Executive Summary
Franklin Wireless Corp reported Q4 2024 revenue of $6.12 million, down 64% year over year versus Q4 2023, reflecting a markedly slower top line in a highly fragmented hardware/M2M IoT market. The quarter produced a gross profit of $0.64 million and a gross margin of 10.47%, helping stabilize operating leverage versus prior quarters but not offsetting a sizable operating loss. The company generated positive operating cash flow of roughly $6.20 million and finished the period with net cash (net debt negative) of about $10.77 million, supported by a substantial cash and short-term investments balance of ~$37.46 million. Despite the cash accretion and liquidity, EBITDA and net income remained negative, with an operating loss of $2.24 million and a net loss of $1.77 million for the quarter. YoY revenue deterioration and ongoing profitability pressure imply the stock remains risk-on for investors who value liquidity and optionality, but risk-off for those seeking near-term earnings visibility.
Management commentary (where available) would be critical to assess the trajectory of demand for Franklin’s 5G/4G IoT hardware and the potential uplift from M2M growth initiatives. Absent a transcript in the provided dataset, the analysis can only infer potential themes such as cost discipline, ongoing product development, and strategic partnerships as drivers of future cash generation. Investors should monitor any management guidance on product deployments, customer diversification, and capital allocation.
Key Performance Indicators
QoQ: -0.97% | YoY:-64.03%
QoQ: 25.65% | YoY:-73.69%
QoQ: -44.30% | YoY:-2 273.43%
QoQ: -50.21% | YoY:-10.01%
QoQ: -50.30% | YoY:-7.14%
Key Insights
Revenue: $6.12 million in Q4 2024, down -64.03% YoY and -0.97% QoQ. Gross profit: $0.64 million with a gross margin of 10.47% versus prior periods showing higher/lower margins; YoY gross profit margin -73.69%, QoQ +25.65%. Operating income: -$2.24 million; operating margin -36.69% in Q4 2024 (QoQ: -44.30%). Net income: -$1.77 million; net margin -28.87% (YoY: -10.01%, QoQ: -50.21%). EPS: -$0.15 in QQ4 2024 (YoY: -7.14%, QoQ: -50.30%)....
Financial Highlights
Revenue: $6.12 million in Q4 2024, down -64.03% YoY and -0.97% QoQ. Gross profit: $0.64 million with a gross margin of 10.47% versus prior periods showing higher/lower margins; YoY gross profit margin -73.69%, QoQ +25.65%. Operating income: -$2.24 million; operating margin -36.69% in Q4 2024 (QoQ: -44.30%). Net income: -$1.77 million; net margin -28.87% (YoY: -10.01%, QoQ: -50.21%). EPS: -$0.15 in QQ4 2024 (YoY: -7.14%, QoQ: -50.30%).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
6.12M |
-64.03% |
-0.97% |
| Gross Profit |
640.67K |
-73.69% |
25.65% |
| Operating Income |
-2.24M |
-2 273.43% |
-44.30% |
| Net Income |
-1.77M |
-10.01% |
-50.21% |
| EPS |
-0.15 |
-7.14% |
-50.30% |
Key Financial Ratios
operatingProfitMargin
-36.7%
operatingCashFlowPerShare
$0.53
freeCashFlowPerShare
$0.53
Management Commentary
Note: The earnings transcript is not provided in the dataset. As a result, there are no management quotes or color from the QQ4 2024 call to quote or summarize. If a transcript is supplied, we can extract quotes by themes (strategy, operations, market conditions) and annotate their significance.
Forward Guidance
No formal forward guidance is included in the provided data. Based on the quarter’s cash-flow strength and a large liquidity cushion, management could emphasize stability and optionality while awaiting a rebound in IoT/M2M hardware demand. Potential near-term catalysts include continued cost discipline, targeted product enhancements for 5G/IoT modules, expansion of distributor/partner channels, and selective R&D investments to improve gross margins. Investors should monitor: (1) any quarterly trajectory for revenue, (2) changes to gross margin as product mix evolves, (3) working capital dynamics and capital allocation decisions, and (4) any management guidance on customer diversification and multi-year contracts that could improve predictability.