Franklin Wireless Revenue Drops 33% to $11.9M in Q2 FY2026
Franklin Wireless Corp. reported revenue of $11.93 million for the three months ending December 31, 2025, down 33% from $17.83 million in the same quarter a year earlier. The wireless equipment maker posted net income of $533,622, more than double the prior-year quarter.
Franklin Wireless Corp. reported revenue of $11.93 million for the three months ending December 31, 2025, down 33% from $17.83 million in the same quarter a year earlier. For the six months ending December 31, 2025, revenue fell 21% to $24.67 million from $31.15 million in the prior-year period. Read more earnings reports.
The Nevada-based wireless equipment maker posted net income of $533,622 for the quarter, up 133% from $228,740 in the year-earlier quarter. For the six-month period, net income reached $1.17 million compared to $743,927 in the prior year, a 58% increase.
Gross profit for the quarter totaled $2.03 million, down from $3.24 million a year earlier. The company's gross margin improved despite the revenue decline, with cost of revenue falling to $9.89 million from $14.59 million. For the six-month period, gross profit was $4.94 million versus $5.31 million in the prior year.
Operating income for the quarter came in at $48,717, down sharply from $795,231 in the year-earlier period. For the six months, operating income reached $639,097 compared to $422,448 a year earlier.
| Period Ending Dec 31 | Q2 2026 | Q2 2025 | H1 2026 | H1 2025 |
|---|---|---|---|---|
| Revenue | $11.93M | $17.83M | $24.67M | $31.15M |
| Gross Profit | $2.03M | $3.24M | $4.94M | $5.31M |
| Operating Income | $48,717 | $795,231 | $639,097 | $422,448 |
| Net Income | $533,622 | $228,740 | $1.17M | $743,927 |
| EPS (Diluted) | $0.05 | $0.02 | $0.10 | $0.06 |
Operating expenses declined to $1.99 million for the quarter from $2.45 million a year earlier. Research and development spending dropped to $776,818 from $927,238, while selling, general and administrative expenses fell to $1.21 million from $1.52 million. For the six-month period, operating expenses totaled $4.30 million versus $4.89 million.
The company paid dividends of $471,371 during the quarter. Cash from operations turned negative at $5.57 million for the six months compared to positive $5.41 million in the prior-year period.
Cash and restricted cash stood at $9.36 million as of December 31, 2025, down from $14.74 million at June 30, 2025, and $20.26 million a year earlier. Short-term investments totaled $24.26 million, down from $25.89 million six months prior.
Accounts receivable jumped to $10.36 million from $1.33 million at the end of the prior fiscal year. Accounts payable increased to $10.22 million from $8.12 million. Total assets rose to $53.03 million from $51.33 million at June 30, 2025.
Stockholders' equity increased to $35.13 million from $34.54 million. The company had 11.78 million shares outstanding as of December 31, 2025, unchanged from six months earlier.