InTest Reports Orders Improved 10% and Gross Margin Expanded 110 basis points Sequentially to 42.6% for Second Quarter 2025

• Orders¹ improved 6%, or $1.6 million, year-over-year reflecting strength in auto/EV and life sciences, driven by Alfamation; sequentially orders grew $2.4 million as demand increased across all markets, except the semiconductor market
• Revenue increased 6% sequentially to $28.1 million
• Further reduced total debt by $1.7 million from March 31, 2025
• Narrowed operating loss for the quarter to $0.9 million and net loss to $0.5 million; Adjusted EBITDA² was $1.3 million
• Continuing to hold strong market position and control costs while customers remain cautious

InTest Corporation (NYSE:INTT), a global supplier of innovative test and process technology solutions for use in manufacturing and testing in key target markets which include semiconductor ("semi"), automotive/EV, defense/aerospace, industrial, life sciences, and safety/security, today announced financial results for the second quarter of 2025 ended June 30, 2025.

Nick Grant, President and CEO, commented, "Against a backdrop of ongoing global economic and tariff uncertainties with customers remaining hesitant to commit to capital projects, we stayed focused on executing our VISION 2030 Growth Strategy, driving innovation, market diversification and geographic expansion to strengthen our position when market conditions improve. During the second quarter, recently introduced products continued to gain traction; we added new customers; and further expanded our channel network. In addition, orders of $27.8 million improved over both the prior year and trailing quarters reflecting renewed purchasing among automotive customers. Alfamation achieved its highest level of orders since joining InTest. Through the actions we've taken to protect our gross margin, diligently control discretionary spending and reduce non-strategic expenses, we significantly narrowed the operating and net loss from the first quarter."

Mr. Grant continued, "InTest's funnel of opportunities increased to a new all-time high as our customers recognize our innovative solutions are integral to their long-term capital plans, which reinforces our confidence that fundamentals in our target markets remain intact. To preserve our strong market positions and emerge from this downturn even stronger, we continue to invest in new products with a focus on moving up the value chain for our customers and advancing our ‘in-the-region for-the-region' manufacturing strategy."

Second Quarter 2025 Review (see revenue by market and by segments in accompanying tables)

Sequentially, revenue for the second quarter was up $1.5 million over the first quarter as sales in semi increased $1.2 million, industrial and defense/aerospace grew $0.8 million each, and safety/security rose $0.3 million. This growth more than outpaced the combined decline of $1.6 million across life sciences, auto/EV and other markets.

Compared with the prior-year period, second quarter revenue was down $5.9 million, primarily due to a $4.9 million decline in auto/EV sales, and slight declines in life sciences, defense/aerospace and other markets. This was partially offset by increases in industrial, safety/security and semi, where the increase in back-end sales outpaced the decline in front-end.

Sequentially, gross margin increased 110 basis points based on higher volume and ongoing cost reductions.

Gross margin was 42.6% in the second quarter, a 200-basis point improvement compared with the prior-year period, primarily due to favorable product mix and cost reduction efforts.

Sequentially, operating expenses decreased $1.0 million due to ongoing cost reduction efforts, including the recently announced leadership transition. Operating expenses decreased $0.6 million from the prior-year period primarily as a result of cost reduction efforts and reduced corporate development costs.

Net loss for the quarter was $0.5 million, or $(0.04) per diluted share. Adjusted net earnings (Non-GAAP)³ were $0.4 million, or $0.03 adjusted EPS (Non-GAAP)³.

Balance Sheet and Cash Flow Review

Cash and cash equivalents at the end of the second quarter of 2025 were $19.2 million, down $2.8 million from the end of the first quarter. During the quarter, the Company reduced total debt by $1.7 million from March 31, 2025 to $10.1 million and used $0.7 million in operations primarily for working capital investments. Capital expenditures were $0.5 million in the second quarter of 2025.

At June 30, 2025, the Company had $30.0 million available under its delayed draw term loan facility and no borrowings under the $10.0 million revolving credit facility. On August 5, 2025, the Company entered into a covenant waiver agreement with its U.S. based lender through the first quarter 2026 in exchange for pledging cash equal to U.S. debt outstanding. At June 30, 2025, the Company held $5.9 million of U.S. based debt.

