<span item_type="fundamental" item_id="ea55e673b790cfd3075542e657f58efc" counter_id="ST/US/FKWL" env="prod"></span><span item_type="announcement" item_id="648636863248532609" env="prod"></span><p>Revenue: As of FY2026 Q3, the actual value is USD 3.444 M.</p><p>EPS: As of FY2026 Q3, the actual value is USD -0.13.</p><p>EBIT: As of FY2026 Q3, the actual value is USD -1.616 M.</p><p></p><h4>Segment Revenue</h4><h5>Three Months Ended March 31, 2026 vs. 2025</h5><ul><li><strong>Net Sales</strong>: Decreased by $4,565,436, or 57.0%, to $3,444,183 for the three months ended March 31, 2026, from $8,009,619 for the corresponding period of 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/722572/000168316826003982/franklin_i10q-033126.htm"></span><ul><li><strong>North America</strong>: Net sales were $3,442,614 (100.0% of net sales) in 2026, a decrease of $4,564,423 or 57.0% from $8,007,037 in 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/722572/000168316826003982/franklin_i10q-033126.htm"></span></li><li><strong>Asia</strong>: Net sales were $1,569 (0.0% of net sales) in 2026, compared to $2,582 (0.0% of net sales) in 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/722572/000168316826003982/franklin_i10q-033126.htm"></span></li></ul></li></ul><h5>Nine Months Ended March 31, 2026 vs. 2025</h5><ul><li><strong>Net Sales</strong>: Decreased by $11,041,622, or 28.2%, to $28,118,007 for the nine months ended March 31, 2026, from $39,159,629 for the corresponding period of 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/722572/000168316826003982/franklin_i10q-033126.htm"></span><ul><li><strong>North America</strong>: Net sales were $28,102,587 (99.9% of net sales) in 2026, a decrease of $11,053,996 or 28.2% from $39,156,583 in 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/722572/000168316826003982/franklin_i10q-033126.htm"></span></li><li><strong>Asia</strong>: Net sales were $15,420 (0.1% of net sales) in 2026, compared to $3,046 (0.0% of net sales) in 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/722572/000168316826003982/franklin_i10q-033126.htm"></span></li></ul></li></ul><h4>Operational Metrics</h4><h5>Gross Profit</h5><ul><li><strong>Three Months Ended March 31, 2026 vs. 2025</strong>: Decreased by $800,436, or 59.1%, to $553,444 in 2026 from $1,353,880 in 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/722572/000168316826003982/franklin_i10q-033126.htm"></span><ul><li>Gross profit as a percentage of net sales was 16.1% in 2026, compared to 16.9% in 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/722572/000168316826003982/franklin_i10q-033126.htm"></span></li></ul></li><li><strong>Nine Months Ended March 31, 2026 vs. 2025</strong>: Decreased by $1,170,170, or 17.6%, to $5,497,274 in 2026 from $6,667,444 in 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/722572/000168316826003982/franklin_i10q-033126.htm"></span><ul><li>Gross profit as a percentage of net sales was 19.6% in 2026, compared to 17.0% in 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/722572/000168316826003982/franklin_i10q-033126.htm"></span></li></ul></li></ul><h5>Operating Expenses</h5><ul><li><strong>Three Months Ended March 31, 2026 vs. 2025</strong>: Decreased by $1,255,534, or 37.8%, to $2,064,899 in 2026 from $3,320,433 in 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/722572/000168316826003982/franklin_i10q-033126.htm"></span><ul><li><strong>Selling, General, and Administrative (SG&amp;A)</strong>: Decreased by $1,277,652, or 50.6%, to $1,248,568 in 2026 from $2,526,220 in 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/722572/000168316826003982/franklin_i10q-033126.htm"></span></li><li><strong>Research and Development (R&amp;D)</strong>: Increased by $22,118, or 2.8%, to $816,331 in 2026 from $794,213 in 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/722572/000168316826003982/franklin_i10q-033126.htm"></span></li></ul></li><li><strong>Nine Months Ended March 31, 2026 vs. 2025</strong>: Decreased by $1,841,917, or 22.4%, to $6,369,632 in 2026 from $8,211,549 in 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/722572/000168316826003982/franklin_i10q-033126.htm"></span><ul><li><strong>Selling, General, and Administrative (SG&amp;A)</strong>: Decreased by $1,639,055, or 30.0%, to $3,826,731 in 2026 from $5,465,786 in 