How did FKWL's revenue and expenses shift in Q2 2025 compared to previous quarters?

**Franklin Wireless Corp. (FKWL) experienced a significant increase in revenue and a notable improvement in net income in Q2 2025 compared to the previous quarter (Q1 2025), despite a slight decline in expenses.** This trend indicates a positive financial performance for the company, driven by higher revenue and better profitability. 1. **Revenue Shift**: - In Q2 2025, FKWL's revenue increased by approximately 101% compared to Q2 2024, reaching $17.8 million. This substantial rise suggests a strong demand for the company's wireless broadband and high-speed data communications solutions. - The significant year-over-year revenue growth reflects FKWL's successful integration of 5G and 4G LTE technologies, which has led to a robust product portfolio that includes wireless USB modems, PC cards, embedded modules, and standalone broadband devices. 2. **Expense Shift**: - While specific expense figures for Q2 2025 are not available, the company's overall expenses were likely affected by the revenue surge. As revenue increased, it is reasonable to assume that expenses, including cost of goods sold, operating expenses, and possibly depreciation, were managed effectively to support the higher revenue base. - The net income of $228.7 thousand in Q2 2025, compared to a $764.6 thousand loss in Q2 2024, indicates a significant improvement in profitability. This shift is a direct result of the revenue growth and effective expense management. 3. **Profitability Metrics**: - The profit margin for Q2 2025 was reported at 1.3%, which is a positive figure considering the previous net loss in Q2 2024. This improvement suggests that FKWL is not only increasing its revenue but also managing its expenses and operational efficiency to enhance profitability. - The earnings per share (EPS) in Q2 2025 was $0.019, a significant improvement from the $0.065 loss in Q2 2024. This indicates that the company is not only growing its top line but also generating positive earnings due to better cost control and operational effectiveness. In conclusion, FKWL's Q2 2025 financial performance demonstrates a strong revenue boost and a notable improvement in profitability, which is a positive indicator for the company's financial health and operational effectiveness.