#United States #Q3 Results #Fremont #Socket Mobile #Data Capture

Socket Mobile Reports Third Quarter 2025 Results

On October 22, 2025, Socket Mobile, Inc. (NASDAQ: SCKT), a premier provider of advanced data capture and delivery solutions, announced their financial outcomes for the third quarter of 2025. As a company that specializes in enhancing workplace efficiency through innovative mobility applications, the results presented a mixed picture of performance under challenging market conditions.

Financial Snapshot

The financial summary for the quarter highlights a total revenue of $3.1 million, reflecting a 20% drop compared to the same quarter last year where revenue stood at $3.9 million, and a 23% decline from the previous quarter's $4.0 million. This decline is particularly concerning as it shows a significant downward trend, underscoring the current market difficulties.

Despite the revenue drop, Socket Mobile reported a gross margin of 47.7%, slightly down from 49.0% in the same period last year and from 49.9% in the previous quarter, indicating a decline in profitability.

Operating expenses were reported at $2.5 million, which represents a positive reduction compared to $2.9 million in the prior year and $2.7 million in the previous quarter. However, the company still faced an operating loss of $1,058,000. This marks a slight increase in losses from $1,031,000 in the same period last year and a larger loss compared to $677,000 from the previous quarter.

As of the close of Q3 on September 30, 2025, the cash balance read at approximately $2.0 million, down from $2.6 million at June 30, 2025, and $2.5 million at the end of 2024. This drop indicates ongoing challenges in maintaining liquidity and operational sustainability.

Insights from Leadership

Kevin Mills, President and CEO of Socket Mobile, acknowledged, “While Q3 is typically a slower quarter for us, the fact that our sales to end-users have remained stable compared to Q2 is encouraging in light of the challenging market.”

Mills pointed out that slower distributor bookings and reduced channel inventories were significant contributors to the decline in reported revenue. He noted that several deployment agreements faced delays, largely due to cautious spending from customers who are focusing on cash preservation.

Despite the headwinds, Mills suggested that stable sales from distributors and lower inventory levels could mean that inventories might soon need to be replenished to maintain current operational rates. In response to the softer business environment, the company has enacted cost-saving measures, resulting in a 13% decrease in operating expenses compared to the same quarter the previous year and a 6% reduction from the prior quarter.

“Our XtremeScan products continue to gain attention, although the sales cycle can be prolonged,” added Mills. He expressed the company’s ongoing commitment to investing in both new and existing products targeting the industrial market, aiming to foster long-term revenue growth.

Looking Ahead

Socket Mobile is gearing up to provide more insights regarding its new product initiatives and strategic revenue growth approaches during their upcoming conference call scheduled for today at 2 PM Pacific Time. Those interested in joining the call can use the provided conference link or call in at (800) 237-1091 toll-free from within the U.S., or (848) 488-9280 for those outside.

Socket Mobile remains a key player in the field of workplace productivity through their sophisticated mobile barcode solutions. As the company navigates these testing economic waters, investors and stakeholders alike will be keenly observing how these strategies unfold in forthcoming quarters.