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Socket Mobile
(NASDAQ:SCKT)
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Rating:42Neutral
Price Target:
$0.46
▼(-30.00% Downside)
Action:Reiterated
Date:10/13/26
SCKT scores low primarily due to weak financial fundamentals: persistent losses, negative cash flow, contracting revenue, and materially higher leverage as equity declines. Technicals also remain unfavorable with the stock trading below major moving averages, while the earnings call reinforces near-term deterioration and tight liquidity despite ongoing cost actions. Corporate risk increased with the Nasdaq equity noncompliance notice, and valuation support is limited given the negative P/E and no indicated dividend yield.
Positive Factors
Resilient Gross Margin Profile
The company retains a relatively strong gross-margin profile even while revenue and profitability are under pressure. This indicates that its scanner and software-enabled offering can generate attractive gross profit in healthier demand conditions, supporting potential operating leverage if sales recover.
Negative Factors
Contracting Revenue
The revenue decline shows that current demand is not covering the company’s operating base, particularly within retail scanning. Persistent contraction reduces scale benefits, weakens negotiating and reinvestment capacity, and makes a durable return to profitability more difficult without successful channel or product expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Resilient Gross Margin Profile
The company retains a relatively strong gross-margin profile even while revenue and profitability are under pressure. This indicates that its scanner and software-enabled offering can generate attractive gross profit in healthier demand conditions, supporting potential operating leverage if sales recover.
Read all positive factors
Socket Mobile Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down Socket Mobile’s sales by region, showing where demand and customer concentration are strongest and where growth is coming from. For SCKT, geographic splits reveal exposure to major partners, currency and trade risks, and whether the company is gaining traction across diverse markets or overly dependent on a single region or distributor.
Breaks down Socket Mobile’s sales by region, showing where demand and customer concentration are strongest and where growth is coming from. For SCKT, geographic splits reveal exposure to major partners, currency and trade risks, and whether the company is gaining traction across diverse markets or overly dependent on a single region or distributor.
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The Fly
The FlySocket Mobile (SCKT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.21M
Dividend YieldN/A
Average Volume (3M)11.12M
Price to Earnings (P/E)―
Beta (1Y)0.88
Revenue Growth-17.40%
EPS Growth-403.07%
CountryUS
Employees53
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)-1.85
Shares Outstanding8,291,681
10 Day Avg. Volume1,180,215
30 Day Avg. Volume11,118,838
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.89
Price to Sales (P/S)0.54
P/FCF Ratio-4.52
Enterprise Value/Market Cap2.66
Enterprise Value/Revenue0.81
Enterprise Value/Gross Profit1.65
Enterprise Value/Ebitda-6.01
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. Its products and solutions are integrated into mobile applications for applications in the areas of point of sale, commercial...
How the Company Makes Money
Socket Mobile primarily generates revenue by selling its data capture hardware—most notably Bluetooth-enabled cordless barcode scanners—through direct sales and distribution/channel partners to business customers and solution providers. A meaningf...
Socket Mobile Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 24, 2027
Earnings Call Sentiment Negative
The call presented significant near-term financial deterioration — including a double-digit revenue decline, compressed gross margins, deeper operating losses, and a widening adjusted EBITDA loss — tempered by decisive management actions: cost reductions, AI-driven efficiency initiatives, product simplification, progress in a higher-potential industrial scanning channel (≈10% of Q2 revenue), maintained partner relationships (Shopify), and no auditor going-concern qualification. Liquidity remains tight (cash $1.6M) and the company may need to rely on its bank line or financing if revenue does not recover. Overall, operational fixes and a strategic pivot are underway, but they have not yet offset the sizeable financial headwinds reported this quarter.Positive Updates
Cost Reductions and Efficiency Initiatives
Management implemented selective headcount reductions and other cost-cutting measures; operating expenses decreased modestly to $2.6M from $2.7M (≈3.7% reduction). Company is aggressively deploying AI across engineering and the organization to improve productivity and deliver revenue-producing projects with a leaner staff.
Negative Updates
Significant Revenue Decline
Q2 revenue fell to $3.0M from $3.9M in Q2 2025 (−$0.9M, −23.1% YoY) and from $3.7M in Q1 2026 (−$0.7M, −18.9% QoQ), reflecting continued weakness in the retail scanning business.
Read all updates
Q2-2026 Updates
Positive
Negative
Cost Reductions and Efficiency Initiatives
Management implemented selective headcount reductions and other cost-cutting measures; operating expenses decreased modestly to $2.6M from $2.7M (≈3.7% reduction). Company is aggressively deploying AI across engineering and the organization to improve productivity and deliver revenue-producing projects with a leaner staff.
