inTEST Corporation Q4 2025 Earnings Call - Diversification cushions semi slump, backlog jumps 36% to $53.9M

Operator: Greetings. Welcome to inTEST Corporation’s fourth quarter 2025 financial results conference call. At this time, all participants are in listen-only mode. The question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note that today’s conference is being recorded. At this time, I’ll now turn the conference over to Sanjay Hurry, in Investor Relations. Please go ahead, Sanjay.

Sanjay Hurry, Investor Relations, inTEST Corporation: Good morning, everyone, and thank you for joining us. With me on the call are Nick Grant, President and Chief Executive Officer, and Duncan Gilmore, Chief Financial Officer and Treasurer. The earnings press release was issued this morning, as well as the slides that management will use during this call. Both can be found in the Investor Relations section of the intest.com website. Please turn to slide two for a review of the safe harbor statement. During this call, management will make some forward-looking statements about our current plans, beliefs, and expectations. These statements apply to future events that are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from what is stated here today. These risks, uncertainties, and other factors are provided in the earnings release, as well as in other documents filed by the company with the Securities and Exchange Commission.

These documents can be found on our website or at SEC.gov. As covered in slide three, management will refer to some non-GAAP financial measures. We believe these will be useful in evaluating the company’s performance. You should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP. You can find reconciliations of non-GAAP measures with comparable GAAP measures in the tables that accompany today’s release and slides. With that, I’ll turn the call over to Nick. Good morning, Nick.

Nick Grant, President and Chief Executive Officer, inTEST Corporation: Good morning, Sanjay, and thank you. Good morning, everyone. Thanks for joining us on our fourth quarter and year-end 2025 earnings call. We’ll begin today’s discussion on slide 4 of the presentation. Our fourth quarter results represent a strong finish to a challenging year. Much of this challenge stemmed from customer hesitation to spend on capital projects, driven by tariff and macroeconomic uncertainties, as well as ongoing soft demand in our semi business. After seeing some pockets of customers move forward with capital projects in the third quarter, we continued to see strong demand in the fourth quarter as our orders once again exceeded $37 million. As a result, we delivered revenue of $32.8 million. That was above our guidance range, and we ended the year with a healthy year-end backlog of $53.9 million, representing a 36% increase over year-end 2024.

I want to personally thank the entire inTEST team for their hard work and steadfast dedication. Revenue for the fourth quarter was at the highest quarterly level for the year, which benefited from approximately $2 million related to orders that slipped out from the third quarter. Demonstrating the effectiveness of our diversification strategy, fourth quarter revenue reflected strength in industrial, defense, aerospace, and life sciences end markets. In addition, growing market acceptance of our new products introduced over the past several quarters, particularly from Alfamation and from Acculogic, contributed meaningfully to the top line and progressed us towards our VISION 2030 target of generating 25% of revenue from new products. During the fourth quarter, we benefited from the cost actions taken across the businesses throughout the year. We continued to execute manufacturing efficiency initiatives and further scaled our Malaysia operation to support customers in the region.

Our efforts were further complemented by growing customer acceptance of new products that drove incremental revenue and a margin lift. Through effective execution of our diversification strategy, we delivered gross margins of 45.4%. Notably, this was achieved without a significant contribution from our semi business, historically one of our highest margin end markets. Revenue diversification and new product innovation are two key pillars of our VISION 2030 growth strategy. With nearly 80% of fourth quarter revenue derived from non-semi end markets and momentum in new product sales contributing meaningfully to revenue and gross margin, we believe our strategy is working. Market diversification is creating broader order opportunities for us and fertile ground for new product adoption, while our innovative new products are resonating with customers and earning their place in their purchasing decisions.

With that context in place, let’s go deeper on orders and backlogs for the fourth quarter on slide 5. After deferring spending plans due to tariffs and macroeconomic uncertainties in the first half of the year, we continued to see customers move away from a wait-and-see mode in the fourth quarter, as they recognized that the cost of inaction increasingly outweighed perceived market risk. The momentum in our order book demonstrated demand durability engineered through deliberate end-market focus. This strategy enables us to expand our addressable market and diversification into higher growth, less semi-correlated verticals. In fact, over the past 5 years, our non-semi revenues have grown at approximately a 20% CAGR, which is something we are quite proud of. Equally important, the momentum in our order book also reflects customer adoption in end markets where we are still in the early stages of penetration.