Second Quarter 2025 Orders¹ and Backlog⁴ (see orders by market in accompanying tables)

Second quarter orders of $27.8 million grew $1.6 million, or 6.0%, versus the prior-year period, and $2.4 million, or 9.5%, compared with the first quarter. The year-over-year increase reflects strength in auto/EV, life sciences, industrial and safety/security markets while orders slowed in semi and defense/aerospace markets.

Sequentially, the 9.5% increase in orders was primarily driven by auto/EV and life sciences, as well as safety/security, defense/aerospace, industrial and other markets. These increases outpaced the decline is semi where the market remains slow.

Backlog at June 30, 2025, was $37.9 million, slightly below the March 31, 2025 level. Approximately 50% of the backlog is expected to ship beyond the third quarter of 2025.

Focusing Outlook on Forward Quarter

Mr. Grant concluded, "We continue to make progress on our VISION 2030 Growth Strategy by adding new customers, expanding our market reach and innovating to drive our value proposition. We are especially encouraged with wins we have seen in auto/EV, life sciences and defense/aerospace. While visibility remains limited amid persistently weak market conditions for capital investment, most notably in the digital/analog semi industry, we still expect to deliver growth quarter over quarter in 2025, albeit at a slower pace than we had originally anticipated at the start of the year."

Third quarter 2025 revenue is forecasted to be $28 million to $30 million with gross margin similar to the second quarter and operating expenses of $12.6 million to $13.1 million, which excludes approximately $0.1 million in Videology and other restructuring expenses.

The foregoing guidance is based on management's current views with respect to operating and market conditions and customers' forecasts. It also assumes macroeconomic conditions remain unchanged through the third quarter. Actual results may differ materially from what is provided here today as a result of, among other things, the factors described under "Forward-Looking Statements" below.

Conference Call and Webcast

The Company will host a conference call and webcast today at 8:30 a.m. ET. During the conference call, management will review the financial and operating results and discuss InTest's corporate strategy and outlook. A question-and-answer session will follow. To listen to the live call, dial (201) 689-8263. In addition, the webcast and slide presentation may be found at intest.com/investor-relations.

A telephonic replay will be available from 12:30 p.m. ET on the day of the call through Wednesday, August 20, 2025. To listen to the archived call, dial (412) 317-6671 and enter replay pin number 13754235. The webcast replay can be accessed via the investor relations section of intest.com, where a transcript will also be posted once available.

About InTest Corporation

InTest Corporation is a global supplier of innovative test and process technology solutions for use in manufacturing and testing in key target markets including both the front-end and back-end of the semiconductor manufacturing industry ("semi"), automotive/EV, defense/aerospace, industrial, life sciences and safety/security. Backed by decades of engineering expertise and a culture of operational excellence, InTest solves difficult thermal, mechanical, and electronic challenges for customers worldwide while generating strong cash flow and profits. InTest's growth strategy leverages these strengths to grow organically and with acquisitions through the addition of innovative technologies, deeper and broader geographic reach, customer penetration and market expansion. For more information, visit https://www.intest.com/.

Non-GAAP Financial Measures

In addition to disclosing results that are determined in accordance with generally accepted accounting practices in the United States ("GAAP"), we also disclose non-GAAP financial measures. These non-GAAP financial measures consist of adjusted net earnings, adjusted earnings per diluted share ("adjusted EPS"), adjusted EBITDA, and adjusted EBITDA margin.

The Company defines these non-GAAP measures as follows:

• Adjusted net earnings is derived by adding acquired intangible amortization, acquired inventory step-up expense, and restructuring costs adjusted for the related income tax expense (benefit), to net earnings.
• Adjusted earnings per diluted share is derived by dividing adjusted net earnings by diluted weighted average shares outstanding.
• Adjusted EBITDA is derived by adding acquired intangible amortization, acquired inventory step-up expense, restructuring costs, net interest expense, income tax expense, depreciation, and stock-based compensation expense to net earnings.
• Adjusted EBITDA margin is derived by dividing adjusted EBITDA by revenue.

