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Socket Mobile, Inc.. (SCKT) Fundamental Analysis & AI Grade 2026

SCKT Nasdaq Electronic Computers DE CIK: 0000944075
Updated This Month • Analysis: May 14, 2026 • SEC Data: 2026-03-31
Combined AI Grade
D
85% Confidence
N/A
D
85% Conf
Pending
Analysis scheduled

📊 SCKT Key Takeaways

Revenue: $3.7M
Net Margin: -24.3%
Free Cash Flow: $-822.2K
Current Ratio: 0.96x
Debt/Equity: 0.00x
EPS: $-0.11
AI Grade: D with 85% confidence
Socket Mobile, Inc.. (SCKT) receives a D fundamental grade with 85% confidence from our AI analysis based on SEC 10-K filings. With revenue of $3.7M, net profit margin of -24.3%, and return on equity (ROE) of -25.3%, Socket Mobile, Inc.. demonstrates mixed fundamentals in the Technology sector. Below is our complete SCKT stock analysis for 2026.

Is Socket Mobile, Inc.. (SCKT) a Good Investment?

Claude

Socket Mobile exhibits severe financial distress with declining revenue (-19.6% YoY), deteriorating net losses (-541.2% YoY), and negative operating cash flow (-$768.9K), indicating the business cannot sustain itself operationally. Liquidity is critically strained with a current ratio of 0.96x and quick ratio of 0.52x, while free cash burn of -$822.2K threatens viability absent immediate capital injection or dramatic operational restructuring.

Socket Mobile, Inc.. Key Strengths (SCKT)

Claude
  • + Healthy gross margin of 51.3% indicates core products retain inherent profitability potential
  • + Zero long-term debt and minimal leverage (0.00 Debt/Equity) provides capital structure flexibility
  • + Presence of $1.7M cash reserve provides short-term runway

SCKT Stock Risks: Socket Mobile, Inc.. Investment Risks

Claude
  • ! Current ratio of 0.96x below 1.0 indicates imminent liquidity crisis and inability to cover short-term obligations
  • ! Revenue collapsing at -19.6% YoY with company burning $822.2K annually in free cash flow—unsustainable trajectory
  • ! Operating margin of -20.5% and deteriorating net losses of -$899.6K (-541.2% YoY) demonstrate loss acceleration and operational dysfunction
  • ! Quick ratio of 0.52x reflects severe working capital deficiency and heightened default risk on near-term liabilities

Key Metrics to Watch

Claude
  • * Quarterly revenue trend—stabilization or further contraction signals survival prospects
  • * Operating cash flow—return to positive territory critical to avoid capital raise/dilution
  • * Current ratio trajectory—breach below 0.90x would indicate severe distress

Socket Mobile, Inc.. (SCKT) Financial Metrics & Key Ratios

Revenue
$3.7M
Net Income
$-899.6K
EPS (Diluted)
$-0.11
Free Cash Flow
$-822.2K
Total Assets
$13.9M
Cash Position
$1.7M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

SCKT Profit Margin, ROE & Profitability Analysis

Gross Margin 51.3%
Operating Margin -20.5%
Net Margin -24.3%
ROE -25.3%
ROA -6.5%
FCF Margin -22.2%

SCKT vs Technology Sector: How Socket Mobile, Inc.. Compares

How Socket Mobile, Inc.. compares to Technology sector averages

Net Margin
SCKT -24.3%
vs
Sector Avg 18.0%
SCKT Sector
ROE
SCKT -25.3%
vs
Sector Avg 22.0%
SCKT Sector
Current Ratio
SCKT 1.0x
vs
Sector Avg 2.5x
SCKT Sector
Debt/Equity
SCKT 0.0x
vs
Sector Avg 0.5x
SCKT Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Socket Mobile, Inc.. Stock Overvalued? SCKT Valuation Analysis 2026

Based on fundamental analysis, Socket Mobile, Inc.. has mixed fundamental signals relative to the Technology sector in 2026.

