Socket Mobile (SCKT) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $3.7 million, down 7% year-over-year and sequentially from Q4 2025, reflecting continued customer caution and delayed spending from 2025.

• Gross margin expanded to 51.3%, up from 50.4% in Q1 2025 and 50.2% in Q4 2025, due to disciplined cost structure and operational efficiencies.

• Operating expenses reduced by 8% year-over-year to $2.7 million.

• Operating loss was $0.8 million, compared to $0.9 million in Q1 2025 and $0.6 million in Q4 2025.

• Management highlighted operational resilience and new product launches despite market caution.

Financial highlights

• Revenue declined 7% year-over-year to $3.7 million, down from $4 million in Q1 2025 and Q4 2025.

• Gross margin improved to 51.3% from 50.4% in Q1 2025 and 50.2% in Q4 2025.

• Operating expenses decreased 8% year-over-year to $2.7 million, but rose 3% sequentially.

• Adjusted EBITDA loss was $300,000, better than $480,000 loss in Q1 2025 but worse than $94,000 loss in Q4 2025.

• Loss per share was $0.11, compared to $0.13 in Q1 2025 and $1.43 in Q4 2025.

Outlook and guidance

• Industrial segment expected to represent about 10% of revenue in Q2, with stronger contribution anticipated in the second half of 2026.

• Management remains focused on delivering reliable, high-quality data capture solutions and expects to leverage recent product launches and financing to pursue new enterprise opportunities.

• Pipeline and new product adoption provide confidence in a more diversified and sustainable business.