Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $3.1 million, a decrease of 20% compared to Q3 2024, and down 23% sequentially from $4 million in Q2 2025 [4][11] - Operating expenses were $2.5 million, 16% lower than $2.9 million in Q3 2024 [4][12] - Gross margin for the quarter was 47.7%, down from 49% in Q3 2024 and 49.9% in Q2 2025 [11] - Operating loss was $1.1 million, similar to the loss reported in Q3 2024 [4][12] - Adjusted EBITDA for Q3 was a loss of $540,000 compared to a loss of $510,000 in Q3 2024 [12] - Cash totaled $2 million as of September 30, down from $2.6 million at June 30 [12] Business Line Data and Key Metrics Changes - Sales to distribution partners were weaker than expected, leading to lower revenue [4] - Sales out to end users via distributors remained stable compared to Q2, which is seen as a positive sign [11] Market Data and Key Metrics Changes - The company is seeing interest from various sectors, including warehousing, logistics, manufacturing, mining, energy, and construction [8][9] - The rigidized scanning market is large, and the company expects momentum to continue building in this space [9] Company Strategy and Development Direction - The company is focusing on expansion into industrial scanning and handheld computing markets [8] - Continued investment in DuraSlate and XtremeScan product lines designed for iPhone [9] - The company aims to diversify its business beyond retail and expand its addressable market [9] Management Comments on Operating Environment and Future Outlook - Management acknowledged Q3 as a difficult quarter with lower-than-expected revenue [4] - The company expects Q4 to be EBITDA neutral and looks forward to a stronger 2026 [6] - Management is optimistic about securing Apple-related opportunities, which could deliver substantial long-term benefits [6] Other Important Information - CaptureSDK 2.0 was delivered, supporting new Bluetooth Low Energy products and compatible with existing devices [5] - The company is managing inventory levels to avoid excess stock in a slower demand environment [12] Q&A Session Summary Question: Will the company need to do any more convertible debt soon? - Management stated there are currently no plans for convertible debt and believes they can get through Q4 at EBITDA neutral [16] Question: Is there enough cash to avoid raising more funds? - Management confirmed that they believe they have enough cash going forward and do not anticipate needing to raise more [17]

Socket Mobile (NasdaqCM:SCKT) Q3 2025 Earnings Call October 22, 2025 05:00 PM ET Speaker0Good day, everyone, and welcome to the Socket Mobile Incorporated Q3 twenty twenty five Earnings Call. My name is Elvis, and I'll be your operator for today's call. Before we begin, I'd like to remind everyone that this conference call may contain forward looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities and Exchange Act of 1934 as amended. Su ...