FKWL

Stock Performance: Franklin Wireless Corp. shares have dropped 12.4% since their Q1 fiscal 2026 earnings report, underperforming the S&P 500, which fell 1.7% during the same period. The stock has also declined 11.3% over the past month.

Financial Highlights: The company reported quarterly revenues of $12.7 million, a 4.3% decrease from the previous year, while net income rose to $640,478, resulting in an EPS of 5 cents. Gross profit increased significantly by 40.5% year-over-year to $2.9 million.

Operational Insights: Franklin Wireless experienced a decline in demand for mobile device management services, attributed to post-pandemic shifts in user behavior. The company is focusing on enhancing its software offerings and managing customer relationships to adapt to changing market conditions.

Cash Flow and Inventory Management: The company faced a cash flow shift, using $1.49 million in operations compared to a positive $2.67 million in the prior year, primarily due to increased accounts receivable. Effective inventory management contributed positively to the quarter's operating performance despite rising shipping costs.

Product Announcement: Franklin Wireless Corp has launched the JEXtream CG890, a next-generation 5G Fixed Wireless Access router aimed at providing reliable, high-speed connectivity for service providers and community organizations.

Key Features: The CG890 includes features such as Auto Failover for uninterrupted service, CBRS compatibility for flexible deployment, dual 1Gb Ethernet ports, and remote management tools for efficient network administration.

Target Audience: This router is designed for cost-conscious consumers, small businesses, nonprofits, and ISPs looking for robust network solutions to enhance digital equity and maintain service continuity.

Availability: The JEXtream CG890 is currently available through select distribution partners, with plans for broader availability later this quarter.

Partnership Announcement: AiM Future has signed a Memorandum of Understanding with Franklin Wireless Corp to collaborate on developing a lightweight AI model and a high-efficiency 1 TOPS performance AI SoC chipset.

Company Profiles: Franklin Wireless is known for its intelligent wireless solutions, while AiM Future specializes in NPU accelerator IP and edge AI SoCs targeting IoT and smart technology markets.

Development Goals: The partnership aims to create an efficient AI model for MCU devices and co-develop a communication module that integrates the AI SoC chipset, focusing initially on the North American market.

Strategic Impact: This collaboration enhances AiM Future's entry into the North American market and aims to deliver cost-efficient AI solutions, boosting revenue growth and market adoption in the AI–IoT convergence sector.