Q2 2026 revenue falls as Socket Mobile (NASDAQ: SCKT) loss widens
Rhea-AI Filing Summary
Socket Mobile, Inc. reported GAAP results for the three and six months ended June 30, 2026. Q2 2026 revenue was $3,033 thousand, down from $4,042 thousand in Q2 2025, with six-month revenue of $6,734 thousand versus $8,008 thousand a year earlier. Q2 gross margin was 46.4% compared with 49.9%.
The company recorded a Q2 operating loss of $1,195 thousand and net loss of $1,346 thousand, versus a net loss of $792 thousand in Q2 2025; basic and diluted loss per share was $0.16. As of June 30, 2026, cash was $1,605 thousand, total assets $12,370 thousand, total liabilities $9,987 thousand, and equity $2,383 thousand. Management cited ongoing retail market challenges and continued cost management initiatives.
Positive
- None.
Negative
- Q2 2026 revenue declined to $3,033 thousand from $4,042 thousand in Q2 2025, indicating a materially lower sales level.
- Net loss increased to $1,346 thousand in Q2 2026 from $792 thousand a year earlier, while equity decreased to $2,383 thousand from $4,278 thousand at December 31, 2025.
Filing Explained
At June 30, 2026, cash was $1,605 thousand and equity $2,383 thousand, both below year-end, while subordinated convertible notes remained liabilities.
The company’s July 30 Form 8-K reports completed GAAP results for the three and six months ended
At
8-K Event Classification
Key Figures
Key Terms
Gross margin percent financial
Deferred revenue on shipments to distributors financial
Operating leases right-of-use assets financial
Earnings Snapshot
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report
(Date of earliest event reported)
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
(Address of principal executive offices, including zip code)
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Item 2.02 Results of Operations and Financial Condition
On July 30, 2026, Socket Mobile, Inc. issued a press release reporting its results for the three and six months ended June 30, 2026. The full text of the press release is furnished as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
| Exhibit No. | Description | |
| 99.1 | Text of press release, dated July 30, 2026, titled "Socket Mobile Reports Second Quarter 2026 Results". | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SOCKET MOBILE, INC. | |||
| By: | /s/ Lynn Zhao | ||
|
Name: Lynn Zhao Vice President, Finance and Administration and Chief Financial Officer | |||
Date: July 30, 2026
Exhibit 99.1
Socket Mobile Reports Second Quarter 2026 Results
FREMONT, Calif., – July 30, 2026 – 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 six months ended June 30, 2026.
Second Quarter 2026 Financial Highlights:
| • | Revenue of $3.0 million, reflecting a 25% decrease compared to $4.0 million for the prior year’s quarter, and an 18% sequential decrease compared to $3.7 million for the preceding quarter. |
| • | Gross margin of 46.4% versus 49.9% in the prior year’s quarter and 51.3% in the preceding quarter. |
| • | Operating expenses of $2.6 million, compared to $2.7 million in the prior year period and the preceding quarter. |
| • | Operating loss amounted to $1,195,000, compared to a $677,000 loss in the prior year’s quarter, and a loss of $760,000 in the preceding quarter. |
| • | Cash balance as of June 30, 2026, was approximately $1.6 million, slightly lower from $1.7 million at March 31, 2026. |
"Our second-quarter results reflect the continued challenges in the retail market," said Dave Holmes, President and Chief Executive Officer. "While market conditions remain uncertain, we continue to focus on supporting our customers, executing our strategic priorities, and managing our business with financial discipline. We expect our cost management initiatives to continue throughout the remainder of the year as we align our operating expenses with current business conditions while maintaining our ability to support future growth opportunities."
The Company continues to focus on expanding opportunities for its data capture solutions across multiple vertical markets while maintaining disciplined expense management. Management believes these actions position the Company to respond effectively as customer demand improves.
