Core Viewpoint - Inseego Corp. is positioning itself as a leader in the wireless broadband market, particularly in 5G solutions, and is focusing on its strategic transformation into an enterprise solutions provider [1][2]. Group 1: Company Strategy and Growth - Inseego management will discuss the company's strategic transformation and long-term growth trajectory at upcoming investor conferences [2]. - The company is evolving into an enterprise solutions provider by combining wireless hardware with cloud-managed software and services [2]. - Key growth drivers include deepening engagements with Tier 1 carriers and MSOs, as well as expanding its Fixed Wireless Access (FWA) and MiFi portfolios [2]. Group 2: Financial Position and Market Demand - Inseego is backed by strong gross margins and a streamlined capital structure, positioning it to scale profitably [2]. - The company aims to capitalize on the growing demand for high-performance, software-defined wireless connectivity [2]. Group 3: Company Overview - Inseego Corp. is recognized as the industry leader in 5G Enterprise cloud WAN solutions, serving millions of end customers and thousands of enterprise and SMB customers [3]. - The company's 5G Edge Cloud integrates advanced 5G technology with cloud networking features and intelligent edge applications [3]. - Inseego enhances business outcomes by connecting distributed sites and workforces while securing enterprise data over a 5G network [3].

Core Insights - Inseego reported a revenue of $31.67 million for the quarter ended March 2025, reflecting a decline of 29.6% year-over-year [1] - The earnings per share (EPS) was -$0.01, an improvement from -$0.36 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $32.07 million, resulting in a surprise of -1.23% [1] - The company achieved an EPS surprise of +85.71%, compared to the consensus estimate of -$0.07 [1] Revenue Breakdown - Mobile solutions revenue was $17.79 million, exceeding the two-analyst average estimate of $14.20 million [4] - Product revenues reached $19.69 million, slightly below the estimated $19.75 million [4] - Services and other revenues totaled $11.98 million, close to the estimated $12 million [4] - Fixed wireless access solutions revenue was $1.90 million, significantly lower than the average estimate of $5.55 million [4] Stock Performance - Inseego's shares have returned +8.1% over the past month, compared to the Zacks S&P 500 composite's +11.3% change [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 Q1 2025 were $31.7 million, a decrease of 15.5% from $37.5 million in Q1 2024[110] - Mobile solutions revenue increased by $2.5 million (16.5%) to $17.8 million, driven by higher sales of premium 5G MiFi products[110] - Fixed wireless access solutions revenue decreased by $12.3 million (86.6%) to $1.9 million, attributed to reduced sales during the transition to next-generation products[111] - Services and other revenue rose by $3.9 million (48.8%) to $12.0 million, mainly due to a two-year service contract renewal with a major customer[112] Cost and Profitability - Cost of revenues for Q1 2025 was $16.7 million, representing 52.7% of total revenues, down from 64.7% in Q1 2024[112] - Gross profit for Q1 2025 was $15.0 million, with a gross margin of 47.3%, compared to $13.2 million and 35.3% in Q1 2024[115] - Total operating costs and expenses for Q1 2025 were $15.4 million, a decrease of 4.8% from $16.2 million in Q1 2024[116] Expenses - Research and development expenses for Q1 2025 were $4.5 million, representing 14.3% of revenues, down from $4.7 million or 12.5% in Q1 2024[116] - Sales and marketing expenses increased to $3.9 million, or 12.4% of revenues, compared to $3.8 million, or 10.2% in the same period last year[117] - General and administrative expenses rose to $4.5 million, or 14.2% of revenues, up from $4.0 million, or 10.5% in Q1 2024[118] - Depreciation and amortization expenses decreased to $2.1 million, or 6.5% of revenues, from $3.3 million, or 8.8% in Q1 2024[119] Cash Flow and Financial Position - The company reported negative cash outflows from operations of $3.5 million for Q1 2025, primarily due to annual bonus payouts[126] - As of March 31, 2025, the company had cash and cash equivalents of $35.1 million and positive working capital of $7.1 million[126] - Interest expense decreased by $1.2 million to $1.0 million in Q1 2025, a reduction of 52.9% compared to $2.2 million in Q1 2024[121] - The company recorded a net loss from discontinued operations of $0.4 million in Q1 2025, compared to a profit of $1.1 million in Q1 2024[124] - Future payments under non-cancellable purchase obligations were approximately $44.1 million as of March 31, 2025[131] Strategic Decisions - The Company divested its Telematics Business for approximately $52 million in cash to focus on its core 5G wireless solutions[100] - The divestiture aligns with the Company's strategy to streamline operations and reduce leverage[101] - The Company operates a single reportable segment, focusing on consolidated operations and financial results[107] Risks and Challenges - The Company continues to face risks related to customer dependence, competition, and supply chain disruptions[95]

Inseego (INSG) Q1 2025 Earnings Call May 08, 2025 05:00 PM ET Company Participants Juho Sarvikas - CEOSteven Gatoff - CFO & Principal Accounting Officer Conference Call Participants None - Analyst Operator Hello, and welcome to Inseego Corp's First Quarter twenty twenty five Financial Results Conference Call. Please note that today's event is being recorded. All participants today will be in a listen only mode. After today's presentation, there will be an opportunity for Q and A. On the call today are Yuho ...

