Socket Mobile (SCKT) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined 20% year-over-year to $4.0 million, reflecting weaker demand in both domestic and international markets.

• Gross margin remained stable at 50.4%, nearly flat year-over-year, indicating effective cost control.

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

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

• New XtremeScan products launched, marking entry into 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 year-over-year.

• Adjusted EBITDA loss was $485,000, compared to positive EBITDA of $40,000 in Q1 2024.

• Cash and cash equivalents: $1.7 million as of March 31, 2025, down from $2.5 million at year-end 2024.

Outlook and guidance

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

• Management remains confident in long-term growth prospects and is focused on cost control, operational efficiency, and product innovation.

• Retail segment expected to remain flat until market certainty improves; industrial business expected to grow, especially in the U.S.

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

• Focus on driving sales growth with new product launches and entry into new markets.