0001683168-26-001067
SEC filingFranklin Wireless Corp. reported Q2 2026 results for the period ending December 31, 2025. The company generated net sales of $11.9 million, resulting in gross profit of $2.0 million. Income from operations was $49 thousand, bolstered by total other income of $454 thousand, which included a $397 thousand gain from debt forgiveness. This led to income before taxes of $503 thousand and net income attributable to the Parent Company of $534 thousand. Comprehensive income attributable to the controlling interest was $474 thousand. However, operating cash flow was negative $5.6 million, primarily due to a $9.1 million increase in accounts receivable. The company ended the quarter with $9.4 million in cash and cash equivalents and total assets of $53.0 million. Total stockholders' equity stood at $38.3 million. No prior period figures are provided in the input for QoQ or YoY comparisons.
Franklin Wireless Corp. reported its Q2 2026 financial results for the period ending December 31, 2025. The company achieved net sales of $11.9 million. After a cost of goods sold of $9.9 million, gross profit was $2.0 million. Total operating expenses, comprising selling, general and administrative expenses of $1.2 million and research and development costs of $777 thousand, totaled $2.0 million, resulting in a modest income from operations of $49 thousand. Other income was significant at $454 thousand, primarily due to a $397 thousand gain from the forgiveness of accounts payable and accrued liabilities, along with $131 thousand in interest income. This brought income before taxes to $503 thousand. After a $36 thousand income tax provision, net income was $467 thousand. Adjusting for non-controlling interests, net income attributable to the Parent Company was $534 thousand. Comprehensive income attributable to the controlling interest was $474 thousand. No comparative figures for the prior quarter or year are provided in the source data.
The filing does not provide a breakdown of revenue by segment, product line, or geography. The sole revenue figure disclosed is consolidated net sales of $11.9 million for the quarter. Therefore, no analysis of revenue drivers, segment performance, or geographic mix can be conducted based on the provided information.
The company's gross margin for the quarter was 16.8%, calculated from gross profit of $2.0 million on net sales of $11.9 million. Operating margin was 0.4%, derived from operating income of $49 thousand. Profitability was significantly supported by non-operating items, particularly the $397 thousand gain from debt forgiveness. Without this gain, pre-tax income would have been substantially lower. Operating expenses of $2.0 million nearly equaled gross profit, indicating tight operational control was necessary to achieve any operating income.
Cash flow from operations was negative $5.6 million, a key area of concern. This was primarily driven by a $9.1 million increase in accounts receivable, which consumed cash despite reported net income. This was partially offset by a $2.1 million increase in accounts payable. Cash flow from investing activities provided $705 thousand, mainly from net sales of short-term investments. Cash flow from financing activities used $471 thousand for dividend payments. Overall, cash and cash equivalents decreased by $5.4 million to $9.4 million. The balance sheet shows total assets of $53.0 million, with strong liquidity from $24.3 million in short-term investments. Total liabilities are $14.8 million, resulting in a healthy equity position of $38.3 million and a debt-free structure.
The provided document content and XBRL data contain no forward-looking statements, management guidance, discussion of strategic priorities, or specific risk factors for future periods. Therefore, no outlook can be inferred or reported based on the source material.