#United States #financial results #Fremont #Socket Mobile #XtremeScan

Socket Mobile Reports Q2 2025 Financial Results Amid Market Challenges

FREMONT, Calif. – Socket Mobile, Inc. (NASDAQ: SCKT), a prominent provider of data capture and delivery solutions enhancing workplace productivity, has released its financial outcomes for the second quarter of 2025. The figures are based on Generally Accepted Accounting Principles (GAAP) in the United States, covering the three and six months ending June 30, 2025.

Financial Overview

In Q2 2025, Socket Mobile reported revenues of $4.04 million, which marks a 20% decline from $5.08 million in the same quarter last year. On a positive note, there was a 2% sequential increase from the previous quarter’s revenue of $4.0 million. The company’s gross margin decreased to 49.9%, down from 50.9% year-over-year and 50.4% from the prior quarter.

Operating expenses were recorded at $2.7 million, notably lower than $3.1 million for the same period last year and $2.9 million in the preceding quarter. While there was an operating loss of $677,000, it is an increase from a $535,000 loss in the prior year, though an improvement from a loss of $894,000 in Q1 2025. Socket Mobile’s cash balance stood at approximately $2.6 million as of June 30, 2025, rising from $1.7 million at the end of Q1, largely attributed to a $1.5 million secured subordinated convertible note financing completed in May.

Challenges and Responses

Kevin Mills, President and CEO, shared insights on the company’s performance during a challenging economic environment. He remarked, “We continued to experience weaker revenue trends throughout Q2, driven by a slower run rate,” asserting that market apprehensions over potential tariffs significantly impacted purchasing decisions by distributors, resulting in a marked decline in bookings.

To navigate these difficulties, Socket Mobile raised $1.5 million through financing and initiated cost-saving measures, which included cutting down on operating expenses. Despite these difficulties, Mills expressed optimism for their new XtremeScan products, which have received positive feedback from initial users and appear to be gaining traction in the market. These products facilitate frontline workers in capturing data with greater accuracy and executing their tasks more competently using iOS devices.

Future Outlook

Looking ahead, Mills acknowledged the expectation for these market challenges to persist throughout the remainder of the year. However, he highlighted the upcoming conference call as an opportunity to discuss new product initiatives and strategies aimed at generating future revenue growth. The conference call will be held at 2 P.M. Pacific Time (5 P.M. Eastern Time), where stakeholders will have a chance to gain more insights into the company's strategies and financial outlook.

About Socket Mobile

Socket Mobile is committed to delivering innovative data capture and delivery solutions designed to improve productivity across various sectors, including specialty retail, field service, digital ID, and manufacturing. Its mobile applications integrate seamlessly with third-party barcode-enabled devices, positioning the company as a vital player in the technological advancement of workforce mobilization solutions. Socket Mobile's infrastructure includes a robust network of developers dedicated to enhancing the data capture capabilities within their mobile applications. Headquartered in Fremont, California, further information can be accessed at www.socketmobile.com or via phone at +1-510-933-3000.

Conclusion

While Socket Mobile faces ongoing market challenges, its focus on cost management, product enhancement, and strategic planning appears to position it favorably for potential future recovery. Investors and stakeholders look forward to learning more about the company's prospective developments during the upcoming conference call.