The company's operating margin has deteriorated to -43.9% in 2026Q3, reflecting limited pricing power and an inability to scale effectively against fixed R&D and administrative overhead.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'01 | Jun'00 | Jun'99 | Jun'98 |
|---|
| Sales/Revenue | 35.05M | 46.09M | 30.8M | 45.95M | 24M | 184.12M | 75.07M | 36.47M | 30.07M | 48.57M | 59.8M | 46.34M | 30.95M | 32.75M | 24.27M | 46.51M | 101.9M | 24M | 34.72M | 10.39M | 1M | 302.07K | 1.25M | 3.21M | 10.6M | 1.4M |
| Revenue Growth % | -22.6% | 49.65% | -32.98% | 91.47% | -86.97% | 145.25% | 105.85% | 21.3% | -38.09% | -18.79% | 29.04% | 49.73% | -5.49% | 34.96% | -47.83% | -54.35% | 324.57% | -30.88% | 234.36% | 935.45% | 232.03% | -75.74% | -61.18% | -69.75% | 657.14% | - |
| Cost of Goods Sold | 28.31M | 38.17M | 27.29M | 38.93M | 20.18M | 151.65M | 60.55M | 30.73M | 24.87M | 39.35M | 49.88M | 37.94M | 26.57M | 25.52M | 19.04M | 31.46M | 87.87M | 18.82M | 27.03M | 7.69M | 678.15K | 207.64K | 5.43M | 4.13M | 5.2M | 700K |
| COGS % of Revenue | - | 82.83% | 88.61% | 84.72% | 84.1% | 82.37% | 80.65% | 84.26% | 82.73% | 81.02% | 83.4% | 81.87% | 85.85% | 77.91% | 78.45% | 67.63% | 86.24% | 78.43% | 77.84% | 74.05% | 67.62% | 68.74% | 436.22% | 128.87% | 49.06% | 50% |
| Gross Profit | 6.74M | 7.92M | 3.51M | 7.02M | 3.82M | 32.46M | 14.52M | 5.74M | 5.19M | 9.22M | 9.93M | 8.4M | 4.38M | 7.23M | 5.23M | 15.06M | 14.02M | 5.18M | 7.69M | 2.7M | 324.8K | 94.43K | -4.19M | -926K | 5.4M | 700K |
| Gross Margin % | 19.22% | 17.17% | 11.39% | 15.28% | 15.9% | 17.63% | 19.35% | 15.74% | 17.27% | 18.98% | 16.6% | 18.13% | 14.15% | 22.09% | 21.55% | 32.37% | 13.76% | 21.57% | 22.16% | 25.95% | 32.38% | 31.26% | -336.22% | -28.87% | 50.94% | 50% |
| Gross Profit Growth % | - | 125.61% | -50.03% | 83.95% | -88.24% | 123.51% | 153.06% | 10.55% | -43.68% | -7.12% | 18.16% | 91.84% | -39.47% | 38.35% | -65.28% | 7.37% | 170.93% | -32.72% | 185.46% | 729.86% | 243.95% | 102.26% | -352.05% | -117.15% | 671.43% | - |
| Operating Expenses | 8.93M | 10.78M | 9.45M | 9.37M | 8.79M | 9.65M | 7.43M | 7.78M | 7.55M | 8.34M | 7.81M | 7.89M | 7.29M | 7.4M | 7.49M | 9.41M | 6.36M | 2.86M | 3.3M | 1.38M | 618.22K | 742.36K | -12.11M | 10.22M | 7.9M | 5.7M |
| OpEx % of Revenue | - | 23.39% | 30.68% | 20.39% | 36.63% | 5.24% | 9.9% | 21.34% | 25.12% | 17.18% | 13.05% | 17.02% | 23.56% | 22.6% | 30.85% | 20.22% | 6.24% | 11.92% | 9.5% | 13.31% | 61.64% | 245.76% | -972.45% | 318.62% | 74.53% | 407.14% |
| Selling, General & Admin | 5.03M | 6.68M | 6.04M | 5.45M | 4.51M | 5.08M | 3.7M | 4.89M | 4.51M | 4.9M | 4.82M | 4.97M | 4.51M | 4.63M | 7.49M | 9.41M | 6.36M | 2.86M | 3.3M | 1.38M | 581.92K | 718.16K | 4.35M | 7.74M | 5.6M | 3.9M |
| SG&A % of Revenue | - | 14.49% | 19.62% | 11.86% | 18.79% | 2.76% | 4.93% | 13.41% | 15.01% | 10.09% | 8.05% | 10.73% | 14.58% | 14.14% | 30.85% | 20.22% | 6.24% | 11.92% | 9.5% | 13.31% | 58.02% | 237.75% | 349.48% | 241.41% | 52.83% | 278.57% |
| Research & Development | 3.9M | 4.1M | 3.41M | 3.92M | 4.28M | 4.57M | 3.75M | 2.96M | 3.37M | 3.45M | 2.99M | 2.92M | 2.78M | 2.77M | 0 | 0 | 0 | 0 | 0 | 0 | 36.3K | 24.2K | 1.15M | 1.83M | 1.9M | 1.6M |
