Socket Mobile Reports 20% Revenue Decline in Q2 2025

Socket Mobile, Inc. reported a decline in financial performance for the second quarter of 2025, with total revenues of approximately $4.04 million, a decrease of 20% from $5.08 million in the same period last year. The company attributed this decline to ongoing softness in customer demand and concerns over potential tariff disruptions, which led to a significant slowdown in distributor inventory purchases. The gross profit margin for the quarter was 49.9%, slightly down from 50.9% in the prior year, reflecting effective cost control measures despite lower revenue.

In terms of operating expenses, Socket Mobile reported a total of $2.70 million for the second quarter, down from $3.12 million in the same period last year. This reduction was primarily driven by cost-cutting initiatives, including lower employee-related costs across research and development, sales and marketing, and general administrative expenses. The company recorded an operating loss of $677,355 for the quarter, compared to a loss of $535,143 in the same quarter of 2024. The net loss for the quarter was $792,141, resulting in a net loss per share of $(0.10), compared to $(0.08) in the previous year.

Socket Mobile's operational metrics showed a slight increase in cash and cash equivalents, which rose to $2.61 million as of June 30, 2025, compared to $2.49 million at the end of 2024. The company’s accounts receivable also increased to $1.77 million, indicating a rise in sales activity despite the overall revenue decline. The total employee headcount remained stable, with no significant changes reported. The company continues to rely heavily on a limited number of distributors, with BlueStar, Inc. and Synnex Corporation accounting for a significant portion of its revenue.

Looking ahead, Socket Mobile expressed cautious optimism regarding its future performance, emphasizing the need to achieve growth in its business and support for registered application providers. The company is focused on developing new products and expanding its market presence, particularly in the mobile data capture sector. However, it acknowledged the challenges posed by market conditions, including potential tariff impacts and competition, which could affect its ability to return to profitability. The company plans to continue monitoring its financial position and operational strategies to navigate these challenges effectively.