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Socket Mobile

SCKT
20
Computer Hardware · Technology
Price
$1.63
+0.24 (+17.27%)
pre-market:$1.70+4.34%
Market Cap
$13.4M
Exchange
NASDAQ
Winston Score
20
Winston is worried
Weak fundamentals across most pillars.
Data as of Aug 13, 2026 · filings through Jun 30, 2026

Share count falling — buybacks

11.2% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 8.9M (2021) → 7.9M (2025)

Socket Mobile makes small handheld barcode scanners and data collection devices. These products are used by businesses to scan items in retail stores, warehouses, and healthcare settings. The company sells its hardware to software developers and businesses that need to track inventory or collect data quickly and accurately.

Socket Mobile earns money primarily by selling its scanning hardware, and it also generates some recurring revenue through software and connectivity services. The company operates mainly in North America and Europe and is a small-cap business with a niche focus on mobile data collection for enterprise applications. Its competitive position relies on long-standing relationships with software partners who build Socket's scanners into their apps, but the company faces real pressure from larger hardware makers and declining demand for dedicated scanning devices as smartphone cameras improve.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-25.0% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-60.3% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$4M/ year

Declining (-8% vs prior year)

28.9% of revenue

1.9x the sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

34.3%ownership

Insiders own a meaningful stake in the company

Cash Runway

~6 months

$2M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Short runway — potential dilution ahead through share issuance

Cash watch

Socket Mobile has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
46.4%
Healthy — 46.4% gross margin
Operating Margin
-39.4%
Losing money on operations — -39.4%
ROCE
-14.5%
Weak — -14.5% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY
-17.4%
Shrinking sales (-17.4% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
-13.2%
Burning cash (-13.2%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
2.45
Heavy debt load (2.45)
Interest Cover
N/A
Data not available

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Valuation

P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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