Socket Mobile, Inc. Stock price
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🧮 Calculation
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = $4.00m | Revenue (TTM) = $13.80m
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = $8.23m | Revenue (TTM) = $13.80m
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF)
📈 What is it?
EV/FCF shows how many years it would take for a company to "pay back" its enterprise value using its free cash flow.
🧮 How is it calculated?
🏛️ Why is it important?
It focuses on real cash generation, ignoring accounting noise — ideal for assessing profitability and value based on liquidity, not earnings.
🧮 Calculation
🎯 What does this mean for investors?
- A low EV/FCF may signal undervaluation and strong cash generation.
- A high EV/FCF might reflect weak recent cash flow or aggressive growth expectations.
- Best suited for stable, mature businesses with predictable free cash flows.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🧮 Calculation
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF)
📈 What is it?
Free Cash Flow shows how much actual cash remains after a company covers its operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
FCF reflects a company’s real financial strength – regardless of accounting profits. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction.
🧮 Calculation
🎯 What does this mean for investors?
- High free cash flow means the company generates real, usable cash – independent of reported net income.
- It’s often the most reliable base for sustainable dividends and buybacks.
- Declining FCF can be an early warning sign – even when profits appear stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🧮 Calculation
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🧮 Calculation
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🧮 Calculation
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free cash flow margin
📈 What is it?
The free cash flow (FCF) margin shows how much of a company’s revenue remains as actual free cash after covering all operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
This margin reflects the true liquidity generated by the business – independent of accounting rules or depreciation. It’s especially relevant for dividends, buybacks, and reinvestment decisions.
🧮 Calculation
🎯 What does this mean for investors?
- A high FCF margin means a company consistently generates strong cash flow.
- It’s a positive signal for financial stability and shareholder returns.
- The long-term trend is key – a declining margin may indicate rising investments or weakening operating efficiency.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🧮 Calculation
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Turnover per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
Socket Mobile, Inc. Stock Analysis
Analyst Opinions
7 Analysts have issued a Socket Mobile, Inc. forecast:
Analyst Opinions
7 Analysts have issued a Socket Mobile, Inc. forecast:
Socket Mobile, Inc. Events
Past Events
|
JUL
30
Q2 2026 Earnings Call
about 2 months ago
|
|
MAY
5
Q1 2026 Earnings Call
5 months ago
|
|
FEB
19
Q4 2025 Earnings Call
7 months ago
|
|
OCT
22
Q3 2025 Earnings Call
11 months ago
|
StocksGuide Free
Socket Mobile, Inc. — Q2 2026 Earnings Call
1. Management Discussion
Okay. Welcome, everyone, to Socket Mobile, Inc. Q2 2026 Earnings Call. My name is Lynn Zhao, CFO at Socket Mobile.
Before we begin, I'd like to remind everyone that this conference call may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities and Exchange Act of 1934 as amended. Such forward-looking statements include, but are not limited to, statements regarding mobile data collection and mobile data collection products, including details on timing, distribution and market acceptance of products and statements predicting trends, sales and market conditions and opportunities in the market in which Socket Mobile sells its products.
Such statements involve risks and uncertainties, and actual results could differ materially from the results anticipated in such forward-looking statements because of a number of factors, including, but not limited to, the risk of manufacture of Socket's products may be delayed or not rolled out as predicted due to technological, market or financial factors, including the availability of product components and necessary working capital. The risk that market acceptance and sales opportunities may not happen as anticipated. The risk that Socket's application partners and current distribution channels may choose not to distribute the products or may not be successful in doing so the risk that acceptance of Socket's products in vertical application markets may not happen as anticipated as well as other risks described in Socket's most recent Form 10-K and 10-Q reports filed with the Securities and Exchange Commission. Socket does not undertake any obligation to update any such forward-looking statements.
On the call with me today is Dave Holmes, President and Chief Executive Officer. I will now turn the call over to Dave. Dave, you may begin.
