FRANKLIN WIRELESS CORP SEC 10-Q Report

Franklin Wireless Corp, a leading provider of integrated wireless solutions utilizing 5G and 4G LTE technologies, has released its Form 10-Q report for the third quarter of 2025. The report provides a comprehensive overview of the company's financial and operational performance, highlighting key metrics and business activities that have shaped the quarter. Financial Highlights Net Sales: $12.74 million, decreased by 4.3% compared to the same period in 2024 due to decreased demand from major carrier customers.Gross Profit: $2.91 million, increased by 40.5% from the corresponding period in 2024, driven by an increased proportion of high-margin sales and decreased production costs.Income (loss) from operations: $0.59 million, representing 4.6% of net sales, compared to a loss of $0.37 million in the same period in 2024.Net Income: $0.55 million, decreased from $0.65 million in the corresponding period of 2024, primarily due to unfavorable changes in foreign currency and the absence of a one-time gain recognized in the prior-year period.Net Income attributable to Parent Company: $0.64 million, increased from $0.52 million in the corresponding period of 2024.Earnings per share attributable to Parent Company stockholders - basic: $0.05, compared to $0.04 in the same period in 2024.Earnings per share attributable to Parent Company stockholders - diluted: $0.05, compared to $0.04 in the same period in 2024. Business Highlights Geographical Performance: For the three months ended September 30, 2025, net sales in North America accounted for 99.9% of total net sales, while Asia contributed 0.1%. North America experienced a decrease in net sales by 4.4% compared to the same period in 2024, primarily due to decreased demand from major carrier customers. Conversely, sales in Asia increased significantly by 2,466.6%, although from a very low base.Product and Service Offerings: Franklin Wireless Corp. continues to focus on integrated wireless solutions utilizing 5G and 4G LTE technologies, including mobile hotspots, fixed wireless routers, and mobile device management (MDM) solutions. The company is also involved in the Internet of Things (IoT) and machine-to-machine (M2M) applications.Operational Efficiency: The company reported an increase in gross profit margin to 22.8% for the three months ended September 30, 2025, up from 15.5% in the same period of 2024. This improvement was attributed to a higher proportion of high-margin sales and decreased production costs.Research and Development: Research and development expenses decreased by 7.3% for the three months ended September 30, 2025, compared to the same period in 2024. This was primarily due to a reduction in direct R&D costs, which fluctuate from period to period.Future Outlook: The company anticipates that its revenue growth will be influenced by maintaining existing customer relationships, increasing demand for wireless data products, customer acceptance of new products, and the ability to meet customer demands. Additionally, the company is working to enhance its software service offerings to address changes in market demand, particularly as remote education and work-from-home trends decline post-pandemic.SEC Filing: FRANKLIN WIRELESS CORP [ FKWL ] - 10-Q - Nov. 14, 2025