Inseego (US:INSG)2025-05-08 20:10Financial 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]