Customer concentration
The two largest customers represented 60.9% and 33.5% of consolidated net sales in fiscal 2025.
- Scope
- Wireless operator accounts
- Materiality
- high
Franklin Wireless Corp
Franklin Wireless Corp. designs and sells wireless access products under the Franklin Access brand, including 5G and 4G LTE mobile hotspots, fixed wireless routers, and telecom-grade device management software. The company also develops connected-device solutions for IoT and M2M use cases and supports its products through a mix of direct sales, distributors, and strategic partners.
−6,1 %
17,2 %
−0,5 %
+49,6 %
3.64
3.45
| % | |
|---|---|
| Wireless access devices | 75% Hotspots and routers that provide mobile and fixed wireless broadband connectivity. |
| Device management software | 10% Cloud-based MDM and NMS tools used to remotely manage wireless devices and networks. |
| Telecommunications modules | 10% Wireless modules and related sales, marketing, customer support and operations. |
| Consumer connectivity applications | 5% Quvo Family Guardian solutions for parental controls and senior care monitoring. |
Franklin sells primarily to wireless operators, with additional sales through strategic partners and distributors...
- Wireless operatorsprimary
Buy hotspots, routers and related wireless access products for resale or bundled service plans.
- Strategic partners and distributorsprimary
Purchase or resell Franklin products and extend market reach into carrier and channel accounts.
- Telecommunications module customerssecondary
Use telecom modules and support services for connected-device and network applications.
- Consumer connectivity usersemerging
Buy Quvo family safety solutions for parental controls and senior care monitoring.
Franklin reports revenue from two regions: North America and Asia, with North America overwhelmingly dominant...
- •North America is the core revenue market and main carrier channel
- •Asia contributes a very small share of revenue but supports sourcing and R&D
- •San Diego headquarters handles sales, marketing, finance and support
- •Seoul-based FTI provides design and development services
- •Regional mix matters because carrier demand and certifications are market-specific
Franklin is focused on expanding wireless access products, improving product acceptance, and maintaining carrier...
01
Deepen carrier relationshipsshort-term
A small number of wireless operators drive most revenue, so retention is critical to scale.
02
Accelerate product development and certificationmedium-term
Wireless standards and carrier approval cycles determine whether new devices can reach market on time.
03
Broaden connected-device and software offeringsmedium-term
MDM, NMS and IoT/M2M products can diversify revenue beyond hardware-only access devices.
Franklin is highly exposed to customer concentration, with two customers representing most of annual sales, and to...
Product certification and launch delays
FCC, PTCRB and 3GPP-related approvals are required before products can be sold to carriers.
- Scope
- 5G and LTE device launches
- Materiality
- high
Product defects and liability
Hardware, software or component defects can lead to recalls, replacements, litigation and warranty expense.
- Scope
- Wireless devices and software platforms
- Materiality
- high
Demand volatility from carrier spending
Sales depend on wireless operators' demand for broadband access products and network capacity.
- Scope
- North America carrier market
- Materiality
- high
Supply chain and lead-time risk
Shipments often take more than 45 days, which can cause lost customers and higher inventory needs.
- Scope
- Manufacturing and distribution
- Materiality
- medium
Revenue recognition on product shipments
Can create quarter-to-quarter volatility in reported sales
Warranty and returns reserves
Affects gross margin and operating profit
Accounts receivable and working capital
Impacts operating cash flow and liquidity
Capitalized product development costs
Changes reported operating expense and investing cash flow
Non-controlling interests
Affects net income attributable to parent shareholders
: 28.4.2026