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
"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
About
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:
Chief Financial Officer
510-933-3016
lynn@socketmobile.com
Socket is a registered trademark of
© 2026,
– Financial tables to follow –
Condensed Summary Statements of Operations | ||
(Amounts in thousands except per share amounts) | ||
Three months ended | ||
2026 | 2025 | |
Revenue | ||
Cost of revenue | 1,803 | 1,968 |
Gross margin | 1,897 | 1,998 |
Gross margin percent | 51.3 % | 50.4 % |
Research & development | 1,090 | 1,132 |
Sales & marketing | 902 | 1,107 |
General & administrative | 665 | 653 |
Total operating expenses | 2,657 | 2,892 |
Operating loss | (760) | (894) |
Interest expense, net | (140) | (100) |
Net loss | $ (900) | $ (994) |
Net loss per share: | ||
Basic | $ (0.11) | $ (0.13) |
Fully diluted | $ (0.11) | $ (0.13) |
Weighted average shares outstanding: Basic Fully diluted | 8,136 8,136 | 7,829 7,829 |
*Derived from audited financial statements. |
Condensed Summary Balance Sheets | ||
(Amounts in Thousands) | ||
(Unaudited) |
| |
Cash | $ 1,710 | $ 2,032 |
Accounts receivable | 2,198 | 1,711 |
Inventories | 3,870 | 4,221 |
Deferred costs on shipments to distributors | 125 | 122 |
Other current assets | 567 | 548 |
Property and equipment, net | 1,919 | 2,125 |
Intangible assets, net | 1,273 | 1,305 |
Operating leases right-of-use assets | 1,953 | 2,087 |
Other long-term assets | 286 | 286 |
Total assets | $ 13,901 | $ 14,437 |
Accounts payable and accrued liabilities | $ 1,842 | $ 2,023 |
Subordinated convertible notes payable, net of discount | 500 | 400 |
Subordinated convertible notes payable, net of discount-related party | 5,487 | 5,083 |
Deferred revenue on shipments to distributors | 346 | 336 |
Deferred service revenue | 26 | 28 |
Operating lease liabilities | 2,151 | 2,289 |
Total liabilities | 10,352 | 10,159 |
Common stock | 70,040 | 69,870 |
Accumulated deficit | (65,453) | (64,554) |
(1,038) | (1,038) | |
Total equity | 3,549 | 4,278 |
Total liabilities and equity | $ 13,901 | $ 14,437 |
*Derived from audited financial statements. |
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