Socket Mobile Reports Fourth Quarter 2025 and Full Year Results

Rhea-AI Summary

Socket Mobile (NASDAQ: SCKT) reported GAAP results for Q4 and full-year 2025. Q4 revenue was $4.0M, down 18% YoY but up 28% sequentially; Q4 gross margin was 50.2%. Full-year revenue was $15.1M, down 19.6% YoY; operating loss was $3.2M. The company recorded a one-time $10.7M valuation allowance on deferred tax assets, producing a $10.7M income tax expense and a 2025 net loss per share of ($1.81).

The company highlighted product launches, Japan certification for S370/S550, and continued investment in R&D and global expansion while addressing macro and distributor headwinds.

Positive

• Q4 revenue rebounded sequentially by 28%
• Gross margin remained resilient at 50.2% in Q4
• Japan certification for S370 and S550 expands international opportunity

Negative

• Full-year revenue declined 19.6% YoY
• Recorded a one-time $10.7M valuation allowance causing material tax expense
• Full-year operating loss widened to $3.2M from $2.5M in 2024
• Net loss per share worsened to ($1.81) from ($0.30) in 2024

Market Reaction

-8.70% $1.05

15m delay 7 alerts

-8.70% Since News

$1.05 Last Price

$1.05 $1.16 Day Range

-$874K Valuation Impact

$9M Market Cap

1.1x Rel. Volume

Following this news, SCKT has declined 8.70%, reflecting a notable negative market reaction. Our momentum scanner has triggered 7 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $1.05. This price movement has removed approximately $874K from the company's valuation.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.

Key Figures

Q4 2025 Revenue: $4.0M FY 2025 Revenue: $15.1M Q4 2025 Gross Margin: 50.2% +5 more

8 metrics

Q4 2025 Revenue $4.0M Down 18% YoY from $4.8M; 28% sequential increase from Q3 2025 $3.1M

FY 2025 Revenue $15.1M vs $18.8M in 2024, a 19.6% year-over-year decrease

Q4 2025 Gross Margin 50.2% vs 51.0% prior-year quarter and 47.7% in Q3 2025

Q4 2025 Operating Loss $0.6M vs $0.4M loss prior-year quarter and $1.1M loss in Q3 2025

Valuation Allowance $10.7M One-time full valuation allowance on deferred tax assets as of Dec 31, 2025

Q4 2025 EPS ($1.43) vs $0.00 diluted EPS prior-year quarter and ($0.15) in Q3 2025

FY 2025 Operating Loss $3.2M vs operating loss of $2.5M in 2024

FY 2025 EPS ($1.81) vs net loss per share of ($0.30) in prior year

Market Reality Check

Price: $1.04 Vol: Volume 23,457 vs 20-day a...

high vol

$1.04 Last Close

Volume Volume 23,457 vs 20-day average 15,140 (relative volume 1.55x). high

Technical Price $1.04 trading above 200-day MA at $1.11 before results.

Peers on Argus

SCKT gained 9.62% on elevated volume while close peers showed mixed, mostly mode...

1 Up

SCKT gained 9.62% on elevated volume while close peers showed mixed, mostly modest moves between roughly -3% and +3%, indicating stock-specific trading rather than a broad hardware sector shift.

Historical Context

5 past events · Latest: Feb 12 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 12	Earnings date notice	Neutral	-0.9%	Announced timing of Q4 and full-year 2025 results and conference call.
Jan 12	Product launch	Positive	+2.9%	Launched SocketScan S721 Bluetooth scanner targeting Square iOS applications.
Jan 07	Product launch	Positive	+0.0%	Introduced DuraScan Terminal line DT841/DT862 for iPhone 16e with BLE connectivity.
Dec 10	Product launch	Positive	+2.4%	Launched XtremeScan v16e industrial barcode scanners optimized for iPhone 16e.
Dec 02	Product launch	Positive	+3.7%	Released DuraScan D751 rugged NFC/RFID reader and writer for mobile use.

Pattern Detected

Recent product launch announcements often saw modest positive or flat price reactions, with generally aligned moves between news tone and next‑day performance.

Recent Company History

Over the last few months, Socket Mobile has focused on expanding its hardware and software portfolio, including launches of the XtremeScan v16e, DuraScan D751 NFC/RFID reader, and SocketScan S721, plus new DuraScan Terminal models for the iPhone 16e. These device and SDK updates reinforced its position in mobile data capture. A prior release on Feb 12, 2026 set expectations for today’s Q4 and full-year 2025 earnings. The current results contextualize that product cadence with softer top-line performance and higher losses.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-08-22

An effective shelf registration on Form S-3 dated Aug 22, 2025 is on file, covering common and preferred stock with broad permitted resale methods. The filing notes anti-takeover provisions under Delaware Section 203. No usage of this shelf was recorded in the recent filing history provided.

