | 384K | 487K | 272K | 138K | 137K | 247K | 0 | -687K | -587K | 4K | 1K | 1K | 2K | 0 | 0 | 0 | 0 | 53K | 424K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Persistent negative operating cash
As reported in financial statements, Interlink's operating cash flow frequently diverges from net income, with the OCF/NI ratio swinging wildly from 1.61 in 2026Q1 to -1.94 in 2025Q3, suggesting that accruals and timing differences significantly distort the company's underlying cash-generating capability on a quarterly basis.
The lack of a consistent relationship between net income and operating cash flow implies that earnings are heavily influenced by non-cash items and working capital fluctuations rather than core operational performance. Investors should monitor this divergence, as it suggests that reported net losses may not fully capture the cash-burn reality of the business model.
According to recent SEC filings, Interlink's free cash flow trajectory is characterized by persistent deficits, with only two quarters of positive FCF out of the last ten, highlighting a structural inability to fund operations through internal cash generation despite minimal capital expenditure requirements.
The recurring negative FCF margins, which reached -17.7% in 2026Q1, indicate that the company remains in a cash-consuming phase of its lifecycle. This trend warrants further investigation into whether the current R&D and SG&A spend will ever yield the scale necessary to achieve self-sustaining cash flow.
Based on Interlink's reported figures, working capital changes are the primary driver of quarterly cash flow volatility, with a massive $781K inflow in 2025Q3 followed by a $399K outflow in 2025Q2, indicating that the company's cash position is highly sensitive to timing of customer payments.
These erratic working capital movements suggest that Interlink lacks the leverage to manage its cash conversion cycle effectively. The reliance on these swings to bolster liquidity appears to be a stop-gap measure rather than a sign of operational efficiency.
As indicated by historical data, Interlink has continued to pay dividends despite persistent operating losses, with $100K quarterly outflows through much of 2024 and 2025, a practice that appears increasingly difficult to justify given the company's ongoing cash burn and limited liquidity reserves.
The decision to prioritize dividend payments while operating cash flow remains negative suggests a potential misalignment between capital allocation and the company's immediate financial needs. This strategy may limit the resources available for critical R&D investments required to improve the company's competitive positioning.
Quick answers to the most common questions about buying LINK stock.
Interlink Electronics, Inc. (LINK) generated $-0.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Interlink Electronics, Inc. (LINK) reported negative free cash flow of $0.2M in 2025, indicating capital requirements exceeded cash from operations.
Interlink Electronics, Inc. (LINK) spent $0.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Interlink Electronics, Inc. (LINK) returned $0.3M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.