Socket Mobile Reports 20% Revenue Decline in Q1 2025, Operating Loss Increases

Socket Mobile, Inc. reported a decline in financial performance for the first quarter of 2025, with total revenues of approximately $3.97 million, a decrease of 20% from $4.98 million in the same period last year. The company attributed this decline to weaker demand in both domestic and international markets, particularly noting reduced purchasing activity from key customers. Despite the drop in revenue, the gross profit margin slightly improved to 50.4%, up from 50.3% in the prior year, indicating effective cost control measures.

The company's operating loss for the first quarter of 2025 was $893,673, compared to a loss of $485,175 in the same quarter of 2024. The net loss increased to $994,140, or $0.13 per share, compared to a net loss of $557,415, or $0.07 per share, in the previous year. This increase in losses was influenced by higher operating expenses, which totaled $2.89 million, down from $2.99 million in the prior year, primarily due to reductions in research and development and general administrative expenses.

In terms of operational developments, Socket Mobile's cash and cash equivalents decreased to $1.71 million as of March 31, 2025, from $2.49 million at the end of 2024. The company reported an increase in accounts receivable, which rose to $2.06 million, reflecting delays in customer payments. Inventory levels also increased to $5.28 million, up from $4.94 million, indicating a buildup of stock due to slower sales. The company’s employee headcount remained stable, with no significant changes reported.

Geographically, revenue from the United States accounted for approximately $3.06 million, down from $3.56 million in the previous year, while revenues from Europe and Asia also saw declines. Major customers included BlueStar, Inc., which represented 31% of total revenues, up from 23% in the prior year. The company continues to focus on expanding its product offerings, including the recent launch of the XtremeScan iXG and iXS Series, which integrate advanced scanning capabilities with the latest iPhone technology.

Looking ahead, Socket Mobile remains optimistic about its long-term growth prospects despite the current market challenges. The company plans to continue investing in product development and expanding its distribution channels to enhance market penetration. Management emphasized the importance of adapting to market conditions and maintaining operational efficiency to navigate the ongoing fluctuations in demand for its data capture solutions.