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inTest Corporation (NYSE American:INTT) reported mixed results for the third quarter of 2025, with strong order growth contrasting against declining revenue and a net loss. The company’s stock dropped 6.94% to $8.05 following the earnings release on November 5, 2025, reflecting investor disappointment with the financial performance.
Quarterly Performance Highlights
inTest reported Q3 2025 revenue of $26.2 million, down from $28.1 million in the previous quarter and $30.3 million in the same period last year. The company posted a net loss of $0.9 million, or $0.08 per share, with an adjusted net loss of $0.02 per share, missing analyst expectations of $0.03 earnings per share.
Despite the revenue challenges, orders increased significantly, rising 34.2% year-over-year and 35.6% sequentially to $37.6 million. This growth was primarily driven by the automotive and defense sectors, with Auto/EV orders increasing 106% due to 2027 model year program starts, and Defense/Aerospace orders jumping 156% from increased test demand for next-generation weapons systems.
As shown in the following chart of orders and backlog trends:
The company’s backlog reached $49.3 million, up 30.1% sequentially, with approximately 55% expected to ship beyond Q4 2025. This growing backlog suggests potential revenue recovery in future quarters.
Detailed Financial Analysis
inTest’s gross profit for Q3 2025 was $11.0 million, representing a gross margin of 41.9%, down from 42.6% in Q2 2025 and 46.3% in Q3 2024. The margin contraction was primarily attributed to lower volume and an unfavorable product mix.
The following chart illustrates the gross profit and margin trends:
Operating expenses decreased $0.7 million sequentially and $1.3 million year-over-year to $12.2 million, primarily due to cost reduction efforts. However, operating expenses as a percentage of sales increased to 46.4% in Q3 2025 from 44.7% in Q3 2024, reflecting the impact of lower revenue.
The company’s earnings performance is illustrated in this chart:
On a positive note, inTest continued to strengthen its balance sheet by reducing debt by $6.2 million since December 31, 2024, including $1.2 million in Q3 2025. The company ended the quarter with $21.1 million in cash and cash equivalents, up from $19.8 million at the end of 2024, and total debt of $8.9 million, down from $15.0 million at year-end 2024.
The capital structure and cash flow details are presented below:
Strategic Initiatives
inTest continues to execute its Vision 2030 Growth Strategy, focusing on diversification across multiple markets. The company’s revenue mix for the trailing twelve months ended Q3 2025 shows semiconductor at 36%, industrial at 20%, auto/EV and defense/aerospace each at 12%, life sciences at 10%, safety/security at 6%, and other markets at 3%.
The following chart shows the evolution of inTest’s revenue mix:
The company is implementing a 5-Point Operating System to drive growth, focusing on global and market expansion, innovation and differentiation, service and support, talent and culture, and strategic acquisitions and partnerships.
As illustrated in the company’s strategic framework:
CEO Nick Grant emphasized the company’s strategic focus during the earnings call, stating, "We believe we have the right technologies and that we are focused on the right markets and the right customers to scale the business."
Forward-Looking Statements
Looking ahead, inTest provided Q4 2025 revenue guidance of $30-32 million, which includes approximately $2 million of delayed Q3 shipments. The company expects a gross margin of approximately 43% and operating expenses between $12.3 million and $12.7 million, excluding about $0.2 million in restructuring expenses.
The guidance and considerations are detailed in the following slide:
Management noted that technical challenges with new capabilities have been resolved, and the company is well-positioned to benefit as markets improve. The funnel of opportunities remains strong, with particular encouragement from wins in the Defense/Aerospace and Auto/EV sectors.
CFO Duncan Gilmour addressed the revenue miss during the earnings call, noting, "Although disappointing that it was a revenue miss, the fact that it was literally slippage of a few days, a few weeks, [represents] very positive aspects."
inTest remains focused on executing its long-term strategy, supported by a healthy balance sheet with reduced debt and approximately $61 million in liquidity, including $21.1 million in cash and a $40 million borrowing capacity.
Full presentation:
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