Q4 Sequential Revenue Recovery
Q4 revenue was $4.0M, up 28% sequentially from $3.1M in Q3 2025, indicating a quarter-over-quarter recovery in sales activity.
Resilient Gross Margins
Gross margin remained strong at 50% in Q4 (49.7% for FY 2025), only modestly below 51% in Q4 2024 and improved from 48% in Q3 2025, reflecting disciplined cost management and operational efficiency.
Product and Technology Progress
Launched CaptureSDK 2.0, introduced SocketScan S721 (BLE), expanded ruggedized portfolio (XtremeScan v16e, DuraScan D751 NFC/RFID, DuraScan D764), and released a corrected V2 XtremeScan addressing earlier camera shortcomings.
Enterprise Interest from Apple Event
XtremeScan was featured in Apple’s Connected Worker series (Dec 18) with attendance from over 50 large companies, producing follow-up activity and high-value opportunities to pursue in 2026.
Regional Certification and Market Expansion (APAC/Japan)
Received official approval in Japan for S370 and S550 as certified My Number Card readers, enabling broader government/digital identity use and supporting growth in retail, industrial and enterprise verticals in APAC.
Operating Expense Reduction
Operating expenses for Q4 were $2.6M, a 10% year-over-year decrease and full-year operating expenses declined 10% to $10.7M from $11.9M, primarily from employee cost management initiatives.
Improved Quarterly Profitability Metrics
Q4 operating loss narrowed to $730K from a $1.2M loss in Q3 2025; Q4 adjusted EBITDA loss improved to -$94K vs -$540K in Q3 2025, showing sequential improvement in profitability trends.