Core Insights - Airgain is set to present at the AT&T Vision FirstNet Users Summit, highlighting its involvement in the FirstNet initiative [1] Company Summary - Airgain's participation in the summit indicates its commitment to enhancing connectivity solutions for public safety and emergency services [1]

Airgain (AIRG) 2025 Conference Summary Company Overview - Airgain is a leading provider of advanced wireless connectivity solutions, headquartered in San Diego, California, with global sales and design centers in multiple locations including Arizona, Minnesota, China, Taiwan, and the UK [1][2] - The company has over 285 patents and applications, emphasizing its innovation capabilities [2] Financial Performance - For the first half of 2025, Airgain reported revenues of approximately $26 million, with a full-year consensus estimate of $55 million [2] - The market value of Airgain is around $50 million, with an enterprise value of about $43 million, supported by $7 million in cash and no debt [2] Strategic Focus and Market Opportunity - Airgain is transitioning from a components provider to a wireless system solution provider, expanding its Serviceable Available Market (SAM) from $1.1 billion in 2024 to $2.2 billion in 2025 [4] - The company is focusing on expanding customer trials and certification waves, targeting a revenue shipment ramp in 2026 [5] Product Development and Growth Platforms - The consumer business, particularly embedded antennas, is expected to grow in double digits due to technology refreshes from cable operators and partnerships with Tier 1 mobile network operators [6] - Embedded modems are also experiencing growth, driven by utility infrastructure monitoring applications [6] - AirgainConnect platform is an all-in-one 5G modem, router, and antenna designed to simplify wireless connectivity, featuring eSIM capabilities and reduced installation time [20][21] Lighthouse Smart Network Repeater - The Lighthouse solution addresses coverage gaps created by high-frequency 5G signals, offering a fast and easy installation process compared to traditional cell towers [28][30] - It leverages existing infrastructure to provide 5G coverage without the need for extensive construction or zoning approvals, resulting in a significantly lower total cost of ownership [29][31] Financial Guidance and Profitability - Airgain expects to achieve EBITDA breakeven or positive results in the upcoming quarter, with a gross margin improvement from 38% to 44% [33] - The company is managing operating expenses carefully to align with new working solutions and improve SG&A expense efficiencies [34] Leadership and Innovation - The leadership team, including CEO Jacob Suen and CTO Dr. Ali Sadri, brings extensive experience in technology and product development, focusing on innovation as a key differentiator [10][11][34] - Airgain's operational model is designed to be resilient in challenging times while providing upside potential during favorable market conditions [35] Conclusion - Airgain is positioned for growth through its innovative product offerings and strategic market expansions, addressing real pain points in wireless connectivity and aiming for sustainable long-term revenue growth [35]

Core Points - Airgain, Inc. will participate in the 2025 Gateway Conference on September 3-4 in San Francisco, CA [1] - The presentation will be led by President and CEO Jacob Suen and CFO Michael Elbaz on September 4 at 10:30 a.m. PT, with a live webcast available [2] - Management will discuss the execution of its growth strategy, including key milestones such as FirstNet Trusted certification for AC-Fleet and the launch of the Go-Kit Pro mobile connectivity solution [3] Company Overview - Airgain, Inc. is headquartered in San Diego, California, and is a leading provider of advanced wireless connectivity solutions [5] - The company focuses on delivering high-performance, cost-effective, and energy-efficient wireless solutions across three primary markets: enterprise, automotive, and consumer [5]

Financial Performance - Airgain reported a quarterly loss of $0.04 per share, better than the Zacks Consensus Estimate of a loss of $0.06, and compared to a loss of $0.05 per share a year ago, representing an earnings surprise of +33.33% [1] - The company posted revenues of $13.62 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.29%, but down from $15.18 million year-over-year [2] - Over the last four quarters, Airgain has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Airgain shares have lost about 36% since the beginning of the year, while the S&P 500 has gained 7.1% [3] - The current status of estimate revisions for Airgain is unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is -$0.01 on revenues of $14.85 million, and -$0.13 on revenues of $57.55 million for the current fiscal year [7] - The outlook for the Communication - Components industry, to which Airgain belongs, is currently in the bottom 37% of over 250 Zacks industries, which may impact the stock's performance [8]

Financial Data and Key Metrics Changes - Second quarter revenue was $13.6 million, up 13% sequentially from the first quarter, slightly above the midpoint of guidance [19] - Non-GAAP gross margin for Q2 was 43.8%, down from 44.3% in Q1 but up 230 basis points year-over-year [21] - Non-GAAP net loss for Q2 was $500,000, or $0.04 per share, an improvement from a loss of $1.2 million in Q1 [21] - Cash and equivalents at the end of the quarter were $7.7 million, reflecting disciplined working capital management [22] Business Line Data and Key Metrics Changes - Enterprise revenue reached $7.2 million, increasing by $2.8 million sequentially, driven by demand for embedded modems in utility infrastructure monitoring [19] - Consumer revenue was $5.6 million, down $800,000 sequentially, consistent with expectations following inventory pull forward [20] - Automotive revenue was $800,000, down $400,000 sequentially, reflecting softer demand [20] Market Data and Key Metrics Changes - The consumer market is stabilizing with Wi-Fi 7 shipments ramping up, providing a stable revenue foundation [6] - The enterprise market is seeing strong performance from the NimbleLink embedded modem line, particularly in industrial IoT applications [7] - Conditions in the automotive aftermarket and asset tracking markets remain soft, with inventory overhang affecting sales [8] Company Strategy and Development Direction - The company aims to scale growth platforms, strengthen existing markets, and maintain disciplined operational execution [4] - Focus on AirgainConnect and Lighthouse platforms, with expectations for significant scaling in 2026 as certifications are completed [27] - The strategy includes expanding the sales team and strengthening marketing efforts to drive platform adoption [13][17] Management's Comments on Operating Environment and Future Outlook - Management noted a stable operating environment with no material impact from tariffs on gross margin or customer demand [5] - The company expects sequential revenue growth and a return to profitability in 2025, driven by stable consumer and IoT modem sales [27] - Management remains optimistic about the recovery in the consumer market and the traction in the embedded modem sector [36] Other Important Information - The company has received $2.1 million in net proceeds from employee retention credits, which helped offset operating losses [22] - The new Senior Vice President of Global Sales, Gordon Schenk, brings over 25 years of experience to help expand global reach [28] Q&A Session Summary Question: Confirmation of 40 sales opportunities for AC Fleet - Management confirmed there are 40 qualified sales opportunities for AC Fleet, with varying timelines for conversion based on customer tier [31][32] Question: Outlook for December quarter - Management expects a relatively stable Q3 and Q4, with potential for small but steady increases, particularly in the consumer and embedded modem markets [36][39]

[Executive Summary](index=1&type=section&id=Executive%20Summary) Airgain achieved sequential sales growth in Q2 2025, reaching $13.6 million, driven by strategic milestones and positioning for H2 2025 profitability [Q2 2025 Performance and Strategic Highlights](index=1&type=section&id=Q2%202025%20Performance%20and%20Strategic%20Highlights) Airgain reported sequential growth in Q2 2025, with sales reaching $13.6 million, up 13.4% from Q1 2025. The company achieved key operational milestones, including FirstNet Trusted certification for AC-Fleet and the launch of Go-Kit Pro, positioning for profitability in the second half of 2025 and scalable growth in 2026 - Airgain achieved sequential growth in Q2 2025, with sales increasing by **13.4%** from Q1 2025[2](index=2&type=chunk)[5](index=5&type=chunk) - Key operational milestones include FirstNet Trusted certification for AC-Fleet, launch of Go-Kit Pro mobile connectivity solution, and first Tier 2 utility win for AC-Fleet[3](index=3&type=chunk)[5](index=5&type=chunk) - The company is advancing Lighthouse global trials and expects broader platform ramps in 2026, aiming for profitability in H2 2025 and scalable growth in 2026[3](index=3&type=chunk) [Second Quarter 2025 Financial Results](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results) Airgain's Q2 2025 results show sequential sales growth to $13.6 million, improved gross margin, reduced operating expenses, and a narrowed net loss, indicating financial stabilization [Sales Performance](index=1&type=section&id=Sales%20Performance) Airgain's Q2 2025 sales were $13.6 million, showing a 13.4% sequential increase from Q1 2025, driven by strong enterprise market growth. However, sales decreased by 10.3% year-over-year due to lower demand in enterprise and automotive markets, partially offset by consumer market growth Q2 2025 Sales by Market (in millions) | Market | Q2 2025 Sales | Q1 2025 Sales | YoY