SCKT

This article first appeared on GuruFocus. Revenue: $3.0 million in Q2 2026, down from $3.9 million in Q2 2025 and $3.7 million in Q1 2026. Gross Margin: 46.4% in Q2 2026, down from 49.9% in Q2 2025 and 51.3% in Q1 2026, reflecting underutilization of manufacturing capacity. Operating Expenses: $2.6 million in Q2 2026, down from $2.7 million in Q2 2025 and Q1 2026. Operating Loss: $1.2 million in Q2 2026, compared with a $680,000 loss in Q2 2025 and a $760,000 loss in Q1 2026. Adjusted EBITDA: Loss of approximately $745,000 in Q2 2026, compared with a loss of $100,000 in the prior quarter and $298,000 in Q1 2026. Loss Per Share: $0.16 in Q2 2026, compared with $0.10 in Q2 2025 and $0.11 in Q1 2026. Cash: $1.6 million as of June 30, 2026, compared with $1.7 million at March 31, 2026. Inventory: $3.8 million as of June 30, 2026, down from $3.9 million at March 31, 2026. Warning! GuruFocus has detected 8 Warning Signs with SCKT. Is SCKT fairly valued? Test your thesis with our free DCF calculator. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Socket Mobile Inc (NASDAQ:SCKT) remains a preferred supplier to Shopify, maintaining a key partnership. The company is actively cutting costs, including selective headcount reductions, to manage expenses. Management is aggressively implementing AI to improve resource efficiency and effectiveness. The industrial scanning market is gaining traction, contributing about 10% of Q2 revenue with expectations for growth. The company has no going concern issue raised by auditors and has access to untapped bank lines for liquidity. Q2 revenue of $3.0 million fell short of expectations, reflecting continued challenges in the retail scanning business. Gross margin declined to 46.4% from 49.9% in the prior year quarter due to underutilized manufacturing capacity. Operating loss widened to $1.2 million from $680,000 in Q2 2025, and adjusted EBITDA loss increased to $745,000. Cash burn continues, with cash decreasing to $1.6 million from $1.7 million at the end of Q1 2026. The business model's dependence on software partners limits management's direct control over sales, as seen in the retail segment's downturn. Q: Are we still a preferred supplier to Shopify, or has our financial situation deteriorated enough that they are not on board with us anymore?A: David Holmes (President and CEO) confirmed that Socket Mobile remains a preferred supplier to Shopify, noting that while revenue was down in retail and specific to the Shopify business over the last few quarters, their status as a recommended supplier is unchanged. Q: What is our cash burn rate, and are there any going concern issues? Is our auditor opining on a going concern issue?A: Lynn Zhao (CFO) stated that no going concern issue was raised by the auditor. She noted that while the company is managing working capital with operations, they still have untapped bank lines available to support operations if needed. Q: How can management impact the business if we are waiting on our customers to sell a service to a third-party customer that would then buy our hardware?A: David Holmes (President and CEO) acknowledged the downside of the traditional business model, where sales depend on software vendors. He highlighted the company's strategic entry into the industrial scanning market, which involves selling directly to enterprise customers. This business accounted for about 10% of Q2 revenue and is expected to grow, representing a major hedge against retail dependency and providing larger deals with immediate impact. Q: Have we had any successes with the industrial scanning market, or are we still in the testing process?A: David Holmes (President and CEO) confirmed that the company has moved beyond beta testing and has seen actual purchases, with industrial scanning contributing about 10% of Q2 revenue. Some customers are in phase two of rollouts, and the products, based on iOS and Apple platforms, are gaining traction in the industrial space due to user familiarity with Apple devices. He expects more success in the second half of the year. Q: Are we going to need to tap into more convertible loans from our Chairman, or are we going to live off bank loans going forward?A: Lynn Zhao (CFO) stated that the company aims to live off operating-generated cash. While the board has approved convertible financing in the past, she declined to comment on any future actions before information is released to the public, indicating that it remains a potential lever for management. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Thursday, July 30, 2026 at 5:00 p.m. ET President and Chief Executive Officer - Dave Holmes Chief Financial Officer - Lynn Zhao Lynn Zhao: 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 the Section 21E of the Securities 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 the market acceptance of products, and the statements predicting trends, sales, and the market conditions and opportunities in the market in which Socket Mobile sells its products. Such a statement 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 the necessary working capital. The risk that market acceptance and the sales opportunities may not happen as anticipated, the risk that Socket's application partners and the 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 the 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. Dave Holmes: Thanks, Lynn. Good afternoon, everyone, and thank you for joining us today to discuss our results for the second quarter of 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 will 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 cull 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? Lynn Zhao: Thank you, Dave. Revenue for Q2 was at $3 million, compared to $3.9 million in the