During the fourth quarter, we saw continued strength in our life sciences orders as they tripled sequentially, reflecting strong bookings for new Alfamation products. Encouragingly, semi orders were up about 18% sequentially, as some customers began to move forward with plans to provision new test facilities, a trend that builds on the modest order growth recorded between the second and third quarters. Year-over-year, Q4 orders were up 22%, an increase of $6.8 million versus Q4 2024. This improvement was broad-based, with strength in auto EV, life sciences, defense, aerospace, and safety security, partially offset by continued softness in semi. On a full year basis, life sciences orders were up 137% year-over-year. Auto EV orders were up 89%, and industrial was up 53%.

Touching on our semi business, year-over-year orders were down from a year ago period and represented about 25% of total orders this past Q4, compared to 40% for the fourth quarter of 2024. This is a compelling testament to our deliberate market diversification strategy succeeding and lessening our exposure to the cyclicality of the semi business. We ended the year with a healthy backlog of $53.9 million, up 9% sequentially and 36% year-over-year. Backlog bottomed in the second quarter of 2025 and has steadily improved since. Approximately 60% of our backlog is expected to ship beyond the first quarter of 2026, providing forward visibility into the year. With a higher and more diversified backlog at the end of 2025, we are in a solid position for recovering growth in 2026.

With that, I’ll turn it over to Duncan to walk through the financial results in detail, starting with revenue on slide six. Duncan, over to you.

Duncan Gilmore, Chief Financial Officer and Treasurer, inTEST Corporation: Thank you, Nick. Starting on slide 6, revenue in Q4 increased $6.6 million, or 25%, from $26.2 million in Q3 to $32.8 million, reflecting a gradual improvement in the capital spending environment and momentum in new product sales, as well as about $2 million of revenue that slipped out of Q3. Sales in industrial accounted for $3.3 million of the increase, followed by defense aerospace at $3.2 million, life sciences at $2.1 million, and auto/EV about $1 million. Partially offsetting these increases was a $2.9 million decline in semi. Compared to Q4 2024, revenue declined by $3.8 million, reflecting lower auto/EV, semi, and safety security revenue totaling $11.7 million. It was partially offset by increases in industrial, life sciences, and defense aerospace, totaling $7.9 million.

Although demand trends in 2025 dampened volume in revenue, roughly three-quarters of the nearly $17 million decline between our 2024 revenue and our 2025 revenue was directly attributable to semiconductor market weakness. The remainder reflected a slower-than-anticipated capital spending recovery in our non-semiconductor end markets. Moving to slide seven. Gross margin expanded 350 basis points sequentially from 41.9% in Q3 2025 to 45.4% in Q4 2025. This improvement was driven by volume gains and higher sales of new Alfamation products, which provided a lift to consolidated gross margin as these differentiated, innovative solutions carry higher margin profiles relative to our legacy product portfolio. Notably, as Nick previously mentioned, we achieved Q4’s gross margin level without a significant contribution from semi. On a year-over-year basis, fourth quarter gross margin expanded by 570 basis points.

The expansion was driven by the lapping of a $1.6 million one-time acquisition-related inventory step-up charge that pushed the Q4 2024 margin down 430 basis points. The remaining 140 basis point increase reflected improved operating leverage because of cost reduction and manufacturing efficiency initiatives implemented throughout 2025. It also reflected a favorable product mix shift towards higher-margin Alfamation products. On a full year basis, normalizing for the 120 basis point full-year impact of the inventory step up, full year 2025 gross margin of 43% reflected a modest underlying decline versus the prior year, driven primarily by lower revenue volume in our semi-end market that reduced our ability to spread fixed manufacturing costs across a larger revenue base. Moving on to slide 8.