Thanks, Lynn. Good afternoon, everyone, and thank you for joining us today to discuss our results for the second quarter 2026. The environment we are operating in remains difficult. Our top line results reflects the continued challenge we are seeing with our retail scanning business. Our second quarter revenue of $3.0 million fell short of expectations. Gross margin was 46.4% versus 49.9% in the prior year's quarter, and operating expenses came in at $2.6 million versus $2.7 million in the prior year's quarter. We are not at all satisfied with that outcome. We have implemented several plans to help bolster sales. We have also cut our costs further and have implemented several cost-cutting measures, including selective headcount reductions. These measures will remain in effect for the remainder of 2026.
Along with our intense focus on cost control and cost elimination, we are aggressively implementing AI to make our resources more effective and more efficient. Our engineering team has systematically rolled this out over the last several months, and we'll continue deploying with a similar comprehensive approach to the rest of the organization in Q3. This will allow us to deliver key revenue-producing projects and efficiencies with our streamlined staff.
We will also sharpen our focus on what we are selling. We have great products. We will simplify the decision process for our customers and call products that are not producing revenue to make our offering easier to understand. We continue to focus on supporting our customers, executing our strategic priorities and managing our business with financial discipline. Management believes these actions position the company to respond effectively as customer demand improves.
With that, I'll turn the call back to Lynn for more details on our financial results. Lynn?
Thank you, Dave. Revenue for Q2 was $3 million compared to $3.9 million in the same quarter last year and $3.7 million in Q1 2026. Gross margin for the quarter was 46.4% compared with 49.9% in Q2 2025 and 51.3% in Q1 2026. The decline primarily reflects the underutilization of our manufacturing capacity at the current production and revenue levels, resulting in higher fixed manufacturing costs as a percentage of the revenue.
Operating expenses for Q2 were $2.6 million, down from $2.7 million in the same prior year quarter and in Q1 2026, reflecting our continued focus on managing operating expenses. As a result, we reported an operating loss of $1.2 million compared with $680,000 loss in Q2 2025 and $760,000 in Q1 2026. Adjusted EBITDA for Q2 was a loss of approximately $745,000 compared with a loss of $100,000 in the prior year quarter and $298,000 in Q1 2026. Loss per share was $0.16 compared with $0.10 in Q2 2025 and $0.11 in Q1 2026.
Turning to the balance sheet. Cash totaled $1.6 million as of June 30, 2026, compared with $1.7 million at March 31, 2026. During the quarter, we continued to manage working capital and maintain a disciplined approach to operating expenses. Inventory, net of reserves, was $3.8 million as of June 30, 2026, down from $3.9 million at March 31, 2026, reflecting our continued efforts to align inventory levels with current demand.
This concludes our prepared remarks. We will now open the call for questions.
[Operator Instructions] Are there any questions? Steve.
2. Question Answer
A couple of questions. Are we still a preferred supplier to Shopify? Or is our financial situation deteriorated enough that they are not on board with us anymore?
We are still a preferred supplier to Shopify. So nothing has changed there. Our revenue was down in retail and was down specific to the Shopify business over the last few quarters, but we -- but we're still a recommended supplier for Shopify.
Okay. And our cash burn rate, are there any going concern issues? Is your auditor opine on a going concern issue or not?
No, no. No going concern issue was raised.
And our burn rate, it looks like we burn -- we took down some inventory to give us some cash, and we were $100,000 less, I think you said, than we were in the prior quarter. Our burn rate -- how is our burn rate looking? And are we good for another year worth of cash flow burn? Or what do you -- what's your horizon for that?
No, we try to fund our working capital with the operations, but we still have the bank line we can tap in that we haven't. Yes. So hopefully, with the management of the expenses and the growth of revenue, we can continue to support the operations.
Okay. And I guess the last question I would have is, I've always liked this business model because you guys just supplied the hardware and the designers out there provided the software and designed it and sold it to the customers. But that's great when the business is moving ahead and growing. But what do you guys do now that that's fallen off, we're kind of waiting on them to sell their product, which would then include our hardware in that sale. How can management impact our business if we're waiting on our customers to sell a service to a third-party customer that would then buy our hardware to deliver the solution. I'm struggling a little bit with that.
