Socket Mobile (SCKT)
NASDAQ:SCKT
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Socket Mobile
(NASDAQ:SCKT)
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Rating:44Neutral
Price Target:
$0.93
▼(-9.61% Downside)
Action:Reiterated
Date:05/21/26
The score is held down primarily by weak financial performance (large losses, cash burn, and elevated/volatile leverage) and a technically weak price trend below key moving averages. Valuation provides limited support due to unprofitability and no dividend, while the earnings call showed some sequential operational improvement that is outweighed by ongoing revenue decline and liquidity constraints; corporate events add delisting-related risk despite a modest liquidity benefit from the note maturity extension.
Positive Factors
High gross margins
Consistent ~50% gross margin indicates strong product-level economics in Socket Mobile's hardware business. That durable margin provides a meaningful buffer against cost pressure, enabling a clearer path to operating profitability if SG&A is managed and supporting reinvestment in product and channel development.
Negative Factors
Elevated and volatile leverage
Markedly elevated and unstable leverage materially reduces financial flexibility. High debt levels raise default and covenant risk, increase interest and borrowing costs, and constrain the company's ability to fund operations or absorb shocks—making sustainable recovery more dependent on successful financing or rapid cash-flow turnarounds.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Consistent ~50% gross margin indicates strong product-level economics in Socket Mobile's hardware business. That durable margin provides a meaningful buffer against cost pressure, enabling a clearer path to operating profitability if SG&A is managed and supporting reinvestment in product and channel development.
Read all positive factors
Socket Mobile (SCKT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.91M
Dividend YieldN/A
Average Volume (3M)19.41K
Price to Earnings (P/E)―
Beta (1Y)0.66
Revenue Growth-16.56%
EPS Growth-412.98%
CountryUS
Employees59
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)-1.79
Shares Outstanding8,240,958
10 Day Avg. Volume31,820
30 Day Avg. Volume19,408
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.89
Price to Sales (P/S)0.54
P/FCF Ratio>-0.01
Enterprise Value/Market Cap1.81
Enterprise Value/Revenue0.97
Enterprise Value/Gross Profit1.94
Enterprise Value/Ebitda-8.40
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Socket Mobile Business Overview & Revenue Model
Company Description
Socket Mobile, Inc. provides data capture and delivery solutions in the United States, Europe, Asia, and internationally. The company's products are incorporated into mobile applications used in point of sale, commercial services, asset tracking, ...
How the Company Makes Money
Socket Mobile primarily makes money by selling its data capture hardware—most notably cordless barcode scanners—into business workflows that require reliable scanning with smartphones, tablets, and PCs. Revenue is generated mainly from product sal...
Socket Mobile Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Negative
The call mixed positive operational and product progress (new SDK, device launches, Apple event interest, Japan certification, sequential revenue and margin improvement) against material financial challenges (year-over-year revenue decline, widened net losses and EPS deterioration, a $10.7M valuation allowance, negative full-year adjusted EBITDA and low cash balance). While product and market validation provide potential upside, the near-term financial and liquidity pressures and ongoing revenue declines dominate the narrative.Positive Updates
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.
Negative Updates
Year-over-Year Revenue Decline
Q4 revenue declined 18% year-over-year to $4.0M from $4.8M in Q4 2024. The company also reported FY 2025 revenue of $50M and stated this was a 20% decrease year-over-year (transcript lists FY 2024 revenue as $19M, which appears inconsistent).
