Socket Mobile (NASDAQ:SCKT) Announces Quarterly Earnings Results, Misses Estimates By $0.12 EPS

Socket Mobile (NASDAQ:SCKT) issued its quarterly earnings results on Wednesday. The company reported ($0.09) earnings per share for the quarter, missing the consensus estimate of $0.03 by ($0.12), FiscalAI reports. The company had revenue of $3.39 million for the quarter, compared to analysts’ expectations of $4.07 million. Socket Mobile had a negative return on equity of 423.92% and a negative net margin of 102.45%.

Here are the key takeaways from Socket Mobile’s conference call:

• Q3 revenue rose 9% year over year to $3.4 million, gross margin improved to 48.6%, and operating expenses fell. The operating loss narrowed to $644,000, while adjusted EBITDA loss improved to $262,000.
• Socket plans to move its stock listing from Nasdaq to the OTCID market after falling below Nasdaq’s $2.5 million stockholders’ equity requirement. The company expects lower listing and compliance costs, but the transition is a notable change in its public-market status.
• Cash was $1.4 million at quarter-end, down from $2 million at year-end, and the company received $425,000 in secured bridge financing bearing 10% interest. Socket also repaid $575,000 of convertible notes and converted another $50,000 into equity.
• Management cited new partnerships and industrial customer opportunities, including engagements in construction equipment, flooring, and automotive. It said revenue from these opportunities remains lumpy, with some expected in 2026 and others pushed into 2027.

Socket Mobile Trading Down 8.2%

Shares of NASDAQ:SCKT opened at $0.28 on Friday. Socket Mobile has a 52 week low of $0.28 and a 52 week high of $2.79. The company’s 50 day moving average is $0.52 and its two-hundred day moving average is $0.78. The company has a market cap of $2.28 million, a PE ratio of -0.15 and a beta of 1.46.

Analyst Ratings Changes

Separately, Weiss Ratings downgraded Socket Mobile from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Monday, October 26th. One analyst has rated the stock with a Sell rating. Based on data from MarketBeat.com, Socket Mobile currently has a consensus rating of “Sell”.

Socket Mobile Company Profile

Socket Mobile, Inc develops and sells data capture solutions designed to help businesses collect and transmit information using mobile devices. Its products include cordless barcode scanners, contactless and NFC readers, and related accessories used with smartphones, tablets, computers, and point-of-sale systems.

The company also provides software development tools and integration services, including its CaptureSDK and SocketCam solutions, which enable developers and business applications to incorporate barcode scanning and other data capture capabilities.