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…
Earnings analysis · 10-Q
SCKT earnings analysis
Filed August 13, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.16
What stood out
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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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.
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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.
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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.
Management's outlook
No quantitative forward guidance or outlook was provided in the filing; numeric outlook may have been deferred to the earnings release or conference call.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.