Socket Mobile 2025 Q3 Earnings Net Loss Widens 7.4% Amid Revenue Decline

Socket Mobile (SCKT) reported its fiscal 2025 Q3 earnings on Nov 8, 2025, with revenue falling 19.8% to $3.11 million and a net loss of $1.20 million, marking a 7.4% increase in losses year-over-year. The company provided cautious guidance for the remainder of 2025, citing ongoing cost management efforts and projected growth in demand for data capture solutions.

Revenue

The Americas accounted for 74% of total revenue, with Europe and Asia Pacific contributing 12% and 14% respectively. This geographic distribution underscores the company’s strong presence in North America, though the 20% year-over-year revenue decline reflects slower distributor bookings and reduced channel inventory.

Earnings/Net Income

Socket Mobile maintained stable EPS at -$0.15, but the net loss widened to -$1.20 million, a 7.4% increase from the prior year. This deterioration was driven by higher interest expenses and fixed overhead costs spread over a lower revenue base. Despite stable EPS, the net loss highlights the company’s ongoing financial challenges.

Price Action

The stock price of Socket Mobile has edged up 1.85% during the latest trading day, has surged 16.57% during the most recent full trading week, and has climbed 6.22% month-to-date.

Post Earnings Price Action Review

The strategy of buying SCKT shares on earnings release dates and holding for 30 days yielded mixed results over three years, with an average gain of 2.5% per quarter and a cumulative return of 12.5%. However, quarterly performance varied sharply, such as a 10% rise after Q1 2023 and a 5% decline after Q4 2024, underscoring the volatility of post-earnings trading. This strategy also faced underperformance periods, particularly when market expectations were already priced in, emphasizing the risks of relying solely on earnings-driven timing.

CEO Commentary

Socket Mobile’s CEO highlighted the company’s focus on cost optimization and product innovation, noting that the 20% revenue decline was tempered by strategic R&D cuts and disciplined expense management. While acknowledging the net loss, the CEO expressed confidence in long-term growth potential, citing robust demand for mobile data capture solutions in healthcare and logistics. The company remains committed to refining its product portfolio and expanding market reach.

Guidance

The company expects continued growth in demand for its data capture products, driven by mobile application expansion and workforce mobilization. However, it anticipates a slight increase in general and administrative expenses for the remainder of 2025, reflecting ongoing cost management efforts.

Additional News

Socket Mobile recently launched the XtremeScan iXG and iXS Series in March 2025, integrating iOS 18.3 and the iPhone 16e for enhanced barcode scanning and data capture. These devices position the company to capitalize on evolving mobile technology trends. Additionally, the company’s product lines, including DuraScan and NFC & RFID readers, continue to cater to niche markets like healthcare and rugged environments. The 10-Q filing also emphasized geographic diversification strategies, with the Americas remaining the core revenue driver.