FREMONT, Calif., July 30, 2026 /PRNewswire/ -- Socket Mobile, Inc. (NASDAQ: SCKT), a leading provider of data capture and delivery solutions for enhanced workplace productivity, today reported financial results that are determined in accordance with generally accepted accounting principles in the United States ("GAAP") for the three and six months ended June 30, 2026.
Second Quarter 2026 Financial Highlights:
- Revenue of $3.0 million, reflecting a 25% decrease compared to $4.0 million for the prior year's quarter, and an 18% sequential decrease compared to $3.7 million for the preceding quarter.
- Gross margin of 46.4% versus 49.9% in the prior year's quarter and 51.3% in the preceding quarter.
- Operating expenses of $2.6 million, compared to $2.7 million in the prior year period and the preceding quarter.
- Operating loss amounted to $1,195,000, compared to a $677,000 loss in the prior year's quarter, and a loss of $760,000 in the preceding quarter.
- Cash balance as of June 30, 2026, was approximately $1.6 million, slightly lower from $1.7 million at March 31, 2026.
"Our second-quarter results reflect the continued challenges in the retail market," said Dave Holmes, President and Chief Executive Officer. "While market conditions remain uncertain, we continue to focus on supporting our customers, executing our strategic priorities, and managing our business with financial discipline. We expect our cost management initiatives to continue throughout the remainder of the year as we align our operating expenses with current business conditions while maintaining our ability to support future growth opportunities."
The Company continues to focus on expanding opportunities for its data capture solutions across multiple vertical markets while maintaining disciplined expense management. Management believes these actions position the Company to respond effectively as customer demand improves.
Conference Call
Management of Socket Mobile will hold a conference call today at 2 P.M. Pacific (5 P.M. Eastern) to discuss the quarterly results and outlook for the future. Please attend the conference call using the information below:
Join Online: https://v.ringcentral.com/join/745700078
Meeting ID: 745700078
Dial-In: +1 (267) 930-4000
Access Code / Meeting ID: 745700078
International Dial-In Numbers: https://v.ringcentral.com/teleconference
About Socket Mobile, Inc.
Socket Mobile is a leading provider of data capture and delivery solutions for enhanced productivity in workforce mobilization. Socket Mobile's revenue is primarily driven by the deployment of third-party barcode-enabled mobile applications that integrate Socket Mobile's cordless barcode scanners and contactless readers/writers. Mobile Applications servicing the specialty retailer, field service, digital ID, transportation, and manufacturing markets are the primary revenue drivers. Socket Mobile has a network of thousands of developers who use its software developer tools to add sophisticated data capture to their mobile applications. Socket Mobile is headquartered in Fremont, Calif., and can be reached at +1-510-933-3000 or www.socketmobile.com. Follow Socket Mobile on LinkedIn, Twitter, and keep up with our latest News and Updates.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, statements regarding new mobile computer and data collection products, including details on the timing, distribution, and market acceptance of the products, and statements predicting trends, sales, market conditions, and opportunities in the markets in which we sell our products. Such statements involve risks and uncertainties, and actual results could differ materially from the results anticipated in such forward-looking statements as a result of a number of factors, including, but not limited to, the risk that our new products may be delayed or not rollout as predicted, if ever, due to technological, market, or financial factors, including the availability of necessary working capital, the risk that market acceptance and sales opportunities may not happen as anticipated, the risk that our application partners and current distribution channels may choose not to distribute the new products or may not be successful in doing so, the risk that acceptance of our new products in vertical application markets may not happen as anticipated, and other risks described in our most recent Form 10-K and 10-Q reports filed with the Securities and Exchange Commission.
Socket Mobile Investor Contact: |
Lynn Zhao |
Chief Financial Officer |
510-933-3016 |
lynn@socketmobile.com |
Socket Mobile is a registered trademark of Socket Mobile. All other trademarks and trade names contained herein may be those of their respective owners.
© 2026, Socket Mobile, Inc. All rights reserved.
– Financial tables to follow –
Socket Mobile, Inc. Condensed Summary Statements of Operations (Unaudited) (Amounts in thousands except per share amounts) | ||||
Three months ended June 30, | Six months ended June 30, | |||
2026 | 2025 | 2026 | 2025 | |
Revenue | $ 3,033 | $ 4,042 | $ 6,734 | $ 8,008 |
Cost of revenue | 1,625 | 2,024 | 3,428 | 3,992 |
Gross margin | 1,408 | 2,018 | 3,306 | 4,016 |
Gross margin percent | 46.4 % | 49.9 % | 49.1 % | 50.2 % |
Research & development | 1,053 | 1,101 | 2,143 | 2,233 |
Sales & marketing | 809 | 1,025 | 1,711 | 2,131 |
General & administrative | 741 | 569 | 1,407 | 1,223 |
Total operating expenses | 2,603 | 2,695 | 5,261 | 5,587 |
Operating loss | (1,195) | (677) | (1,955) | (1,571) |
Interest expense, net | (151) | (115) | (291) | (215) |
Income tax benefit (expense) | -- | -- | -- | -- |
Net loss | $ (1,346) | $ (792) | $ (2,246) | $ (1,786) |
Net loss per share: | ||||
Basic | $ (0.16) | $ (0.10) | $ (0.27) | $ (0.23) |
Fully diluted | $ (0.16) | $ (0.10) | $ (0.27) | $ (0.23) |
Weighted average shares outstanding: Basic Fully diluted | 8,245 8,245 | 7,937 7,937 | 8,190 8,190 | 7,884 7,884 |
Socket Mobile, Inc. Condensed Summary Balance Sheets (Amounts in Thousands) | ||
(Unaudited) June 30, 2026 | December 31, 2025* | |
Cash | $ 1,605 | $ 2,032 |
Accounts receivable | 1,170 | 1,711 |
Inventories | 3,820 | 4,221 |
Deferred costs on shipments to distributors | 111 | 122 |
Other current assets | 548 | 548 |
Property and equipment, net | 1,771 | 2,125 |
Intangible assets, net | 1,241 | 1,305 |
Operating leases right-of-use assets | 1,818 | 2,087 |
Other long-term assets | 286 | 286 |
Total assets | $ 12,370 | $ 14,437 |
Accounts payable and accrued liabilities | $ 1,733 | $ 2,023 |
Subordinated convertible notes payable, net of discount | 350 | 400 |
Subordinated convertible notes payable, net of discount-related party | 5,490 | 5,083 |
Deferred revenue on shipments to distributors | 304 | 336 |
Deferred service revenue | 102 | 28 |
Operating lease liabilities | 2,008 | 2,289 |
Total liabilities | $ 9,987 | 10,159 |
Common stock | 70,220 | 69,870 |
Accumulated deficit | (66,799) | (64,554) |
Treasury stock | (1,038) | (1,038) |
Total equity | $ 2,383 | 4,278 |
Total liabilities and equity | $ 12,370 | 14,437 |
*Derived from audited financial statements. | ||
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SOURCE Socket Mobile, Inc.
