Franklin Wireless Reports 101.1% Revenue Growth to $17.8M in Latest Quarter

Franklin Wireless Corp. reported significant financial performance improvements in its latest 10-Q filing for the quarter ending December 31, 2024. The company achieved net sales of $17.8 million for the three months ended December 31, 2024, a substantial increase of 101.1% compared to $8.8 million in the same period last year. For the six months, net sales rose to $31.2 million, up from $18.5 million, marking a 68.0% increase. Despite the revenue growth, Franklin Wireless recorded a net loss of $83,445 for the quarter, although this was an improvement from a loss of $649,659 in the prior year. The company’s net income attributable to parent company stockholders for the six months was $743,927, compared to a loss of $1,022,311 in the same period of 2023.

The company’s balance sheet also showed notable changes, with total assets increasing to $54.5 million as of December 31, 2024, up from $46.7 million at the end of the previous fiscal year. Current assets rose to $48.6 million, driven by increases in cash and cash equivalents, which reached $20.3 million, compared to $12.3 million in June 2024. However, current liabilities also increased significantly to $16.3 million from $9.1 million, primarily due to a rise in accounts payable, which jumped to $13.8 million from $7.3 million.

Strategically, Franklin Wireless has expanded its operations through the formation of a new subsidiary, Sigbeat Inc., in partnership with MeiG Smart Technology Co., Ltd. This new entity, in which Franklin holds a 60% stake, is focused on global sales and marketing of telecommunications modules. The company has invested $3 million in Sigbeat as part of its capital contributions. Additionally, Franklin Wireless continues to enhance its product offerings, particularly in the 5G and IoT sectors, which are critical to its growth strategy.

Operationally, Franklin Wireless reported a significant increase in customer engagement, with sales to its two largest customers accounting for 94.5% of consolidated net sales for the six months ended December 31, 2024, compared to 88% in the same period of 2023. The company’s inventory levels also rose sharply, reflecting increased demand for its products, with inventories reaching $4.2 million, up from $1.4 million. The company’s employee headcount remained stable, supporting its operational needs as it navigates this growth phase.

Looking ahead, Franklin Wireless anticipates continued revenue growth driven by its strategic initiatives and product innovations. The company is optimistic about its market position, particularly in North America and Asia, where it aims to capitalize on the increasing demand for wireless solutions. However, management has acknowledged potential risks, including market conditions and the impact of international tariffs, which could affect future profitability. The company remains committed to monitoring these factors closely as it executes its growth strategy.