Core Insights - Airgain, Inc. has secured a multiyear, multimillion-dollar embedded antenna design win for a next-generation 5G home connectivity platform [1] - The program involves Airgain's antenna systems for both a 5G fixed wireless access router and a companion in-home WiFi extender [1] - This partnership is with a major North American Mobile Network Operator, indicating significant industry collaboration [1] Company Summary - Airgain, Inc. is recognized as a leading provider of wireless connectivity solutions [1] - The company is expanding its product offerings in the 5G sector, which is crucial for future connectivity [1] Industry Summary - The announcement highlights the growing demand for 5G home connectivity solutions in the telecommunications industry [1] - The collaboration with a major North American MNO underscores the competitive landscape and the importance of innovative antenna technology in enhancing wireless services [1]

SAN DIEGO--(BUSINESS WIRE)--Airgain, Inc. (NASDAQ: AIRG), a leading provider of advanced wireless connectivity solutions, today announced that it has granted inducement awards to new employees who recently joined the Company. The awards were granted on February 15, 2026, under Airgain's 2021 Employment Inducement Incentive Award Plan, which provides for the granting of equity awards to new employees of Airgain as an inducement to join the company. The inducement awards to the new employees cons. ...

Core Insights - Airgain has signed a partnership agreement with a U.S. based telecom systems integrator to support the nationwide rollout of its Lighthouse™ Smart 5G NCR [1] Group 1 - The partnership aims to enhance the deployment of 5G technology across the United States [1] - Lighthouse™ Smart 5G NCR is positioned to improve connectivity and network performance for users [1]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Performance - Airgain reported quarterly earnings of $0.01 per share, matching the Zacks Consensus Estimate, compared to break-even earnings per share a year ago [1] - The company posted revenues of $14.02 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 1.28%, and down from $16.1 million year-over-year [2] - Over the last four quarters, Airgain has surpassed consensus EPS estimates just once and topped consensus revenue estimates only once [2][3] Stock Performance - Airgain shares have declined approximately 43.6% since the beginning of the year, while the S&P 500 has gained 16.4% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $15.2 million, and for the current fiscal year, it is -$0.11 on revenues of $55.05 million [7] - The outlook for the Communication - Components industry, where Airgain operates, is currently in the top 15% of Zacks industries, suggesting potential positive performance [8]

Financial Data and Key Metrics Changes - Third quarter revenue was $14 million, up 3% sequentially from the second quarter, and at the midpoint of guidance [17] - Non-GAAP gross margin for Q3 was 44.4%, an increase from 43.8% in Q2, and up 160 basis points year-over-year [18] - Adjusted EBITDA improved to a gain of $0.3 million compared to a loss of $0.4 million in Q2, with non-GAAP net income of $0.1 million or 1 cent per share [19] Business Line Data and Key Metrics Changes - Consumer revenue was $6.7 million, up $1 million sequentially, driven by higher Wi-Fi 7 antenna shipments [17] - Enterprise revenue was $6.9 million, down $0.3 million sequentially due to lower antenna sales, while embedded modems recorded a third consecutive quarter of growth [17] - Automotive revenue was $0.5 million, down $0.3 million sequentially, attributed to lower aftermarket antenna sales [18] Market Data and Key Metrics Changes - Sales to cable operators grew by over 50% year-to-date, driven by the Wi-Fi 7 technology refresh [17] - The consumer market is expected to grow at a double-digit rate for the second consecutive year, supported by the Wi-Fi 7 transition [4] - Embedded modem sales now represent more than half of enterprise market revenue, with expectations for continued double-digit growth [5] Company Strategy and Development Direction - The company aims to transition from a component supplier to a scalable wireless systems solutions company, focusing on financial discipline and customer engagement [16] - Airgain Connect and Lighthouse are identified as growth platforms, with Airgain Connect expected to drive immediate growth and Lighthouse focusing on network infrastructure optimization [11][12] - The company is expanding into emerging markets and applications, including unmanned flight systems and industrial IoT, to create new revenue streams [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustainable growth for 2026, supported by key certifications and customer engagement [21] - The company anticipates modest revenue contributions from Lighthouse in the first half of 2026, with stronger growth expected in the second half [16] - Management remains cautiously optimistic about the impact of government funding climate on sales and project deployments [10] Other Important Information - The company ended the quarter with $7.1 million in cash and equivalents, down $0.6 million sequentially [19] - Non-GAAP operating expenses for Q3 were $6.1 million, reflecting a decrease due to expense realignment and lower G&A expenses [18] - The company expects Q4 revenue in the range of $12 million to $14 million, representing a sequential decline of approximately 7% [20] Q&A Session Summary Question: Inquiry about the recent Wi-Fi 7 design with a Tier 1 carrier - Management confirmed that the customer is an existing Tier 1 operator and this is their flagship gateway for the next generation [22] Question: Revenue impact for 2026 from the new design - Management indicated that visibility for revenue impact in 2026 would improve in the first half of the year as deployment is planned for the second half [23] Question: OPEX fluctuation next year - Management emphasized tight management of OPEX while deliberately investing in growth platforms, aiming for EBITDA break-even or positive [24] Question: Performance of core markets - Management noted that consumer and embedded product lines have been bright spots, with ongoing focus on engineering and sales efforts [25]