Change (Q2 2024) | | :------------- | :------------ | :------------ | :------------------- | | Enterprise | $7.2 | $4.3 | -$1.5 | | Consumer | $5.6 | $6.4 | +$0.8 | | Automotive | $0.8 | $1.3 | -$0.9 | | **Total Sales** | **$13.6** | **$12.0** | **-$1.6** | - Total sales increased by **13.4%** sequentially from Q1 2025 (**$12.0 million**) to Q2 2025 (**$13.6 million**)[5](index=5&type=chunk) - Total sales decreased by **10.3%** year-over-year from Q2 2024 (**$15.2 million**) to Q2 2025 (**$13.6 million**)[6](index=6&type=chunk) [Gross Profit and Margin](index=2&type=section&id=Gross%20Profit%20and%20Margin) GAAP gross profit for Q2 2025 was $5.8 million, with a gross margin of 42.9%. Non-GAAP gross profit was $6.0 million, with a margin of 43.8%. The year-over-year increase in gross margin was primarily due to improved enterprise product margins Q2 2025 Gross Profit and Margin (in millions, %) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :---------------- | :------ | :------ | :------ | | GAAP Gross Profit | $5.8 | $5.2 | $6.1 | | Non-GAAP Gross Profit | $6.0 | $5.3 | $6.3 | | GAAP Gross Margin | 42.9% | 43.0% | 40.5% | | Non-GAAP Gross Margin | 43.8% | 44.3% | 41.5% | - GAAP gross margin increased year-over-year from **40.5%** in Q2 2024 to **42.9%** in Q2 2025, primarily due to improved enterprise product margins[8](index=8&type=chunk) [Operating Expenses](index=2&type=section&id=Operating%20Expenses) GAAP operating expenses for Q2 2025 decreased to $7.8 million, down $0.5 million sequentially and $0.9 million year-over-year, mainly due to lower employee expenses. Non-GAAP operating expenses also saw a sequential and year-over-year reduction Q2 2025 Operating Expenses (in millions) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :-------------------- | :------ | :------ | :------ | | GAAP Operating Expenses | $7.8 | $8.3 | $8.7 | | Non-GAAP Operating Expenses | $6.5 | $6.6 | $6.9 | - The reduction in operating expenses was primarily driven by lower employee expenses[9](index=9&type=chunk) [Net Loss and EPS](index=2&type=section&id=Net%20Loss%20and%20EPS) Airgain reported a GAAP net loss of $1.5 million, or $(0.12) per share, for Q2 2025, consistent with Q1 2025 but an improvement from the $2.5 million loss in Q2 2024. Non-GAAP net loss improved significantly to $0.5 million, or $(0.04) per share, from $1.3 million in Q1 2025 Q2 2025 Net Loss and EPS (in millions, per share) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :------------------ | :------ | :------ | :------ | | GAAP Net Loss | $(1.5) | $(1.5) | $(2.5) | | GAAP EPS | $(0.12) | $(0.13) | $(0.23) | | Non-GAAP Net Loss | $(0.5) | $(1.3) | $(0.6) | | Non-GAAP EPS | $(0.04) | $(0.11) | $(0.05) | - GAAP net loss per share improved year-over-year from **$(0.23)** in Q2 2024 to **$(0.12)** in Q2 2025[10](index=10&type=chunk) - Non-GAAP net loss per share improved sequentially from **$(0.11)** in Q1 2025 to **$(0.04)** in Q2 2025[10](index=10&type=chunk) [Adjusted EBITDA](index=2&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA for Q2 2025 was $(0.4) million, showing a significant improvement from $(1.2) million in Q1 2025 and consistent with $(0.4) million in Q2 2024 Q2 2025 Adjusted EBITDA (in millions) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :------------- | :------ | :------ | :------ | | Adjusted EBITDA | $(0.4) | $(1.2) | $(0.4) | - Adjusted EBITDA improved sequentially from **$(1.2) million** in Q1 2025 to **$(0.4) million** in Q2 2025[11](index=11&type=chunk) [Third Quarter 2025 Financial Outlook](index=2&type=section&id=Third%20Quarter%202025%20Financial%20Outlook) Airgain projects Q3 2025 sales between $13.0 million and $15.0 million, anticipating a return to non-GAAP profitability and positive Adjusted EBITDA [Q3 2025 Financial Guidance](index=2&type=section&id=Q3%202025%20Financial%20Guidance) Airgain projects Q3 2025 sales to be between $13.0 million and $15.0 million, with a GAAP net loss per share of $(0.14) at the midpoint. The company anticipates achieving non-GAAP net income per share of $0.01 and positive Adjusted EBITDA of $0.2 million at the midpoint, signaling a return to profitability Q3 2025 Financial Outlook (Midpoint, in millions, %) | Metric | Guidance (Midpoint) | | :---------------------- | :------------------ | | Sales | $14.0 | | GAAP Gross Margin | 42.9% | | GAAP Operating Expense | $7.7 | | GAAP Net Loss per Share | $(0.14) | | Non-GAAP Gross Margin | 44.0% | | Non-GAAP Operating Expense | $6.1 | | Non-GAAP Net Income per Share | $0.01 | | Adjusted EBITDA | $0.2 | - The company expects to achieve positive non-GAAP net income per share and Adjusted EBITDA in Q3 2025, indicating a return to profitability[14](index=14&type=chunk) [Company Overview and Disclosures](index=2&type=section&id=Company%20Overview%20and%20Disclosures) This section provides details on Airgain's Q2 2025 conference call, company profile, forward-looking statement caveats, non-GAAP financial measure explanations, and investor contact information [Conference Call Details](index=2&type=section&id=Conference%20Call%20Details) Airgain will host a conference call on August 6, 2025, at 5:00 p.m. Eastern Time to discuss Q2 2025 financial results. Details for dial-in and webcast replay are provided for investors - Conference call to discuss Q2 2025 results scheduled for **August 6, 2025, at 5:00 p.m. ET**[15](index=15&type=chunk) - Webcast replay will be available via the investor section of the company's website until **August 6, 2026**[16](index=16&type=chunk) [About Airgain, Inc.](index=4&type=section&id=About%20Airgain%2C%20Inc.) Airgain, Inc., headquartered in San Diego, California, is a leading provider of advanced wireless connectivity solutions. The company's mission is to connect the world through integrated, innovative, and optimized wireless solutions, serving enterprise, automotive, and consumer markets - Airgain, Inc. is a leading provider of advanced wireless connectivity solutions, headquartered in **San Diego, California**[17](index=17&type=chunk) - The company's mission is to deliver high-performance, cost-effective, and energy-efficient wireless solutions for rapid market deployment[17](index=17&type=chunk) - Airgain's product portfolio serves three primary markets: enterprise, automotive, and consumer[17](index=17&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section cautions that statements not based on historical facts are forward-looking and subject to risks and uncertainties. These include market development, operating result fluctuations, supply chain constraints, competition, product performance, and economic conditions, which could cause actual results to differ from expectations - Forward-looking statements are based on current beliefs and expectations, including expected growth, profitability, and Q3 2025 financial outlook[19](index=19&type=chunk) - Actual results may differ due to inherent business risks such as market development, operating result fluctuations, supply constraints, intense competition, and global economic conditions[19](index=19&type=chunk) - The company undertakes no obligation to revise or update these statements after the date of the press release[19](index=19&type=chunk)[20](index=20&type=chunk) [Note Regarding Use of Non-GAAP Financial Measures](index=6&type=section&id=Note%20Regarding%20Use%20of%20Non-GAAP%20Financial%20Measures) Airgain uses non-GAAP financial measures like Adjusted EBITDA, non-GAAP net income/loss, non-GAAP EPS, operating expense, gross profit, and gross margin to provide investors with useful information for analyzing operating trends and performance. These measures exclude non-cash items such as stock-based compensation and amortization of intangibles, which management considers unpredictable and not reflective of operational performance - Non-GAAP measures (Adjusted EBITDA, non-GAAP net income/loss, EPS, operating expense, gross profit/margin) are used to supplement GAAP financial statements[21](index=21&type=chunk) - These measures exclude stock-based compensation, amortization of intangibles, and other non-cash or non-recurring items to allow for meaningful comparisons of core business operating results[22](index=22&type=chunk) - Non-GAAP measures are not a substitute for GAAP results and may not be comparable to those of other companies[23](index=23&type=chunk) [Investor Relations Contact](index=6&type=section&id=Investor%20Relations%20Contact) Contact information for Airgain's Chief Financial Officer, Michael Elbaz, and investor relations firm, Gateway Group, Inc., is provided for investor inquiries - Michael Elbaz, Chief Financial Officer, and Matt Glover of Gateway Group, Inc. are listed as investor contacts[24](index=24&type=chunk) [Condensed Consolidated Financial Statements](index=7&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents Airgain's balance sheets, statements of operations, and cash flows, detailing asset and liability changes, revenue, net loss, and cash movements for Q2 and H1 2025 [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Airgain reported total assets of $45.5 million, a decrease from $48.4 million at December 31, 2024. Total liabilities also decreased to $15.7 million from $17.5 million, while total stockholders' equity stood at $29.8 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | Dec 31, 2024 | | :-------------------------- | :------------ | :----------- | | Total Assets | $45,521 | $48,443 | | Total Liabilities | $15,735 | $17,474 | | Total Stockholders' Equity | $29,786 | $30,969 | | Cash and cash equivalents | $7,678 | $8,510 | - Current assets decreased from **$25.8 million** at Dec 31, 2024, to **$24.6 million** at June 30, 2025, primarily due to a decrease in cash and cash equivalents[26](index=26&type=chunk) - Current liabilities decreased from **$13.5 million** at Dec 31, 2024, to **$11.8 million** at June 30, 2025, mainly due to lower accounts payable and accrued