Airgain(AIRG) - 2025 Q2 - Quarterly Results

Executive Summary 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 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][5] - 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][5] - 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] Second Quarter 2025 Financial Results 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 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] - Total sales decreased by 10.3% year-over-year from Q2 2024 ($15.2 million) to Q2 2025 ($13.6 million)[6] Gross Profit and Margin 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] Operating Expenses 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] Net Loss and EPS 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] - Non-GAAP net loss per share improved sequentially from $(0.11) in Q1 2025 to $(0.04) in Q2 2025[10] Adjusted EBITDA 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] Third Quarter 2025 Financial Outlook 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 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] Company Overview and Disclosures 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 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] - Webcast replay will be available via the investor section of the company's website until August 6, 2026[16] About Airgain, Inc. 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] - The company's mission is to deliver high-performance, cost-effective, and energy-efficient wireless solutions for rapid market deployment[17] - Airgain's product portfolio serves three primary markets: enterprise, automotive, and consumer[17] Forward-Looking Statements 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] - 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] - The company undertakes no obligation to revise or update these statements after the date of the press release[19][20] Note Regarding Use of Non-GAAP Financial Measures 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] - 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] - Non-GAAP measures are not a substitute for GAAP results and may not be comparable to those of other companies[23] Investor Relations Contact 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] Condensed Consolidated Financial Statements 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 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] - 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] Condensed Consolidated Statements of Operations 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] - Employee retention credit refund significantly contributed to other income in H1 2025, totaling $1.989 million[28] Condensed Consolidated Statements of Cash Flows 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] - 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] Supplemental Financial Data and Reconciliations 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 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][32] - 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][32] GAAP to Non-GAAP Gross Profit Reconciliation 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 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 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 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 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 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][45] - 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][45]