Core Insights - Inseego Corp. is celebrating its 25th anniversary on Nasdaq, marking a significant milestone in its journey as a leader in enterprise wireless connectivity solutions [1][2][3] Company Overview - Inseego Corp. has evolved into a trusted provider of secure, high-performance wireless connectivity solutions for enterprises, government agencies, and service provider partners globally since its Nasdaq listing in 2000 [2] - The company specializes in 5G mobile broadband and fixed wireless access (FWA) solutions, continuing to innovate in next-generation wireless technologies [2][5] Leadership and Vision - CEO Juho Sarvikas emphasized the company's ambition to transform global connectivity, highlighting its history of innovation, including the invention of the MiFi hotspot and advancements in secure 5G technology [3] - The company is committed to defining the next generation of wireless broadband, reflecting the dedication of its employees and the trust of its customers and partners [3] Event Details - The Nasdaq Closing Bell ceremony will take place on December 8, 2025, featuring the company's leadership team and will be broadcast live [1][3]

Core Insights - Inseego's Fixed Wireless Access (FWA) solution has been selected by Kajeet to power its SmartFailover service, aimed at reducing internet interruption risks for businesses [1][2] Company Overview - Inseego Corp. is a leader in wireless broadband, specializing in 5G mobile broadband and FWA solutions [1][4] - Kajeet focuses on managed wireless connectivity, providing intelligent and reliable connectivity solutions for businesses [2][5] Product Offering - The Kajeet SmartFailover service provides a managed backup solution that ensures seamless business continuity by activating when the primary internet connection fails [4] - The service leverages Inseego's 5G Router FX3110, offering a secure and reliable connection for businesses [2][3] Market Demand - There is significant demand for FWA offerings, with Mobile Network Operators adding more FWA connections in 2024 than any other technology [2] - The demand for FWA solutions has continued to grow in 2025, particularly as a backup for primary internet connections [2] Benefits of SmartFailover - SmartFailover provides multi-carrier resilience, ensuring optimal reliability by connecting to the strongest available carrier [4] - The service is designed for simple deployment and central management through the Kajeet Sentinel platform, offering real-time visibility and control [4] - It includes enterprise-grade security and data policy enforcement to protect traffic and ensure compliance [4] - The solution supports distributed organizations that rely on uninterrupted connectivity for customer service and operations [4]

Core Insights - Inseego reported a revenue of $45.89 million for the quarter ended September 2025, reflecting a decline of 15.1% year-over-year, while EPS improved to $0.12 from -$0.07 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $41.97 million by 9.36%, but the EPS fell short of the consensus estimate of $0.28 by 57.14% [1] Revenue Breakdown - Mobile solutions revenue was $16.04 million, surpassing the average estimate of $14.2 million, but showing a significant decline of 50.3% year-over-year [4] - Product revenues reached $33.69 million, exceeding the average estimate of $29.6 million, with a year-over-year decrease of 19.8% [4] - Services and other revenues were reported at $12.21 million, slightly above the estimated $12.1 million, marking a year-over-year increase of 1.5% [4] - Fixed wireless access solutions generated $17.65 million, exceeding the average estimate of $15.4 million, and showing a substantial year-over-year growth of 81.5% [4] Stock Performance - Inseego's shares have declined by 11.3% over the past month, contrasting with a 1.3% increase in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Revenue Performance - Revenues for Q3 2025 were $45.9 million, a decrease of 15.1% from $54.0 million in Q3 2024[131] - Revenues for the nine months ended September 30, 2025 were $117.8 million, down 17.7% from $143.2 million in the same period in 2024[148] - Mobile solutions revenues decreased by $25.9 million, or 35.3%, primarily due to decreased sales with a carrier partner[148] Cost and Expenses - Cost of revenues for Q3 2025 was $26.8 million, or 58.4% of revenues, down from 65.2% in Q3 2024[133] - Cost of revenues for the nine months ended September 30, 2025 was $67.2 million, or 57.1% of revenues, down from $92.3 million, or 64.5% of revenues in 2024[150] - Operating costs and expenses totaled $16.9 million, a decrease of 4.8% from $17.8 million in Q3 2024[136] - Research and development expenses were $4.9 million, representing 10.6% of revenues, down from 9.6% in Q3 2024[136] - Research and development expenses for the nine months ended September 30, 2025 were $14.2 million, or 12.1% of revenues, down from $15.0 million, or 10.5% in 2024[155] - Sales and marketing expenses for Q3 2025 were $4.2 million, or 9.1% of revenues, up from $4.1 million, or 7.6% of revenues in Q3 2024[137] - General and administrative expenses for Q3 2025 were $5.7 million, or 12.4% of revenues, compared to $4.8 million, or 8.9% of revenues in Q3 2024[138] Profitability - Gross profit for Q3 2025 was $19.1 million, with a gross margin of 41.6%, up from 34.8% in Q3 2024[136] - Gross profit for the nine months ended September 30, 2025 was $50.6 million, with a gross margin of 42.9%, compared to $50.9 million and 35.5% in 2024[153] - The Company recorded a net loss from continuing operations of $0.8 million for the nine months ended September 30, 2025[178] Cash Flow and Financing - The Company experienced negative cash outflows from operations of $4.8 million for the nine months ended September 30, 2025, primarily due to timing of cash receipts and annual bonus payouts[167] - For the nine months ended September 30, 2025, net cash used in operating activities was $4.8 million, compared to net cash provided of $47.7 million for the same period in 2024[177] - Net cash used in investing activities for the nine months ended September 30, 2025, was $5.7 million, primarily related to software development[180] - As of September 30, 2025, the Company had available cash and cash equivalents totaling $14.6 million and positive working capital of $13.1 million[167] - The Company entered into a $15.0 million secured asset-backed revolving credit facility with BMO Bank N.A., maturing on August 5, 2028, and was in compliance with all covenants as of September 30, 2025[168] - Outstanding borrowings under the 2029 Senior Secured Notes were $40.9 million as of September 30, 2025, maturing on May 1, 2029[172] Strategic Actions - The Company divested its Telematics Business for approximately $52 million in cash to focus on its core 5G wireless solutions[121][122] - The Company aims to streamline its focus on growth opportunities around its core product offerings following the divestiture[122] - A hypothetical 10% change in foreign currencies would have impacted revenue by less than $0.1 million for the nine months ended September 30, 2025[188] Other Financial Metrics - Interest expense for the nine months ended September 30, 2025 decreased by $6.8 million, or 70.6%, compared to the same period in 2024[159] - Income (loss) from discontinued operations for the nine months ended September 30, 2025 was $(0.4) million, compared to $3.0 million in 2024 due to the sale of the Telematics Business[164] - Preferred stock dividends for the nine months ended September 30, 2025 were $2.7 million, up from $2.4 million in 2024[165] - Future payments under non-cancellable purchase obligations of approximately $110.2 million as of September 30, 2025[176] - Interest on loans under the Working Capital Facility is based on the Term Secured Overnight Financing Rate plus a margin of 1.00-2.50%[170]

Core Insights - Inseego reported quarterly earnings of $0.12 per share, missing the Zacks Consensus Estimate of $0.28 per share, and compared to a loss of $0.07 per share a year ago, representing an earnings surprise of -57.14% [1] - The company posted revenues of $45.89 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 9.36%, but down from $54.03 million year-over-year [2] - Inseego shares have increased approximately 40.4% since the beginning of the year, outperforming the S&P 500's gain of 15.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.24 on revenues of $45.4 million, and for the current fiscal year, it is $0.97 on revenues of $160.1 million [7] - The estimate revisions trend for Inseego was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which Inseego belongs, is currently in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, Elastic, is expected to report quarterly earnings of $0.58 per share, with a year-over-year change of -1.7%, and revenues projected at $418.13 million, up 14.4% from the previous year [9]

Financial Data and Key Metrics Changes - In Q3 2025, the company generated revenue of $45.9 million and adjusted EBITDA of $5.8 million, both exceeding guidance and marking the second consecutive quarter of sequential growth in these metrics [3][16] - Non-GAAP gross margin was reported at 41.8%, reflecting a favorable product mix and strength in FWA [18] - Adjusted EBITDA margin was 12.5%, the third highest in over a decade [18] Business Line Data and Key Metrics Changes - FWA revenue was the second highest in company history, surpassing mobile hotspot revenue for the third time [16] - FWA shipment volumes increased by over 50% year-over-year, indicating strong enterprise adoption [5] - Mobile revenue is expected to grow sequentially in Q4 2025 due to expanded customer contributions and product launches [17][20] Market Data and Key Metrics Changes - The company secured a new Tier 1 US carrier win during Q3, expanding its reach in both FWA and mobile hotspots [6] - The introduction of the FX40 200 is expected to broaden market opportunities and enhance the company's position in the enterprise segment [8] Company Strategy and Development Direction - The company is focused on scaling its core FWA and mobile solutions while evolving into a solutions company that integrates hardware, network management, and software [3] - The strategy includes expanding the product portfolio, adding new carriers, and deepening engagement with MSOs, MSPs, and VARs [9] - Leadership has been strengthened with the addition of experienced executives to support growth initiatives [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of FWA, driven by increased carrier deployments and favorable market dynamics [31][43] - The company anticipates continued sequential revenue growth in Q4 2025, despite historical seasonality trends [20][22] - Management highlighted the potential for increased demand for domestic suppliers due to regulatory changes affecting foreign competition [40] Other Important Information - The company has filed a universal shelf to enhance financial flexibility and support growth initiatives [19] - The software services revenue remained stable at approximately $12 million, contributing to high-margin revenue [17] Q&A Session Summary Question: Monetization changes for Subscribe and Connect - Management indicated that Inseego Connect has transitioned to a core part of the enterprise platform, driving usage and value capture [25] Question: Seasonal growth expectations for Q1 - Management acknowledged that Q4 typically has fewer selling days, but they expect to maximize opportunities as they enter 2026 [28] Question: Impact of new carrier contracts on revenue - Management expects significant volume growth from new carrier contracts, particularly in the MiFi market [34] Question: Competitive landscape and market share gains - Management believes they are well-positioned to capitalize on opportunities arising from regulatory changes favoring domestic suppliers [40] Question: Feedback on Inseego Connect API - Positive feedback was received regarding the APIs, which are expected to enhance service revenue attach rates [42]

Q3 2025 Financial Performance - Total revenue for Q3 2025 reached $45.9 million, exceeding the guidance of $40 million - $43 million[6] - Adjusted EBITDA for Q3 2025 was $5.8 million, also surpassing the guidance of $4 million - $5 million[6] - The implied margin was 12.5%, higher than the guided range of 10-12%[6] - Strong FWA revenue reached $17.7 million, representing an 81% year-over-year growth compared to Q3 2024[8] - Software Services & Other Revenue contributed $12.2 million, accounting for 27% of the total revenue[8] - Non-GAAP Gross Margin was 41.8%, a 700 bps increase compared to Q3 2024[8] - The company closed Q3 2025 with a cash position of $14.6 million, a sequential increase of $1.3 million[8] Business Development and Strategy - A new Tier-1 U S carrier customer was secured for both mobile and FWA next-generation products, with FWA shipments expected in late Q4 2025 and mobile shipments in Q1 2026[9] - The company paid off the remaining $15 million on convertible notes on May 1, 2025[27]