same quarter last year and the $3.7 million in Q1 2026. Gross margin for the quarter was 46.4%, compared with the 49.9% in Q2 2025 and the 51.3% in Q1 2026. The decline primarily reflects the underutilization of our manufacturing capacity at current production and the revenue levels, resulting in higher fixed manufacturing cost 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 $687,000 loss in Q2 2025 and the $767,000 in Q1 2026. Adjusted EBITDA for Q2 was a loss of approximately $745,000, compared with a loss of $100,000 in the prior quarter and the $298,000 in Q1 2026. Loss per share was at $0.16, compared with the $0.10 in Q2 2025 and the $0.11 in Q1 2026. Turning to the balance sheet, cash totaled $1.6 million as of June 30th, 2026, compared with the $1.7 million at March 31st, 2026. During the quarter, we continued to manage working capital and to maintain a disciplined approach to operating expenses. Inventory, net of reserves, was at $3.8 million as of June 30th, 2026, down from $3.9 million at March 31st, 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. To ask a question, please click raise hand or press nine on your telephone keypad. I will recognize you and unmute your line. Before asking your question, please state your full name and the company you represent. Are there any questions? Dave Holmes: I see we have a question. Lynn Zhao: Are there Oh, yeah. Hold on. Let me unmute. Steve. Dave Holmes: Steve. Lynn Zhao: Hi, Steve. Speaker 2: Good afternoon. 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? Dave Holmes: Yes, we are still a preferred supplier to Shopify. Nothing has changed there. Our revenue is down in retail and was down specific to the Shopify business over the last few quarters. We're still a recommended supplier for Shopify. Speaker 2: Okay. Our cash burn rate, are there any going concern issues? Has your auditor. Lynn Zhao: We are. Speaker 2: Has your auditor opined on a going concern issue or not? Lynn Zhao: No. No going concern issue was raised. Speaker 2: Our burn rate, looks like we took down some inventory to give us some cash, and we were $100,000 less, I think you said, than we were the prior quarter. Our burn rate, how's our burn rate looking? Are we good for another year worth of cash flow burn, or what's your horizon for that? Lynn Zhao: No, we try to fund our working capital with the operations, but we still have the bank line we could tap in that we haven't. Yeah, hopefully, with the management of the expenses and the growth of revenue, we can continue to support the operations. Speaker 2: Okay. 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 customers. That's great when the business is moving ahead and growing, but what do you guys do now 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. Dave Holmes: 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. 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 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. 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. Speaker 2: Okay. Have we had any successes with that? I know you had a few companies that were, I don't know, I'll call it beta testing, or they were trying out your equipment in the process to see if they liked it. Have we gotten any Hard purchase orders yet, or are we still more in the testing process and that's more of a 2027 kind of a thing? Dave Holmes: No, we've definitely had some purchases. I mentioned it was, I believe it was 10% of our revenue in Q2. It's not just a couple of people testing here and there anymore. They're really rolling these things out and, in some cases, we're in phase two of roll-outs. 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. 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. Yeah, we have seen some success, and we expect more of it in the second half of the year. Speaker 2: Okay, one final question. Lynn, We've done several 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? Lynn Zhao: 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, we're not going to comment anything before the information is released to public. Speaker 2: Okay. 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. Thank you. Appreciate the feedback today. I'll get off the call. Dave Holmes: Thanks, Steve. Lynn Zhao: Thank you, Steve. Are there any other questions? You can click or raise hand or press nine on your telephone keypad. I don't see any. Okay. Dave, I don't see other questions. Dave Holmes: I think we can go ahead and close it. Lynn Zhao: Okay. All right. Yeah. This concludes today's conference call. Thank you for attending. Dave Holmes: Thanks, everyone. Lynn Zhao: Bye now. Operator: Host ended the conference. Goodbye. Before you buy stock in Socket Mobile, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Socket Mobile wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $386,727!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,232,139!