Socket Mobile Inc. Common Stock (SCKT)

FairStock Score: 30/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Socket Mobile as a Graham-style bargain hunter: I want a durable business at a discount to intrinsic value. What I see is a 53-employee hardware maker of Bluetooth data-capture devices, with sales into point of sale, asset tracking, logistics, and medical and education. That is a real niche, but hardware is competitive, and I find no evidence in these figures of a protective moat or pricing power. The numbers are poor. In fiscal 2025, the year ended 2025-12-31, revenue was $15.1 million and net income was a loss of $14.4 million, or diluted EPS of -$1.81. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $3.0 million and net income was -$1.3 million, versus $4.0 million of revenue and -$792,141 of net income in fiscal Q2 2025, the quarter ended 2025-06-30. Revenue growth is -24.95% and profit growth -69.97%. Trailing free cash flow is -$1.2 million, a -26.3% FCF yield. The balance sheet looks strained: debt-to-equity of 3.29, Altman Z-Score of -7.49, Piotroski F-Score 2/9, ROE -155.72%, and ROCE -11.45%. At the close on 2026-10-13, the price was $0.54 and market cap $4.5 million. The negative P/E of -0.29 is not useful, and P/B is 1.86, so book value does not offer a deep asset discount. FairStock score 30/100 and Lynch TURNAROUND label fit a broken but maybe salvageable company. I would need evidence of stabilized revenue, positive cash flow, and a repaired balance sheet before this meets a margin of safety.

In plain English: Socket Mobile makes small barcode and data-capture devices that connect by Bluetooth to phones and tablets. The business looks weak right now: sales are shrinking, it is losing money, and it burns cash. At 54 cents a share on 2026-10-13, the price may look low, but the numbers do not show a clearly cheap, healthy company.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer