Socket Mobile Reports Second Quarter 2025 Results
Socket Mobile (NASDAQ: SCKT) reported challenging Q2 2025 financial results, with revenue declining 20% year-over-year to $4.04 million. The company faced significant headwinds, including weaker revenue trends and reduced distributor purchases due to tariff concerns.
Key financial metrics include a gross margin of 49.9%, operating expenses of $2.7 million, and an operating loss of $677,000. The company's cash position improved to $2.6 million, bolstered by a $1.5 million secured subordinated convertible note financing completed in May.
Despite challenges, Socket Mobile's new XtremeScan products are gaining market traction, particularly in iOS device integration for frontline workers. Management has implemented cost-saving measures to navigate the current market environment.
Socket Mobile (NASDAQ: SCKT) ha riportato risultati finanziari difficili nel secondo trimestre del 2025, con un fatturato in calo del 20% rispetto all'anno precedente, attestandosi a 4,04 milioni di dollari. L'azienda ha affrontato notevoli difficolt脿, tra cui tendenze di fatturato pi霉 deboli e una riduzione degli acquisti da parte dei distributori a causa di preoccupazioni sui dazi.
I principali indicatori finanziari includono un margine lordo del 49,9%, spese operative pari a 2,7 milioni di dollari e una perdita operativa di 677.000 dollari. La posizione di cassa dell'azienda 猫 migliorata a 2,6 milioni di dollari, supportata da un finanziamento tramite una nota convertibile subordinata garantita da 1,5 milioni di dollari completato a maggio.
Nonostante le difficolt脿, i nuovi prodotti XtremeScan di Socket Mobile stanno guadagnando terreno sul mercato, soprattutto nell'integrazione con dispositivi iOS per i lavoratori in prima linea. Il management ha adottato misure di contenimento dei costi per affrontare l'attuale contesto di mercato.
Socket Mobile (NASDAQ: SCKT) report贸 resultados financieros desafiantes en el segundo trimestre de 2025, con ingresos que disminuyeron un 20% interanual hasta 4,04 millones de d贸lares. La compa帽铆a enfrent贸 importantes obst谩culos, incluyendo tendencias de ingresos m谩s d茅biles y una reducci贸n en las compras de distribuidores debido a preocupaciones sobre aranceles.
Los principales indicadores financieros incluyen un margen bruto del 49,9%, gastos operativos de 2,7 millones de d贸lares y una p茅rdida operativa de 677,000 d贸lares. La posici贸n de efectivo de la empresa mejor贸 a 2,6 millones de d贸lares, impulsada por un financiamiento mediante una nota convertible subordinada garantizada de 1,5 millones de d贸lares completada en mayo.
A pesar de los desaf铆os, los nuevos productos XtremeScan de Socket Mobile est谩n ganando tracci贸n en el mercado, especialmente en la integraci贸n con dispositivos iOS para trabajadores de primera l铆nea. La direcci贸n ha implementado medidas de ahorro de costos para navegar el entorno actual del mercado.
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Socket Mobile (NASDAQ : SCKT) a publi茅 des r茅sultats financiers difficiles pour le deuxi猫me trimestre 2025, avec un chiffre d'affaires en baisse de 20 % sur un an, atteignant 4,04 millions de dollars. L'entreprise a fait face 脿 d'importants vents contraires, notamment des tendances de revenus plus faibles et une r茅duction des achats des distributeurs en raison de pr茅occupations li茅es aux tarifs douaniers.
Les principaux indicateurs financiers comprennent une marge brute de 49,9 %, des d茅penses d'exploitation de 2,7 millions de dollars et une perte d'exploitation de 677 000 dollars. La tr茅sorerie de la soci茅t茅 s'est am茅lior茅e 脿 2,6 millions de dollars, soutenue par un financement par billet convertible subordonn茅 garanti de 1,5 million de dollars finalis茅 en mai.
