Socket Mobile Q3 2026 net loss narrows to $789K
The quarter’s higher revenue and lower operating expenses coincided with a smaller net loss, while nine-month sales were below 2025.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Socket Mobile, Inc. reported third-quarter 2026 revenue of $3.388 million, up 9% from a year earlier and 12% sequentially. Operating expenses were $2.291 million, down 10% year over year and 12% sequentially, while net loss narrowed to $789,000 from $1.198 million. Gross margin was 48.6%, compared with 47.7% a year earlier.
For the first nine months, revenue was $10.121 million versus $11.115 million in 2025, and net loss was $3.035 million versus $2.984 million. Cash was $1.403 million at September 30, 2026, compared with $2.032 million at December 31, 2025. Management expects to continue cost-management initiatives through year-end and reported commercial partnerships with 3Eye Technologies and Orda.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter revenue reached $3.388 million, up 9% year over year.
- Moderate pointThird-quarter net loss narrowed to $789,000 from $1.198 million.
Negative
- Moderate pointNine-month revenue declined to $10.121 million from $11.115 million.
8-K Event Classification
Key Figures
Key Terms
GAAP financial
subordinated convertible notes payable financial
deferred revenue on shipments to distributors financial
Earnings Snapshot
The company expects to continue its cost management initiatives through the remainder of the year while pursuing opportunities to expand its data capture solutions across key markets.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What was SCKT's third-quarter 2026 revenue?
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Which commercial partnerships did Socket Mobile identify?
AI-generated analysis. How Rhea-AI works. Not financial advice.
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 November 4, 2026, Socket Mobile, Inc. issued a press release reporting its results for the three and nine months ended September 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 November 4, 2026, titled "Socket Mobile Reports Third Quarter and Nine Months 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: November 4, 2026
Exhibit 99.1
Socket Mobile Reports Third Quarter and Nine Months 2026 Results
FREMONT, Calif., – November 4, 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 nine months ended September 30, 2026.
Third Quarter 2026 Financial Highlights:
| · | Revenue of $3.4 million, reflecting a 9% increase compared to $3.1 million for the prior year’s quarter, and a 12% sequential increase compared to $3.0 million for the preceding quarter. |
| · | Gross margin of 48.6% versus 47.7% in the prior year’s quarter and 46.4% in the preceding quarter. |
| · | Operating expenses of $2.3 million, compared to $2.5 million in the prior year period and $2.6 million in the preceding quarter. |
| · | Operating loss amounted to $643,000, compared to a $1,058,000 loss in the prior year’s quarter, and a loss of $1,195,000 in the preceding quarter. |
| · | Cash balance as of September 30, 2026, was approximately $1.4 million, slightly lower from $1.6 million at June 30, 2026. |
“Our third-quarter results reflect progress in stabilizing revenue while executing our cost management initiatives,” said Dave Holmes, President and Chief Executive Officer. “Revenue increased 12% sequentially from the second quarter and 9% compared with the prior-year quarter, reflecting improved performance amid continued market uncertainty. At the same time, we continued to align our cost structure with business conditions, reducing operating expenses by 12% from the prior quarter and 10% year over year. These results reflect our ongoing focus on operational efficiency and financial discipline while maintaining our ability to support customers and pursue future growth opportunities.”
During the quarter, the Company continued to expand its commercial reach across multiple vertical markets through strategic partnerships, including 3Eye Technologies, which supports industrial mobility solutions for Apple-based frontline workflows, and Orda, which provides integrated mobile ordering and self-checkout solutions for enterprise workplace dining environments.
The Company expects to continue its cost management initiatives through the remainder of the year while pursuing opportunities to expand its data capture solutions across key markets. Management believes that disciplined expense management, stabilizing revenue, and expanding commercial opportunities will help position the Company for continued operational improvement.
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/118843084
Meeting ID: 118843084
Dial-In: +1
(267) 930-4000
Access Code / Meeting ID: 118843084
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 Sept 30, | Nine months ended Sept 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenue | $ | 3,388 | $ | 3,107 | $ | 10,121 | $ | 11,115 | ||||||||
| Cost of revenue | 1,740 | 1,626 | 5,168 | 5,618 | ||||||||||||
| Gross margin | 1,648 | 1,481 | 4,953 | 5,497 | ||||||||||||
| Gross margin percent | 48.6 | % | 47.7 | % | 48.9 | % | 49.5 | % | ||||||||
| Research & development | 930 | 1,027 | 3,073 | 3,260 | ||||||||||||
| Sales & marketing | 600 | 935 | 2,311 | 3,066 | ||||||||||||
| General & administrative | 761 | 577 | 2,168 | 1,800 | ||||||||||||
| Total operating expenses | 2,291 | 2,539 | 7,552 | 8,126 | ||||||||||||
| Operating loss | (643 | ) | (1,058 | ) | (2,599 | ) | (2,629 | ) | ||||||||
| Interest expense, net | (146 | ) | (140 | ) | (436 | ) | (355 | ) | ||||||||
| Net loss | $ | (789 | ) | $ | (1,198 | ) | $ | (3,035 | ) | $ | (2,984 | ) | ||||
| Net loss per share: | ||||||||||||||||
| Basic | $ | (0.09 | ) | $ | (0.15 | ) | $ | (0.37 | ) | $ | (0.38 | ) | ||||
| Fully diluted | $ | (0.09 | ) | $ | (0.15 | ) | $ | (0.37 | ) | $ | (0.38 | ) | ||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 8,313 | 7,961 | 8,231 | 7,910 | ||||||||||||
| Fully diluted | 8,313 | 7,961 | 8,231 | 7,910 | ||||||||||||
Socket Mobile, Inc.
Condensed Summary Balance Sheets
(Amounts in Thousands)
| (Unaudited) Sept 30, 2026 | December 31, 2025* | ||||||
| Cash | $ | 1,403 | $ | 2,032 | |||
| Accounts receivable | 1,328 | 1,711 | |||||
| Inventories | 3,401 | 4,221 | |||||
| Deferred costs on shipments to distributors | 144 | 122 | |||||
| Other current assets | 552 | 548 | |||||
| Property and equipment, net | 1,755 | 2,125 | |||||
| Intangible assets, net | 1,209 | 1,305 | |||||
| Operating leases right-of-use assets | 1,680 | 2,087 | |||||
| Other long-term assets | 286 | 286 | |||||
| Total assets | $ | 11,758 | $ | 14,437 | |||
| Accounts payable and accrued liabilities | $ | 1,785 | $ | 2,023 | |||
| Subordinated convertible notes payable | 200 | 400 | |||||
| Subordinated convertible notes payable, net of discount - related party | 5,067 | 5,083 | |||||
| Short-term borrowings - related party | 425 | — | |||||
| Deferred revenue on shipments to distributors | 512 | 336 | |||||
| Deferred service revenue | 95 | 28 | |||||
| Operating lease liabilities | 1,862 | 2,289 | |||||
| Total liabilities | $ | 9,946 | $ | 10,159 | |||
| Common stock | 70,439 | 69,870 | |||||
| Accumulated deficit | (67,589 | ) | (64,554 | ) | |||
| Treasury stock | (1,038 | ) | (1,038 | ) | |||
| Total equity | $ | 1,812 | $ | 4,278 | |||
| Total liabilities and equity | $ | 11,758 | $ | 14,437 | |||
*Derived from audited financial statements.
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