Operating expenses for the Fourth quarter were $13.6 million, an increase of $1.4 million sequentially, driven primarily by higher sales commissions and marketing activity, commensurate with the higher levels of revenue in the quarter. We generated $6.6 million in incremental revenue, while absorbing only $1.4 million in incremental operating expenses, which resulted in a reduction in operating expenses as a percentage of revenue to 41.5%. This reduction is the operating leverage profile we expect to see as revenue scales, and it reinforces our confidence that the cost discipline we have maintained throughout this cycle positions inTEST to expand margins as market conditions continue to improve. Fourth quarter 2025 operating expenses increased $1.2 million year-over-year, rising from $12.5 million in Q4 2024 to $13.6 million in Q4 2025.

The comparison includes a non-recurring $800,000 amortization credit recorded in Q4, 2024, tied to the finalization of Alfamation purchase accounting, while Q4, 2025 absorbed $200,000 of restructuring charges. Stripping out these non-recurring and acquisition-related items, underlying operating expenses remained effectively flat year-over-year. Slides 9 and 10 collectively illustrate our Q4 profitability. Starting with Slide 9, for the fourth quarter, net income was $1.2 million. Adjusted EBITDA was $3.2 million, representing an Adjusted EBITDA margin of 9.7%. You can see here the improvements in Adjusted EBITDA for Q4, 2025 from the Q3, 2025 trough of $400,000 at a 1.5% margin. This demonstrates our operational leverage as revenue recovers. For the full year, 2025 net loss was $2.5 million.

Adjusted EBITDA was $4 million, representing an Adjusted EBITDA margin of 3.5%, compared to $10.8 million and an 8.3% margin in full year 2024. On Slide 10, on a per-share basis, net income was $0.10 per diluted share. Adjusted EPS, which adds back tax affected, acquired intangible amortization charges, and restructuring charges, was $0.16 per diluted share. For the full year 2025, net loss was $0.21 per share. Adjusted net income, which adds back tax affected, acquired intangible amortization charges, and restructuring charges, was $800,000 or $0.06 Adjusted EPS. This compares to an Adjusted EPS of $0.51 in the prior year. Slide 11 shows our capital structure and cash flow. We reduced debt by $1.4 million in Q4 and by $7.6 million in 2025.

Total debt outstanding at the end of the year was $7.5 million. We ended the year with approximately $58 million in liquidity, including cash equivalents, and restricted cash of $18.1 million. We also maintain full access to our $30 million delayed draw term loan facility and our $10 million revolver. Our ability to generate cash and maintain substantial liquidity, even in a challenging macroeconomic environment, positions us well to scale the business and achieve our VISION 2030 goals. With respect to the waiver on our term loan entered into last August, we expect to return to full compliance with our original covenant terms by mid-year, with no anticipated impact on interest expense or reported profitability. Turning to Slide 12 and our 2026 guidance.

We enter the year with a healthy backlog, of which 60% we expect to ship after the first quarter, combined with positive indications of a gradual broadening recovery in capital spending that began to take shape in the third and fourth quarters of 2025. We expect 2026 will be a year of returning growth. As a result, we are comfortable resuming our practice of offering guidance for the full year, 2026, as well as the first quarter of the year. Against this backdrop, strong backlog, improving demand, a leaner cost structure, and growing new product contributions, we are well-positioned for profitable growth throughout 2026. For the first quarter of 2026, we project revenue of $31 million-$33 million, gross margin of approximately 44%.

This is a step down from the 45.4% we delivered in Q4, primarily reflecting expected Q1 product and customer mix versus Q4’s particularly favorable Alfamation contribution. Operating expenses of $13.3 million-$13.7 million. Q1 operating expenses reflect the typical first quarter annual compensation resets and amortization of $800,000. Before walking through the specifics of our full year guidance, I note that our guidance does not contemplate any material impact, positive or negative, from changes in tariff policy or the broader geopolitical environment. For the full year 2026, we expect revenue of $125 million-$130 million. At the midpoint, this represents growth of approximately 12% over 2025’s, $113.8 million.