That's a great question. And I think traditionally, our business has worked exactly as you suggest, and it is a great model when things are chugging away. So the downside of that business model is things are a little bit out of your control. And we anticipated this. And over the last couple of years, we've been working real hard to enter new markets, and we've started to do that. We've talked about it in the past couple of meetings, our entree into the industrial scanning market. That's a completely different business model really. It's entering and selling directly to enterprise customers, so not necessarily going to the software vendors first. We do go to the software vendors first at times, but a lot of times, we're selling directly to the enterprise customers.
And that business has started to pick up. We had our -- I believe it was about 10% of our revenue in Q2, and we expect that number to grow over the next few quarters. And that's really -- those are much bigger deals that we're working on. So when they hit, they have an immediate impact. And that's going to be one of the major hedges not only for hedging for retail and our dependency on retail, but also in the model that you suggest, Steve.
Okay. How is -- have we had any successes with that? I know you had a few companies that were -- I don't know, I'll call it a beta testing or they were trying out your equipment in the process to see if they liked it. Have we had any hard purchase orders yet? Or are we still more in the testing process and that's more of a '27 kind of a thing?
No, we've definitely had some purchases. I mentioned it was -- I believe it was 10% of our revenue in Q2. So it's not just a couple of people testing here and there anymore. It's really rolling these things out. And in some cases, we're in Phase 2 of rollouts. So what we have deployed out there has been working really well. It's all based on iOS and Apple platforms, which is gaining a lot of traction in the industrial space because of the familiarity of the UI and people are just used to using Apple devices at home, and they like to use them at work as well. So that's really working in our favor. And so yes, we have seen some success, and we expect more of it in the second half of the year.
Okay. And then one final question. Lynn, are we going to need to go tap into the -- we've done several loans that -- convertible loans. Are we going to need to do any more of those to our Chairman? Or are we just going to try to live off the bank loans going forward?
We try to live off operating generated cash. Yes, like you mentioned, we had convertible note financing in the past. Our Board approved the financing, but we haven't -- we're not going to comment anything before the information is released to public.
Okay. So you haven't tapped into that yet, but that's a lever there that if you want to pull it, management can decide to do so. Okay.
Are there any other questions? [Operator Instructions] I don't see any -- okay. Dave, I don't see other questions.
I think we can go ahead and close it.
Okay. All right. Yes. This concludes today's conference call. Thank you for attending.
Thanks, everyone.
Bye now.
Socket Mobile, Inc. — Q1 2026 Earnings Call
1. Management Discussion
Good day, everyone, and welcome to Socket Mobile, Inc.'s Q1 2026 Earnings Call. My name is Elvis, and I'll be your operator today. Before we begin, I'd like to remind everyone that this conference call may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities and Exchange Act of 1934 as amended.
Such forward-looking statements include, but are not limited to, statements regarding mobile data collection and mobile data collection products, including details on timing, distribution and market acceptance of products and statements predicting the trends, sales and market conditions and opportunities in the market in which Socket Mobile sells its products.
Such statements involve risks and uncertainties, and actual results could differ materially from the results anticipated in such forward-looking statements because of a number of factors, including, but not limited to, the risk that manufacture of Socket's products may be delayed or not rolled out as predicted due to technological, market or financial factors, including the availability of product components and necessary working capital; the risk that market acceptance and sales opportunities may not happen as anticipated; the risk that Socket's application partners and current distribution channels may choose not to distribute the products or may not be successful in doing so; the risk that acceptance of Socket's products in vertical application markets may not happen as anticipated as well as other risks described in Socket's most recent Form 10-K and 10-Q reports filed with the Securities and Exchange Commission.
Socket does not undertake any obligation to update any such forward-looking statements. On the call with me today are Kevin Mills, Chief Executive Officer; Dave Holmes, Chief Business Officer; and Lynn Zhao, Chief Financial Officer.
Now I'll turn the call over to Kevin Mills. Please go ahead, Kevin.
Thank you, operator. Good afternoon, everyone, and thank you for joining us today to discuss our results for the first quarter of 2026. The environment we are operating in remains difficult. The customer caution and delayed spending we observed through 2025 carried into the New Year, and our top line results reflect that broader market reality.
We recognize that our first quarter revenue of $3.7 million fell short of expectations, and we are not satisfied with that outcome. That said, against the factors within our control, our team executed well despite lower volume. Gross margins expanded to 51.3%. This reflects the disciplined cost structure we have built and our continued focus on operational efficiencies.