Business Performance - Airgain reported a recovery in its consumer business, while excess inventory concerns in the enterprise sector have dissipated [134]. - The automotive sector is expected to face surplus inventory issues extending through 2026 [134]. - Sales for the three months ended September 30, 2025 decreased by $2.1 million or 12.9% to $14.0 million compared to the same period in 2024 [151]. - Sales for the nine months ended September 30, 2025 decreased by $5.9 million or 12.9% to $39.7 million compared to the same period in 2024 [152]. - Gross profit for the three months ended September 30, 2025 decreased by $0.6 million or 9.0% to $6.1 million, with a gross profit margin increase to 43.6% [154]. - Total operating expenses for the three months ended September 30, 2025 decreased by $1.5 million or 17.0% to $7.1 million, primarily due to lower personnel and engineering project development expenses [157]. - Net loss for the three months ended September 30, 2025 was $964,000, compared to a net loss of $1.8 million in the same period in 2024 [150]. Financial Position - Cash and cash equivalents were $7.1 million as of September 30, 2025, with an accumulated deficit of $91.2 million [164]. - Net cash used in operating activities was $1.3 million for the nine months ended September 30, 2025, compared to $3.5 million for the same period in 2024, reflecting a significant improvement [166]. - Net cash used in investing activities was $288,000 for the nine months ended September 30, 2025, primarily for purchases of intangible property [167]. - Net cash provided by financing activities was $184,000 for the nine months ended September 30, 2025, mainly from exercised options and common stock issuances [168]. - The Company received ERC refunds of $2.0 million during the nine months ended September 30, 2025, recorded in other income [171]. Investment and Growth Strategy - The company is focused on expanding into growing addressable markets, including enterprise, automotive, and consumer sectors [136]. - Research and development expenses are expected to increase in absolute dollars as Airgain invests in advanced system solutions [143]. - Sales and marketing expenses are anticipated to rise as the company continues to market and sell its advanced system solutions globally [144]. - The company plans to continue investing in long-term growth, including expanding engineering and sales teams to penetrate domestic and international markets [165]. Operational Insights - Airgain's revenue is primarily generated from product sales, recognized at the time of shipment to customers [140]. - Operating expenses are classified into research and development, sales and marketing, and general and administrative, with personnel costs being the largest component [142]. - The Company amended its At-the-Market Issuance Sales Agreement, allowing for the sale of up to $5.0 million in shares of common stock, with no shares sold through the program as of September 30, 2025 [174]. - The annual base rent for the corporate headquarters in San Diego is set at $699,051, increasing by 3% annually starting January 1, 2026 [175]. - The Company derecognized $0.8 million of ROU assets during the nine months ended September 30, 2025, and renewed leases in China and Arizona [176]. - The Company entered into lease agreements for six vehicles with an annual base rent of approximately $0.1 million, starting June 30, 2025 [177]. Management Assessment - Management assessed that the Company is likely to meet its financial obligations in the next twelve months based on known conditions as of September 30, 2025 [179]. - The Company determined that no goodwill impairment charge was required as of September 30, 2025, based on the assessment of current and forecasted sales and cash flows [183]. Tax and Other Income - Other income for the nine months ended September 30, 2025 increased by $2.0 million, primarily due to a $2.0 million employee retention credit refund [161]. - Income tax expense for the three months ended September 30, 2025 increased by $49,000 or 125.6% compared to the same period in 2024 [162].