| R&D % of Revenue | - | 8.9% | 11.06% | 8.53% | 17.84% | 2.48% | 4.99% | 8.1% | 11.22% | 7.09% | 5% | 6.29% | 8.98% | 8.46% | - | - | - | - | - | - | 3.62% | 8.01% | 92.53% | 57.19% | 17.92% | 114.29% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | -16.28K | -64.2K | -8.54K | -19.84K | 0 | 0 | 0 | -27.09K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -17.61M | 642K | 400K | 200K |
| Operating Income | -2.19M | -2.86M | -5.94M | -2.35M | -4.97M | 22.82M | 7.08M | -2.04M | -2.69M | 874.38K | 2.12M | 511.66K | -2.91M | -168.84K | -2.26M | 5.65M | 7.67M | 2.32M | 4.39M | 1.31M | -293.42K | -647.93K | 6.71M | -11.14M | -2.5M | -5M |
| Operating Margin % | -6.25% | -6.21% | -19.29% | -5.11% | -20.73% | 12.39% | 9.43% | -5.6% | -8.95% | 1.8% | 3.54% | 1.1% | -9.41% | -0.52% | -9.3% | 12.15% | 7.52% | 9.65% | 12.65% | 12.64% | -29.26% | -214.5% | 539.12% | -347.49% | -23.58% | -357.14% |
| Operating Income Growth % | - | 51.79% | -152.8% | 52.77% | -121.8% | 222.38% | 446.41% | 24.1% | -407.86% | -58.74% | 314.14% | 117.56% | -1625.93% | 92.52% | -139.93% | -26.26% | 230.89% | -47.28% | 234.69% | 547.46% | 54.71% | -109.65% | 160.23% | -345.76% | 50% | - |
| EBITDA | -1.52M | -2M | -5.96M | -1.16M | -4M | 23.73M | 8.02M | -1.53M | -2.08M | 1.49M | 3.09M | 1.97M | -1.37M | 1.44M | -1.2M | 6.67M | 8M | 2.34M | 4.46M | 1.39M | -236.58K | -596.73K | 6.01M | -11.79M | -2.9M | -5.2M |
| EBITDA Margin % | -4.33% | -4.35% | -19.34% | -2.53% | -16.68% | 12.89% | 10.68% | -4.19% | -6.93% | 3.07% | 5.16% | 4.26% | -4.41% | 4.41% | -4.95% | 14.35% | 7.85% | 9.74% | 12.85% | 13.39% | -23.59% | -197.55% | 482.97% | -367.51% | -27.36% | -371.43% |
| EBITDA Growth % | 47.32% | 66.36% | -412.55% | 70.97% | -116.87% | 196.07% | 624.52% | 26.68% | -239.98% | -51.76% | 56.5% | 244.44% | -194.62% | 220.17% | -118% | -16.58% | 242.22% | -47.61% | 220.85% | 687.81% | 60.35% | -109.92% | 151.02% | -306.41% | 44.23% | - |
| D&A (Non-Cash Add-back) | 675.9K | 860.22K | -16.35K | 1.19M | 971.4K | 912.3K | 937.06K | 515.14K | 607.82K | 614.49K | 967.73K | 1.46M | 1.55M | 1.61M | 1.06M | 1.02M | 333.28K | 20.69K | 67.61K | 77.68K | 56.84K | 51.2K | -699K | -642K | -400K | -200K |
| EBIT | -2.19M | -2.86M | -5.92M | -2.31M | -4.88M | 22.97M | 7.09M | -2.04M | -2.36M | 1.16M | 2.12M | 511.66K | -2.91M | -168.84K | -2.26M | 5.65M | 7.67M | 2.32M | 4.39M | 1.31M | -293.42K | -647.93K | 7.92M | -11.14M | -2.5M | -5M |
| Net Interest Income | 542.33K | 695.13K | 804.15K | 459.87K | 71.38K | 8.79K | 159.75K | 138.46K | 10.01K | 9.65K | 10.3K | 23.26K | 13.59K | 19.54K | 31.46K | 46.49K | 79K | 84.84K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 542.33K | 695.13K | 804.15K | 459.87K | 71.38K | 8.79K | 159.75K | 138.46K | 10.01K | 9.65K | 10.3K | 23.26K | 13.59K | 19.54K | 31.46K | 46.49K | 79K | 84.84K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 1.19M | 2.68M | 823.78K | -1.48M | 265.42K | 617.17K | 220.76K | 204.95K | 332.32K | 271.38K | 92.17K | 453.97K | 1.42M | 96.26K | 123.72K | 2.04M | -85.02K | 100.06K | 112.15K | 22.35K | 16.63K | -4.51K | -17.92M | -464K | 0 | 500K |
| Pretax Income | -1M | -185.6K | -5.12M | -3.83M | -4.71M | 23.44M | 7.3M | -1.9M | -2.36M | 1.15M | 2.21M | 965.63K | -1.49M | -72.58K | -2.13M | 7.7M | 7.58M | 2.42M | 4.51M | 1.34M | -276.79K | -652.44K | 11.2M | -11.61M | 0 | -4.5M |