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 3, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Socket Mobile (SCKT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was negatively impacted by continued challenges in the retail scanning business, specifically within the Shopify ecosystem. Gross margin compression to 46.4% was primarily driven by underutilization of manufacturing capacity, leading to higher fixed costs per unit. Management is implementing a product rationalization strategy to cull non-revenue producing items and simplify the customer decision process. The company is aggressively deploying AI across engineering and administrative functions to maintain operational efficiency following selective headcount reductions. Strategic focus is shifting toward the industrial scanning market to reduce dependency on third-party software vendor sales cycles. Operating losses widened to $1.2 million as revenue declines outpaced the impact of ongoing cost-reduction initiatives. Cost-cutting measures, including headcount reductions, are slated to remain in effect for the remainder of 2026. Management expects the industrial scanning segment to grow as a percentage of total revenue over the coming quarters. The company plans to complete the organization-wide rollout of AI-driven efficiency tools during Q3 2026. Future revenue growth is dependent on the successful conversion of large-scale enterprise deals currently in phase two of rollout. Working capital management will rely on a combination of operating cash flow and an untapped bank line of credit. Inventory levels were reduced to $3.8 million to align with current demand and preserve cash. Management confirmed that no 'going concern' qualification was issued by auditors despite the current burn rate. Selective headcount reductions were implemented as part of a broader $2.6 million quarterly operating expense target. The company maintains an untapped bank line of credit as a secondary liquidity lever beyond operating cash. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed Socket Mobile remains a preferred and recommended supplier for Shopify. The revenue decline was attributed to broader retail market weakness rather than a change in partnership status. CFO Lynn Zhao stated there are currently no going concern issues and the company aims to fund operations through cash flow and an existing bank line. Management declined to comment on future convertible note financing, noting that such decisions require board approval and public disclosure. Industrial scanning accounted for approximately 10% of Q2 revenue, representing a shift toward direct enterprise sales. The industrial strategy leverages the adoption of iOS and Apple platforms in work environments to drive larger, multi-phase hardware rollouts. This shift is intended to hedge against the traditional model where Socket Mobile is dependent on third-party software designers to drive hardware sales.

Image source: The Motley Fool. Thursday, July 30, 2026 at 5:00 p.m. ET President and Chief Executive Officer - Dave Holmes Chief Financial Officer - Lynn Zhao Lynn Zhao: 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 the Section 21E of the Securities 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 the market acceptance of products, and the statements predicting trends, sales, and the market conditions and opportunities in the market in which Socket Mobile sells its products. Such a statement 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 the necessary working capital. The risk that market acceptance and the sales opportunities may not happen as anticipated, the risk that Socket's application partners and the 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 the 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. Dave Holmes: Thanks, Lynn. Good afternoon, everyone, and thank you for joining us today to discuss our results for the second quarter of 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 will 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 cull 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? Lynn Zhao: Thank you, Dave. Revenue for Q2 was at $3 million, compared to $3.9 million in the same quarter last year and the $3.7 million in Q1 2026. Gross margin for the quarter was 46.4%, compared with the 49.9% in Q2 2025 and the 51.3% in Q1 2026. The decline primarily reflects the underutilization of our manufacturing capacity at current production and the revenue levels, resulting in higher fixed manufacturing cost 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 $687,000 loss in Q2 2025 and the $767,000 in Q1 2026. Adjusted EBITDA for Q2 was a loss of approximately $745,000, compared with a loss of $100,000 in the prior quarter and the $298,000 in Q1 2026. Loss per share was at $0.16, compared with the $0.10 in Q2 2025 and the $0.11 in Q1 2026. Turning to the balance sheet, cash totaled $1.6 million as of June 30th, 2026, compared with the $1.7 million at March 31st, 2026. During the quarter, we continued to manage working capital and to maintain a disciplined approach to operating expenses. Inventory, net of reserves, was at $3.8 million as of June 30th, 2026, down from $3.9 million at March 31st, 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. To ask a question, please click raise hand or press nine on your telephone keypad. I will recognize you and unmute your line. Before asking your question, please state your full name and the company you represent. Are there any questions? Dave Holmes: I see we have a question. Lynn Zhao: Are there Oh, yeah. Hold on. Let me unmute. Steve. Dave Holmes: Steve. Lynn Zhao: Hi, Steve. Speaker 2: Good afternoon. 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? Dave Holmes: Yes, we are still a preferred supplier to Shopify. Nothing has changed there. Our revenue is down in retail and was down specific to the Shopify business over the last few quarters. We're still a recommended supplier for Shopify. Speaker 2: Okay. Our cash burn rate, are there any going concern issues? Has your auditor. Lynn Zhao: We are. Speaker 2: Has your auditor opined on a going concern issue or not? Lynn Zhao: No. No going concern issue was raised. Speaker 2: Our burn rate, looks like we took down some inventory to give us some cash, and we were $100,000 less, I think you said, than we were the prior quarter. Our burn rate, how's our burn rate looking? Are we good for another year worth of cash flow burn, or what's your horizon for that? Lynn Zhao: No, we try to fund our working capital with the operations, but we still have the bank line we could tap in that we haven't. Yeah, hopefully, with the management of the expenses and the growth of revenue, we can continue to support the operations. Speaker 2: Okay. 