Socket Mobile, Inc. (SCKT) · Nov 4, 2026 · Earnings
Miss — Revenue $3.39M vs ~$4.07M consensus; EPS -$0.09 vs ~$0.03
Socket Mobile’s Q3 earnings show a revenue rebound and lower costs, but the company missed published revenue and EPS expectations.
Socket Mobile is trying to evolve from a hardware-peripheral business into a broader data-capture platform, while dealing with weak retail scanning demand and cutting costs to preserve cash. Its Q2 filing had already identified lower sales volumes and manufacturing underutilization as the main problems, with additional cost-saving measures beginning in Q3.
The quarter improved sequentially, but not enough to clear the market’s bar. Revenue rose 12% from Q2 and 9% year over year, but the reported $3.39 million was below a published estimate of roughly $4.07 million; the company also reported a $0.09 GAAP loss per share against an estimated $0.03 profit. The filing’s own description of “stabilizing revenue” is directionally fair, but stabilization is weaker than the growth rate the market was expecting. 〔0〕
| Q3 2026 | Q3 2025 | Consensus | |
|---|---|---|---|
| Revenue (Income Statement) | $3.388M (+9.0%) | $3.107M | $4.07M |
| Gross margin (Income Statement) | 48.6% (+0.9 pts) | 47.7% | |
| Operating loss (Income Statement) | $(0.643)M | $(1.058)M | |
| Net loss (Income Statement) | $(0.789)M | $(1.198)M | |
| Diluted EPS (Income Statement) | $(0.09) | $(0.15) | $0.03 |
| Cash (Balance Sheet) | $1.403M | $2.032M* |
Cost control is working, but it is compensating for a small and still-unprofitable revenue base. Operating expenses fell 10% year over year, helping reduce the operating loss despite only modest revenue growth. 〔1〕 Gross margin also recovered to 48.6% from 46.4% in Q2, suggesting the quarter’s improved volume helped absorb manufacturing overhead. But the company remains loss-making, and nine-month revenue was still down roughly 9% year over year at $10.1 million (Income Statement).
The balance sheet leaves little room for another prolonged downturn. Cash declined to $1.4 million from $2.0 million at year-end, while the company carried $5.1 million of related-party convertible notes and added $425,000 of related-party short-term borrowings (Balance Sheet). That makes the cost program strategically important: it is not just improving margins, but helping manage liquidity while management waits for partnerships and new vertical markets to produce more demand.
Bottom line: Q3 was operationally better than Q2, but it was still a clear earnings miss against the published bar. The business is stabilizing through cost cuts, not yet demonstrating the revenue recovery needed to change its underlying story. 〔2〕
Q4 results and year-end cash position
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