FREMONT, Calif., Nov. 4, 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 nine months ended September 30, 2026.
Third Quarter 2026 Financial Highlights:
- Revenue of $3.4 million, reflecting a 9% increase compared to $3.1 million for the prior year's quarter, and a 12% sequential increase compared to $3.0 million for the preceding quarter.
- Gross margin of 48.6% versus 47.7% in the prior year's quarter and 46.4% in the preceding quarter.
- Operating expenses of $2.3 million, compared to $2.5 million in the prior year period and $2.6 million in the preceding quarter.
- Operating loss amounted to $643,000, compared to a $1,058,000 loss in the prior year's quarter, and a loss of $1,195,000 in the preceding quarter.
- Cash balance as of September 30, 2026, was approximately $1.4 million, slightly lower from $1.6 million at June 30, 2026.
"Our third-quarter results reflect progress in stabilizing revenue while executing our cost management initiatives," said Dave Holmes, President and Chief Executive Officer. "Revenue increased 12% sequentially from the second quarter and 9% compared with the prior-year quarter, reflecting improved performance amid continued market uncertainty. At the same time, we continued to align our cost structure with business conditions, reducing operating expenses by 12% from the prior quarter and 10% year over year. These results reflect our ongoing focus on operational efficiency and financial discipline while maintaining our ability to support customers and pursue future growth opportunities."
During the quarter, the Company continued to expand its commercial reach across multiple vertical markets through strategic partnerships, including 3Eye Technologies, which supports industrial mobility solutions for Apple-based frontline workflows, and Orda, which provides integrated mobile ordering and self-checkout solutions for enterprise workplace dining environments.
The Company expects to continue its cost management initiatives through the remainder of the year while pursuing opportunities to expand its data capture solutions across key markets. Management believes that disciplined expense management, stabilizing revenue, and expanding commercial opportunities will help position the Company for continued operational improvement.
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/118843084
Meeting ID: 118843084
Dial-In: +1 (267) 930-4000
Access Code / Meeting ID: 118843084
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 |
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 Sept 30, | Nine months ended Sept 30, | |||
2026 | 2025 | 2026 | 2025 | |
Revenue | $ 3,388 | $ 3,107 | $ 10,121 | $ 11,115 |
Cost of revenue | 1,740 | 1,626 | 5,168 | 5,618 |
Gross margin | 1,648 | 1,481 | 4,953 | 5,497 |
Gross margin percent | 48.6 % | 47.7 % | 48.9 % | 49.5 % |
Research & development | 930 | 1,027 | 3,073 | 3,260 |
Sales & marketing | 600 | 935 | 2,311 | 3,066 |
General & administrative | 761 | 577 | 2,168 | 1,800 |
Total operating expenses | 2,291 | 2,539 | 7,552 | 8,126 |
Operating loss | (643) | (1,058) | (2,599) | (2,629) |
Interest expense, net | (146) | (140) | (436) | (355) |
Net loss | $ (789) | $(1,198) | $ (3,035) | $ (2,984) |
Net loss per share: | ||||
Basic | $ (0.09) | $ (0.15) | $ (0.37) | $ (0.38) |
Fully diluted | $ (0.09) | $ (0.15) | $ (0.37) | $ (0.38) |
Weighted average shares outstanding: Basic Fully diluted | 8,313 8,313 | 7,961 7,961 | 8,231 8,231 | 7,910 7,910 |
Socket Mobile, Inc. Condensed Summary Balance Sheets (Amounts in Thousands) | ||
(Unaudited) Sept 30, 2026 | December 31, | |
Cash | $ 1,403 | $ 2,032 |
Accounts receivable | 1,328 | 1,711 |
Inventories | 3,401 | 4,221 |
Deferred costs on shipments to distributors | 144 | 122 |
Other current assets | 552 | 548 |
Property and equipment, net | 1,755 | 2,125 |
Intangible assets, net | 1,209 | 1,305 |
Operating leases right-of-use assets | 1,680 | 2,087 |
Other long-term assets | 286 | 286 |
Total assets | $ 11,758 | $ 14,437 |
Accounts payable and accrued liabilities | $ 1,785 | $ 2,023 |
Subordinated convertible notes payable | 200 | 400 |
Subordinated convertible notes payable, net of discount-related party | 5,067 | 5,083 |
Short-term borrowings – related party | 425 | -- |
Deferred revenue on shipments to distributors | 512 | 336 |
Deferred service revenue | 95 | 28 |
Operating lease liabilities | 1,862 | 2,289 |
Total liabilities | $ 9,946 | 10,159 |
Common stock | 70,439 | 69,870 |
Accumulated deficit | (67,589) | (64,554) |
Treasury stock | (1,038) | (1,038) |
Total equity | $ 1,812 | 4,278 |
Total liabilities and equity | $ 11,758 | 14,437 |
*Derived from audited financial statements. | ||
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SOURCE Socket Mobile, Inc.
