Socket Mobile (SCKT) investor relations material

Executive summary

• Q1 2026 revenue was $3.7 million, down 7% year-over-year and sequentially from Q4 2025, reflecting continued customer caution and weaker demand in both domestic and international markets.

• Gross margin expanded to 51.3%, up from 50.4% in Q1 2025 and 50.2% in Q4 2025, due to disciplined cost structure and operational efficiencies.

• Operating expenses reduced by 8% year-over-year to $2.7 million, with notable reductions in sales and marketing costs due to lower headcount.

• Operating loss was $0.8 million, a slight improvement from $0.9 million in Q1 2025 but higher than $0.6 million in Q4 2025.

• Net loss for Q1 2026 was $0.9 million, or $0.11 per share, compared to $1.0 million, or $0.13 per share, in Q1 2025.

Financial highlights

• Revenue declined 7% year-over-year to $3.7 million, down from $4 million in Q1 2025 and Q4 2025.

• Gross profit was $1.90 million in Q1 2026 vs. $1.99 million in Q1 2025.

• Operating loss was $0.8 million, compared to $0.9 million in Q1 2025.

• Adjusted EBITDA loss was $300,000, better than $480,000 loss in Q1 2025 but worse than $94,000 loss in Q4 2025.

• Cash and cash equivalents at quarter end were $1.7 million, down from $2.0 million at year-end 2025.

Outlook and guidance

• Management remains confident in long-term growth prospects and is focused on expanding product offerings, supporting app providers, and leveraging recent product launches and financing to pursue new enterprise opportunities.

• Industrial segment expected to represent about 10% of revenue in Q2, with stronger contribution anticipated in the second half of 2026.

• Pipeline and new product adoption provide confidence in a more diversified and sustainable business.