Key Takeaways SBAC benefits from rising mobile data demand and 5G expansion, driving its tower-leasing growth.SBAC expands its portfolio with 4,329 new sites and continues steady dividend and buyback plans.High debt and reliance on key wireless carriers remain major financial and operational challenges.SBA Communications (SBAC) is likely to experience a healthy growth momentum with extensive infrastructure assets, driven by increased consumer demand and the adoption of data-driven mobile devices and applica ...

Financial Data and Key Metrics Changes - Q1 sales were $12 million, aligning with the midpoint of guidance [13] - Gross margin improved to 44.3%, marking the fifth consecutive quarterly increase [14] - Operating expenses totaled $6.6 million, remaining flat year-over-year [15] - Non-GAAP EPS was negative $0.11, with adjusted EBITDA at negative $1.2 million [16] Business Line Data and Key Metrics Changes - Consumer sales reached $6.4 million, down $100,000 sequentially [14] - Automotive sales were $1.3 million, down $2 million sequentially [14] - Enterprise sales totaled $4.3 million, down $1 million sequentially, marking a low point for the year [14] Market Data and Key Metrics Changes - The addressable market expanded from $1.1 billion in 2024 to $2.6 billion in 2025 due to the shift to higher-margin solutions [5] - The company is closely monitoring broadband and enterprise markets for demand disruptions [4] Company Strategy and Development Direction - The company is transitioning from low ASP component supplier to high-value wireless solutions provider [5] - Focus on scaling Lighthouse and AirgainConnect platforms and deepening presence in key global markets [3] - Strategic partnership with Ormatia to support deployments in the Middle East [8] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the enterprise market's recovery and expects sequential revenue growth in Q2 [17] - The company is prepared to adapt to the fluid tariff environment without significant impact on product costs [4] - Management is focused on executing strategy while targeting positive adjusted EBITDA in Q3 [18] Other Important Information - The company plans to file an updated S3 shelf registration to maintain financial flexibility [19] - The leadership team is experienced and focused on driving operational performance and long-term value creation [12] Q&A Session Summary Question: AirgainConnect customer traction and design wins - Management is optimistic about design wins in the coming months, with a focus on Tier one customers contributing in the second half of the year [26] Question: IoT business rebound expectations - Management noted key customers have resumed shipments, indicating a positive trend in the IoT business [27] Question: Lighthouse pilots and commercialization - The company is on track for trials in multiple regions, including the Middle East and Latin America, with expectations for ramp-up in Q3 [37] Question: Tariff implications and competitive strategy - Management indicated no significant changes in customer buying patterns due to tariffs, leveraging a fabless model to mitigate impacts [42][46] Question: Consumer market growth and WiFi developments - Management expects moderate growth in the consumer segment following a strong Q1, with additional MSOs launching WiFi 7 [49] Question: Lighthouse revenue expectations - Management anticipates low seven-figure contributions from the partnership with Ormatia for the remainder of the year [55]

Financial Data and Key Metrics Changes - Q1 sales were $12 million, aligning with the midpoint of guidance [13] - Consumer sales reached $6.4 million, down $100,000 sequentially [14] - Automotive sales were $1.3 million, down $2 million sequentially [14] - Enterprise sales totaled $4.3 million, down $1 million sequentially, marking a low point for the year [14] - Q1 gross margin was 44.3%, marking the fifth consecutive quarterly increase [14] - Adjusted EBITDA was negative $1.2 million due to the lower revenue base [16] - Non-GAAP EPS was negative $0.11 [17] Business Line Data and Key Metrics Changes - Consumer segment showed resilience with a slight decline in sales [14] - Automotive segment faced challenges with lower shipments [14] - Enterprise segment experienced a significant drop, primarily due to lower shipments of antennas and IoT products [14] - Improvement noted in IoT sales returning to normal levels [6] Market Data and Key Metrics Changes - The addressable market expanded from $1.1 billion in 2024 to $2.6 billion in 2025 [5] - The company is closely monitoring broadband and enterprise markets for demand disruptions [4] - No significant changes in customer purchasing behavior due to tariffs observed as of early May [4] Company Strategy and Development Direction - The company is transitioning from a low ASP component supplier to a high-value wireless solutions provider [5] - Focus on scaling Lighthouse and AirgainConnect platforms and deepening presence in global markets [3] - Strategic partnerships, such as with Ormatia, are expected to drive revenue growth in the second half of 2025 [8] - Emphasis on modular solution families to support various use cases and customer segments [7] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the enterprise market's recovery and expects sequential revenue growth [6][18] - The company is prepared to adapt to the fluid tariff environment to minimize impacts on customers [4] - Confidence in achieving positive adjusted EBITDA in Q3 2025 [19] Other Important Information - The company plans to file an updated S3 shelf registration to maintain financial flexibility [20] - A strong leadership team is in place to navigate current challenges and drive operational performance [12] Q&A Session Summary Question: Insights on AirgainConnect's ramp-up and IoT business rebound - Management is optimistic about design wins in the coming months and expects enterprise growth in 2025 [24][28] Question: Update on Lighthouse pilots and potential new carriers - The company is on track for trials in multiple regions, including the Middle East and Latin America, with expectations for ramp-up in Q3 [35][37] Question: Tariff implications and competitive landscape - Current buying patterns remain stable, and the fabless model provides a competitive advantage against tariff impacts [41][44][47] Question: Consumer market growth and WiFi developments - The company anticipates steady growth post-Q2, especially with new MSO launches [49] Question: Lighthouse revenue expectations and trial opportunities - Expected low seven-figure contributions from the Oman partnership, with potential for broader Middle East engagement [53][55]