FKWL earnings analysis
What we found in FKWL's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Franklin Wireless reported a significant decline in revenue for Q3 2026, with net sales dropping 57.0% to $3,444,183 compared to $8,009,619 in Q3 2025. The company suffered a diluted EPS loss of -$0.02, expanding from a profit of $0.04 a year earlier, indicating ongoing financial struggles amidst shifts in market demand and key product discontinuations. Despite current financial challenges, management believes it has sufficient liquidity to support operations for at least one year.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Decline
- Net sales decreased by 57.0% to $3,444,183 from $8,009,619 in Q3 2025.
- EPS Deterioration
- Diluted EPS fell to -$0.02, down from a profit of $0.04 in Q3 2025.
- Improved Gross Margin
- Gross margin increased slightly to 16.1% in Q3 2026, despite lower sales.
- Cost Reduction in OpEx
- Operational expenses decreased by 37.8% to $2,064,899, down from $3,320,433 a year before.
- Strong Cash Position
- Cash and short-term investments available as of March 31, 2026 total $32,937,546.
- Positive R&D Spending Control
- R&D expense increased marginally to $816,331, showing controlled investment amid downturn.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Severe Revenue Reduction
- Net sales decreased by $11,041,622, or 28.2%, year-to-date, largely due to a major customer's product discontinuation.
- Cash Burn Increasing
- Net cash used in operating activities rose to $5,563,433 for 9 months ending March 31, 2026, from $490,230 in the previous year.
- Supply Chain Constraints
- Industry-wide memory shortages and supply chain disruptions are expected to impact product delivery schedules.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.02
- Gross margin
- 16.1%
What they said about what is next.
Management indicated they expect to maintain operations with current liquidity.
The filing reads worse than the one before it.
What came before.
- 10-Q · February 17, 2026
- Franklin Wireless reported Q2 net sales of $11,928,864 (down 33.1% vs $17,827,098 a year earlier) and diluted EPS of $0.05 (up from $0.02). Operating margin compressed to 0.4% (income from operations $48,717) while net…
- 10-Q · May 15, 2023
- Franklin Wireless reported a strong rebound in quarterly revenue to $11,851,971 (up 77.2% YoY) and returned to net income for the quarter ($211,639 consolidated; $247,629 attributable to the parent), producing diluted…
- 10-Q · November 14, 2022
- Franklin Wireless reported a strong topline recovery for the quarter with net sales rising 142.5% to $8,108,940 and gross margin expanding to 19.7% from 14.7% a year ago. Operating loss narrowed materially to $(615,893)…
- 10-K · September 13, 2022
- Franklin Wireless describes itself as a provider of mobile hotspots, routers, trackers and M2M/IoT solutions with embedded software and a majority ownership of R&D partner FTI in Seoul. Fiscal 2022 saw a precipitous…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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