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 customers. That's great when the business is moving ahead and growing, but what do you guys do now 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. Dave Holmes: 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. 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 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. 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. Speaker 2: Okay. Have we had any successes with that? I know you had a few companies that were, I don't know, I'll call it beta testing, or they were trying out your equipment in the process to see if they liked it. Have we gotten any Hard purchase orders yet, or are we still more in the testing process and that's more of a 2027 kind of a thing? Dave Holmes: No, we've definitely had some purchases. I mentioned it was, I believe it was 10% of our revenue in Q2. It's not just a couple of people testing here and there anymore. They're really rolling these things out and, in some cases, we're in phase two of roll-outs. 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. 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. Yeah, we have seen some success, and we expect more of it in the second half of the year. Speaker 2: Okay, one final question. Lynn, We've done several 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? Lynn Zhao: 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, we're not going to comment anything before the information is released to public. Speaker 2: Okay. 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. Thank you. Appreciate the feedback today. I'll get off the call. Dave Holmes: Thanks, Steve. Lynn Zhao: Thank you, Steve. Are there any other questions? You can click or raise hand or press nine on your telephone keypad. I don't see any. Okay. Dave, I don't see other questions. Dave Holmes: I think we can go ahead and close it. Lynn Zhao: Okay. All right. Yeah. This concludes today's conference call. Thank you for attending. Dave Holmes: Thanks, everyone. Lynn Zhao: Bye now. Operator: Host ended the conference. Goodbye. Before you buy stock in Socket Mobile, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Socket Mobile wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,081!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,166,221!* Now, it’s worth noting Stock Advisor’s total average return is 889% — a market-crushing outperformance compared to 203% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of July 30, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Socket Mobile (SCKT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

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 CallManagement 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/745700078Meeting ID: 745700078 Dial-In: +1 (267) 930-4000Access 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 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 – View original content to download multimedia:https://www.prnewswire.com/news-releases/socket-mobile-reports-second-quarter-2026-results-302839330.html

FREMONT, Calif., May 5, 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 months ended March 31, 2026. First Quarter 2026 Financial Highlights: Revenue of $3.7 million, a 7% decrease from $4.0 million in both the prior-year quarter and Q4 2025. Gross margin of 51.3% compared with 50.4% in the prior-year quarter and 50.2% in the preceding quarter. Operating expenses of $2.7 million, an 8% decrease from $2.9 million in the prior-year quarter, but a 3% increase from $2.6 million in Q4 2025. Operating loss of $0.8 million, compared to $0.9 million in the prior-year quarter and $0.6 million in the preceding quarter. On March 27, 2026, the company completed a $0.5 million secured subordinated convertible note financing to strengthen its working capital position and support ongoing innovation. "We recognized that our first-quarter results fell short of expectations, reflecting broader customer caution and delayed spending," said Kevin Mills, President and CEO. "That said, we remain focused on the factors within our control. Our operational resilience remains strong. We have streamlined our cost structure while launching several critical products, including the S721 and our iPhone 17e solutions. In addition, the recent $0.5 million financing provides us with the runway needed to support ongoing operations and bridge to new high-value enterprise opportunities." "In Q1, we made meaningful progress in expanding our partner ecosystem, including the launch of native support for the SocketScan S721 and S741 barcode scanners on the Shopify platform. This integration allows Shopify merchants to leverage advanced Bluetooth® Low Energy technology to enhance retail operations and ID verification workflows. At the same time, we strengthened our position within the Apple ecosystem by introducing industrial scanning solutions, such as the XtremeScan and DuraSled families, designed for the new iPhone 17e. These hardware advancements are complemented by the continued rollout of CaptureSDK 2.0, providing developers with a more powerful and efficient toolkit for integrating high-performance data capture across iOS and Android applications." "Looking ahead, we remain committed to delivering reliable, high-quality data capture solutions that help our customers improve productivity, streamline operations, and stay competitive in dynamic markets. We look forward to sharing further updates during our upcoming conference call," Mills concluded. Conference Call The management of Socket Mobile will hold a conference call today at 2 P.M. Pacific (5 P.M. Eastern) to discuss the quarterly and year-end results and outlook for the future. The dial-in number to access the live conference call is (800) 237-1091, toll-free from within the U.S., or (848) 488-9280 (toll). 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, X, 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 computers 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 [email protected] Socket 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 – # # # View original content to download multimedia:https://www.prnewswire.com/news-releases/socket-mobile-reports-first-quarter-2026-results-302763154.html