Market Pulse Summary

The stock is down -8.7% following this news. A negative reaction despite management’s emphasis on pr...

Analysis

The stock is down -8.7% following this news. A negative reaction despite management’s emphasis on product innovation would fit concerns about the underlying financial trends. Revenue fell to $15.1M in 2025 from $18.8M, and a $10.7M valuation allowance sharply increased reported losses, with full‑year EPS at ($1.81). Past product news generated only modest gains, so renewed selling after earnings could reflect focus on declining sales and expanding operating losses rather than the broader product roadmap.

Key Terms

gaap, asc 740, bluetooth low energy, nfc/rfid

4 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.

asc 740 financial

"In accordance with ASC 740, the Company recognized a one-time adjustment"

ASC 740 is the U.S. accounting rule that tells companies how to record and report income taxes on their financial statements, including current taxes owed and future tax effects (deferred taxes). Think of it as a household’s tax worksheet that shows what you owe now versus what you’ll owe or save later; for investors it matters because tax balances and estimates affect reported profits, cash flow expectations, and the risk of adjustments from tax audits.

bluetooth low energy technical

"SocketScan S721 with Bluetooth Low Energy for faster pairing, improved connectivity"

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.

nfc/rfid technical

"the DuraScan D751 NFC/RFID reader, and the compact DuraScan D764"

NFC (near-field communication) and RFID (radio-frequency identification) are wireless technologies that let tiny tags or chips exchange information with a nearby reader without physical contact — like tapping a card, scanning a sticker on a package, or waving a key fob. They matter to investors because they drive contactless payments, inventory tracking, access control and automated data capture, influencing companies’ revenue streams, operating costs, product demand and exposure to security or privacy risks.

AI-generated analysis. Not financial advice.

FREMONT, Calif., Feb. 19, 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 and twelve months ended December 31, 2025.

Fourth Quarter 2025 Financial Highlights:

• Revenue of $4.0 million, an 18% decrease from $4.8 million in the comparable prior-year quarter, a 28% sequential increase from $3.1 million in Q3 2025.
• Gross margin of 50.2% compared with 51.0% in the prior-year quarter and 47.7% in the preceding quarter.
• Operating loss of $0.6 million compared with $0.4 million in the prior-year quarter and $1.1 million in the preceding quarter.
• In accordance with ASC 740, the Company recognized a one-time adjustment to record a full valuation allowance of $10.7 million against its deferred tax assets as of December 31, 2025.
• Net loss per share of ($1.43) compared with diluted earnings per share of $0.00 in the prior-year quarter and net loss per share of ($0.15) in the preceding quarter.

Full Year 2025 Financial Highlights:

• Revenue of $15.1 million, compared with $18.8 million in 2024, a 19.6% year-over-year decrease.
• Gross margin of 49.7% compared with 50.4% in 2024.
• Operating loss of $3.2 million compared with an operating loss of $2.5 million in 2024.
• Recording a 10.7 million valuation allowance on deferred tax assets resulted in a one-time 2025 income tax expense of $10.7 million, compared to an income tax benefit of $0.6 million in 2024.
• Net loss per share of ($1.81) compared with ($0.30) in the prior year.

"In 2025, despite a very challenging macroeconomic and distributor environment, we made significant progress strengthening our product portfolio, expanding our technology capabilities, and enhancing the value we deliver to our customers," said Kevin Mills, President, and Chief Executive Officer.

"We advanced our position in the mobile data capture market through a series of important innovations. We launched CaptureSDK 2.0, a unified, next‑generation development toolkit that makes it easier for developers to build seamless integrations across iOS and Android. We introduced the SocketScan S721 with Bluetooth Low Energy for faster pairing, improved connectivity, and lower power usage. We also expanded our hardware lineup with the XtremeScan v16e, the DuraScan D751 NFC/RFID reader, and the compact DuraScan D764 designed for Direct Part Mark applications. Each of these products reflects our commitment to delivering reliable, high‑performance tools that help customers operate more efficiently."

"We also strengthened our international presence, including receiving official approval in Japan for the S370 and S550 as certified 'My Number Card' readers—enabling broader use in government services, digital identity authentication, and Apple Wallet integrations. These achievements contributed to growing engagement across retail, industrial, hospitality, and enterprise markets," continued Mr. Mills.