compensation[26](index=26&type=chunk) [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended June 30, 2025, Airgain reported sales of $13.6 million and a net loss of $1.5 million. For the six months ended June 30, 2025, sales were $25.6 million with a net loss of $3.0 million, showing an improvement in net loss compared to the prior year period Condensed Consolidated Statements of Operations Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------- | :------ | :------ | :------ | :------ | | Sales | $13,623 | $15,184 | $25,636 | $29,415 | | Gross Profit | $5,839 | $6,148 | $10,999 | $11,724 | | Total Operating Expenses | $7,839 | $8,653 | $16,095 | $16,858 | | Net Loss | $(1,475) | $(2,513) | $(3,021) | $(4,968) | | Basic Net Loss per Share | $(0.12) | $(0.23) | $(0.26) | $(0.46) | - Net loss for the six months ended June 30, 2025, improved to **$(3.0) million** from **$(5.0) million** in the same period last year[28](index=28&type=chunk) - Employee retention credit refund significantly contributed to other income in H1 2025, totaling **$1.989 million**[28](index=28&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash used in operating activities was $(0.9) million, a significant improvement from $(2.3) million in the prior year. Cash, cash equivalents, and restricted cash decreased by $(0.8) million during the period, ending at $7.7 million Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | H1 2025 | H1 2024 | | :------------------------------------------ | :------ | :------ | | Net cash used in operating activities | $(896) | $(2,322) | | Net cash used in investing activities | $(58) | $(150) | | Net cash provided by financing activities | $117 | $3,012 | | Net (decrease) increase in cash | $(832) | $535 | | Cash, cash equivalents, and restricted cash; end of period | $7,733 | $8,511 | - The decrease in net cash used in operating activities was driven by adjustments including stock-based compensation and changes in operating assets and liabilities[30](index=30&type=chunk) - Financing activities provided less cash in H1 2025 (**$117k**) compared to H1 2024 (**$3.0 million**), which included proceeds from an at-the-market common stock offering[30](index=30&type=chunk) [Supplemental Financial Data and Reconciliations](index=10&type=section&id=Supplemental%20Financial%20Data%20and%20Reconciliations) This section provides detailed sales breakdowns by market and reconciliations of GAAP to non-GAAP financial measures for gross profit, gross margin, operating expenses, net loss, and Adjusted EBITDA [Sales by Target Market](index=10&type=section&id=Sales%20by%20Target%20Market) In Q2 2025, enterprise sales were $7.15 million, showing significant sequential growth from Q1 2025. Consumer sales were $5.65 million, and automotive sales were $0.82 million. For the first half of 2025, enterprise sales totaled $11.49 million, while consumer and automotive markets contributed $12.05 million and $2.09 million, respectively Sales by Target Market (in thousands) | Market | Q2 2025 | Q1 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--------- | :------ | :------ | :------ | :------ | :------ | | Enterprise | $7,152 | $4,341 | $8,615 | $11,493 | $17,494 | | Consumer | $5,650 | $6,401 | $4,827 | $12,051 | $8,338 | | Automotive | $821 | $1,271 | $1,742 | $2,092 | $3,583 | | **Total Sales** | **$13,623** | **$12,013** | **$15,184** | **$25,636** | **$29,415** | - Enterprise sales increased significantly by **$2.8 million** from Q1 2025 to Q2 2025, primarily due to higher shipments of embedded modems and custom IoT products[6](index=6&type=chunk)[32](index=32&type=chunk) - Consumer sales decreased sequentially by **$0.8 million**, and automotive sales decreased by **$0.4 million** from Q1 2025, due to lower demand for embedded and external antennas[6](index=6&type=chunk)[32](index=32&type=chunk) [GAAP to Non-GAAP Gross Profit Reconciliation](index=10&type=section&id=GAAP%20to%20Non-GAAP%20Gross%20Profit%20Reconciliation) The reconciliation shows that non-GAAP gross profit for Q2 2025 was $5.97 million, adjusted from GAAP gross profit of $5.84 million by adding back stock-based compensation and amortization of intangible assets GAAP to Non-GAAP Gross Profit Reconciliation (in thousands) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | :------ | | Gross profit (GAAP) | $5,839 | $5,160 | $6,148 | $10,999 | $11,724 | | Stock-based compensation | $39 | $73 | $65 | $112 | $123 | | Amortization of intangible assets | $89 | $89 | $89 | $178 | $178 | | **Non-GAAP gross profit** | **$5,967** | **$5,322** | **$6,302** | **$11,289** | **$12,025** | [GAAP to Non-GAAP Gross Margin Reconciliation](index=10&type=section&id=GAAP%20to%20Non-GAAP%20Gross%20Margin%20Reconciliation) Non-GAAP gross margin for Q2 2025 was 43.8%, an increase from the GAAP gross margin of 42.9%, after adjusting for stock-based compensation and amortization of intangible assets GAAP to Non-GAAP Gross Margin Reconciliation (%) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | :------ | | Gross margin (GAAP) | 42.9% | 43.0% | 40.5% | 42.9% | 39.9% | | Stock-based compensation | 0.3% | 0.6% | 0.4% | 0.4% | 0.4% | | Amortization of intangible assets | 0.6% | 0.7% | 0.6% | 0.7% | 0.6% | | **Non-GAAP gross margin** | **43.8%** | **44.3%** | **41.5%** | **44.0%** | **40.9%** | [GAAP to Non-GAAP Operating Expenses Reconciliation](index=10&type=section&id=GAAP%20to%20Non-GAAP%20Operating%20Expenses%20Reconciliation) Non-GAAP operating expenses for Q2 2025 were $6.47 million, reduced from GAAP operating expenses of $7.84 million by excluding stock-based compensation, amortization of intangible assets, and severance and exit costs GAAP to Non-GAAP Operating Expenses Reconciliation (in thousands) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | :------ | | Operating expenses (GAAP) | $7,839 | $8,256 | $8,653 | $16,095 | $16,858 | | Stock-based compensation expense | $(564) | $(834) | $(1,142) | $(1,398) | $(2,130) | | Amortization of intangible assets | $(653) | $(653) | $(654) | $(1,306) | $(1,307) | | Severance and exit costs | $(151) | $(135) | - | $(286) | - | | **Non-GAAP operating expenses** | **$6,471** | **$6,634** | **$6,857** | **$13,105** | **$13,421** | [GAAP to Non-GAAP Net Loss Reconciliation](index=11&type=section&id=GAAP%20to%20Non-GAAP%20Net%20Loss%20Reconciliation) Non-GAAP net loss for Q2 2025 was $(0.52) million, or $(0.04) per share, adjusted from GAAP net loss of $(1.48) million. Key adjustments include adding back stock-based compensation, amortization of intangible assets, and severance costs, while subtracting employee retention credit refunds and other income GAAP to Non-GAAP Net Loss Reconciliation (in thousands, except per share) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------------ | :------ | :------ | :------ | :------ | :------ | | Net loss (GAAP) | $(1,475) | $(1,546) | $(2,513) | $(3,021) | $(4,968) | | Employee retention credit refund | $(495) | $(1,494) | - | $(1,989) | - | | Stock-based compensation expense | $603 | $907 | $1,207 | $1,510 | $2,253 | | Amortization of intangible assets | $742 | $742 | $742 | $1,484 | $1,484 | | Severance and exit costs | $151 | $135 | - | $286 | - | | Other income, net | $(56) | $(87) | $(27) | $(143) | $(53) | | Income tax expense (benefit) | $14 | $24 | $34 | $38 | $(106) | | **Non-GAAP net (loss) income** | **$(516)** | **$(1,319)** | **$(557)** | **$(1,835)** | **$(1,390)** | | **Non-GAAP net (loss) per share** | **$(0.04)** | **$(0.11)** | **$(0.05)** | **$(0.16)** | **$(0.13)** | [Net Loss to Adjusted EBITDA Reconciliation](index=11&type=section&id=Net%20Loss%20to%20Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA for Q2 2025 was $(0.40) million, reconciled from GAAP net loss by adding back non-cash expenses like stock-based compensation, depreciation and amortization, severance costs, and adjusting for employee retention credit and other income/expense Net Loss to Adjusted EBITDA Reconciliation (in thousands) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | :------ | | Net loss (GAAP) | $(1,475) | $(1,546) | $(2,513) | $(3,021) | $(4,968) | | Employee retention credit | $(495) | $(1,494) | - | $(1,989) | - | | Stock-based compensation expense | $603 | $907 | $1,207 | $1,510 | $2,253 | | Depreciation and amortization | $855 | $865 | $881 | $1,720 | $1,768 | | Severance and exit costs | $151 | $135 | - | $286 | - | | Other income, net | $(56) | $(87) | $(27) | $(143) | $(53) | | Income tax expense (benefit) | $14 | $24 | $34 | $38 | $(106) | | **Adjusted EBITDA** | **$(403)** | **$(1,196)** | **$(418)** | **$(1,599)** | **$(1,106)** | [Q3 2025 Financial Outlook Reconciliations](index=12&type=section&id=Q3%202025%20Financial%20Outlook%20Reconciliations) This section provides detailed reconciliations for the Q3 2025 financial outlook, converting GAAP projections to non-GAAP measures for gross margin, operating expenses, net income, EPS, and Adjusted EBITDA, based on an estimated 11.9 million basic and 12.1 million diluted weighted average shares outstanding Q3 2025 GAAP to Non-GAAP Outlook Reconciliations (in millions, except per share) | Metric | GAAP Outlook | Adjustments | Non-GAAP Outlook | | :-------------------------- | :----------- | :---------- | :--------------- | | Gross Margin | 42.9% | +1.1% | 44.0% | | Operating Expenses | $7.7 | $(1.6) | $6.1 | | Net Loss / Income | $(1.7) | +$1.8 | $0.1 | | Net Loss / Income per Share | $(0.14) | +$0.15 | $0.01 | | Adjusted EBITDA | $(1.7) | +$1.9 | $0.2 | - Reconciliations for Q3 2025 outlook are provided for gross margin, operating expenses, net income, EPS, and Adjusted EBITDA[44](index=44&type=chunk)[45](index=45&type=chunk) - Non-GAAP net income per share is projected to be **$0.01** at the midpoint, and Adjusted EBITDA is expected to be **$0.2 million** at the midpoint[14](index=14&type=chunk)[45](index=45&type=chunk)