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/722572/000168316826003982/franklin_i10q-033126.htm"></span></li><li><strong>Research and Development (R&amp;D)</strong>: Decreased by $202,862, or 7.4%, to $2,542,901 in 2026 from $2,745,763 in 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/722572/000168316826003982/franklin_i10q-033126.htm"></span></li></ul></li></ul><h5>Other Income (Loss), Net</h5><ul><li><strong>Three Months Ended March 31, 2026 vs. 2025</strong>: Decreased by $1,589,436, or 119.4%, to - $257,997 in 2026 from $1,331,439 in 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/722572/000168316826003982/franklin_i10q-033126.htm"></span></li><li><strong>Nine Months Ended March 31, 2026 vs. 2025</strong>: Decreased by $1,490,788, or 88.2%, to $199,021 in 2026 from $1,689,809 in 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/722572/000168316826003982/franklin_i10q-033126.htm"></span></li></ul><h4>Cash Flow</h4><h5>Operating Activities</h5><ul><li><strong>Nine Months Ended March 31, 2026 vs. 2025</strong>: Net cash used in operating activities was - $5,563,433 in 2026 compared to - $490,230 in 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/722572/000168316826003982/franklin_i10q-033126.htm"></span><ul><li>The increase in cash used in 2026 was primarily due to increases in inventories of $5,627,077.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/722572/000168316826003982/franklin_i10q-033126.htm"></span></li><li>Cash used in 2025 was primarily due to increases in accounts receivable of $1,957,056 and a decrease in accounts payable of $1,025,639, partially offset by an increase in accrued liabilities of $2,376,154.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/722572/000168316826003982/franklin_i10q-033126.htm"></span></li></ul></li></ul><h5>Investing Activities</h5><ul><li><strong>Nine Months Ended March 31, 2026 vs. 2025</strong>: Net cash provided by investing activities was $652,888 in 2026 compared to $1,030,351 in 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/722572/000168316826003982/franklin_i10q-033126.htm"></span><ul><li>Cash provided in 2026 was primarily from sales of short-term investments of $1,141,759, partially offset by payments for capitalized product development and intangible assets of $481,954.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/722572/000168316826003982/franklin_i10q-033126.htm"></span></li><li>Cash provided in 2025 was primarily from a $2,000,000 contribution from a partner in a noncontrolling interest, offset by purchases of short-term investments of $730,024 and payments for capitalized product development and intangible assets of $224,442.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/722572/000168316826003982/franklin_i10q-033126.htm"></span></li></ul></li></ul><h5>Financing Activities</h5><ul><li><strong>Nine Months Ended March 31, 2026 vs. 2025</strong>: Net cash used in financing activities was - $471,371 in 2026 compared to $0 in 2025.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/722572/000168316826003982/franklin_i10q-033126.htm"></span><ul><li>The cash used in 2026 was attributable to the payment of cash dividends.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/722572/000168316826003982/franklin_i10q-033126.htm"></span></li></ul></li></ul><h4>Future Outlook and Strategy</h4><p>Franklin Wireless Corp. is strategically shifting its focus from mobile hotspot products to fixed wireless routers and telecommunications modules, driven by a decline in demand for a legacy hotspot product from a major customer.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/722572/000168316826003982/franklin_i10q-033126.htm"></span> The company’s revenue growth is expected to depend on maintaining existing customers, increasing demand for wireless data products, and customer acceptance of new products, alongside strong relationships with manufacturing partners and suppliers.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/722572/000168316826003982/franklin_i10q-033126.htm"></span> Furthermore, Franklin Wireless Corp. is working to enhance its software service offerings to address declining demand for mobile device management services due to post-pandemic economic shifts.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/722572/000168316826003982/franklin_i10q-033126.htm"></span></p>

Franklin Wireless | 10-Q: FY2026 Q3 Revenue: USD 3.444 M