Malgr茅 les d茅fis, les nouveaux produits XtremeScan de Socket Mobile gagnent du terrain sur le march茅, notamment dans l'int茅gration des appareils iOS pour les travailleurs de premi猫re ligne. La direction a mis en place des mesures de r茅duction des co没ts pour naviguer dans l'environnement actuel du march茅.
Socket Mobile (NASDAQ: SCKT) meldete herausfordernde Finanzergebnisse f眉r das zweite Quartal 2025, mit einem Umsatzr眉ckgang von 20 % im Jahresvergleich auf 4,04 Millionen US-Dollar. Das Unternehmen sah sich erheblichen Gegenwinden gegen眉ber, darunter schw盲chere Umsatztrends und geringere Eink盲ufe der Vertriebspartner aufgrund von Zollbedenken.
Wichtige Finanzkennzahlen umfassen eine Bruttomarge von 49,9%, Betriebskosten von 2,7 Millionen US-Dollar und einen operativen Verlust von 677.000 US-Dollar. Die Barposition des Unternehmens verbesserte sich auf 2,6 Millionen US-Dollar, gest眉tzt durch eine im Mai abgeschlossene gesicherte nachrangige Wandelanleihe in H枚he von 1,5 Millionen US-Dollar.
Trotz der Herausforderungen gewinnen die neuen XtremeScan-Produkte von Socket Mobile insbesondere bei der Integration in iOS-Ger盲te f眉r Mitarbeiter an vorderster Front Marktanteile. Das Management hat Kostensenkungsma脽nahmen umgesetzt, um das aktuelle Marktumfeld zu meistern.
- Secured $1.5M in convertible note financing to strengthen cash position
- Cash balance increased to $2.6M from $1.7M in previous quarter
- New XtremeScan products gaining market traction
- Sequential revenue increase of 2% from previous quarter
- Implementation of cost-saving measures including reduced operating expenses
- Revenue declined 20% year-over-year to $4.04M
- Operating loss increased to $677,000 from $535,000 in prior year
- Gross margin declined to 49.9% from 50.9% year-over-year
- Reduced distributor purchases due to tariff concerns
- Management expects headwinds to persist through remainder of year
Insights
Socket Mobile's 20% revenue decline and widening losses signal serious challenges despite cost-cutting efforts and new product initiatives.
Socket Mobile's Q2 2025 results reveal significant deterioration in the company's financial health. Revenue dropped
The company's gross margin deteriorated to
The cash position improved to
Management attributes the revenue decline to two key factors: a slower run rate and reduced purchases from distributors concerned about potential tariffs. The outlook remains challenging, with management explicitly stating they expect these headwinds to persist through the remainder of the year. The company's strategic response focuses on cost-saving measures and promoting their new XtremeScan products, which management claims are receiving positive initial customer reception.
Socket Mobile appears to be in a defensive position, taking on debt financing while cutting costs to weather what appears to be a prolonged downturn in their market. The mild sequential improvement and positive reception of new products offer small bright spots, but the overall financial trajectory remains concerning.
Second Quarter 2025 Financial Highlights:听
- Revenue of
$4.04 million 20% decrease compared to$5.08 million 2% sequential increase compared to$4.0 million - Gross margin of
49.9% versus50.9% in the prior year's quarter and50.4% in the preceding quarter. - Operating expenses of
$2.7 million $3.1 million $2.9 million - Operating loss amounted to
$677,000 $535,000 $894,000 - Cash balance as of June 30, 2025, was approximately
$2.6 million $1.7 million $1.5 million $2.5 million
"We continued to experience weaker revenue trends throughout Q2, driven by a slower run rate," said Kevin Mills, President, and Chief Executive Officer. "Additionally, concerns around potential tariffs led to significantly reduced purchases from our distributors. This resulted in a notable decline in bookings in Q2 2025, which in turn impacted our gross shipments."
"We expect these headwinds to persist through the remainder of the year. In response, we raised
"Despite the broader market challenges, our new XtremeScan products have been well received by initial customers and are gaining broader interest," he continued. "The XtremeScan products are being used in conjunction with iOS devices to enable frontline workers to capture data more precisely, respond more decisively, and execute critical tasks with greater speed and confidence."
