Socket Mobile (NASDAQ:SCKT – Get Free Report) announced its earnings results on Thursday. The company reported ($0.16) earnings per share for the quarter, Zacks reports. The firm had revenue of $3.03 million for the quarter. Socket Mobile had a negative return on equity of 142.25% and a negative net margin of 96.43%.
Here are the key takeaways from Socket Mobile’s conference call:
- Q2 revenue fell to $3.0 million from $3.9 million a year earlier and $3.7 million in Q1, reflecting continued weakness in the retail scanning business. Gross margin declined to 46.4% from 49.9% year over year.
- The revenue decline drove a wider operating loss of $1.2 million, compared with $687,000 a year earlier, while adjusted EBITDA loss increased to approximately $745,000. The company is implementing selective headcount reductions and other cost cuts through the remainder of 2026.
- Management said industrial scanning accounted for approximately 10% of Q2 revenue, with customers moving beyond testing into purchases and phase-two rollouts. The company expects this business, which includes direct enterprise sales, to grow in the second half and reduce its dependence on retail and software partners.
- Socket Mobile ended the quarter with $1.6 million in cash and $3.8 million of inventory, and management said no going-concern issue was raised. The company is seeking to fund operations through cash generation and has an untapped bank line, while declining to comment on whether additional convertible financing may be used.
- Socket Mobile remains a preferred and recommended supplier to Shopify despite lower Shopify-related revenue in recent quarters. Management is also deploying AI across the organization and plans to simplify its product lineup to improve efficiency and focus on revenue-producing offerings.
Socket Mobile Stock Down 2.2%
SCKT stock opened at $0.44 on Friday. The firm has a market cap of $3.59 million, a PE ratio of -0.24 and a beta of 1.27. The business has a 50 day moving average of $0.69 and a 200-day moving average of $0.88. Socket Mobile has a 12-month low of $0.42 and a 12-month high of $1.36.
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About Socket Mobile
Socket Mobile, Inc (NASDAQ:SCKT) is a provider of mobile data capture and wireless connectivity solutions, designing products that enable smartphones, tablets and PCs to collect and transmit information in a variety of business environments. The company specializes in Bluetooth-enabled barcode scanners, RFID readers and image-based data capture devices that streamline point-of-sale, inventory management and field-service workflows.
Its product portfolio includes handheld scanners that support 1D and 2D barcodes, near-field communication (NFC) readers and ultra-compact mobile scanners engineered for retail, hospitality, healthcare, transportation and warehousing applications.
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