Financial Data and Key Metrics Changes - In Q1 2025, revenue was impacted by delayed carrier promotions and FWA orders, but adjusted EBITDA exceeded expectations, indicating strong cost management despite softer hardware volumes [5][21] - Non-GAAP gross margin reached a record 47.5%, driven by a favorable revenue mix and sequential margin expansion in both product and services [22] - Adjusted EBITDA for Q1 2025 was $3.7 million, more than double the prior year quarter, with an adjusted EBITDA margin of 11.6% [23] Business Line Data and Key Metrics Changes - Mobile hotspot revenue grew over 16% year-over-year, while services revenue increased nearly 50% year-over-year, primarily due to the strength of the subscribed SaaS platform [21][22] - The company is focusing on expanding its FWA and MiFi business, with new product plans introduced to diversify its customer base [9][10] Market Data and Key Metrics Changes - The company is targeting large Tier one carriers and multiple system operators (MSOs) to expand its market presence, indicating a shift towards a broader customer base [9][10] - The competitive landscape remains challenging, but the company believes its American-based IP and improved operational efficiency position it well against competitors [39] Company Strategy and Development Direction - The company is transitioning from a hardware-centric model to a full solution provider, focusing on software-defined wireless networking solutions [8][14] - Key strategic initiatives include scaling the FWA and MiFi business and accelerating the software and services roadmap to enhance its solution offerings [8][14] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the business prospects for 2025, expecting sequential revenue growth starting in Q2, particularly in FWA revenue [26] - The company is actively managing its supply chain and operational efficiency to mitigate potential disruptions from the macroeconomic environment [12][39] Other Important Information - The company successfully reduced its total debt to $41 million after paying off $15 million in convertible notes [24] - The leadership team has been strengthened with new talent, including George Mulhern, former CEO of Cradlepoint, to support the company's transformation [17] Q&A Session Summary Question: Concerns about pipeline opportunities slipping into 2026 - Management does not see any movement of the pipeline from their customer base, particularly among large North American carriers [30] Question: Potential revenue upside from the T-Mobile Partner Plus program - The partnership with T-Mobile is expected to create pull on the channel program products through investment subsidies [31] Question: Free cash flow expectations for 2025 - Management targets positive free cash flow for the year, with expectations for improvement in the second half [32] Question: Update on channel strategy and potential large deals - Confidence in closing a large channel deal within the quarter, with ongoing investments in broadening the solution portfolio [35][36] Question: Competitive landscape and geopolitical impacts - The company believes its operational efficiency and American-based IP provide a competitive edge despite geopolitical challenges [39] Question: Long-term gross margin targets and operating expenses - Management has not provided a specific target model yet but anticipates gross margins in the high 30s, depending on the mix of software and product revenue [40][42]

Financial Performance - Q1 2025 revenue was $31.7 million, a decrease from $37.5 million in Q1 2024[1][4] - Adjusted EBITDA for Q1 2025 was $3.7 million, up $2.2 million year-over-year[1][4] - GAAP gross margin for Q1 2025 was 47.3%, an increase of 12.0% compared to the previous year[1][4] - GAAP net loss for Q1 2025 was $1.6 million, compared to a net loss of $4.5 million in Q1 2024[1][4][20] - The company achieved its ninth consecutive quarter of positive adjusted EBITDA[1][2] - GAAP gross profit for Q1 2025 was $14.98 million, compared to $13.24 million in Q1 2024[20] - Net income loss for Q1 2025 was $1,570 million, an improvement compared to a loss of $4,455 million in Q1 2024, indicating a reduction in losses by approximately 64.7%[24] - Adjusted EBITDA from continuing operations for Q1 2025 was $3,659 million, down from $5,408 million in Q4 2024, reflecting a decrease of about 32.4%[27] Cash Flow and Assets - Cash and cash equivalents decreased from $39,596 million at the beginning of the period to $35,149 million at the end of Q1 2025, a decline of approximately 11.5%[24] - Total assets decreased from $99,999 million as of December 31, 2024, to $92,996 million as of March 31, 2025, representing a decline of approximately 7.1%[22] - Total current liabilities decreased from $63,471 million as of December 31, 2024, to $59,063 million as of March 31, 2025, a reduction of about 7.0%[22] - Total liabilities decreased from $112,857 million as of December 31, 2024, to $105,991 million as of March 31, 2025, a decline of about 6.6%[22] - Operating cash flows from continuing operations for Q1 2025 were negative at $(3,467) million, compared to positive cash flows of $3,942 million in Q1 2024[24] Inventory and Expenses - Inventories increased from $13,575 million as of December 31, 2024, to $15,113 million as of March 31, 2025, representing an increase of approximately 11.4%[22] - The company reported a provision for excess and obsolete inventory of $680 million in Q1 2025, compared to $128 million in Q1 2024, indicating a significant increase in inventory write-downs[24] - Share-based compensation expense increased from $688 million in Q1 2024 to $1,601 million in Q1 2025, an increase of approximately 133.0%[24] Strategic Initiatives - Inseego launched the Next-Generation Fixed Wireless Access outdoor CPE FW3000 and the Inseego Wavemaker 5G cellular router FX3110[4] - The company appointed Juho Sarvikas as CEO, focusing on durable growth and long-term stockholder value[2][4] Future Guidance - Q2 2025 financial guidance projects revenue between $37.0 million and $40.0 million, with adjusted EBITDA between $2.5 million and $3.5 million[8] - The company fully repaid $15 million of convertible debt on May 1, 2025, enhancing its capital structure[2]