| Pretax Margin % | -2.87% | -0.4% | -16.61% | -8.34% | -19.62% | 12.73% | 9.72% | -5.22% | -7.85% | 2.36% | 3.7% | 2.08% | -4.82% | -0.22% | -8.79% | 16.55% | 7.44% | 10.07% | 12.98% | 12.86% | -27.6% | -215.99% | 899.92% | -361.96% | - | -321.43% |
| Income Tax | -203.19K | -45.17K | -949.3K | -886.66K | -1.04M | 5.04M | 1.38M | -428.75K | -186.97K | 374.59K | 34.93K | -88.27K | -529.02K | 168.81K | -1.21M | 3.35M | 2.95M | -1.22M | 589.45K | 35.19K | 800 | 800 | 3K | 3K | 700K | 0 |
| Effective Tax Rate % | 20.23% | 24.34% | 18.56% | 23.14% | 22.02% | 21.5% | 18.91% | 22.54% | 7.92% | 32.69% | 1.58% | -9.14% | 35.44% | -232.59% | 56.89% | 43.57% | 38.97% | -50.58% | 13.08% | 2.64% | -0.29% | -0.12% | 0.03% | -0.03% | - | 0% |
| Net Income | -726.51K | -243.1K | -3.96M | -2.86M | -3.76M | 17.7M | 5.55M | -1.47M | -2.09M | 873.96K | 1.61M | 760.01K | -972.04K | 174.66K | -128.97K | 4.55M | 4.78M | 3.64M | 3.92M | 1.3M | -277.59K | -653.24K | -10.82M | -11.55M | -2.4M | -4.5M |
| Net Margin % | -2.07% | -0.53% | -12.87% | -6.23% | -15.68% | 9.61% | 7.39% | -4.04% | -6.96% | 1.8% | 2.69% | 1.64% | -3.14% | 0.53% | -0.53% | 9.77% | 4.69% | 15.16% | 11.28% | 12.52% | -27.68% | -216.26% | -869.08% | -360.18% | -22.64% | -321.43% |
| Net Income Growth % | 56.41% | 93.87% | -38.46% | 23.91% | -121.26% | 218.87% | 476.63% | 29.57% | -339.42% | -45.75% | 111.97% | 178.19% | -656.54% | 235.42% | -102.84% | -4.86% | 31.29% | -7.09% | 201.28% | 568.35% | 57.51% | 93.96% | 6.33% | -381.29% | 46.67% | - |
| Net Income (Continuing) | -801.45K | -140.43K | -4.17M | -2.94M | -3.67M | 18.4M | 5.92M | -1.47M | -2.17M | 771.17K | 2.18M | 1.05M | -963.73K | -241.39K | -919.91K | 4.34M | 4.63M | 3.64M | 3.92M | 1.3M | -277.59K | -653.24K | -11.21M | -11.61M | -2.4M | -4.5M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 2.9M | 3.35M | 1.23M | 1.49M | 1.57M | 1.48M | 782.01K | 489.05K | 921.01K | 1M | 1.1M | 538.7K | 244.81K | 236.5K | 652.54K | 900.87K | 1.13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.06 | -0.02 | -0.34 | -0.24 | -0.32 | 1.53 | 0.52 | -0.14 | -0.20 | 0.08 | 0.15 | 0.07 | -0.09 | 0.02 | -0.01 | 0.36 | 0.35 | 0.27 | 0.30 | 7.10 | -1.66 | -4.11 | -0.96 | -1.02 | -0.21 | -0.40 |
| EPS Growth % | 58.04% | 93.94% | -41.67% | 25% | -120.91% | 194.23% | 471.43% | 30% | -350% | -46.67% | 114.29% | 174.79% | -568% | 283.49% | -103.03% | 2.86% | 29.63% | -10% | -95.77% | 527.71% | 59.61% | -328.13% | 5.88% | -385.71% | 47.5% | - |
| EPS (Basic) | - | -0.02 | -0.34 | -0.24 | -0.32 | 1.56 | 0.52 | -0.14 | -0.20 | 0.08 | 0.15 | 0.07 | -0.09 | 0.02 | -0.01 | 0.37 | 0.35 | 0.28 | 0.30 | 7.10 | -1.66 | -4.11 | -0.97 | -1.04 | -0.22 | -0.40 |
| Diluted Shares Outstanding | 11.78M | 11.78M | 11.78M | 11.74M | 11.61M | 11.59M | 10.72M | 10.57M | 10.54M | 10.66M | 10.65M | 10.64M | 10.39M | 10.94M | 11.86M | 12.46M | 13.74M | 13.25M | 13.23M | 183.21K | 166.94K | 158.79K | 11.28M | 11.28M | 11.28M | 11.28M |
| Basic Shares Outstanding | 11.78M | 11.78M | 11.78M | 11.74M | 11.61M | 11.35M | 10.58M | 10.57M | 10.46M | 10.5M | 10.41M | 10.53M | 10.39M | 10.73M | 11.86M | 12.28M | 13.58M | 13.23M | 13.23M | 183.21K | 166.94K | 158.79K | 11.12M | 11.12M | 11.12M | 11.12M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
High carrier revenue concentration
