Socket Mobile (SCKT) AI Stock Analysis

• Market Cap: $8.35M
• Dividend Yield: N/A
• Average Volume (3M): 19.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: -13.01%
• EPS Growth: -65.20%
• Country: US
• Employees: 59
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): -0.15
• Shares Outstanding: 7,961,462
• 10 Day Avg. Volume: 31,820
• 30 Day Avg. Volume: 19,408
• PEG Ratio: -0.40
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.54
• P/FCF Ratio: -7.67
• Enterprise Value/Market Cap: 1.74
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 1.74
• Enterprise Value/Ebitda: -11.57
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $1.00 ▼(-20.63% Downside)

Socket Mobile's overall stock score reflects significant financial challenges, including declining revenue and profitability, which are the most impactful factors. While technical indicators suggest short-term bullish momentum, the overbought condition raises caution. Valuation concerns due to negative earnings and lack of dividends further weigh on the score. The earnings call provides some optimism with strategic initiatives and cost management, but these are longer-term factors.

Socket Mobile Business Overview & Revenue Model

Company Description

Socket Mobile (SCKT) is a leading provider of mobile data capture solutions, primarily serving sectors such as retail, healthcare, and logistics. The company specializes in the development of Bluetooth barcode scanners and NFC (Near Field Communication) solutions, which enable businesses to improve inventory management, streamline operations, and enhance customer engagement. Socket Mobile's core products include handheld scanners and mobile point-of-sale (mPOS) solutions, designed to work seamlessly with various mobile devices and platforms.

How the Company Makes Money

Socket Mobile generates revenue through the sale of its hardware products, including barcode scanners and NFC devices, which are marketed to businesses in various industries. Key revenue streams include direct sales to end-users, distribution agreements with third-party resellers, and partnerships with software developers that integrate Socket Mobile's devices into their applications. The company also benefits from recurring revenue through ongoing support services, accessories, and software updates, which enhance the value of its products. Additionally, strategic partnerships with technology companies and participation in industry-specific events contribute to brand visibility and customer acquisition, further bolstering its earnings.

Socket Mobile Financial Statement Overview

Summary

Socket Mobile is facing significant challenges in revenue growth, profitability, and cash flow generation. Despite maintaining a conservative balance sheet with a reasonable debt-to-equity ratio, persistent negative margins and declining stockholders' equity raise concerns about long-term financial health. Addressing operational inefficiencies and improving cash flow are critical for future stability and growth.

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	16.71M	18.76M	17.03M	21.24M	23.20M	15.70M
Gross Profit	8.38M	9.45M	8.46M	10.37M	12.44M	8.33M
EBITDA	-1.26M	-881.60K	-1.73M	833.33K	3.41M	-2.63M
Net Income	-2.86M	-2.24M	-1.92M	86.93K	4.47M	-3.28M
Balance Sheet
Total Assets	26.97M	27.35M	28.74M	28.60M	25.58M	15.61M
Cash, Cash Equivalents and Short-Term Investments	2.61M	2.49M	2.83M	3.62M	6.10M	2.12M
Total Debt	8.03M	6.79M	6.28M	5.24M	2.23M	2.18M
Total Liabilities	10.29M	9.19M	9.32M	8.28M	5.53M	4.44M
Stockholders Equity	16.68M	18.16M	19.42M	20.32M	20.05M	11.17M
Cash Flow
Free Cash Flow	-1.89M	-1.31M	-2.12M	-1.29M	1.45M	267.96K
Operating Cash Flow	-1.08M	-521.49K	48.56K	-111.42K	2.14M	804.45K
Investing Cash Flow	-809.71K	-715.52K	-2.16M	-1.18M	-691.77K	-536.48K
Financing Cash Flow	2.38M	902.34K	1.32M	-1.18M	2.52M	894.94K

Socket Mobile Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 1.26 is above the 20-day moving average (MA) of 1.10, above the 50-day MA of 1.05, and above the 200-day MA of 1.12, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 69.38 is Neutral, neither overbought nor oversold. The STOCH value of 71.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SCKT.

Socket Mobile Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TACT	51 Neutral	$43.60M	-5.01	-23.00%	―	8.27%	-308.63%
SCKT	47 Neutral	$8.35M	-2.81	-17.53%	―	-13.01%	-65.20%
INVE	47 Neutral	$80.76M	―	-12.36%	―	-66.00%	28.84%
KTCC	43 Neutral	$36.74M	-4.41	-9.78%	―	-20.03%	-485.19%
EBON	41 Neutral	$23.52M	―	-7.04%	―	154.52%	47.31%
ZSPC	40 Underperform	$13.36M	―	―	―	-24.20%	1.31%

Socket Mobile Corporate Events

Socket Mobile’s Earnings Call: Challenges and Optimism

Socket Mobile’s recent earnings call painted a picture of a challenging quarter, marked by a notable revenue decline and ongoing operating losses. Despite these hurdles, the company remains optimistic about its future, thanks to strategic expansions into new markets and effective cost management strategies. These efforts are aimed at stabilizing financials and diversifying market presence, offering a glimmer of hope for long-term prospects.

Socket Mobile Reports Q3 2025 Earnings Decline

Socket Mobile, Inc., headquartered in Fremont, California, is a prominent provider of data capture and delivery solutions aimed at enhancing productivity in workforce mobilization, primarily serving sectors such as specialty retail, field service, digital ID, transportation, and manufacturing.