Financial Performance - Sales for Q3 2025 were $14.0 million, a 2.9% increase from Q2 2025, with $6.9 million from the enterprise market, $6.6 million from the consumer market, and $0.5 million from the automotive market[5] - Non-GAAP net income for Q3 2025 was $0.1 million or $0.01 per share, compared to a non-GAAP net loss of $0.5 million in Q2 2025[10] - Adjusted EBITDA for Q3 2025 was $0.3 million, an improvement from $(0.4) million in Q2 2025[11] - GAAP net loss for Q3 2025 was $1.0 million or $(0.08) per share, an improvement from a loss of $1.5 million in Q2 2025[10] - Total sales for the three months ended September 30, 2025, were $14,018 thousand, a decrease of 13.0% compared to $16,101 thousand for the same period in 2024[27] - Net loss for the nine months ended September 30, 2025, was $3,985 thousand, an improvement from a net loss of $6,725 thousand for the same period in 2024[29] - Net loss for the three months ended September 30, 2025, was $964 million, compared to a loss of $1,475 million for the previous quarter[39] - Non-GAAP net income attributable to common stockholders for the three months ended September 30, 2025, was $147 million, a significant improvement from a loss of $516 million in the previous quarter[39] - Adjusted EBITDA for the three months ended September 30, 2025, was $250 million, compared to a loss of $403 million in the previous quarter[41] Margins and Profitability - GAAP gross margin for Q3 2025 was 43.6%, up from 42.9% in Q2 2025 and 41.7% in Q3 2024, driven by improved enterprise product margins[8] - Non-GAAP gross margin for Q3 2025 was 44.4%, compared to 43.8% in Q2 2025[8] - Gross profit for the three months ended September 30, 2025, was $6,111 thousand, representing a gross margin of 43.6%, compared to a gross margin of 41.7% in the same period of 2024[35] - The company anticipates GAAP gross margin for Q4 2025 to be in the range of 41.3% to 44.3%[13] - GAAP gross margin for the upcoming Q4 2025 is projected at 42.8%, with a non-GAAP gross margin expected to be 44.0%[43] Expenses and Liabilities - Operating expenses for Q3 2025 were $7.1 million, down from $7.8 million in Q2 2025, primarily due to lower employee and project development expenses[9] - Research and development expenses for the three months ended September 30, 2025, were $2,141 thousand, down from $2,855 thousand in the same period of 2024[27] - Total operating expenses for the nine months ended September 30, 2025, were $23,173 thousand, down from $25,386 thousand in the same period of 2024[27] - The company recognized a total of $1,890 thousand in stock-based compensation for the nine months ended September 30, 2025, compared to $3,334 thousand for the same period in 2024[29] - Total current liabilities decreased to $11,827 thousand as of September 30, 2025, from $13,501 thousand at December 31, 2024, reflecting a reduction of 12.4%[25] Cash and Assets - Cash and cash equivalents at the end of the period on September 30, 2025, were $7,091 thousand, a decrease from $8,510 thousand at December 31, 2024[25] - The company’s total assets decreased to $45,544 thousand as of September 30, 2025, from $48,443 thousand at December 31, 2024, indicating a decline of 6.2%[25] Future Outlook - The company expects Q4 2025 sales to be in the range of $12.0 million to $14.0 million, with a midpoint of $13.0 million[13] - GAAP net loss per share for Q4 2025 is projected at $(0.13), while non-GAAP net loss per share is expected to be $(0.0)[43] Certifications and Achievements - The company achieved FCC certification for the Lighthouse™ 5G Smart Network Controlled Repeater, enhancing opportunities with U.S. system integrators[5]

Core Viewpoint - Airgain, Inc. has secured a design win for a next-generation Wi-Fi 7 fiber broadband gateway, indicating strong growth potential in the wireless connectivity market [1] Company Summary - Airgain, Inc. is a leading provider of wireless connectivity solutions [1] - The company has partnered with a major global CPE manufacturer for the development of the new platform [1] Product and Market Summary - The new Wi-Fi 7 fiber broadband gateway is being developed for a significant North American broadband operator [1] - The commercial launch of the new platform is targeted for the second half of 2026 [1] - Expected shipments are projected to exceed 5 million units within five years, positioning Airgain for meaningful market impact [1]

Summary of Conference Call Company Overview - The company has a global presence with design centers in the U.S. (Arizona, Minnesota), U.K., China, Taiwan, and a strong expertise in RF technology [1][2] - The company has a patent portfolio of over 285 patents [1] - First half of 2025 sales were $25.5 million, with a market valuation of approximately $50 million [1] Transition and Market Opportunity - The company is transitioning from a component-based provider to a complex wireless system solution provider, doubling its overall market opportunity from $1.1 billion in 2024 to $2.2 billion in 2025 [2][17] - Key growth platforms include the AirgainConnect Fleet 5G Vehicle Gateway and Lighthouse 5G Smart Network Repeater, with expectations for shipment ramps in 2026 [2][17] Financial Performance - Q1 closed at $12 million with an adjusted EBITDA loss of $1.2 million [14] - Q2 revenues increased slightly, with an EBITDA loss reduced to $0.4 million [15] - Guidance for Q3 is $14 million in revenue with a breakeven to positive EBITDA [15] - Gross margin improved from 38% two years ago to around 44% this year [15] - The breakeven point has been lowered to about $14 million quarterly, down from $60 million last year [16] Product Details AirgainConnect Fleet 5G Vehicle Gateway - An all-in-one 5G modem, Wi-Fi 6 router, and external antenna with eSIM capability [8][9] - Competitive advantages include high performance, quick installation, and reduced total cost of ownership [9][10] Lighthouse 5G Smart Network Repeater - Designed to address 5G coverage issues without requiring backhaul, allowing for rapid deployment [12][13] - Can leverage existing 4G infrastructure to propagate 5G coverage, significantly reducing installation costs and time [12][13][24] - The product is positioned as a cost-effective solution compared to traditional base stations and DAS systems [23][24] Management and Strategy - The leadership team has extensive experience in the semiconductor and telecommunications industries [4][5] - The company maintains a scalable asset-light model with all manufacturing outsourced to contract manufacturers [3] - Focus on sustainable long-term growth and innovation in wireless technology [4][16] Market Challenges and Future Outlook - The main growth constraints are the entrenched market dynamics, but the company believes in its differentiation and brand enhancement over time [17] - The company does not plan to enter the consumer product market, focusing instead on enterprise solutions [18] - Future growth is expected to be driven by existing profitable business supporting new product initiatives [28]