This guidance reflects the diversified demand, particularly in industrial, aerospace, defense, auto EV, and life sciences, supported by our growing backlog, but does not contemplate a meaningful rebound in semi sales. Gross margin of approximately 45%. This reflects the combination of higher volume, the capture of continued manufacturing efficiency, and the expanding contribution of new, higher-margin products. Operating expenses of $53 million-$55 million, reflecting higher variable selling costs. Amortization of $2.6 million, and interest expense of approximately $300,000, with an effective tax rate of approximately 18%. We expect amortization expenses to be higher in the first half of the year than in the second half, as certain intangible assets reach the end of their amortization lives. Finally, we expect capital expenditures of 1%-2% of revenue, consistent with our historical investment levels.

With that, if you turn to slide 13, I will now turn the call back over to Nick.

Nick Grant, President and Chief Executive Officer, inTEST Corporation: Thanks, Duncan. In summary, the momentum we’re seeing across new product adoption and market diversification and geographic reach is the direct result of a deliberate strategy and disciplined execution. Our non-semiconductor business has grown meaningfully, improving end-to-end long-term earnings profile with less dependency on semi cyclicality. The establishment of our Malaysia manufacturing hub in 2023 and expanded European footprint due to the acquisition of Alfamation in 2024, positions us to better serve customers. They also enable us to deepen relationships in these regions that represent significant long-term opportunities. In addition, our operational excellence initiatives, which are a contributor to our margin improvement story, give us confidence that as conditions improve and we scale the business, we will realize greater operating leverage inherent in our business model.

New product revenue contribution is trending in the right direction, reinforcing our confidence that we are on pace towards our VISION 2030 goal of generating 25% of revenue from new product sales. In Southeast Asia, in Europe, and in the US, a local presence enables the engineering collaboration and customer intimacy that drives higher value, long cycle relationships. Increasingly, it is our new products themselves that are opening doors to customers who are discovering us for the first time and to others who are rediscovering inTEST. We enter 2026 well positioned for diversified growth as capital spending strengthens, with an expanding portfolio of highly valued engineered solutions, a growing in-region presence across key geographies, and a strong balance sheet. We are poised to translate the structural changes we have made to inTEST over the past two years into sustainable, profitable growth for our shareholders.

With that, operator, please open the call for questions.

Operator: Thank you. We’ll now be conducting a question-and-answer session. If you’d like to ask a question at this time, you may press star 1 from your telephone keypad, and the confirmation tone will indicate your line is in the question queue. You may press star 2 if you’d like to remove your questions from the queue. For participants who are using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Thank you. Our first question is from the line of Maxwell Michaelis with Lake Street Capital Markets. Please proceed with your question.

Maxwell Michaelis, Analyst, Lake Street Capital Markets: Hey, guys. Congratulations on the good quarter and the solid guide for 2026. First question is just around the semi space here. I was hoping you can elaborate a little bit. You talked about modest growth picking up in the back half of 2026. A lot of the companies that I’m following have been talking about sort of a strong order rebound in the back half of 2026. Is your language in the press release sort of just a case of you guys being ultra-conservative? What else can you guys kind of provide us around the semi space?

Nick Grant, President and Chief Executive Officer, inTEST Corporation: Hey, hey, Max, great to hear from you here. Yeah, as we laid out, you know, our guidance we provided there really is based on just modest recovery in semi, which, yeah, could be conservative. Semi certainly has come back strong historically. You know, if we look at trends and what have you, and I believe we’re well positioned to capture that if it does happen again. We just wanted to make sure we’re providing the guidance we’re confident we’re able to achieve.

Maxwell Michaelis, Analyst, Lake Street Capital Markets: Okay. Maybe we go back to last quarter. You talked about the 2027 automotive program. How is that progressing as we enter 2026 here? Can you kind of touch on how we should expect auto orders to trend throughout the year?