Operating expenses came in at $2.7 million, an 8% reduction year-over-year. We lowered our inventory to $3.9 million, down from $4.2 million at year-end 2025. And we completed a $0.5 million secured subordinate convertible note financing.
With that said, I'll hand things over to Dave Holmes, who will discuss our product progress and provide an update on the customer engagement front. Dave?
Thank you, Kevin, and good afternoon, everyone. We continue to advance our product lineup and execute on our strategy to become a more complete data capture company. Our newest announcement, SM Link, marks an important milestone. It's the first time we've extended our professional scanning ecosystem to macOS.
This directly responds to customer demand and opens new addressable markets across retail, hospitality, health care and service desk environments. SM Link allows customers to use the same barcode and NFC readers they already deploy on iPhone and iPad now seamlessly on Mac. This cross-platform compatibility simplifies procurement, reduces total cost of ownership and deepens the stickiness of our reader portfolio.
The key differentiator is Apple Wallet Pass reading on macOS through our CaptureSDK, something previously unavailable on Mac. This positions the Socket Mobile uniquely for businesses that need to scan loyalty cards, tickets, voting passes and sort value credentials at the point of interaction. And with out-of-the-box compatibility with platforms like Shopify, Square and Lightspeed, the barrier to adoption is low.
SM Link enables all of these platforms on Mac and even enables our scanners to work with Square Register, which meaningfully broadens our addressable market. Turning to our Industrial segment. 2 years of investment are now translating into tangible results. The early customer interest I've referenced over the last couple of quarters has progressed into multiple active deployments.
We expect Industrial to represent approximately 10% of revenue this quarter, and we anticipate contribution building strongly through the second half of 2026. We're seeing demand across warehousing and logistics, manufacturing, mining, energy and construction. Sales cycles remain longer than our traditional markets, but the opportunity sizes are substantially larger.
Our new products are passing the test of the challenging environments and the pipeline gives us confidence in the trajectory. Large enterprise customers are continuing to shift to mobile computing platforms, smartphones and tablets for industrial and enterprise applications. When those transitions are to Apple platforms, that's a particularly strong fit for Socket Mobile.
We're also seeing growing demand for real-time data capture at the edge in logistics, inventory and field operations as companies look to drive operational productivity. Taken together, our new products and expanding customer base are leading us toward a more diversified and sustainable business.
With that, I'll turn it over to Lynn for more details on our financial results. Lynn?
Thanks, Dave. Good afternoon, everyone. Revenue in Q1 decreased 7% year-over-year to $3.7 million, down from $4 million in the same quarter last year in Q4 2025. Gross margin for the quarter improved to 51.3% compared with 50.4% in Q1 2025 and 50.2% in Q4 2025, primarily reflecting a higher mix of higher-margin sales during the quarter.
Operating expenses for Q1 were $2.7 million, down from $2.9 million in the same prior year quarter, but up slightly from $2.6 million in Q4 2025 as we continue to maintain cost control measures in response to slower business activity. As a result, we reported an operating loss of $0.8 million compared with a loss of $0.9 million in Q1 2025 and $0.6 million in Q4 2025.
Adjusted EBITDA for Q1 was a loss of $300,000 versus a loss of $480,000 in prior year quarter and $94,000 in Q4 2025. Loss per share was $0.11 compared with $0.13 in Q1 2025 and $1.43 in Q4 2025, which included a full valuation allowance of deferred tax assets. Turning to the balance sheet. Cash totaled $1.7 million as of March 31 compared with $2.0 million at December 31, 2025.
Cash outflows included $770,000 from operating activities and $50,000 in capital expenditures, partially offset by $500,000 raised through a subordinated convertible note during the quarter. Inventory net of reserves was $3.9 million as of March 31, down from $4.2 million at year-end 2025 as we continue to actively manage inventory levels to align with softer demand.
This concludes our prepared remarks. I will now turn the call over to the operator for questions.
[Operator Instructions] We have no questions at this time, Lynn. I'll turn it back over to you for any additional or closing comments.
Okay. Thank you for joining the call today. Hope you have a great rest of your day. Bye-bye.
That concludes our meeting today. You may now disconnect.