As evidenced by the quarterly income statement data, FKWL's revenue trajectory remains highly erratic, with a sharp 57% year-over-year decline in 2026Q3 following periods of triple-digit growth, highlighting the company's extreme sensitivity to lumpy carrier procurement cycles and device refresh timelines in the mobile broadband market.
The revenue profile suggests a business model tethered to sporadic carrier orders rather than consistent organic demand. This volatility complicates long-term forecasting and indicates that the company lacks the diversified revenue streams necessary to smooth out the inherent cyclicality of the hardware-centric telecommunications equipment industry.
According to the reported financial statements, FKWL's gross margin has struggled to sustain levels above 20%, peaking at 22.8% in 2026Q1 before retreating, which underscores the company's limited pricing power and its role as a low-margin hardware integrator within the competitive wireless equipment landscape.
The inability to consistently expand gross margins suggests that the company is unable to pass through component cost fluctuations to its primary carrier customers. This structural constraint forces the firm to operate on razor-thin margins, leaving little room for error in managing its supply chain and inventory costs.
Based on the provided income statement figures, the company's operating margin has frequently dipped into negative territory, reaching -43.9% in 2026Q3, which demonstrates that the current revenue scale is insufficient to absorb fixed R&D and administrative overhead, preventing the realization of meaningful operating leverage.
The persistent disconnect between revenue growth and operating profitability suggests that the company's cost structure is not yet optimized for its current scale. Investors should monitor whether management can rationalize its operating expenses, as the current trajectory indicates that growth alone is not driving the business toward sustainable profitability.
While the company maintains a clean balance sheet, the income statement data reveals a recurring pattern of net losses, with the most recent 2026Q3 net margin of -45.2% raising significant questions regarding the long-term viability of the current hardware-heavy business model in a rapidly evolving 5G environment.
Short-term revenue spikes appear to be insufficient to offset the underlying structural weaknesses in the company's cost base. The reliance on a few key carrier relationships, combined with the lack of a high-margin software offset, suggests that the company remains highly vulnerable to any further deterioration in carrier demand or supply chain disruptions.
Quick answers to the most common questions about buying FKWL stock.
For fiscal year 2025, Franklin Wireless Corp. (FKWL) reported total revenue of $46.1M. This represents a 3191.9% increase compared to $1.4M in 1998.
Franklin Wireless Corp. (FKWL) reported a net loss of $0.2M for the fiscal year ending 2025.
Franklin Wireless Corp. (FKWL) reported an operating income of $-2.9M, resulting in an operating profit margin of -6.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Franklin Wireless Corp. (FKWL) generated $7.9M in gross profit for the year, representing a gross profit margin of 17.2%. This demonstrates the company's core pricing power and production efficiency.