Nick Grant, President and Chief Executive Officer, inTEST Corporation: Auto has been a nice bright spot on our order pattern here the last couple quarters. You know, we really did see customers start moving forward with some 2027 model year programs, making the investments. In Q3, they continued to kick off more of those capacity additions in Q4 there. We’re well positioned from an auto perspective with Alfamation to support these model year programs. You know, across the board, I would say auto demand hasn’t taken off or what have you. Inventories have been worked down.

Maxwell Michaelis, Analyst, Lake Street Capital Markets: Mm-hmm.

Nick Grant, President and Chief Executive Officer, inTEST Corporation: You know, I think we’re well positioned now that as that demand comes back, these new model programs come out and create greater demand around the new tech and the cars and everything else. You know, that is only going to complement this kind of wave of build-out that we’re seeing right now.

Maxwell Michaelis, Analyst, Lake Street Capital Markets: Great. Last one from me, guys. life sciences has really taken off here. I mean, is there anything else you can share? I mean, pockets of strength that you’re seeing in life sciences that’s really driving the solid growth in orders and revenue?

Nick Grant, President and Chief Executive Officer, inTEST Corporation: No, life science is a bright spot for sure, and this is really a concentrated effort we’ve made to go after medtech, the medtech space, testing, various technology in this area. You know, it’s, it really broader across all the businesses. Had really nice success with Alfamation, diversifying them in the medtech space with some glucometer electronic testing. We did a press release on that in the second half of last year, and continue to see good momentum there. We winning applications at our Acculogic group around medtech and, you know, even in process technology, we’re gaining applications there around induction heating and imaging in the medtech area. Really pleased with the progress.

It’s one of the areas that we highlighted as, you know, still a low penetration area for us. We think it’ll be a good growth avenue for us.

Dick Ryan, Analyst, Oak Ridge: All righty. Thanks, guys.

Nick Grant, President and Chief Executive Officer, inTEST Corporation: Thanks, Max.

Operator: Our next question is from the line of Dick Ryan with Oak Ridge. Please proceed with your question.

Dick Ryan, Analyst, Oak Ridge: Thank you, and, also, good job on the strong finish, guys.

Nick Grant, President and Chief Executive Officer, inTEST Corporation: Thanks, Dick.

Dick Ryan, Analyst, Oak Ridge: I want to go back to the semi side. We can talk a little bit about the back-end and your front end, and maybe its focus is more on the positioning. You know, up and down the line, Semicap is talking about a strong WFE for this year. Your back-end, you know, typically is kind of lag that to, as back-end test is a little bit out of sync with what happens on the front end. Nonetheless, you know, you brought automation into the back-end, and how do you think you’re positioned on your back-end test with customers or with some of the new products you’ve rolled out, the automation?

Nick Grant, President and Chief Executive Officer, inTEST Corporation: We’re very well positioned in that back-end test space, not only from our traditional EMS business, but also on our thermal solutions, supporting testing of chips and electronics back there. Yeah, you’re right. A lot of companies are out there talking about it, and we’re well positioned to capture that growth as it materializes out there. The new products we’ve been launching really has broadened our customer base, winning back some competitive accounts. I believe, you know, when that comes back, we’re in a better position to, you know, benefit from the growth as the investments in these testing spaces take off.

Dick Ryan, Analyst, Oak Ridge: Okay. Probably more importantly, I’m more interested maybe on the front end. The comments coming out of the silicon carbide space is pretty encouraging. One of the players saying that after the downfall, they’re looking for a ramp in 2026, with getting back to the 2024 levels by 2027. I mean, you guys generated, you know, a lot of revenue in that silicon carbide space in the heyday, 2023, 2024. How are you positioned there, and would you also, you know, kind of echo those comments that you’re, you know, you may be seeing some growth come back in, not necessarily 2026, but 2027 and beyond?

Nick Grant, President and Chief Executive Officer, inTEST Corporation: Yeah, we’re very well positioned in that space. As you know, we’re really serving a number of players in the silicon carbide, gallium nitride space, not only on the crystal growth but on the epitaxy side of things as well. We’ve been talking about it, as these technologies get adopted into new applications, you know, creates more demand as auto comes back, you know, demand for autos, it’s only gonna drive the need for additional capacity down the road. We’re staying very close to our customers and ready to support them as they need it going forward here. You’re exactly right.

