Franklin Wireless Reports 29.6% Increase in Net Sales for Q3 FY 2025

Franklin Wireless Corp. reported its financial results for the third quarter of fiscal year 2025, revealing a significant increase in net sales and a notable shift in profitability compared to the previous fiscal period. For the three months ended March 31, 2025, the company generated net sales of $8.0 million, up 29.6% from $6.2 million in the same period last year. The gross profit for the quarter was $1.4 million, compared to $517,000 in the prior year, reflecting a gross margin improvement driven by higher sales volume. However, the company reported a net loss of $644,786, a decrease from a loss of $1.2 million in the same quarter of 2024.

In terms of operational performance, Franklin Wireless experienced a substantial increase in accounts receivable, which rose to $3.0 million from $1.2 million year-over-year, indicating a growing customer base and increased sales activity. The company’s total current assets also increased to $43.9 million, up from $40.2 million as of June 30, 2024. The increase in current assets was primarily attributed to higher cash and cash equivalents, which rose to $12.8 million from $12.3 million, and short-term investments, which increased slightly to $25.3 million.

Strategically, Franklin Wireless has made significant moves to enhance its market position. The company formed a joint venture, Sigbeat, in May 2024, which is expected to bolster its sales and marketing capabilities for telecommunications modules. Franklin holds a 60% stake in Sigbeat, which has already begun operations. The company also reported a contribution of $2.4 million to Sigbeat in January 2025, further solidifying its investment in this new venture. Additionally, Franklin Wireless has continued to focus on research and development, with R&D expenses totaling $794,213 for the quarter, slightly down from $811,470 in the previous year.

Looking ahead, Franklin Wireless remains optimistic about its growth trajectory. The company anticipates that the expansion of its product offerings and the establishment of Sigbeat will drive future revenue growth. Management has indicated that they expect to continue leveraging their technological capabilities in 5G and 4G LTE solutions to capture a larger share of the wireless market, particularly in North America and Asia. However, the company also acknowledged potential risks, including market conditions and the impact of international tariffs on its manufacturing costs, which could affect profitability moving forward.