Socket Mobile (SCKT) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $4.0 million, down 20% year-over-year and 18% sequentially, due to weaker demand in both domestic and international markets.

• Gross margin remained stable at 50.4%, compared to 50.3% in Q1 2024.

• Operating loss widened to $900,000 from $500,000 in Q1 2024.

• Net loss increased to $1.0 million, or $0.13 per share, versus $0.6 million, or $0.07 per share, in Q1 2024.

• Launched new XtremeScan products, entering the $27 billion mobile handheld computing market.

Financial highlights

• Revenue: $3,965,920 in Q1 2025, down from $4,977,797 in Q1 2024.

• Gross profit: $1,997,894 in Q1 2025, down from $2,504,757 in Q1 2024.

• Operating expenses: $2.9 million, slightly down from $3.0 million in Q1 2024.

• Cash balance: $1.7 million at quarter end, down from $2.5 million at year-end 2024.

• Diluted loss per share: $0.13, compared to $0.07 in Q1 2024.

Outlook and guidance

• Expectation to achieve positive EBITDA in Q2 and profitable operating levels in the second half of the year.

• Management remains confident in long-term growth prospects despite short-term demand fluctuations.

• Focus on cost control, operational efficiency, and product innovation to support future growth.

• Retail segment expected to remain flat until market certainty improves; industrial business expected to drive near-term growth, especially in the U.S.

• Management is monitoring tariff changes and supply chain impacts, planning strategic sourcing and pricing adjustments.