Socket Mobile Inc. reported fourth‑quarter 2025 revenue of $4.0 million, a decline of 18% from $4.8 million in the same period a year earlier. The company posted a net loss per share of $1.43, driven largely by a one‑time restructuring charge of $10.7 million and higher operating costs. Gross profit for the quarter was $1.99 million, giving a gross margin of 50.2%, slightly below the 51.0% margin reported a year earlier. Operating expenses rose to $2.6 million, largely due to increased research and development and sales and marketing spend, while interest expense was reported at $141 thousand.
In the full year, Socket Mobile generated $15.1 million in revenue, down 19.6% from $18.8 million in 2024. The company recorded a net loss per share of $1.81 and a full‑year operating loss of $3.2 million, compared with a $2.5 million operating loss in 2024. Cash on hand at December 31, 2025 was $2.0 million, and the company had $1.5 million in convertible debt, underscoring a liquidity‑constrained environment.
"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 President and CEO Kevin Mills. He added, "While sales volumes were impacted by external headwinds, our gross margins remained resilient, supported by disciplined cost management and operational efficiency." Mills highlighted the launch of CaptureSDK 2.0, a unified development toolkit for iOS and Android, and the XtremeScan v16e, noting that the company also secured official approval in Japan for the S370 and S550 as certified "My Number Card" readers, expanding its presence in government services and digital identity authentication.
The revenue decline reflects macro‑economic weakness and a challenging distributor environment, but the company’s gross margin resilience indicates a favorable product mix and effective cost control. Socket Mobile’s strategic pivot from retail scanners to industrial handheld computers is evident in the continued investment in CaptureSDK 2.0 and the XtremeScan v16e, as well as the expansion into new markets such as Japan. However, the liquidity constraints—$2.0 million in cash and $1.5 million in convertible debt—highlight the need for careful cash management as the company navigates this transition.
Overall, Socket Mobile’s earnings underscore the company’s ongoing challenges, yet the resilient gross margins and strategic product initiatives suggest a focus on long‑term growth in industrial and enterprise markets. The results also signal that the company must manage its cash position closely while pursuing its pivot to higher‑margin industrial handheld solutions.
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