InTest Corp (NYSEARCA:INTT) Reports Q3 2025 Earnings Miss Amidst Record Order Surge

InTest Corporation (NYSEARCA:INTT) reported financial results for the third quarter of 2025 that fell short of analyst expectations, leading to a negative market reaction in pre-market trading. The supplier of test and process technology solutions faced revenue headwinds during the quarter, though it also reported a significant surge in new orders, presenting a mixed picture for investors.

Earnings and Revenue Miss

The company's Q3 2025 performance did not meet Wall Street's forecasts on key profitability and sales metrics.

• Revenue: Reported $26.2 million, missing analyst estimates of $29.7 million.
• Adjusted EPS: Reported a loss of $0.02 per share, falling short of the estimated profit of $0.04 per share.

This double miss was primarily attributed to technical challenges that delayed the shipment of a few systems, which the company stated have since been resolved. The lower revenue volume, combined with an unfavorable product mix, also contributed to a compressed gross margin of 41.9%, down 440 basis points from the prior-year period.

Market Reaction

Following the earnings release, InTest's stock was down approximately 5.1% in pre-market trading. This immediate negative price action reflects investor disappointment with the quarterly earnings and revenue shortfall, overshadowing other positive aspects of the report.

Order Strength and Backlog Growth

Despite the earnings miss, the quarter was highlighted by a robust performance in new orders, suggesting potential future revenue strength.

• Orders: Surged to $37.6 million, the highest level since Q2 2022. This represents a 34.2% increase year-over-year and a 35.6% increase sequentially from the previous quarter.
• Backlog: Grew substantially to $49.3 million as of September 30, 2025, up from $37.9 million at the end of Q2. Approximately 55% of this backlog is expected to ship beyond the fourth quarter of 2025.

Management cited strength in the automotive/EV, defense/aerospace, and industrial end markets as key drivers of this order growth, indicating that its strategy to diversify beyond the semiconductor market is gaining traction.

Balance Sheet and Outlook

InTest maintained a solid financial position, ending the quarter with $21.1 million in cash and reducing total debt by $1.2 million to $8.9 million. The company also generated $3.5 million in cash from operations.

For the fourth quarter of 2025, the company provided revenue guidance in the range of $30 million to $32 million. This outlook sits just below the analyst consensus estimate of $31.9 million for Q4 sales. The company expects a gross margin of approximately 43% and operating expenses between $12.3 million and $12.7 million.

Conclusion

InTest's third quarter presents a tale of two timelines: a challenging present marked by an earnings and revenue miss, and a potentially stronger future indicated by a record-setting order book and growing backlog. The market's initial reaction focused on the current profitability miss. The company's ability to efficiently convert its robust backlog into revenue and profit in the coming quarters will be critical in shifting investor sentiment. The Q4 revenue guidance, while close, slightly undershoots analyst expectations, which may also be contributing to near-term caution.

For a detailed look at historical earnings and future analyst estimates for InTest Corp, you can review the data here.

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