"While sales volumes were impacted by external headwinds, our gross margins remained resilient, supported by disciplined cost management and operational efficiency. At the same time, we continued to invest in the product development and global reach that will drive long‑term value for our customers. We also took deliberate steps to reinforce our financial position and preserve the resources needed to support innovation and service."

"Looking ahead, we remain focused on delivering dependable, high‑quality data capture solutions that help our customers improve productivity, streamline operations, and stay competitive in dynamic markets. We are proud of the meaningful progress we achieved in 2025, and we sincerely appreciate the trust and support of our customers and partners as we continue to build for the future," concluded Mills.

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)
	Year ended Dec 31,		Three months ended Dec 31,
	(Unaudited) 2025	2024*	(Unaudited) 2025	2024*
Revenue	$ 15,078	$ 18,763	$    3,963	$    4,831
Cost of revenue	7,590	9,311	1,972	2,366
Gross profit	7,488	9,452	1,991	2,465
Gross profit percent	49.7 %	50.4 %	50.2 %	51.0 %
Research & development	4,351	4,721	1,091	1,119
Sales & marketing	3,990	4,414	924	1,106
General & administrative	2,366	2,779	566	651
Total operating expenses	10,707	11,914	2,581	2,876
Operating income (loss)	(3,219)	(2,462)	(590)	(411)
Interest expense	(496)	(331)	(141)	(102)
Loss before income taxes	(3,715)	(2,793)	(731)	(513)
Deferred income tax benefit (expense)	(10,663)	551	(10,663)	551
Net income (loss)	$(14,378)	$  (2,242)	$ (11,394)	$        38
Net income (loss) per share:
Basic	$    (1.81)	$    (0.30)	$    (1.43)	$     0.00
Fully diluted	$    (1.81)	$    (0.30)	$    (1.43)	$     0.00
Weighted average shares outstanding:    Basic    Fully diluted	7,925  7,925	7,558  7,558	7,971   7,971	7,605  7,703

*Derived from audited financial statements.

 

Socket Mobile, Inc. Condensed Summary Balance Sheets (Amounts in Thousands)
	(Unaudited) December 31, 2025	December 31, 2024*
Cash	$        2,032	$        2,492
Accounts receivable	1,711	1,588
Inventories	4,221	4,942
Deferred costs on shipments to distributors	122	143
Other current assets	548	431
Property and equipment, net	2,125	2,787
Deferred tax assets	--	10,663
Intangible assets, net	1,305	1,432
Operating leases right-of-use assets	2,087	2,604
Other long-term assets	286	264
Total assets	$      14,437	$      27,346
Accounts payable and accrued liabilities	$        2,023	$        1,977
Subordinated convertible notes payable, net of discount	400	150
Subordinated convertible notes payable, net of discount-related party	5,083	3,818
Deferred revenue on shipments to distributors	336	392
Deferred service revenue	28	31
Operating lease liabilities	2,289	2,817
Total liabilities	10,159	9,185
Common stock	69,870	69,374
Accumulated deficit	(64,554)	(50,175)
Treasury stock	(1,038)	(1,038)
Total equity	4,278	18,161
Total liabilities and equity	$      14,437	$      27,346

*Derived from audited financial statements.

 

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SOURCE Socket Mobile, Inc.

FAQ

What were Socket Mobile's Q4 2025 results (SCKT) announced on February 19, 2026?

Q4 2025 revenue was $4.0 million, down 18% year-over-year. According to the company, gross margin was 50.2% and operating loss was $0.6 million for the quarter.

Why did Socket Mobile report a large tax expense in 2025 (SCKT)?

The company recorded a $10.7 million valuation allowance that created a one-time income tax expense. According to the company, this adjustment fully reserved deferred tax assets as of December 31, 2025.

How did Socket Mobile's full-year 2025 revenue and EPS compare to 2024 (SCKT)?

Full-year 2025 revenue was $15.1 million, a 19.6% decline versus 2024, and net loss per share was ($1.81). According to the company, these reflect weaker sales and the one-time tax charge.

What product and market progress did Socket Mobile report for 2025 (SCKT)?

Socket Mobile launched CaptureSDK 2.0 and several scanners, and gained Japan certification for S370/S550. According to the company, these moves broadened developer tools and international use cases.

Will Socket Mobile discuss guidance or outlook after the Q4 2025 release (SCKT)?

Management held a conference call on February 19, 2026 at 2 P.M. Pacific to discuss results and outlook. According to the company, the call covered quarterly results and future focus areas.