Socket Mobile Reports First Quarter 2026 Results

Socket Mobile (NASDAQ: SCKT) reported GAAP results for Q1 2026 ended March 31, 2026.

Rhea-AI Summary

Socket Mobile (NASDAQ: SCKT) reported GAAP results for Q1 2026 ended March 31, 2026. Revenue was $3.7 million, down 7% from $4.0 million a year earlier and from Q4 2025. Gross margin rose to 51.3%. Operating loss was $0.8 million. The company closed a $0.5 million secured subordinated convertible note on March 27, 2026 and highlighted new product launches and Shopify and Apple ecosystem integrations.

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On May 6, the first trading day after this news, SCKT closed 3.10% below the previous close.

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Key Figures

Q1 2026 revenue: $3.7M Q1 2026 gross margin: 51.3% Q1 2026 operating expenses: $2.7M +5 more

Q1 2026 revenue

$3.7M

Quarter ended March 31, 2026; down from $4.0M prior-year and Q4 2025

Q1 2026 gross margin

51.3%

Versus 50.4% prior-year and 50.2% in Q4 2025

Q1 2026 operating expenses

$2.7M

Down from $2.9M prior-year; up from $2.6M in Q4 2025

Q1 2026 operating loss

$0.8M

Versus $0.9M prior-year and $0.6M in Q4 2025

Prior-year Q1 revenue

$4.0M

Q1 2025 revenue; baseline for 7% Q1 2026 decline

Q4 2025 revenue

$4.0M

Sequential comparison point for Q1 2026 revenue

Convertible note financing

$0.5M

Secured subordinated convertible note completed March 27, 2026

Conference call time

2 P.M. PT / 5 P.M. ET

Q1 2026 results discussion on May 5, 2026

Previous Earnings Reports

5 past events · Latest: Oct 22

Same Type 5 events

1. Oct 22

   Q3 2025 earnings

   24h Move

   -2.3%

   Q3 2025 revenue down 20% YoY and 23% sequential with operating loss.

2. Jul 31

   Q2 2025 earnings

   24h Move

   -0.8%

   Q2 2025 revenue declined 20% YoY with operating loss and headwinds.

3. Apr 24

   Q1 2025 earnings

   24h Move

   -6.2%

   Q1 2025 revenue fell 20% YoY and 18% sequential with higher loss.

4. Feb 25

   Q4 2024 & FY24

   24h Move

   -1.6%

   Q4 2024 revenue and margin improved, but company still posted losses.

5. Oct 24

   Q3 2024 earnings

   24h Move

   -8.9%

   Q3 2024 revenue up YoY but down sequentially, with operating loss.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

gaap, secured subordinated convertible note, bluetooth low energy

3 terms

gaap financial

"reported financial results that are determined in accordance with generally accepted accounting principles in the United States ("GAAP")"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

secured subordinated convertible note financial

"completed a $0.5 million secured subordinated convertible note financing to strengthen its working capital"

A secured subordinated convertible note is a loan that a company borrows with specific assets pledged as collateral, ranks below higher-priority debts for repayment, and gives the lender the option to convert the loan into company shares. For investors this matters because the collateral can reduce loss risk, the subordination means repayment is less likely if the company struggles, and conversion creates potential equity upside but also possible share dilution.

bluetooth low energy technical

"advanced Bluetooth® Low Energy technology to enhance retail operations and ID verification workflows"

Bluetooth Low Energy is a wireless communication standard that lets small devices exchange short bursts of data over short distances while using very little battery power. For investors it matters because it enables products like fitness trackers, smart-home sensors and wireless accessories to run longer on small batteries and connect seamlessly, affecting product appeal, component demand, licensing and overall market growth—like a whisper that makes many gadgets practical.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FREMONT, Calif., May 5, 2026 /PRNewswire/ -- Socket Mobile, Inc. (NASDAQ: SCKT), a leading provider of data capture and delivery solutions for enhanced workplace productivity, today reported financial results that are determined in accordance with generally accepted accounting principles in the United States ("GAAP") for the three months ended March 31, 2026.

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 Kevin Mills, President and CEO. "That said, we remain focused on the factors within our control. Our operational resilience remains strong. We have streamlined our cost structure while launching several critical products, including the S721 and our iPhone 17e solutions. In addition, the recent $0.5 million financing provides us with the runway needed to support ongoing operations and bridge to new high-value enterprise opportunities."

"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 Socket Mobile will hold a conference call today at 2 P.M. Pacific (5 P.M. Eastern) to discuss the quarterly and year-end results and outlook for the future. The dial-in number to access the live conference call is (800) 237-1091, toll-free from within the U.S., or (848) 488-9280 (toll).

About Socket Mobile, Inc.
Socket Mobile is a leading provider of data capture and delivery solutions for enhanced productivity in workforce mobilization. Socket Mobile's revenue is primarily driven by the deployment of third-party barcode-enabled mobile applications that integrate Socket Mobile's cordless barcode scanners and contactless readers/writers. Mobile Applications servicing the specialty retailer, field service, digital ID, transportation, and manufacturing markets are the primary revenue drivers. Socket Mobile has a network of thousands of developers who use its software developer tools to add sophisticated data capture to their mobile applications. Socket Mobile is headquartered in Fremont, Calif., and can be reached at +1-510-933-3000 or www.socketmobile.com. Follow Socket Mobile on LinkedIn, X, and keep up with our latest News and Updates.

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:
Lynn Zhao
Chief Financial Officer
510-933-3016
lynn@socketmobile.com

Socket is a registered trademark of Socket Mobile. All other trademarks and trade names contained herein may be those of their respective owners.

© 2026, Socket Mobile, Inc. All rights reserved.

 – Financial tables to follow –

Socket Mobile, Inc.
Condensed Summary Statements of Operations
(Amounts in thousands except per share amounts)
	Three months ended March 31,
	2026	2025
Revenue	$3,700	$3,966
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.

Socket Mobile, Inc.
Condensed Summary Balance Sheets
(Amounts in Thousands)
	(Unaudited) March 31, 2026	December 31, 2025*
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)
Treasury stock	(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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SOURCE Socket Mobile, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Socket Mobile's Q1 2026 revenue and gross margin (SCKT)?

Revenue was $3.7 million and gross margin was 51.3%. According to Socket Mobile, revenue declined 7% from $4.0 million in the prior-year quarter and Q4 2025, while gross margin improved versus both prior comparisons.

How large was Socket Mobile's operating loss in Q1 2026 and how did it compare to prior periods (SCKT)?

Operating loss was $0.8 million for Q1 2026. According to Socket Mobile, that compares with a $0.9 million loss in the prior-year quarter and a $0.6 million loss in the preceding quarter.

Did Socket Mobile raise capital in Q1 2026 and how much was it (SCKT)?

Yes. Socket Mobile completed a $0.5 million secured subordinated convertible note on March 27, 2026. According to Socket Mobile, the financing was intended to strengthen working capital and support ongoing operations and innovation.

What product and platform developments did Socket Mobile announce in Q1 2026 (SCKT)?

Socket Mobile announced new hardware like the S721, iPhone 17e solutions, XtremeScan, and DuraSled families, plus Shopify native support. According to Socket Mobile, integrations target retail and ID verification workflows and include CaptureSDK 2.0 rollout for developers.

When is Socket Mobile's Q1 2026 conference call and how can investors join (SCKT)?

The conference call was scheduled for May 5, 2026 at 2 P.M. Pacific / 5 P.M. Eastern. According to Socket Mobile, U.S. toll-free dial-in is (800) 237-1091 and international dial-in is (848) 488-9280.