Return on Equity
-25.3%
Sector avg: 22%
Net Profit Margin
-24.3%
Sector avg: 18%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.00x
Sector avg: 0.5x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Socket Mobile, Inc.. Balance Sheet: SCKT Debt, Cash & Liquidity

Current Ratio
0.96x
Quick Ratio
0.52x
Debt/Equity
0.00x
Debt/Assets
74.5%
Interest Coverage
N/A
Long-term Debt
$0.0

SCKT Revenue & Earnings Growth: 5-Year Financial Trend

SCKT 5-year financial data: Year 2021: Revenue $23.2M, Net Income -$3.3M, EPS $-0.51. Year 2022: Revenue $23.2M, Net Income $4.5M, EPS $0.48. Year 2023: Revenue $21.2M, Net Income $86.9K, EPS $0.01. Year 2024: Revenue $18.8M, Net Income -$1.9M, EPS $-0.27. Year 2025: Revenue $18.8M, Net Income -$2.2M, EPS $-0.30.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Socket Mobile, Inc..'s revenue has declined by 19% over the 5-year period, indicating business contraction. The most recent EPS of $-0.30 indicates the company is currently unprofitable.

SCKT Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-22.2%
Free cash flow / Revenue

SCKT Quarterly Earnings & Performance

Quarterly financial performance data for Socket Mobile, Inc.. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $3.7M -$899.6K $-0.11
Q3 2025 $3.1M -$557.4K $-0.15
Q2 2025 $4.0M -$557.4K $-0.08
Q1 2025 $4.0M -$557.4K $-0.07
Q3 2024 $3.2M -$512.8K $-0.15
Q2 2024 $5.1M -$512.8K $-0.06
Q1 2024 $4.3M -$557.4K $-0.07
Q3 2023 $3.2M $104.0K $-0.05

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Socket Mobile, Inc.. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$768.9K
Cash generated from operations
Stock Buybacks
$208.4K
Shares repurchased (TTM)
Capital Expenditures
$53.3K
Investment in assets
Dividends
None
No dividend program

SCKT SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Socket Mobile, Inc.. (CIK: 0000944075)

📋 Recent SEC Filings

Date Form Document Action
May 28, 2026 4 xslF345X06/primary_doc.xml View →
May 20, 2026 8-K form-8k0519.htm View →
May 13, 2026 10-Q q1_2026.htm View →
May 5, 2026 8-K form-8k0505.htm View →
May 1, 2026 4 xslF345X06/primary_doc.xml View →

Frequently Asked Questions about SCKT

What is the AI rating for SCKT?

Socket Mobile, Inc.. (SCKT) has an AI grade of D with 85% confidence, based on fundamental analysis of SEC EDGAR filings.

What are SCKT's key strengths?

Claude: Healthy gross margin of 51.3% indicates core products retain inherent profitability potential. Zero long-term debt and minimal leverage (0.00 Debt/Equity) provides capital structure flexibility.

What are the risks of investing in SCKT?

Claude: Current ratio of 0.96x below 1.0 indicates imminent liquidity crisis and inability to cover short-term obligations. Revenue collapsing at -19.6% YoY with company burning $822.2K annually in free cash flow—unsustainable trajectory.

What is SCKT's revenue and growth?

Socket Mobile, Inc.. reported revenue of $3.7M.

Does SCKT pay dividends?

Socket Mobile, Inc.. does not currently pay dividends.

Where can I find SCKT SEC filings?

Official SEC filings for Socket Mobile, Inc.. (CIK: 0000944075) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is SCKT's EPS?

Socket Mobile, Inc.. has a diluted EPS of $-0.11.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is SCKT's fundamental grade?

Based on our AI fundamental analysis in May 2026, Socket Mobile, Inc.. has a D grade with 85% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is SCKT stock overvalued or undervalued?

Valuation metrics for SCKT: ROE of -25.3% (sector avg: 22%), net margin of -24.3% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.

What is SCKT's AI grade for 2026?

Our dual AI analysis gives Socket Mobile, Inc.. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is SCKT's free cash flow?

Socket Mobile, Inc..'s operating cash flow is $-768.9K, with capital expenditures of $53.3K. FCF margin is -22.2%.

How does SCKT compare to other Technology stocks?

Vs Technology sector averages: Net margin -24.3% (avg: 18%), ROE -25.3% (avg: 22%), current ratio 0.96 (avg: 2.5).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 14, 2026 | Data as of: 2026-03-31 | Powered by Claude AI