Socket Mobile (SCKT) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $3.03 million, down 25% year-over-year and sequentially, mainly due to retail scanning market weakness.

• Gross margin declined to 46.4% from 49.9% in Q2 2025 and 51.3% in Q1 2026, reflecting underutilization of manufacturing capacity.

• Operating loss increased to $1.2 million from $687,000 in Q2 2025 and $767,000 in Q1 2026; net loss for the quarter was $1.35 million.

• Cost-cutting measures, including headcount reductions and lower R&D and sales/marketing expenses, have been implemented and will continue.

• Management is focused on cost control, aligning expenses with market conditions, and rolling out AI-driven efficiency initiatives.

Financial highlights

• Adjusted EBITDA loss was $745,000 in Q2 2026, compared to $100,000 in Q2 2025 and $298,000 in Q1 2026.

• Net loss per share was $0.16 for Q2 2026, up from $0.10 in Q2 2025; weighted average shares outstanding were 8.2 million.

• Cash balance at June 30, 2026, was $1.6 million, down from $2.0 million at year-end 2025.

• Inventory reduced to $3.8 million from $3.9 million sequentially; total assets decreased to $12.4 million from $14.4 million at year-end.

• Six-month revenue was $6.73 million, down 16% from 2025; gross margin for six months was 49.1%.

Outlook and guidance

• Management expects continued cost discipline and efficiency gains from AI initiatives and cost-saving measures.

• Focus remains on supporting customers, app providers, and pursuing growth in industrial and other verticals despite market uncertainty.

• No going concern issues raised by auditors; bank line remains untapped as a liquidity option.