Socket Mobile, Inc. — Q4 2025 Earnings Call
1. Management Discussion
Good day, everyone, and welcome to the Socket Mobile Q4 2025 Earnings Call. My name is Elvis, and I'll be your operator for today's call.
Before we begin, I'd like to remind everyone that this conference may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities and Exchange Act of 1934 as amended. Such forward-looking statements include, but are not limited to, statements regarding mobile data collection and mobile data collection products, including details on timing, distribution and market acceptance of products and statements predicting the trends, sales and market conditions and opportunities in the markets in which Socket Mobile sells its products.
Such statements involve risks and uncertainties and actual results could differ materially from the results anticipated in such forward-looking statements because of a number of factors, including, but not limited to, the risk that manufacture of Socket's products may be delayed or not rolled out as predicted due to technological, market or financial factors, including the availability of product components and necessary working capital, the risk that market acceptance and sales opportunities may not happen as anticipated; the risk that Socket's application partners and current distribution channels may choose not to distribute the products or may not be successful in doing so.
The risk that acceptance of Socket's products in vertical application markets may not happen as anticipated as well as other risks described in Socket's most recent Form 10-K and 10-Q reports filed with the Securities and Exchange Commission. Socket does not undertake any obligation to update any such forward-looking statements.
On the call with me today are Kevin Mills, Chief Executive Officer; and Lynn Zhao, Chief Financial Officer. Now I'll turn the call over to Kevin. Please go ahead.
Thank you, operator. Good afternoon, everyone, and thank you for joining us today to discuss our performance for the fiscal year 2025. In 2025, we operated within a very challenging macroeconomic and distribution environment. While sales volumes were impacted by these external headwinds I am pleased to report that we made significant progress strengthening our product portfolio, expanding our technology capabilities and enhancing the overall value we deliver to our customers. Despite the volume pressure, our gross margins remained resilient. This is a direct result of our disciplined cost management and a relentless focus on operational efficiency.
We took deliberate steps this year to reinforce our financial position and preserve the resources necessary to support our longer-term innovation and service goals. We advanced our position in the mobile data capture market through a series of critical innovations designed to meet the needs of a more integrated digital world. We launched CaptureSDK 2.0, a unified next-generation development toolkit to simplify the lives of developers making it easier than ever to build seamless integrations across both iOS and Android platforms.
We introduced the SocketScan S721 with Bluetooth Low Energy for faster pairing and lower power usage. We also expanded our ruggedized line with the XtremeScan v16e, the DuraScan D751 NFC and RFID reader and the compact DuraScan D764 for direct part marking applications. A notable highlight for our enterprise strategy occurred on December 18 when our XtremeScan product was featured in the Apple Connected Worker series. This Apple hosted invitation-only webinar series is specifically designed for major companies interested in transitioning their workforce to iOS-based devices.
With over 50 large companies in attendance, we saw significant interest in our XtremeScan solutions. While we recognize that project with large-scale enterprises require time to mature, the first step is demonstrating what is possible. We were honored to showcase our solutions on this platform and expect to spend a significant portion of 2026, pursuing the high-value opportunities that have already surfaced from this event.
We also strengthened our international presence, particularly in the APAC region. We received official approval in Japan by our S370 and S550 as certified My Number Card readers. This milestone enables broader use in government services and digital identity authentication, contributing to growing engagement across retail, industrial and enterprise markets.
Looking ahead, we remain focused on delivering dependable, high-quality data capture solutions that help our customers improve productivity and stay competitive. We have continued to invest in product development and global reach because we believe these investments drive long-term value. We are proud of the progress we have achieved in 2025 and we sincerely appreciate the trust and support of our customers and partners as we continue to build for the future.
With that said, I will now turn the call over to Lynn.
Thank you, Kevin. Good afternoon, everyone. Thank you for joining today's call. Our Q4 revenue of $4 million decreased 18% year-over-year from $4.8 million in the prior year quarter, but increased 28% sequentially from $3.1 million in Q3 2025. Gross margin for Q4 was 50% compared to 51% in Q4 2024 and 48% in Q3 2025. Operating expenses for Q4 were $2.6 million representing a 10% year-over-year decrease and a 2% sequential increase from the preceding quarter. We recorded a Q4 operating loss of $730,000 compared to $513,000 loss in Q4 2024 and $1.2 million loss in the preceding quarter.