It was a very meaningful part of revenue growth that we achieved there, and we have the capacity to scale right up to support them at those levels and beyond.

Dick Ryan, Analyst, Oak Ridge: Would you think any of that comes in in this year, or is that more of a 2027 story?

Nick Grant, President and Chief Executive Officer, inTEST Corporation: I think if we do see it’ll be more in the second half of this year starting to come back, but 2027 should be a more meaningful impact on that. Duncan, your thoughts on that?

Duncan Gilmore, Chief Financial Officer and Treasurer, inTEST Corporation: No, agreed. We said, modest increases in semi, big ten. The front-end side has been slow. We think the outlook looks great, but we’re really not banking on a great deal in 2026.

Dick Ryan, Analyst, Oak Ridge: Oh, that’s encouraging. Good. All right. Thanks, guys.

Nick Grant, President and Chief Executive Officer, inTEST Corporation: Thanks, Dick.

Operator: The next question is in the line of Ted Jackson with Northland Securities. Please proceed with your questions.

Ted Jackson, Analyst, Northland Securities: Hey, guys. Congrats on the quarter.

Nick Grant, President and Chief Executive Officer, inTEST Corporation: Thanks, Ted.

Ted Jackson, Analyst, Northland Securities: Nick, Duncan, my first question, I wanna jump over on gross margins and guidance and kind of, you know, just kind of thinking it through. You know, you put up some, you showed improving margin as you’ve been putting a lot of efficiencies in your business, and you’re clearly scaling, and it’s non-semi. Semi and semi is your higher margin business. If you look at your revenue in prior periods, in some historical periods, you know, when you were hitting some of these revenue targets, your gross margin was actually, you know, not the, you know, almost close to 50%. My first question is the lack of semi keeping you from getting to that?

Then behind that is, you know, given that the margin is probably, you know, substantially better than it might have been, you know, for the non-semi business. If semi does tick around and turn, could we be seeing your margins through that next cycle? You know, not only, you know, retrace back to those, you know, kind of close to 50% margin levels, but maybe even exceed it.

Duncan Gilmore, Chief Financial Officer and Treasurer, inTEST Corporation: I think a lot of your observations are correct. We had a nice strong Q4 from a margin perspective, some favorable product mix within some of our businesses, so certain product lines within Alfamation in particular. The semi contribution was low, as we’ve indicated, yet we still had a nice gross margin quarter. We don’t have, as we said, tremendous growth baked into semi. Our back-end semi, in particular, is where we see higher margins, command higher margins. It’s correct to assert that if that comes back in a strong fashion at some point, then we’d expect margin to tick up. Whether it would tick up to the 50s, I think some of those 50s were when the business was much less diversified and much more dependent upon that business and smaller.

We’d certainly expect positive margin contribution as and when back-end semi, in particular, bounces back up. I mean, in summary, I would say almost yes, and yes to what you said. Albeit 50/50 would be probably spectacular. I’m not gonna say unachievable, but would require a high percentage of that back-end semi contribution.

Ted Jackson, Analyst, Northland Securities: Okay. Then, going kind of into guides, and I’m gonna keep with this theme is, you know, the guides you provided show some, you know, nice solid year-over-year growth. Can you talk a bit about the cadence? Is it the kind of thing where, you know, you’ve given first quarter guidance, that we’ll see, you know, continued sequential improvement as we roll through the year? Will there be any type of seasonality within it? Then going back into the revenue guidance, if it’s gonna be building over the year, and then the back half of the year is going to have more contribution from semi, should we be thinking of, you know, a bit more of a step up in terms of margin improvement in the second half of 2026 vis-a-vis the first half?