Core Insights - Inseego Corp. reported Q1 2025 revenue of $31.7 million, with a positive Adjusted EBITDA of $3.7 million, marking the ninth consecutive quarter of positive Adjusted EBITDA, while experiencing a GAAP net loss of $1.6 million [1][6]. Financial Highlights - Revenue for Q1 2025 was $31.7 million, down from $37.5 million in Q1 2024 [6][21]. - Adjusted EBITDA for Q1 2025 was $3.7 million, an increase of $2.2 million year-over-year [6][29]. - GAAP gross margin for Q1 2025 was 47.3%, up 12.0% year-over-year [6][21]. - The company reported a net loss of $1.6 million for Q1 2025, compared to a net loss of $4.5 million in Q1 2024 [21][27]. Business Developments - Juho Sarvikas was appointed as the new CEO, focusing on driving durable growth and long-term stockholder value [2][6]. - The company launched several new products, including the Next-Generation Fixed Wireless Access outdoor CPE FW3000 and the Inseego Wavemaker 5G cellular router FX3110 [6][8]. - Inseego joined T-Mobile's Partner Plus Channel Subsidy Program to enhance accessibility and affordability of 5G technology for businesses [6][8]. Guidance and Future Outlook - For Q2 2025, Inseego expects revenue in the range of $37.0 million to $40.0 million and Adjusted EBITDA between $2.5 million and $3.5 million [6][4]. - The company remains focused on optimizing its capital structure, having fully repaid $15 million of convertible debt [2][6].

Core Insights - Inseego Corp. has appointed George Mulhern, a wireless technology executive, to its Board of Directors, enhancing its leadership with his extensive experience in the wireless sector [1][2][3] - Mulhern's previous role as Chairman and CEO of Cradlepoint saw him lead a transformation that increased revenue by approximately 20 times, culminating in a successful acquisition by Ericsson [1][2] - The board size has increased from five to six members with Mulhern classified as an independent director, indicating a strategic move to strengthen governance [3] Company Overview - Inseego Corp. is a leader in 5G Enterprise cloud WAN solutions, serving millions of end customers and thousands of enterprise and SMB customers across its 4G, 5G, and cloud platforms [4] - The company's 5G Edge Cloud integrates advanced 5G technology with cloud networking features and intelligent edge applications, aimed at enhancing business outcomes and operational visibility [4]

Core Viewpoint - Inseego Corp. has successfully completed a significant milestone in its capital structure management by paying off approximately $15 million in convertible notes due 2025, which contributes to a substantial reduction in the company's overall debt [1][2]. Debt Management - The pay-off of the 2025 Convertible Notes marks a key initiative to materially reduce the company's debt, with total debt reduced by over $100 million, or approximately 75%, over the past 12 months [2]. - Following the pay-off, Inseego has approximately $40.9 million in outstanding debt from its new senior 9.0% secured notes due in 2029 [1]. Financial Guidance - The company has confirmed that there is no change to its financial guidance for the first quarter of 2025, which ended on March 31, 2025, and will report its financial results on May 8, 2025 [2]. Company Overview - Inseego Corp. is recognized as a leader in 5G Enterprise cloud WAN solutions, serving millions of end customers and thousands of enterprise and SMB customers with its 4G, 5G, and cloud platforms [3]. - The company's 5G Edge Cloud integrates advanced 5G technology with cloud networking features and intelligent edge applications, enhancing business operations and securing enterprise data [3].

SAN DIEGO, April 22, 2025 (GLOBE NEWSWIRE) -- Inseego Corp. (NASDAQ:INSG), a global leader in wireless broadband, including 5G mobile broadband, and 5G fixed wireless access (FWA) solutions, today announced that four of its industry-leading products have earned the "Verizon Frontline-Verified" designation. This recognition demonstrates that Inseego's solutions provide the reliability and performance required for public safety networks, ensuring connectivity priority, preemption, and traffic segmentation for ...