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Socket Mobile Highlights Financial Performance for Q4 and 2025

Socket Mobile, Inc., a prominent provider of data capture technologies, has disclosed its financial results for the fourth quarter and the full year of 2025. The figures reveal challenges, including notable revenue declines, but also spotlight advancements in product development and broader market engagement.

Q4 Financial Performance

In the fourth quarter of 2025, Socket Mobile reported revenues of $4.0 million, which marks an 18% decrease compared to $4.8 million during the same period last year. This was, however, a sequential increase of 28% over the $3.1 million generated in the third quarter of 2025. The gross margin for the quarter settled at 50.2%, slightly lower than the 51.0% reported in Q4 of 2024, yet an improvement from 47.7% in Q3 2025.

Operating loss for the quarter expanded to $0.6 million from a loss of $0.4 million in the year-ago quarter and improved from a loss of $1.1 million in Q3 of 2025. The earnings per share (EPS) reflected a net loss of $1.43, in contrast to breakeven earnings in Q4 2024.

Significantly, Socket Mobile recognized a $10.7 million valuation allowance against its deferred tax assets, impacting its financial standing adversely.

Full-Year Insights

Looking at the entire year, Socket Mobile's revenue reached $15.1 million, down from $18.8 million in 2024, which translates to a year-over-year decrease of 19.6%. Meanwhile, the overall gross margin also dipped to 49.7% from 50.4% the previous year. The operating loss for 2025 widened to $3.2 million, exceeding the $2.5 million loss reported in 2024.

The shift in deferred income tax accounting led to a significant one-time expense, further exacerbating the net loss which was recorded at $14.4 million for the year, compared to just a $2.2 million loss in the previous year.

Strategic Advancements Amid Challenges

Despite these daunting figures, Kevin Mills, President, and CEO, expressed optimism regarding the firm's advancements in technology amidst a tough macroeconomic environment. He highlighted the rollout of numerous products, including CaptureSDK 2.0, designed to streamline developer integration across major platforms, a strategy to enhance customer tech engagement.

Additionally, the launch of the SocketScan S721—featuring Bluetooth Low Energy for improved speed and efficiency—alongside new hardware like the XtremeScan v16e and the DuraScan D751, points to an expansion in their technology offerings ideally suited for various industrial applications.

Mills underlined the company's commitment to innovation as a means of sustaining market relevance and supporting customer operational efficiency. For instance, Socket Mobile enhanced its presence in international markets, notably gaining approvals in Japan for certain products, allowing them to serve governmental needs and digital identity solutions effectively.

Focus on Future Prospects

The company remains keen on recovering from recent setbacks by continuing to invest in product development and global outreach. They aim to fortify their position in the ever-evolving mobile data capture sector. As they navigate market headwinds, Socket Mobile is determined to maintain operational efficiency, tighten cost management, and enhance product value for existing and new customers.

With a scheduled conference call set for later today, the executive team plans to discuss these results in detail and outline strategies going forward. This move reflects a commitment to transparency and engagement with stakeholders—a critical approach as they strive to regain momentum in a challenging market landscape.

Conclusion

In summary, while Socket Mobile faced tough financial realities in 2025 marked by revenue declines and increased operating losses, the company's strategic initiatives, innovative product enhancements, and ongoing investments into growth are poised to foster resilience and adaptability in future market conditions.