Image source: The Motley Fool. Feb. 19, 2026 at 5 p.m. ET Chief Executive Officer — Kevin Mills Chief Financial Officer — Lynn Zhao Need a quote from a Motley Fool analyst? Email [email protected] Kevin Mills, Chief Executive Officer; and Lynn Zhao, Chief Financial Officer. Now I'll turn the call over to Kevin. Please go ahead. Kevin Mills: 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. Lynn Zhao: 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: [Operator Instructions] Our first question today comes from Steve Swanson, a private investor. Steve Swanson: Kevin, can you comment a little bit, we're 7 weeks into 2026. How are you feeling about the business right now? Kevin Mills: 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. Steve Swanson: 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? Kevin Mills: 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: [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. Lynn Zhao: Okay. Thank you everyone, for your time and for joining the call. Wishing you a good rest of the day. Operator: That concludes our meeting today. You may now disconnect. Before you buy stock in Socket Mobile, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Socket Mobile wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $511,411!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,238,736!* Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 199% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of April 21, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Socket Mobile (SCKT) Q4 2025 Earnings Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Q4 Revenue: $4 million, an 18% decrease year-over-year from $4.8 million, but a 28% increase sequentially from $3.1 million in Q3 2025. Q4 Gross Margin: 50%, compared to 51% in Q4 2024 and 48% in Q3 2025. Q4 Operating Expenses: $2.6 million, a 10% year-over-year decrease and a 2% sequential increase. Q4 Operating Loss: $730,000, compared to a $513,000 loss in Q4 2024 and a $1.2 million loss in Q3 2025. Q4 Net Loss Per Share: $1.43, compared to $0.00 in Q4 2024 and a loss of $0.15 in Q3 2025. Q4 Adjusted EBITDA: Loss of $94,000, compared to an EBITDA gain of $140,000 in Q4 2024 and a $540,000 loss in Q3 2025. Annual Revenue: $50 million, a 20% decrease year-over-year from $19 million in 2024. Annual Gross Margin: 49.7%, compared to 50.4% in 2024. Annual Operating Expenses: $10.7 million, down 10% from $11.9 million in 2024. Annual Operating Loss: $3.7 million, compared to a $2.8 million loss in 2024. Annual Net Loss Per Share: $1.81, compared to $0.30 in 2024. Annual Adjusted EBITDA: Negative $1.2 million, compared to negative $320,000 in 2024. Cash at Year-End: $2 million. Capital Expenditures: $5.5 million invested during the year. Inventory Net of Reserves: $4.2 million as of December 31, 2025, compared to $4.9 million at the end of the prior year. Warning! GuruFocus has detected 4 Warning Signs with SCKT. Is SCKT fairly valued? Test your thesis with our free DCF calculator. Release Date: February 19, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Socket Mobile Inc (NASDAQ:SCKT) maintained resilient gross margins despite challenging macroeconomic conditions, demonstrating effective cost management and operational efficiency. The company launched CaptureSDK 2.0, enhancing developer capabilities for seamless integration across iOS and Android platforms. Socket Mobile Inc (NASDAQ:SCKT) expanded its product line with innovative offerings such as the SocketScan S721 and XtremeScan v16e, catering to diverse market needs. The company's XtremeScan product was featured in the Apple Connected Worker series, generating significant interest from over 50 large companies. Socket Mobile Inc (NASDAQ:SCKT) strengthened its international presence, particularly in the APAC region, with official approval in Japan for its My Number Card readers. Q4 revenue decreased by 18% year-over-year, indicating a decline in sales performance. The company reported a Q4 operating loss of $730,000, an increase from the previous year's loss. Socket Mobile Inc (NASDAQ:SCKT) recognized a one-time adjustment of $10.7 million against deferred tax assets, impacting financial results. Net loss per share for Q4 was $1.43, a significant increase from $0.00 per share in the prior year. The company ended 2025 with only $2 million in cash, reflecting potential liquidity concerns. Q: Good afternoon. Hey, Kevin, can you comment a little bit, we're seven weeks into 2026. How are you feeling about the business right now? A: 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. Q: We've been trying to get into the warehousing and logistics business for a while now. Have we had any successes yet? A: 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. 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. We corrected the initial oversight regarding the camera in our XtremeScan product, and the second generation is a large step forward in terms of performance and benefit to the end user. For the complete transcript of the earnings call, please refer to the full earnings call transcript.