In Q4, driven by the cumulative losses in recent years, we recognized a onetime adjustment to establish a full valuation allowance of $10.7 million against our deferred tax assets in accordance with ASC 740. Net loss per share for Q4 was $1.43 compared to $0.00 per share in Q4 2024 and a loss of $0.15 per share in Q3 2025. Q4 adjusted EBITDA was a loss of $94,000 compared to an EBITDA gain of $140,000 in Q4 2024 and $540,000 loss in Q3 2025.
The revenue for the year was $50 million, a 20% decrease year-over-year compared to $19 million in 2024. Gross margin for the year was 49.7% compared to 50.4% in 2024. Operating expenses totaled $10.7 million, down 10% from $11.9 million in 2024, primarily reflecting employee cost management initiatives. We reported a full year operating loss of $3.7 million compared to an operating loss of $2.8 million in 2024. Net loss per share was $1.81 in 2025 compared to $0.30 in 2024. Adjusted EBITDA for 2025 was negative $1.2 million compared to negative $320,000 in 2024.
Turning to the balance sheet. We ended 2025 with $2 million in cash. During the year, we used the $1.4 million in operating activities, invested $5.5 million in capital expenditures and raised $1.5 million through issuance of subordinated convertible notes. As of December 31, 2025, the inventory net of reserves was $4.2 million compared to $4.9 million at the end of prior year.
This concludes our prepared remarks. I will now turn the call over to the operator for questions.
[Operator Instructions] Our first question today comes from Steve Swanson, a private investor.
Kevin, can you comment a little bit, we're 7 weeks into 2026. How are you feeling about the business right now?
I think we got off to a reasonably good start in January. So we're feeling okay. We have a lot of activity subject to the follow-up we did for the Apple event in December. So we've been extremely busy. Overall, I would say we're on track for a reasonable Q1. So I wouldn't say we're overly optimistic or pessimistic. I think things are kind of as expected as we started the year.
Okay. Another one. We've been trying to get into the warehousing and logistics business for a while now. Have we had any successes yet?
Yes. We have one large customer who is, I suppose, a Fortune, I don't know, 10 or thereabout company that we have deployed with. We have something in the region of 150 units being used on a daily basis. I think based on the feedback we've gotten, we've been able to update the units, and we feel that the second generation, which we announced in December, is substantially stronger. I think with the benefit of hindsight, we covered the camera in the initial rollout of our XtremeScan. And I think that we didn't realize how integral to many applications the camera is and that we incorrectly determined that the scanning would supersede the camera, which turned out to be not the case.
In our second generation, which we focused on the 16e, we have corrected that and the camera is now fully available to the user. And we've also been able to improve a number of other, let's say, shortcomings in the product based on the feedback we've got and the tests we've done. So I really feel that the V2 product, which we're in the process of now starting to ship is a large step forward in terms of the overall performance and benefit to the end user. So we feel particularly good about that.
[Operator Instructions] We have no further questions at this time. Lynn, I'll turn the program back over to you for any additional or closing comments.
Okay. Thank you everyone, for your time and for joining the call. Wishing you a good rest of the day.
That concludes our meeting today. You may now disconnect.
Socket Mobile, Inc. — Q3 2025 Earnings Call
1. Management Discussion
Good day, everyone, and welcome to the Socket Mobile, Inc. Q3 2025 Earnings Call. My name is Elvis, and I'll be your operator for today's call.
Before we begin, I'd like to remind everyone that this conference call may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities and Exchange Act of 1934 as amended. Such forward-looking statements include, but are not limited to, statements regarding mobile data collection and mobile data collection products, including details on timing, distribution and market acceptance of products and statements predicting the trends, sales, market conditions and opportunities in the market in which Socket Mobile sells its products.