Duncan Gilmore, Chief Financial Officer and Treasurer, inTEST Corporation: Yeah. We’re cautiously optimistic about 2026. As we’ve mentioned, haven’t built in a tremendous amount of semi upside. I think that’s reflected in the guide vis-a-vis what we saw in Q4, what we’re laying out for Q1. Q4 was if we back out the $2 million of delayed shipments, we did see growth in Q4 over Q3. We are projecting a similar quarter in Q1, a little bit of growth. I’d say we’re expecting cautious sequential growth throughout the year with respect to our cautiously optimistic guide, if that’s the best way to put it. As we’ve mentioned a couple of times, if there was a really strong recovery in semi, in particular, we would expect to see the benefits of that.

Just a reminder, we are a back-end semi business squarely in the analog mixed-signal space, which is an area that I think a lot of people are cautiously optimistic about and seeing some green shoots of recovery, but we haven’t seen the turn yet.

Ted Jackson, Analyst, Northland Securities: Okay, next question. Just, you know, we’re well into the 1st quarter. You’ve had 2 quarters in a row now of really nice bookings. Can you give us a little color in terms of what you’re seeing with regards to bookings activity, you know, quarter to date? You know, so, you know, both in terms of momentum and maybe in terms of sector.

Nick Grant, President and Chief Executive Officer, inTEST Corporation: As noted, we’ve had really two strong quarters of bookings, and I’d say really fueled by our automotive exposure at Alfamation on these 2027 model year programs. Our funnel, overall funnel is healthy, you know, I would expect Alfamation’s order rate to kind of moderate back a little bit. They’ve been running at, you know, $12 million-$13 million the last two quarters. That business was, you know, in the, you know, $25 million when we bought it, kind of run rate there. Really strong quarters. I think, you know, they’re gonna continue to see nice booking levels, but more traditional what for that kind of business.

And we also in Q1, have a little bit of the Lunar New Year, gonna impact on some activities out of Asia there, a bit slower. For the most part, the funnels are healthy and the opportunities are there. If customers move forward with spending, as we believe they will here, you know, orders, we’re well positioned to deliver on the year we’ve laid out.

Ted Jackson, Analyst, Northland Securities: Then my last question is, you know, you’ve come through a rough patch, and it’s just more because I’ve seen it with, you know, several companies I cover, because it seems like everybody’s been going through a rough patch. When you’ve laid out your guidance for OpEx, you know, I mean, are you, I assume you guys have really dialed back on a lot of incentive comp over the last year. Are you factoring in your guidance, you know, kind of a reinstatement of, you know, basically more variable comp and incentive?

Is there another chance that if you know, kind of roll in and say you do better than this, you know, optimistic, conservative guidance, that we’d see an expense structure, excuse me, expense structure adjustment as you have to layer in that kind of stuff? That’s my last question.

Nick Grant, President and Chief Executive Officer, inTEST Corporation: Yes. Yes, we have. Obviously, if we did a lot better than laid out, then there would be an operating expense impact from an incentive comp standpoint, you know, reflective of the dynamic you’re talking about. Yes, we have factored in the incentive comp side of the numbers that we’ve laid out with respect to the spending guidelines.

Ted Jackson, Analyst, Northland Securities: Okay. All right, great. Thanks for the time, and, you know, congrats on the quarter and looking forward to 2026.

Nick Grant, President and Chief Executive Officer, inTEST Corporation: Same here, Ted. Thanks.

Operator: At this time, if you’d like to ask a question, you may press star one from your telephone keypad. Once again, if you’d like to ask a question, you can press star one at this time. Thank you. At this time, I’ll turn the floor back to Nick for closing comments.

Nick Grant, President and Chief Executive Officer, inTEST Corporation: Thank you, Rob. We appreciate everyone joining us today. Thank you for your time, and we welcome the opportunity to answer any additional questions you may have. Please reach out to our investor relations team to coordinate. On slide 14, please note the details regarding the replay of this call, as well as our upcoming investor event schedule. We will publicize additional conference attendance as they arise via press release advisories and on our website. I want to thank everyone again for participating today, and I wish you all a great day. Thanks, everyone.

Operator: Thank you. This will conclude today’s conference. You may disconnect your lines at this time, and thank you for your participation.