Socket Mobile (SCKT) AI Stock Analysis

• Market Cap: $8.99M
• Dividend Yield: N/A
• Average Volume (3M): 14.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• Revenue Growth: 0.29%
• EPS Growth: -52.27%
• Country: US
• Employees: 59
• Sector: Technology
• Sector Strength: 83
• Industry: Computer Hardware
• EPS (TTM): -0.13
• Shares Outstanding: 7,921,521
• 10 Day Avg. Volume: 24,987
• 30 Day Avg. Volume: 14,906
• PEG Ratio: 0.17
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.67
• Enterprise Value/Market Cap: 1.56
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 1.57
• Enterprise Value/Ebitda: -3.14
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: $1.00 ▼(-12.28%Downside)

Socket Mobile's overall stock score reflects significant financial challenges with ongoing losses and negative cash flow. However, strategic investments in product and market diversification, as well as recent financing efforts, offer potential for future growth and stability. Technical indicators and valuation concerns offset some of the optimism from strategic initiatives.

Socket Mobile Business Overview & Revenue Model

Company Description

Socket Mobile, Inc. is a technology company that specializes in the design and production of mobile data capture devices. The company operates in sectors such as retail, healthcare, and logistics, providing handheld barcode scanners and RFID products. These devices are used for point-of-sale transactions, inventory management, and other data collection needs, offering seamless integration with various mobile platforms.

How the Company Makes Money

Socket Mobile generates revenue primarily through the sale of its data capture devices, including barcode scanners and RFID readers. Key revenue streams include direct sales to businesses and distribution through resellers and partners. The company also earns from software development kits (SDKs) that enable developers to integrate its hardware with mobile applications. Partnerships with mobile platform providers enhance its market reach and contribute to its earnings. Additionally, support and maintenance contracts provide a recurring revenue stream.

Socket Mobile Financial Statement Overview

Summary

Socket Mobile is facing challenges with declining revenue, negative profit margins, and deteriorating cash flows. Although the balance sheet remains relatively stable with a conservative debt-to-equity ratio, the persistent negative margins and declining stockholders' equity raise concerns about long-term financial health.

Income Statement

Socket Mobile has faced declining revenue over the past few years, with a significant drop from $23.2 million in 2021 to $18.8 million in 2024. Gross profit margin has decreased from 53.6% in 2021 to 50.4% in 2024, indicating pressure on profitability. The net profit margin has also been negative in recent years, with a -11.9% margin in 2024, reflecting ongoing losses. The EBIT and EBITDA margins have deteriorated further into negative territory, showing operational inefficiencies and challenges in managing operating expenses.

Balance Sheet

The balance sheet of Socket Mobile shows a manageable debt-to-equity ratio of 0.37 in 2024, which indicates a conservative leverage position. However, stockholders' equity has declined from $20 million in 2021 to $18.2 million in 2024, reflecting the impact of sustained losses. The equity ratio has remained relatively stable at 66.4% in 2024, suggesting a solid asset base relative to liabilities. Despite this stability, the declining equity position is a concern.

Cash Flow

Socket Mobile's cash flow situation is concerning, with operating cash flow falling to zero in 2024 from $48,562 in 2023, indicating challenges in cash generation from core operations. Free cash flow has been negative in recent years, highlighting issues in covering capital expenditures and potential liquidity constraints. The lack of cash flow growth and a negative free cash flow to net income ratio indicate cash flow management issues.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
17.75M	18.76M	17.03M	21.24M	23.20M	15.70M
	Gross Profit
8.94M	9.45M	8.46M	10.37M	12.44M	8.33M
	EBIT
-2.87M	-2.46M	-3.12M	-446.02K	2.70M	-4.35M
	EBITDA
-1.20M	-881.60K	-1.73M	833.33K	3.41M	-2.63M
	Net Income Common Stockholders
-2.68M	-2.24M	-1.92M	86.93K	4.47M	-3.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.83M	2.49M	2.83M	3.62M	6.10M	2.12M
	Total Assets
28.74M	27.35M	28.74M	28.60M	25.58M	15.61M
	Total Debt
6.28M	6.79M	6.28M	5.24M	2.23M	2.18M
	Net Debt
3.45M	4.29M	3.45M	1.62M	-3.87M	61.34K
	Total Liabilities
9.32M	9.19M	9.32M	8.28M	5.53M	4.44M
	Stockholders Equity
19.42M	18.16M	19.42M	20.32M	20.05M	11.17M
Cash Flow		Free Cash Flow
-1.94M	-1.31M	-2.12M	-1.29M	1.45M	267.96K
	Operating Cash Flow
-1.16M	-521.49K	48.56K	-111.42K	2.14M	804.45K
	Investing Cash Flow
-784.19K	-715.52K	-2.16M	-1.18M	-691.77K	-536.48K
	Financing Cash Flow
878.59K	902.34K	1.32M	-1.18M	2.52M	894.94K

Socket Mobile Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SCKT, the sentiment is Negative. The current price of 1.14 is above the 20-day moving average (MA) of 1.13, below the 50-day MA of 1.16, and below the 200-day MA of 1.24, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.72 is Neutral, neither overbought nor oversold. The STOCH value of 35.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SCKT.

Socket Mobile Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$11.91B	9.99	-7.22%	4.96%	7.31%	-8.91%
OSS	57 Neutral	$98.88M	―	-44.43%	―	-4.34%	-82.08%
TACT	55 Neutral	$35.69M	―	-25.34%	―	-25.06%	-1624.61%
INVE	52 Neutral	$75.34M	―	-22.95%	―	-77.64%	-243.23%
SCKT	51 Neutral	$8.99M	―	-14.72%	―	0.29%	-52.27%
UAVS	43 Neutral	$17.55M	―	-327.53%	―	-3.17%	90.94%
QMCO	41 Neutral	$62.72M	―	33.98%	―	-17.08%	-223.70%

Socket Mobile Corporate Events

Socket Mobile Holds 2025 Annual Stockholders Meeting

On June 4, 2025, Socket Mobile, Inc. held its virtual 2025 Annual Meeting of Stockholders where six directors were elected, executive compensation policies were approved, and Sadler, Gibb & Associates LLC was ratified as the independent public accountants for the fiscal year 2025. The meeting saw a quorum with 68.1% of total shares voted, resulting in the election of all nominated directors, approval of executive compensation with 91.3% affirmative votes, and ratification of the accounting firm with 94.3% affirmative votes.

Socket Mobile Completes Convertible Note Financing

On May 30, 2025, Socket Mobile, Inc. completed a $1,500,000 secured subordinated convertible note financing to enhance its working capital. The notes, maturing in 2028, offer a 10% annual interest rate and are convertible into common stock, with key company executives participating in the financing. This move underscores the company’s efforts to strengthen its financial position and involves significant insider participation, reflecting confidence in its strategic direction.