Conference Call
Management of Socket Mobile will hold a conference call today at 2 P.M. Pacific (5 P.M. Eastern) to discuss the quarterly results and outlook for the future. Please attend the conference call using the information below:
Join Online:
https://v.ringcentral.com/join/745700078
Meeting ID: 745700078
Dial-In: +1
(267) 930-4000
Access Code / Meeting ID: 745700078
International Dial-In Numbers: https://v.ringcentral.com/teleconference
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, Twitter, 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 computer 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 Mobile 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 (Unaudited)
(Amounts in thousands except per share amounts)
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenue | $ | 3,033 | $ | 4,042 | $ | 6,734 | $ | 8,008 | ||||||||
| Cost of revenue | 1,625 | 2,024 | 3,428 | 3,992 | ||||||||||||
| Gross margin | 1,408 | 2,018 | 3,306 | 4,016 | ||||||||||||
| Gross margin percent | 46.4 | % | 49.9 | % | 49.1 | % | 50.2 | % | ||||||||
| Research & development | 1,053 | 1,101 | 2,143 | 2,233 | ||||||||||||
| Sales & marketing | 809 | 1,025 | 1,711 | 2,131 | ||||||||||||
| General & administrative | 741 | 569 | 1,407 | 1,223 | ||||||||||||
| Total operating expenses | 2,603 | 2,695 | 5,261 | 5,587 | ||||||||||||
| Operating loss | (1,195 | ) | (677 | ) | (1,955 | ) | (1,571 | ) | ||||||||
| Interest expense, net | (151 | ) | (115 | ) | (291 | ) | (215 | ) | ||||||||
| Income tax benefit (expense) | — | — | — | — | ||||||||||||
| Net loss | $ | (1,346 | ) | $ | (792 | ) | $ | (2,246 | ) | $ | (1,786 | ) | ||||
| Net loss per share: | ||||||||||||||||
| Basic | $ | (0.16 | ) | $ | (0.10 | ) | $ | (0.27 | ) | $ | (0.23 | ) | ||||
| Fully diluted | $ | (0.16 | ) | $ | (0.10 | ) | $ | (0.27 | ) | $ | (0.23 | ) | ||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 8,245 | 7,937 | 8,190 | 7,884 | ||||||||||||
| Fully diluted | 8,245 | 7,937 | 8,190 | 7,884 | ||||||||||||
Socket Mobile, Inc.
Condensed Summary Balance Sheets
(Amounts in Thousands)
| (Unaudited) June 30, 2026 | December 31, 2025* | ||||||
| Cash | $ | 1,605 | $ | 2,032 | |||
| Accounts receivable | 1,170 | 1,711 | |||||
| Inventories | 3,820 | 4,221 | |||||
| Deferred costs on shipments to distributors | 111 | 122 | |||||
| Other current assets | 548 | 548 | |||||
| Property and equipment, net | 1,771 | 2,125 | |||||
| Intangible assets, net | 1,241 | 1,305 | |||||
| Operating leases right-of-use assets | 1,818 | 2,087 | |||||
| Other long-term assets | 286 | 286 | |||||
| Total assets | $ | 12,370 | $ | 14,437 | |||
| Accounts payable and accrued liabilities | $ | 1,733 | $ | 2,023 | |||
| Subordinated convertible notes payable, net of discount | 350 | 400 | |||||
| Subordinated convertible notes payable, net of discount-related party | 5,490 | 5,083 | |||||
| Deferred revenue on shipments to distributors | 304 | 336 | |||||
| Deferred service revenue | 102 | 28 | |||||
| Operating lease liabilities | 2,008 | 2,289 | |||||
| Total liabilities | $ | 9,987 | $ | 10,159 | |||
| Common stock | 70,220 | 69,870 | |||||
| Accumulated deficit | (66,799 | ) | (64,554 | ) | |||
| Treasury stock | (1,038 | ) | (1,038 | ) | |||
| Total equity | $ | 2,383 | $ | 4,278 | |||
| Total liabilities and equity | $ | 12,370 | $ | 14,437 | |||
*Derived from audited financial statements.
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