Financial Performance - Q3 2025 revenue was $45.9 million, representing a 14% sequential growth[4] - Adjusted EBITDA for Q3 2025 was $5.8 million, up 22% sequentially, with GAAP Net Income of $1.4 million[4] - GAAP gross margin for Q3 2025 was 41.6%, marking the third consecutive quarter with gross margin exceeding 40%[4] - Total revenues for Q3 2025 were $45,893 million, a decrease of 15.1% compared to $54,032 million in Q3 2024[21] - Mobile solutions revenue reached $16,037 million, while fixed wireless access solutions generated $17,650 million, showing significant growth from $9,723 million in the previous year[21] - Operating income for Q3 2025 was $2,155 million, compared to $1,016 million in Q3 2024, indicating a positive trend in operational efficiency[21] - Net income attributable to common stockholders for Q3 2025 was $529 million, a decrease from $8,142 million in Q3 2024[21] - GAAP income from continuing operations for Q3 2025 was $1,432 million, a significant increase from $507 million in Q2 2025[27] - Non-GAAP net income for Q3 2025 reached $2,839 million, up from $2,161 million in Q2 2025, reflecting a 31.3% quarter-over-quarter growth[27] - Adjusted EBITDA for Q3 2025 was $5,751 million, compared to $4,726 million in Q2 2025, indicating a 21.7% increase[27] Guidance and Projections - Q4 2025 financial guidance projects revenue in the range of $45.0 million to $48.0 million and Adjusted EBITDA between $4.0 million and $5.0 million[8] Cash and Assets - Cash and cash equivalents decreased to $14,559 million as of September 30, 2025, down from $39,596 million at the end of 2024[23] - Total current assets were $56,985 million, a decline from $72,900 million as of December 31, 2024[23] - The company reported a net cash used in operating activities of $4,763 million for the nine months ended September 30, 2025, compared to $47,710 million in the same period of 2024[25] Expenses and Liabilities - Research and development expenses for Q3 2025 were $4,878 million, slightly down from $5,176 million in Q3 2024[21] - The total liabilities decreased to $93,531 million as of September 30, 2025, from $112,857 million at the end of 2024[23] - Share-based compensation expense increased to $1,850 million in Q3 2025 from $1,654 million in Q2 2025[27] - Interest expense decreased to $885 million in Q3 2025 from $933 million in Q2 2025, showing a reduction of 5.1%[27] - Depreciation and amortization expenses rose to $2,189 million in Q3 2025, compared to $1,792 million in Q2 2025[27] Leadership and Strategic Developments - A new Tier-1 U.S. carrier customer was secured, with FWA shipments expected to begin late in Q4 2025 and mobile shipments in Q1 2026[4] - The FX4200 enterprise FWA solution was launched, expanding into larger enterprises and creating new market paths via MSPs and MSOs[4] - The company appointed Donna Johnson as CMO and Vishal Donthireddy as CTO, enhancing its leadership team[4] Share Performance - GAAP loss per diluted share improved to $0.03 in Q3 2025 from a loss of $0.03 in Q2 2025[27] - Non-GAAP net income per diluted share for Q3 2025 was $0.12, up from $0.08 in Q2 2025, representing a 50% increase[27] - The number of shares used in computing GAAP income per diluted share was 15,522,042 in Q3 2025, an increase from 15,023,832 in Q2 2025[27] Other Financial Impacts - The company reported a gain on debt restructurings of $16,541 million in Q4 2024, which significantly impacted the financial results[27]

Financial Performance - Total revenue for Q3 2025 was $45.9 million, representing a 14% increase sequentially [5] - Adjusted EBITDA for Q3 2025 was $5.8 million, up 22% sequentially [5] - GAAP Net Income for Q3 2025 was $1.4 million [5] - GAAP gross margin for Q3 2025 was 41.6%, marking the third consecutive quarter with gross margin exceeding 40% [5] Business Developments - The company secured a new Tier-1 U.S. carrier customer for both mobile and FWA next-generation products, with shipments expected to begin in late Q4 2025 for FWA and in Q1 2026 for mobile [5] - Expanded FWA deployments with T-Mobile across multiple industries and saw significant traction with the recently launched FX4100 [5] - Launched the FX4200 enterprise FWA solution and updated software suite, Inseego Connect, enhancing the company's offerings for larger enterprises [5] - Key appointments to the leadership team included Donna Johnson as CMO and Vishal Donthireddy as CTO, along with the addition of Nabil Bukhari and Stephen Bye to the Board of Directors [5][2] Strategic Outlook - The company is focused on scaling its cloud-managed wireless broadband solutions to drive sustainable growth and profitability as it approaches the end of 2025 [2] - Upcoming investor events include participation in several conferences in November and a milestone anniversary celebration for being listed on Nasdaq for 25 years [4]

Core Insights - Inseego Corp. has appointed Nabil Bukhari and Stephen Bye to its Board of Directors, enhancing its leadership in 5G mobile broadband and fixed wireless access solutions [1][2] - The new board members bring extensive experience in wireless networking, SaaS, and AI, which aligns with Inseego's strategy for growth and market expansion [1][2] Group 1: Board Member Profiles - Nabil Bukhari is currently the President of AI Platforms and CTO at Extreme Networks, focusing on AI integration in networking products and has a strong background in SaaS and cloud-based solutions [2][3] - Stephen Bye is the CEO of Ookla and has a history of helping carriers evolve their strategies, with leadership roles at DISH, C Spire, Sprint, and AT&T, providing him with a unique perspective on connectivity monetization [3][4] Group 2: Strategic Focus - Inseego aims to capitalize on the expanding Fixed Wireless Access (FWA) market, with a strong emphasis on technology leadership as 5G Advanced and 6G developments approach [5] - The company has increased its board size from six to eight members to support its strategic growth priorities and leverage the expertise of the new directors [5]