Company Performance - Airgain reported a quarterly loss of $0.11 per share, which aligns with the Zacks Consensus Estimate, compared to a loss of $0.08 per share a year ago [1] - The company posted revenues of $12.01 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.72%, and down from $14.23 million year-over-year [2] - Over the last four quarters, Airgain has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2][3] Stock Movement and Outlook - Airgain shares have declined approximately 43.3% since the beginning of the year, contrasting with the S&P 500's decline of 4.7% [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at -$0.06 for the coming quarter and -$0.05 for the current fiscal year [4][7] - The estimate revisions trend for Airgain is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Communication - Components industry, to which Airgain belongs, is currently ranked in the bottom 17% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Airgain's stock performance [5]

Financial Data and Key Metrics Changes - Q1 sales were $12 million, aligning with the midpoint of guidance [13] - Gross margin improved to 44.3%, marking the fifth consecutive quarterly increase [14] - Operating expenses totaled $6.6 million, remaining flat year-over-year [15] - Non-GAAP EPS was negative $0.11, with adjusted EBITDA at negative $1.2 million [16] Business Line Data and Key Metrics Changes - Consumer sales reached $6.4 million, down $100,000 sequentially [14] - Automotive sales were $1.3 million, down $2 million sequentially [14] - Enterprise sales totaled $4.3 million, down $1 million sequentially, marking a low point for the year [14] Market Data and Key Metrics Changes - The addressable market expanded from $1.1 billion in 2024 to $2.6 billion in 2025 due to the shift to higher-margin solutions [5] - The company is closely monitoring broadband and enterprise markets for demand disruptions [4] Company Strategy and Development Direction - The company is transitioning from low ASP component supplier to high-value wireless solutions provider [5] - Focus on scaling Lighthouse and AirgainConnect platforms and deepening presence in key global markets [3] - Strategic partnership with Ormatia to support deployments in the Middle East [8] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the enterprise market's recovery and expects sequential revenue growth in Q2 [17] - The company is prepared to adapt to the fluid tariff environment without significant impact on product costs [4] - Management is focused on executing strategy while targeting positive adjusted EBITDA in Q3 [18] Other Important Information - The company plans to file an updated S3 shelf registration to maintain financial flexibility [19] - The leadership team is experienced and focused on driving operational performance and long-term value creation [12] Q&A Session Summary Question: AirgainConnect customer traction and design wins - Management is optimistic about design wins in the coming months, with a focus on Tier one customers contributing in the second half of the year [26] Question: IoT business rebound expectations - Management noted key customers have resumed shipments, indicating a positive trend in the IoT business [27] Question: Lighthouse pilots and commercialization - The company is on track for trials in multiple regions, including the Middle East and Latin America, with expectations for ramp-up in Q3 [37] Question: Tariff implications and competitive strategy - Management indicated no significant changes in customer buying patterns due to tariffs, leveraging a fabless model to mitigate impacts [42][46] Question: Consumer market growth and WiFi developments - Management expects moderate growth in the consumer segment following a strong Q1, with additional MSOs launching WiFi 7 [49] Question: Lighthouse revenue expectations - Management anticipates low seven-figure contributions from the partnership with Ormatia for the remainder of the year [55]

Financial Data and Key Metrics Changes - Q1 sales were $12 million, aligning with the midpoint of guidance [13] - Consumer sales reached $6.4 million, down $100,000 sequentially [14] - Automotive sales were $1.3 million, down $2 million sequentially [14] - Enterprise sales totaled $4.3 million, down $1 million sequentially, marking a low point for the year [14] - Q1 gross margin was 44.3%, marking the fifth consecutive quarterly increase [14] - Adjusted EBITDA was negative $1.2 million due to the lower revenue base [16] - Non-GAAP EPS was negative $0.11 [17] Business Line Data and Key Metrics Changes - Consumer segment showed resilience with a slight decline in sales [14] - Automotive segment faced challenges with lower shipments [14] - Enterprise segment experienced a significant drop, primarily due to lower shipments of antennas and IoT products [14] - Improvement noted in IoT sales returning to normal levels [6] Market Data and Key Metrics Changes - The addressable market expanded from $1.1 billion in 2024 to $2.6 billion in 2025 [5] - The