These results are provided as a complement to the results provided in accordance with GAAP. Adjusted net earnings and adjusted earnings per diluted share (adjusted EPS) are non-GAAP financial measures presented to provide investors with meaningful, supplemental information regarding our baseline performance before acquired intangible amortization, restructuring costs and inventory step-up charges as management believes these expenses may not be indicative of our underlying operating performance. Adjusted EBITDA and adjusted EBITDA margin are non-GAAP financial measures presented primarily as a measure of liquidity as they exclude non-cash charges for acquired intangible amortization, acquired inventory step-up, depreciation and stock-based compensation. In addition, adjusted EBITDA and adjusted EBITDA margin also exclude the impact of restructuring costs, interest income or expense and income tax expense or benefit, as management believes these expenses may not be indicative of our underlying operating performance.

Management's Use of Non-GAAP Measures

The non-GAAP financial measures presented in this press release are used by management to make operational decisions, to forecast future operational results, and for comparison with our business plan, historical operating results and the operating results of our peers. Reconciliations from net earnings and earnings per diluted share (EPS) to adjusted net earnings and adjusted earnings per diluted share (adjusted EPS) and from net earnings and net margin to adjusted EBITDA and adjusted EBITDA margin, are contained in the tables below.

Management believes these Non-GAAP financial measures are important in evaluating our performance, results of operations, and financial position. We use non-GAAP financial measures to supplement our GAAP results to provide a more complete understanding of the factors and trends affecting our business. Non-GAAP measures as presented in this press release may differ from and may not be comparable to similarly titled measures used by other companies.

Key Performance Indicators

In addition to the foregoing non-GAAP measures, management uses orders and backlog as key performance metrics to analyze and measure the Company's financial performance and results of operations. Management uses orders and backlog as measures of current and future business and financial performance, and these may not be comparable with measures provided by other companies. Orders represent written communications received from customers requesting the Company to provide products and/or services. Backlog is calculated based on firm purchase orders we receive for which revenue has not yet been recognized. Management believes tracking orders and backlog are useful as they are often leading indicators of future performance. In accordance with industry practice, contracts may include provisions for cancellation, termination, or suspension at the discretion of the customer.

Given that each of orders and backlog are operational measures and that the Company's methodology for calculating orders and backlog does not meet the definition of a non-GAAP measure, as that term is defined by the U.S. Securities and Exchange Commission, a quantitative reconciliation for each is not required or provided.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statements do not convey historical information but relate to predicted or potential future events and financial results, such as statements of the Company's plans, strategies and intentions, or our future performance or goals, that are based upon management's current expectations. These forward-looking statements can often be identified by the use of forward-looking terminology such as "believe," "continue," "expects," "guidance," "may," "outlook," "opportunities," "will," "plan," "forecasts," "strategy," "target," or similar terminology. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to, any mentioned in this press release as well as the Company's ability to execute on its VISION 2030 Growth Strategy, realize the potential benefits of acquisitions and successfully integrate any acquired operations, grow the Company's presence in its key target and international markets, manage supply chain challenges, convert backlog to sales and to ship product in a timely manner; the success of the Company's strategy to diversify its markets; 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 including 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 to finance potential acquisitions or for working capital; changes in the rates and timing of capital expenditures by the Company's customers; and other risk factors set forth from time to time in the Company's Securities and Exchange Commission filings, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2024. Any forward-looking statement made by the Company in this press release is based only on information currently available to management and speaks to circumstances only as of the date on which it is made. The Company undertakes no obligation to update the information in this press release to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated or unanticipated events, except as required by law.

– FINANCIAL TABLES FOLLOW –

InTest Corporation

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

Reconciliation of Net Earnings to Adjusted Net Earnings (Non-GAAP) and Earnings Per Diluted Share to Adjusted EPS (Non-GAAP):

Reconciliation of Net Earnings and Net Margin to Adjusted EBITDA (Non-GAAP) and Adjusted EBITDA Margin (Non-GAAP):

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InTest Corporation

Duncan Gilmour

Chief Financial Officer and Treasurer

Tel: (856) 505-8999

Investors:

Jody Burfening / Alex Villalta

Alliance Advisors IR

[email protected]

Tel: (212) 838-3777