Read all positive updates
Company Guidance
Management offered operational (not forward revenue) guidance centered on cost control and efficiency while noting key Q2 metrics: revenue $3.0M (down from $3.9M YoY and $3.7M QoQ), gross margin 46.4% (vs 49.9% YoY and 51.3% QoQ), operating expenses $2.6M (vs $2.7M prior), operating loss $1.2M (vs $0.687M loss YoY and $0.767M QoQ), adjusted EBITDA loss ≈$745K (vs $100K loss prior quarter and $298K in Q1), GAAP loss per share $0.16 (vs $0.10 YoY and $0.11 QoQ), cash $1.6M (vs $1.7M at 3/31) and inventory $3.8M (vs $3.9M at 3/31). They said cost-cutting measures, including selective headcount reductions, will remain in effect through the remainder of 2026; engineering has rolled out AI and company-wide deployment will continue in Q3 to drive efficiency; the product portfolio will be simplified and unproductive SKUs culled; industrial scanning (about 10% of Q2 revenue) is expected to grow in the second half; the bank line remains available and no auditor going-concern opinion was raised.Socket Mobile Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
32
Negative
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.80M | 15.08M | 18.76M | 17.03M | 21.24M | 23.20M |
| Gross Profit | 6.78M | 7.49M | 9.45M | 8.46M | 10.37M | 12.44M |
| EBITDA | -1.87M | -1.37M | -881.60K | -1.73M | 833.33K | 3.92M |
| Net Income | -14.84M | -14.38M | -2.24M | -1.92M | 86.93K | 4.47M |
Balance Sheet | ||||||
| Total Assets | 12.37M | 14.44M | 27.35M | 28.74M | 28.60M | 25.58M |
| Cash, Cash Equivalents and Short-Term Investments | 1.61M | 2.03M | 2.49M | 2.83M | 3.62M | 6.10M |
| Total Debt | 7.85M | 7.77M | 6.79M | 6.28M | 5.24M | 2.23M |
| Total Liabilities | 9.99M | 10.16M | 9.19M | 9.32M | 8.28M | 5.53M |
| Stockholders Equity | 2.38M | 4.28M | 18.16M | 19.42M | 20.32M | 20.05M |
Cash Flow | ||||||
| Free Cash Flow | -1.18M | -1.79M | -1.31M | -2.12M | -1.29M | 1.45M |
| Operating Cash Flow | -685.32K | -1.25M | -521.49K | 48.56K | -111.42K | 2.14M |
| Investing Cash Flow | -491.95K | -537.13K | -715.52K | -2.16M | -1.18M | -691.77K |
| Financing Cash Flow | 177.46K | 1.33M | 902.34K | 1.32M | -1.18M | 2.52M |
Socket Mobile Technical Analysis
Negative
0.66
Price Trends
0.60
Negative
0.65
Negative
0.81
Negative
Market Momentum
-0.02
Positive
45.60
Neutral
45.72
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 0.66 is above the 20-day moving average (MA) of 0.57, above the 50-day MA of 0.60, and below the 200-day MA of 0.81, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 45.60 is Neutral, neither overbought nor oversold. The STOCH value of 45.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $54.41M | -157.78 | -1.25% | 3.19% | 10.52% | 95.37% | |
52 Neutral | $66.57M | -4.29 | -11.17% | ― | 3.11% | 46.15% | |
47 Neutral | $23.46M | -0.48 | -48.61% | ― | -17.36% | -469.66% | |
43 Neutral | $12.50M | -1.00 | -5.14% | ― | -6.25% | 32.66% | |
42 Neutral | $4.21M | -0.27 | -229.43% | ― | -17.40% | -403.07% | |
41 Neutral | $3.89M | >-0.01 | 97.69% | ― | -34.31% | 1.15% |
* Technology Sector Average
SCKT
Socket Mobile
0.51
-0.44
-46.52%
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12.13%
EBON
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1.99
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ZSPC
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0.10
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-99.62%
Socket Mobile Corporate Events
Delistings and Listing ChangesRegulatory Filings and Compliance
Socket Mobile Receives Nasdaq Noncompliance Listing Notice
Negative
Aug 28, 2026
On August 24, 2026, Socket Mobile received a notice from Nasdaq that it no longer complies with the exchange’s listing rule requiring minimum stockholders’ equity of $2.5 million, after reporting equity of $2,382,624 in its June 30, 20...
Business Operations and Strategy
Socket Mobile Updates Bylaws on Board Special Meetings
Neutral
Aug 7, 2026
On August 3, 2026, Socket Mobile, Inc.’s board of directors approved an immediate amendment to the company’s bylaws, revising the rules governing notice for special meetings of the board. The change clarifies who may call such meetings...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Socket Mobile strengthens leadership with CEO board appointment
Positive
Aug 5, 2026
Socket Mobile, Inc. expanded its boardroom leadership on August 3, 2026, when the company’s board appointed President and Chief Executive Officer David Holmes as an independent member of the Board of Directors, effective immediately. The mov...
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.