Such statements involve risks and uncertainties, and actual results could differ materially from the results anticipated in such forward-looking statements because of a number of factors, including, but not limited to, the risk that manufacture of Socket's products may be delayed or not rolled out as predicted due to technological, market or financial factors, including the availability of product components and necessary working capital; the risk that market acceptance and sales opportunities may not happen as anticipated; the risk that Socket's application partners and current distribution channels may choose not to distribute the products or may not be successful in doing so; the risk that acceptance of Socket's products in vertical application markets may not happen as anticipated as well as other risks described in Socket's most recent Form 10-K and 10-Q reports filed with the Securities and Exchange Commission.
Socket does not undertake any obligation to update any such forward-looking statements. On the call with me today are Kevin Mills, Chief Executive Officer; Dave Holmes, Chief Business Officer; and Lynn Zhao, Chief Financial Officer.
Now I'll turn the call over to Kevin Mills. Please go ahead, sir.
Thank you, operator. Good afternoon, everyone, and thank you for joining us today. Our revenue for Q3 was $3.1 million, a decrease of 20% over Q3 2024. Our Q3 expenses were $2.5 million, 16% lower than the $2.9 million in Q3 2024. Our operating loss was $1.1 million, which was similar to the loss reported in Q3 2024.
Overall, Q3 was another difficult quarter. Revenue came in lower than expected as sales to our distribution partners was much weaker than expected. Our distribution partners did not replenish their inventory at the same rate as their sales to end customers. Sales out of distribution were better than in Q2, but remained weak as the level of uncertainty continues to delay or cause projects to be canceled.
On the positive side, we did deliver Capture SDK 2.0, which is a significant milestone for Socket Mobile. Capture SDK 2.0 supports all of our new Bluetooth Low Energy products and remains fully compatible with existing devices using Bluetooth Classic.
The challenges of creating and delivering the software were significant, and I'm very proud of the work the software development team has done as it enables us to move forward with our next generation more faster, lower-cost products that our customers need without any significant development work required from the application partner.
Our application partners only need to recompile their current application with Capture SDK 2.0 and the app will fully support all existing and next-generation products, which was our goal. We estimate it will take about 90 days for most application developers to complete -- to include Capture 2.0, which is typically done in conjunction with our normal schedule release mechanisms, when -- and their end users will be able to use the new and improved products. There are a few apps that we expect will be updated in the coming weeks, and we plan to run promotions for the new products with some of these early adopter applications.
In Q3, we controlled tightly our expenses, reducing the overall expenses by 16% over 2024, while we maintained our investment in R&D and Apple sales opportunities. Securing even a few Apple-related opportunities will deliver substantial long-term benefits. We understand that this will strain our resources in Q4 and force us to continue to manage our expenses very tightly as we did in Q3. We expect Q4 to be EBITDA neutral and look forward to a stronger 2026.
With that said, I will now turn the call over to Dave.
Thank you, Kevin, and good afternoon, everyone. Today, I'd like to highlight some Q3 achievements, and I'll also spend a few minutes walking through our strategic priorities, how we see the market move -- evolving and how we intend to continue positioning Socket Mobile for a future of sustainable growth.
We have invested a lot into our expansion into the industrial scanning and handheld computing markets over the last 2 years. I mentioned last quarter that we were starting to see interest from a variety of customers in the industrial sector, and we've received our first POs from multiple Fortune 50 companies. The interest is coming from many verticals, such as warehousing and logistics, manufacturing, mining, energy and construction. Initial rollouts have been quite successful and many of the customers we have gained will continue rolling out devices and projects into 2026 and beyond.
The ruggedized scanning market is quite large, and our entry into this space will help us diversify our business beyond retail. We expect the momentum in this space to continue building for us in the coming quarters and years. Most of the interest and rollouts are with large enterprise customers, which are new to us. Although the sales cycles are long, the size of the opportunities we are seeing are quite substantial. We are expanding our addressable market, and we're putting structure into place to serve these customers in an efficient manner.
We have continued investing in our DuraSled and [ExtremeScan] product lines, which are all designed for iPhone. And now we're offering models with iPhone inside. This entrance into the mobile handheld computing market has opened the door to new customer segments and we're starting to gain real traction. We also have some market forces working in our favor, namely the continued shift to mobile computing platforms such as smartphones and tablets for enterprise and industrial applications. This works particularly well for us when those customers are transitioning to iOS devices.
