Franklin Wireless Corp. (FKWL) AI Stock Analysis
FKWL AI stock analysis summary
AI ResearchFranklin Wireless Corp. provides wireless broadband solutions, IoT tracking devices, and cloud server platforms. The company holds a strong cash balance of $32.0M against total debt of $1.0M, but has generated consistent annual net losses, including -$4.7M in FY2026. Over the trailing twelve months, revenue reached $36.5M while operating margins stood at -21.5%.
- Market cap
- $26.5M
- Revenue (TTM)
- $36.5M
- P/E
- — fwd 27.2x
- 1Y return
- -54.5% S&P 500 16.8%
- Avg. target
- $6.00 166.7% vs last close
Bull case
- The balance sheet is well-capitalized with $30.9M in net cash as of June 30, 2026, which exceeds the company's market cap of $26.5M.
- Quarterly revenue grew 21.2% year-over-year in the latest quarter ending June 30, 2026.
- The consensus analyst price target of $6.00 indicates a potential gain of 166.7% over the last close of $2.25.
Bear case
- Revenue has contracted at a 5-year CAGR of -27.6% between FY2021 and FY2026.
- The business generated negative free cash flow of -$6.3M in FY2026 alongside a net loss of -$4.7M.
- The stock has dropped 54.5% over the past year, while the broader market via SPY gained 16.8%.
What Franklin Wireless does
Franklin Wireless Corp. specializes in providing advanced wireless solutions tailored for consumer and enterprise applications. Its portfolio includes 5G and 4G wireless broadband products such as Wi-Fi mobile hotspots, consumer home gateway customer-premises equipment (CPE), and enterprise gateway CPE. The company also supplies IoT tracking and connected devices, including smart tracking hardware, connected car tools, and home phone connect units. In addition, Franklin Wireless delivers cloud-based telecom software through its Pintrac platform, which supports mobile device management, pet tracking, and vehicle monitoring. Headquartered in San Diego, California, it distributes hardware and software directly to wireless operators and partners across North America, South America, the Caribbean, and Asia.
Growth and profitability
Franklin Wireless has seen volatile revenue trends, with a 5-year revenue CAGR of -27.6% from FY2021 to FY2026. Annual sales dropped 20.8% in FY2026 to $36.5M, down from $46.1M in FY2025 and $30.8M in FY2024. Gross margin remained steady at 17.1% in FY2026 compared to 17.2% in FY2025. The company posted annual net losses across all five reported years, finishing FY2026 with net income of -$4.7M and an operating margin of -7.3%. For the latest quarter ending June 30, 2026, quarterly revenue grew 21.2% year-over-year, and quarterly earnings grew 133.3% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, Franklin Wireless reported cash and short-term investments of $32.0M compared to total debt of $1.0M, resulting in net cash of $30.9M. The company maintains a current ratio of 2.67 and a debt-to-equity ratio of 0.04 against shareholders' equity of $29.3M. In FY2026, free cash flow was -$6.3M, and operating cash flow was -$6.3M. Cash use during FY2026 included capital expenditures of $28,863 and dividends paid of $471,371.
Valuation and performance
Franklin Wireless trades at a price-to-sales ratio of 0.7x and a price-to-book ratio of 0.8x, compared to the median of its US-listed Technology peers of 2.8x for price-to-sales. Its forward P/E multiple is 27.2x, above the peer group median forward P/E of 18.8x. With a market cap of $26.5M and cash exceeding debt, its enterprise value is -$3.4M. Over the past year, FKWL shares declined 54.5%, underperforming the S&P 500 (SPY), which gained 16.8%.
What analysts expect
One analyst covers Franklin Wireless, rating the stock a Strong Buy. The mean price target is $6.00, representing an upside of 166.7% from the last close of $2.25. For the current fiscal year ending June 30, 2027, the consensus revenue estimate is $48.4M with an EPS estimate of $0.04. Franklin Wireless has beaten EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 13, 2026.
Key risks and what to watch
- Continued cash burn could erode balance sheet liquidity, as operating cash flow stood at -$6.3M in FY2026.
- Profitability remains pressured, with an operating margin of -21.5% over the trailing twelve months.
- High volatility in annual sales poses operational challenges, moving from $46.1M in FY2025 down to $36.5M in FY2026.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this FKWL AI stock analysis
This page is an AI-written research summary of Franklin Wireless Corp. (FKWL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: FKWL income statement, FKWL balance sheet, FKWL key metrics, FKWL analyst forecast, FKWL chart. See the FKWL stock overview for the latest quote and news.
FKWL AI stock analysis FAQ
What was Franklin Wireless's revenue in FY2026?
Franklin Wireless reported revenue of $36.5M for FY2026, representing a 20.8% decrease compared to FY2025.
How much cash and debt does Franklin Wireless have?
As of June 30, 2026, the company held $32.0M in cash and short-term investments and $1.0M in total debt, yielding a net cash position of $30.9M.
What is the consensus analyst target for FKWL stock?
The single analyst covering the stock has a Strong Buy rating with a mean price target of $6.00, which is 166.7% above its last close of $2.25.
When is the next earnings release for Franklin Wireless?
Franklin Wireless is scheduled to report its next earnings on November 13, 2026.