SCKT earnings analysis
What we found in SCKT'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
Q2 2026 revenue fell to $3.0 million from $4.0 million in both the prior quarter and prior-year quarter, while diluted EPS deteriorated to negative $0.16 from negative $0.11 sequentially and negative $0.10 year over year. The filing provides no quantitative guidance and does not include sufficient information in the supplied text to assess margins, cash flow, working capital or segment results. Continued losses, potential capital needs, distributor concentration of 43% and reliance on discretionary bank advances represent significant financial and operating risks.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue declined 25% year over year
- Q2 revenue was $3.0 million, down from $4.0 million in Q1 2026 and $4.0 million in Q2 2025, representing a 25% year-over-year decline.
- EPS loss widened
- Diluted EPS was negative $0.16, compared with negative $0.11 in Q1 2026 and negative $0.10 in Q2 2025, a deterioration of $0.05 sequentially and $0.06 year over year.
- Disclosure controls remained effective
- Management concluded that disclosure controls were effective as of June 30, 2026, and reported no change in internal control over financial reporting that materially affected, or was reasonably likely to materially affect, controls during the quarter.
- CEO employment agreement amended
- The company entered into a June 12, 2026 amendment to the CEO employment agreement covering the CEO’s title, base salary and annual bonus opportunity.
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.
- Ongoing losses may require capital
- The company states it may not return to profitability and could be required to use existing cash to fund operating losses; if unable to secure capital, it may need to suspend some or all operations.
- Credit availability and rate risk
- Bank credit facilities provide up to $3.0 million of capacity and bear interest at the lender’s prime rate, subject to a 4.25% minimum, plus 0.75%. Covenant noncompliance or termination could limit advances and accelerate repayment obligations.
- Distributor concentration remains material
- Ingram Micro, BlueStar and ScanSource represented approximately 43% of worldwide sales during the six months ended June 30, 2026, leaving revenue exposed to distributor concentration and channel inventory risks.
- Foreign-exchange exposure increased earnings risk
- A 10% adverse foreign-exchange movement would have reduced Q2 2026 net income by approximately $14,300; actual foreign-currency effects on cash balances, collections and payables produced a net loss of approximately $7,300.
- Potential equity dilution
- The company reports 8,291,681 common shares outstanding as of August 10, 2026, plus 1,285,548 shares subject to outstanding options and 699,227 restricted shares, creating potential future dilution and selling pressure.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.16
What they said about what is next.
No quantitative forward guidance or outlook was provided in the filing; numeric outlook may have been deferred to the earnings release or conference call.
The filing reads worse than the one before it.
What came before.
- 10-Q · May 13, 2026
- Socket Mobile reported Q1 2026 revenues of approximately $3.7 million, marking a 7% decrease from $4.0 million year-on-year. The company recorded a diluted EPS of -$0.11, an improvement over the -$0.13 from the same…
- 10-K · March 30, 2026
- Socket Mobile positions itself as a focused provider of Bluetooth-enabled data capture hardware and camera/software scanning (CaptureSDK/SocketCam) with recent product expansion (XtremeScan family expanded in 2024).…
- 10-Q · November 7, 2025
- Socket Mobile reported Q3 revenue of $3,106,842 (down from $3,872,336 in Q3 2024) and GAAP diluted EPS of $(0.15). Gross margin compressed to 47.67% and operating margin weakened to -34.07% as operating loss was…
- 10-Q · August 13, 2024
- Socket Mobile reported Q2 revenue of $5,081,398, essentially flat sequentially (+$103,601, ~+2.1%) and down slightly year-over-year (-$35,759, -0.7%). Gross margin was ~50.85% (down ~1.01 ppt YoY from 51.86%), operating…
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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