Read all updates
Q4-2025 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
Guidance on the call was largely qualitative: management said they got off to a “reasonably good start” in January and are “on track for a reasonable Q1,” and they plan to spend a significant portion of 2026 pursuing high‑value opportunities surfaced by the December Apple Connected Worker event (including follow‑up activity and enterprise pipeline work); supporting metrics provided on the call include Q4 revenue of $4.0M (‑18% YoY, +28% sequential), Q4 gross margin 50% (vs 51% in Q4‑2024 and 48% in Q3‑2025), Q4 operating expenses $2.6M (‑10% YoY, +2% sequential), Q4 operating loss $0.73M (vs $0.513M loss in Q4‑2024 and $1.2M loss in Q3), a one‑time $10.7M valuation allowance on deferred tax assets, Q4 net loss per share $1.43 (vs $0.00 in Q4‑2024 and ‑$0.15 in Q3‑2025), Q4 adjusted EBITDA loss $94k (vs +$140k in Q4‑2024 and ‑$540k in Q3‑2025); full‑year metrics cited were revenue $50M (reported, down 20% YoY), full‑year gross margin 49.7% (vs 50.4% in 2024), operating expenses $10.7M (‑10% YoY), full‑year operating loss $3.7M (vs $2.8M), net loss per share $1.81 (vs $0.30), adjusted EBITDA ‑$1.2M (vs ‑$320k), year‑end cash $2.0M, cash used in operations $1.4M, capex $5.5M, proceeds from subordinated convertible notes $1.5M, and inventory net of reserves $4.2M (vs $4.9M prior year).Socket Mobile Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
12
Very Negative
Cash Flow
16
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.81M | 15.08M | 18.76M | 17.03M | 21.24M | 23.20M |
| Gross Profit | 7.39M | 7.49M | 9.45M | 8.46M | 10.37M | 12.44M |
| EBITDA | -1.71M | -1.37M | -881.60K | -1.73M | 833.33K | 3.41M |
| Net Income | -14.28M | -14.38M | -2.24M | -1.92M | 86.93K | 4.47M |
Balance Sheet | ||||||
| Total Assets | 13.90M | 14.44M | 27.35M | 28.74M | 28.60M | 25.58M |
| Cash, Cash Equivalents and Short-Term Investments | 1.71M | 2.03M | 2.49M | 2.83M | 3.62M | 6.10M |
| Total Debt | 8.14M | 6.06B | 6.79M | 6.28M | 5.24M | 2.23M |
| Total Liabilities | 10.35M | 10.16M | 9.19M | 9.32M | 8.28M | 5.53M |
| Stockholders Equity | 3.55M | 4.28M | 18.16M | 19.42M | 20.32M | 20.05M |
Cash Flow | ||||||
| Free Cash Flow | -1.82M | -1.25B | -1.31M | -2.12M | -1.29M | 1.45M |
| Operating Cash Flow | -1.29M | -1.25B | -521.49K | 48.56K | -111.42K | 2.14M |
| Investing Cash Flow | -538.16K | -537.13M | -715.52K | -2.16M | -1.18M | -691.77K |
| Financing Cash Flow | 1.83M | 1.33B | 902.34K | 1.32M | -1.18M | 2.52M |
Socket Mobile Technical Analysis
Positive
1.03
Price Trends
0.89
Positive
0.97
Negative
1.02
Negative
Market Momentum
<0.01
Negative
62.80
Neutral
65.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SCKT, the sentiment is Positive. The current price of 1.03 is above the 20-day moving average (MA) of 0.87, above the 50-day MA of 0.89, and above the 200-day MA of 1.02, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 62.80 is Neutral, neither overbought nor oversold. The STOCH value of 65.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SCKT.
Socket Mobile Risk Analysis
Socket Mobile disclosed 26 risk factors in its most recent earnings report. Socket Mobile reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Socket Mobile Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $45.93M | -92.28 | -1.56% | ― | 15.50% | 94.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $37.57M | -2.16 | -15.75% | ― | -18.35% | -170.78% | |
52 Neutral | $98.43M | -5.91 | -11.74% | ― | -6.38% | 41.73% | |
47 Neutral | $14.00M | -0.95 | -7.04% | ― | 11.39% | 30.41% | |
44 Neutral | $7.91M | -0.55 | -17.53% | ― | -16.56% | -412.98% | |
42 Neutral | $842.39K | >-0.01 | 120.74% | ― | -28.81% | -48.69% |
* Technology Sector Average
SCKT
Socket Mobile
0.96
-0.12
-11.11%
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Socket Mobile Corporate Events
Delistings and Listing ChangesRegulatory Filings and Compliance
Socket Mobile Receives Nasdaq Notice Over Minimum Bid
Negative
May 20, 2026
On May 19, 2026, Socket Mobile, Inc. disclosed that it had received a Nasdaq deficiency notice after its common stock traded below the $1.00 minimum bid price for 30 consecutive business days, triggering a 180-day compliance period ending November...
Business Operations and StrategyPrivate Placements and Financing
Socket Mobile Secures Convertible Note Financing for Liquidity
Neutral
Mar 30, 2026
On March 27, 2026, Socket Mobile, Inc. completed a $500,000 secured subordinated convertible note financing to bolster its working capital, issuing three-year notes maturing March 27, 2029, bearing 10% annual interest payable quarterly and secured...
Business Operations and StrategyPrivate Placements and Financing
Socket Mobile Extends Convertible Note Maturities to 2028
Positive
Mar 18, 2026
On May 26, 2023, Socket Mobile, Inc. completed a secured subordinated convertible note financing of $1.6 million and, on March 18, 2026, it entered into an agreement with the requisite noteholders to extend the maturity date of these notes from Ma...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.