Thu, May 15, 1:31 PM (39 days ago)
**Franklin Wireless Corp. (FKWL) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Q1 2025 revenue increased by 29.7% to $8.01 million (from $6.18 million in Q1 2024). For the nine months, revenue increased by 58.7% to $39.16 million (from $24.68 million). - **Profit Margins:** Gross profit margin improved to 16.9% in Q1 2025 (from 8.4% in Q1 2024). For the nine months, the gross profit margin was 17.0% (from 11.6%). - **Net Loss:** Q1 2025 net loss was $0.64 million (from $1.31 million in Q1 2024). For the nine months, net loss was $0.07 million (from $2.29 million). - **Cash Flow:** Net cash used in operating activities was $0.49 million for the nine months ended March 31, 2025 (from $6.97 million in 2024). **Key Metrics & Trends:** - **Operating Expenses:** Increased by 60.2% in Q1 2025 due to accrued incentive bonuses and higher shipping costs. - **Other Income:** Significant increase in Q1 2025 due to legal settlement gains and favorable foreign currency exchange rates. - **Liquidity:** Cash and cash equivalents were $12.80 million as of March 31, 2025. The company believes it has sufficient capital to cover operations for at least one year. **Uncertainties & Future Operations:** - **Legal Proceedings:** Ongoing litigation, including shareholder lawsuits and a recall issue with Verizon Jetpack devices. - **Market Risks:** Dependence on a few major customers and suppliers, potential tariff impacts, and market acceptance of new products. - **Operational Risks:** Dependence on key personnel, potential defects in products, and shifts in market demand. **Strategic Initiatives:** - **Joint Venture:** Formation of Sigbeat Inc. with a partner to engage in worldwide sales and marketing of telecommunications modules. - **Product Development:** Continuous evaluation and improvement of hardware and software products to address market changes and customer demands. **Conclusion:** Franklin Wireless Corp. showed significant revenue growth and improved profit margins in Q1 2025. However, the company faces operational and market risks that could impact future performance. Strategic initiatives and careful management of uncertainties will be crucial for sustained growth.