company is closely monitoring broadband and enterprise markets for demand disruptions [4] - No significant changes in customer purchasing behavior due to tariffs observed as of early May [4] Company Strategy and Development Direction - The company is transitioning from a low ASP component supplier to a high-value wireless solutions provider [5] - Focus on scaling Lighthouse and AirgainConnect platforms and deepening presence in global markets [3] - Strategic partnerships, such as with Ormatia, are expected to drive revenue growth in the second half of 2025 [8] - Emphasis on modular solution families to support various use cases and customer segments [7] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the enterprise market's recovery and expects sequential revenue growth [6][18] - The company is prepared to adapt to the fluid tariff environment to minimize impacts on customers [4] - Confidence in achieving positive adjusted EBITDA in Q3 2025 [19] Other Important Information - The company plans to file an updated S3 shelf registration to maintain financial flexibility [20] - A strong leadership team is in place to navigate current challenges and drive operational performance [12] Q&A Session Summary Question: Insights on AirgainConnect's ramp-up and IoT business rebound - Management is optimistic about design wins in the coming months and expects enterprise growth in 2025 [24][28] Question: Update on Lighthouse pilots and potential new carriers - The company is on track for trials in multiple regions, including the Middle East and Latin America, with expectations for ramp-up in Q3 [35][37] Question: Tariff implications and competitive landscape - Current buying patterns remain stable, and the fabless model provides a competitive advantage against tariff impacts [41][44][47] Question: Consumer market growth and WiFi developments - The company anticipates steady growth post-Q2, especially with new MSO launches [49] Question: Lighthouse revenue expectations and trial opportunities - Expected low seven-figure contributions from the Oman partnership, with potential for broader Middle East engagement [53][55]

Financial Performance - First quarter 2025 sales were $12.0 million, a decrease of 20.4% from $15.1 million in Q4 2024 and a decrease of 15.6% from $14.2 million in Q1 2024[7] - Total sales for Q1 2025 were $12,013,000, a decrease of 15.5% compared to $14,231,000 in Q1 2024[27] - Sales from the consumer market in Q1 2025 were $6.4 million, while enterprise and automotive markets generated $4.3 million and $1.3 million, respectively[7] Profitability Metrics - GAAP gross margin for Q1 2025 was 43.0%, up from 42.2% in Q4 2024 and 39.2% in Q1 2024, primarily due to improved enterprise product margins[9] - Non-GAAP gross margin for Q1 2025 was 44.3%, compared to 43.4% in Q4 2024 and 40.2% in Q1 2024[9] - Gross profit for Q1 2025 was $5,160,000, down from $5,576,000 in Q1 2024, resulting in a gross margin of 43.0%[27][35] Net Loss - GAAP net loss for Q1 2025 was $1.5 million or $(0.13) per share, compared to a net loss of $2.0 million or $(0.17) per share in Q4 2024[11] - Net loss for Q1 2025 was $1,546,000, an improvement from a net loss of $2,455,000 in Q1 2024[27][38] - The company reported a non-GAAP net loss of $1,319,000 for Q1 2025, compared to a non-GAAP net loss of $833,000 in Q1 2024[38] Operating Expenses - GAAP operating expenses for Q1 2025 were $8.3 million, unchanged from Q4 2024[10] - Operating expenses for Q1 2025 totaled $8,256,000, slightly higher than $8,205,000 in Q1 2024[27] - Total operating expenses under GAAP are $8.3 million, while non-GAAP operating expenses are $6.6 million[43] Cash and Assets - Cash and cash equivalents at the end of Q1 2025 were $7,401,000, down from $8,510,000 at the end of Q4 2024[25] - Total assets decreased to $46,116,000 in Q1 2025 from $48,443,000 in Q4 2024[25] - Total liabilities decreased to $15,790,000 in Q1 2025 from $17,474,000 in Q4 2024[25] Strategic Initiatives - The company secured a strategic partnership with Omantel in January 2025 to deliver smart repeater solutions in Oman and the Middle East[6] - Lighthouse Solar™, a fully solar-powered 5G smart repeater, was introduced in February 2025 to address off-grid connectivity needs[6] Future Outlook - The company expects Q2 2025 sales to be in the range of $12.5 million to $14.5 million, with a midpoint of $13.5 million[14] Other Income and Adjustments - The company generated $1,494,000 from employee retention credit refunds in Q1 2025, contributing to other income[27] - Other income is reported at $(0.5) million, affecting net loss calculations[43] - Stock-based compensation impacts GAAP net loss by $1.1 million and non-GAAP net loss by $0.10 per share[43] - Amortization contributes $0.8 million to both GAAP and non-GAAP net loss calculations[43] - Adjusted EBITDA for Q1 2025 was $(1.2) million, compared to $0.2 million in Q4 2024[12] - Adjusted EBITDA is recorded at $(0.6) million[43]