"We look forward to sharing more details about our new product initiatives and strategies to drive revenue growth during our upcoming conference call," concluded Mr. Mills.听
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. To join the live conference, please use the conference link or dial (800) 237-1091听toll-free from within the
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
Forward-Looking Statements听
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 |
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Socket Mobile is a registered trademark of Socket Mobile. All other trademarks and trade names contained herein may be those of their respective owners.
漏 2025, Socket Mobile, Inc. All rights reserved.
鈥撎� Financial tables to follow 鈥�
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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, | |||
2025 | 2024 | 2025 | 2024 | |
Revenue | $听 4,042 | $听 5,081 | $听听 8,008 | $听听听 10,059 |
Cost of revenue | 2,024 | 2,497 | 3,992 | 4,970 |
Gross margin | 2,018 | 2,584 | 4,016 | 5,089 |
听听 Gross margin percent | 49.9听% | 50.9听% | 50.2听% | 50.6听% |
Research & development | 1,101 | 1,232 | 2,233 | 2,440 |
Sales & marketing | 1,025 | 1,154 | 2,131 | 2,185 |
General & administrative | 569 | 733 | 1,223 | 1,484 |
听听 Total operating expenses | 2,695 | 3,119 | 5,587 | 6,109 |
Operating loss | (677) | (535) | (1,571) | (1,020) |
Interest expense, net | (115) | (73) | (215) | (145) |
Income tax benefit (expense) | -- | -- | -- | -- |
Net loss | $听听 (792) | $听听 听(608) | $听听 (1,786) | $听听 (1,165) |
Net loss per share: | ||||
听听 Basic | $听 (0.10) | $听 听(0.08) | $听听听 (0.23) | $听听听 听(0.16) |
听听 Fully diluted | $听 (0.10) | $听 听(0.08) | $听听听 (0.23) | $听听听 听(0.16) |
Weighted average shares outstanding: 听听 Basic 听听 Fully diluted | 听 7,937 7,937 | 听 听听听听听听听 7,572 听听听听听听听 7,572 | 听听听 听 7,884 听 7,884 | 听听听 听 听7,511 听 听7,511 |
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Socket Mobile, Inc. | ||
Condensed Summary Balance Sheets | ||
(Amounts in Thousands) | ||
听(Unaudited) June 30, 2025 | December 31, | |
Cash | $听听听听听听 听2,605 | $听听听 听2,492 |
Accounts receivable | 1,772 | 1,588 |
Inventories | 4,844 | 4,942 |
Deferred costs on shipments to distributors Other current assets | 听听听听听听听听听听听听听 145 听听听听听听听听听听听听听 574 | 听听听听听听听听听听听听 143 听听听听听听听听听听听听 431 |
Property and equipment, net | 2,358 | 2,787 |
Deferred tax assets | 10,663 | 10,663 |
Intangible assets, net | 1,369 | 1,432 |
Operating leases right-of-use assets | 2,349 | 2,604 |
Other long-term assets | 286 | 264 |
Total assets | $听听听听听 26,965 | $听 27,346 |
Accounts payable and accrued liabilities | $听听听听听听听 1,850 | $听听听 1,977 |
Subordinated convertible notes payable, net of discount | 400 | 150 |
Subordinated convertible notes payable, net of discount-related party | 5,076 | 3,818 |
Deferred revenue on shipments to distributors | 374 | 392 |
Deferred service revenue | 听听听听听听听听听听听听听听听 30 听听听听听听听听听听 2,559 | 听听听听听听听听听听听听听听 31 听听听听听听听听 2,817 |
Total liabilities | $听听听听 10,289 | $听听 9,185 |
Common stock | 69,675 | 69,374 |
Accumulated deficit | (51,961) | (50,175) |
Treasury stock | (1,038) | (1,038) |
Total equity | $听听听 16,676 | $听 18,161 |
Total liabilities and equity | $听听听 26,965 | $听 27,346 |
*Derived from audited financial statements. | ||
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