Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $3.1 million, a decrease of 20% compared to Q3 2024, and a 23% sequential decline from $4 million in Q2 2025 [4][11] - Q3 expenses were $2.5 million, which is 16% lower than the $2.9 million reported in Q3 2024 [4][11] - Operating loss for Q3 was $1.1 million, similar to the loss reported in Q3 2024 [4][12] - Gross margin for Q3 was 47.7%, down from 49% in Q3 2024 and 49.9% in Q2 2025 [11] - 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 end users via distributors remained stable compared to Q2, which is seen as a positive sign amid challenging market conditions [11] - The company successfully delivered CaptureSDK 2.0, which supports new Bluetooth Low Energy products and is compatible with existing devices [5] Market Data and Key Metrics Changes - The company is seeing interest from various sectors, including warehousing, logistics, manufacturing, mining, energy, and construction, with initial rollouts from multiple Fortune 50 companies [8][9] - The rigidized scanning market is large, and the company expects continued momentum in this space [9] Company Strategy and Development Direction - The company is focusing on expanding into industrial scanning and handheld computing markets, diversifying its business beyond retail [8][9] - Investments are being made in DuraSlate and XtremeScan product lines, which are designed for iPhone, to open new customer segments [9][10] - The company aims to become a more complete data capture company by extending its reach and diversifying its customer base [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that Q3 was a difficult quarter with lower-than-expected revenue due to weaker sales from distribution partners [4] - The company expects Q4 to be EBITDA neutral and is looking forward to a stronger 2026 [7] Other Important Information - The company is managing inventory levels to avoid excess stock in a slower demand environment, with inventory net of reserves at $4.7 million as of September 30 [12][13] Q&A Session Summary Question: Will the company need to do any more convertible debt soon? - Management stated there are currently no plans to issue convertible debt and believes they can reach profitable operating levels if they 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 additional funds [17]

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]

Core Insights - Socket Mobile, Inc. reported a revenue of $3.1 million for Q3 2025, reflecting a 20% decrease year-over-year and a 23% sequential decrease [7][10] - The company experienced a gross margin of 47.7%, down from 49.0% in the prior year's quarter [7][10] - Operating expenses were reduced by 13% compared to Q3 2024, amounting to $2.5 million [3][7] Financial Performance - Revenue for the three months ended September 30, 2025, was $3.1 million, compared to $3.9 million in the same quarter last year and $4.0 million in the previous quarter [7][10] - Gross margin decreased to 47.7% from 49.0% year-over-year and 49.9% sequentially [7][10] - Operating loss for the quarter was $1,058,000, slightly higher than the loss of $1,031,000 in the prior year's quarter [7][10] Cost Management - The company implemented cost-saving measures leading to a 13% reduction in operating expenses compared to Q3 2024 and a 6% decrease from the previous quarter [3][7] - Total operating expenses for Q3 2025 were $2.5 million, down from $2.9 million in the prior year [7][10] Market Conditions - The company noted that Q3 is traditionally a slower quarter, but sales-out to end users remained steady compared to Q2 2025 [3] - Delays in deployment deals were attributed to customers' cautious spending and focus on cash preservation [3] Future Outlook - Management expressed optimism about the need for distributors to replenish inventory due to steady sales-out and lower channel inventory levels [3] - The company remains committed to investing in new and existing products for the industrial market to drive long-term revenue growth [4]