Socket Mobile Sees 18% Q4 Revenue Drop, Records $10.7M Tax Allowance
Socket Mobile’s Q4 revenue dropped 18% YoY to $4.0M but improved 28% sequentially, with a $0.6M operating loss and a $1.43 per-share net loss after a $10.7M deferred tax asset valuation allowance. Full-year revenue fell 19.6% to $15.1M, driving a $3.2M operating loss and $1.81 per-share net loss.
1. Fourth Quarter Results
In Q4 2025, Socket Mobile generated $4.0M in revenue, down 18% from $4.8M a year earlier but up 28% from $3.1M in Q3. Gross margin held at 50.2%, while operating loss narrowed to $0.6M and net loss widened to $1.43 per share.
2. Full Year 2025 Results
For the full year, revenue totaled $15.1M, a 19.6% decline from $18.8M in 2024. Operating loss increased to $3.2M from $2.5M, resulting in a net loss of $1.81 per share versus $0.30 in the prior year.
3. Tax Asset Valuation Allowance
The company recorded a one-time $10.7M valuation allowance against deferred tax assets under ASC 740, generating a $10.7M income tax expense for 2025 compared to a $0.6M tax benefit in 2024.
4. Product Innovations and Market Expansion
In 2025 Socket Mobile launched CaptureSDK 2.0 and new hardware including the Bluetooth-enabled SocketScan S721, XtremeScan v16e, DuraScan D751 NFC/RFID reader and DuraScan D764. Approval as certified 'My Number Card' readers in Japan expanded use cases in government, digital ID and Apple Wallet integrations.