Market shrugs off the miss. Socket Mobile Inc posted a loss of $0.03 per share for Q4 2025, missing the Street’s $0.09 profit estimate by $0.12—a 133.3% shortfall that marked the company’s fourth consecutive earnings miss. Revenue totaled $15.9 million for the full year, down 19.8% from the prior year. Yet shares climbed 3.3% to $1.09 in after-hours trading, suggesting investors had already braced for deteriorating fundamentals.
The revenue slide accelerates. Q4 capped a brutal year for the data capture hardware maker. Sequential quarterly revenue declined from $4.0 million in Q2 to $3.1 million in Q3—a 23% drop—before the Q4 figure brought full-year sales to $15.9 million. That compares unfavorably to Q4 2024 revenue of $4.8 million, underscoring the sharp deceleration. Operating margin sat at negative 34.1% with profit margin at negative 18.5%, reflecting the company’s inability to scale expenses with shrinking revenue.
Management cuts costs but can’t stop the bleed. CEO Kevin Mills noted in the October Q3 call that “our Q3 expenses were $2.5 million, 16% lower than the 2.9 million in Q3 2024,” highlighting the company’s attempt to right-size operations. CFO Lynn Zhao acknowledged the revenue pressure, stating Q3 “decreased 20% year over year to $3.1 million.” Despite expense discipline, net losses totaled $2.98 million through the first three quarters of 2025, compared to a net loss of $2.24 million in the same period of 2024. The company’s asset base eroded from $28.7 million at year-end 2023 to $25.6 million by Q3 2025.
Trailing twelve-month losses deepen. Socket Mobile’s trailing EPS of negative $0.38 puts the stock at a forward P/E of 21.7x based on the $0.05 forward estimate—an optimistic multiple for a business burning cash and shrinking revenue. The forward estimate assumes a dramatic turnaround that recent results don’t support. The stock has slid 18.7% over three months, dropping from $1.23 in mid-November to current levels near $1.09, though it remains above the December low of $1.00.
No visibility on the path forward. Chief Business Officer Dave Holmes mentioned in October that the company has “invested a lot into our expansion,” but provided no concrete revenue guidance or timeline for when investments would translate to growth. With no analyst coverage (“none” listed) and no earnings estimate for the next quarter, the micro-cap trades in an information vacuum. The $8.7 million market cap values the business at just 0.54x trailing revenue, pricing in significant skepticism about the company’s ability to return to profitability.
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