We also see growing demand for real-time data capture at the edge, for example, in logistics, inventory and field operations to drive operational productivity. Our new product and technology investments are starting to extend our reach and diversify our customer base. Ultimately, this will make us a more sustainable as we become a more complete data capture company.
With that, I'll turn it over to Lynn for more details on our financial results. Lynn?
Okay. Thanks, Dave. Good afternoon, everyone. Thank you for joining today's call. Revenue in Q3 decreased 20% year-over-year to $3.1 million, down from $3.9 million in the same quarter last year and 23% sequentially from $4 million in Q2. However, sales-out to end users via our distributors remained stable with Q2, which is encouraging, especially since Q3 is usually our softest quarter. We view this resilience as a positive sign amid the market conditions.
Gross margin for the quarter was 47.7% compared with 49% in Q3 2024 and 49.9% in Q2 2025. The decline primarily reflects the impact of fixed overhead costs spread over lower revenue base.
Operating expenses for Q3 were $2.5 million compared with $2.9 million in the same quarter last year and $2.7 million in Q2. This reduction was mainly the result of management's cost control initiatives implemented in anticipation of slower business activity. As a result, we reported an operating loss of $1.1 million for the quarter compared with a loss of $1 million in Q3 2024 and a loss of $700,000 in Q2 2025.
Adjusted EBITDA for Q3 was a loss of [$540,000] versus a loss of $510 -- [$510,000] in Q3 last year and $100,000 in Q2 2025.
Diluted loss per share was $0.15, consistent with Q3 2024 and compared with $0.10 loss in Q2 2025.
Turning to the balance sheet. As of September 30, cash totaled $2 million compared with $2.6 million at June 30 and $2.5 million at December 31, 2024. Cash outflows during the quarter included $400,000 for operating activities and $190,000 for capital expenditures, primarily related to product tooling and software development. Inventory net of reserves was $4.7 million as of September 30 versus $5 million at year-end 2024. We continue to focus on managing inventory levels to avoid excess stock in a slower demand environment.
This concludes our prepared remarks. I will now turn the call over to the operator for questions.
[Operator Instructions] Our first question comes from Steve Swanson, a private investor.
Will we need to do any more convertible debt before too long?
We have no plan to do a convertible debt at this stage, Steve. I know I've said this in the past, and we ended up doing so. But currently, there are no plans to do a convertible debt. If we can get through Q4 at EBITDA neutral, we believe we have enough business in the hopper to get back to profitable operating levels.
Okay. So we think we got enough cash with what we're looking at going forward that we aren't going to need to raise any more cash. Is that right?
That's correct. We have no questions at this time. Lynn, I'll turn the program back over to you for any additional or closing comments.
Okay. Yes. I just want to thank you, everyone, for your time and wish you a good afternoon. Bye now.
That concludes our meeting today. You may now disconnect.
Financial data from Socket Mobile, Inc.
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
+/-
%
|
||
| Revenue | 14 14 |
17%
17%
100%
|
|
| - Direct Costs | 7.03 7.03 |
16%
16%
51%
|
|
| Gross Profit | 6.78 6.78 |
19%
19%
49%
|
|
| - Selling and Administrative Expenses | 6.12 6.12 |
11%
11%
44%
|
|
| - Research and Development Expense | 4.26 4.26 |
6%
6%
31%
|
|
| EBITDA | -2.40 -2.40 |
36%
36%
-17%
|
|
| - Depreciation and Amortization | 1.21 1.21 |
3%
3%
9%
|
|
| EBIT (Operating Income) EBIT | -3.60 -3.60 |
20%
20%
-26%
|
|
| Net Profit | -15 -15 |
417%
417%
-108%
|
|
In millions USD.
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Socket Mobile, Inc. Stock News
Company Profile
Socket Mobile, Inc. engages in the development and production of mobile systems solutions. It operates through the following geographical segments: United States; Europe; and Asia and rest of the World. The firm manufactures mobile devices such as smart phones, tablets, scanners and data collection peripherals. It also provides vertical software applications. The company was founded by Michael L. Gifford and Charlie Bass in 1992 and is headquartered in Newark, CA.
StocksGuide Premium
| Head office | United States |
| CEO | Mr. Mills |
| Employees | 59 |
| Founded | 1992 |
| Website | www.socketmobile.com |
