Executive Summary

Q2 2025 revenue was $40.2M, above guidance and consensus; non-GAAP gross margin was 41.2% and adjusted EBITDA was $4.7M, driven by stronger FWA demand, a favorable mix, and disciplined OpEx . Consensus revenue was $38.5M, implying a beat; consensus Primary EPS was 0.0267 vs actual 0.0805, also a beat*.
Segment mix pivoted: FWA revenue ($14.5M) surpassed mobile hotspot ($13.7M) for only the second time in company history, highlighting FX4100 traction and early mesh node attach .
Balance sheet improved: cash $13.2M and total debt ~$41M; Inseego paid off remaining $15M converts in May and added a $15M BMO working capital facility (undrawn) to increase operating flexibility .
Q3 2025 outlook: revenue $40–$43M and adjusted EBITDA $4–$5M, with services steady at ~$12M and gross margins largely consistent; note removal of a >$10M education mobile deal tied to E‑Rate that lacks a path forward in Congress .
Stock reaction catalysts: FX4100 FWA ramp at T-Mobile for Business, new Tier-1 carrier wins across mobile and FWA, and expanding software/API strategy (Inseego Connect, Subscribe) that should support mix and margin resilience .

What Went Well and What Went Wrong

What Went Well

FWA leadership: FX4100 launch outpaced prior generations; Q2 was the second time FWA revenue surpassed mobile, validating the enterprise-grade FWA strategy .
New Tier-1 wins: Renewed MiFi stock positions at two large carriers and won a new Tier-1 for both mobile and FWA, diversifying the customer base .
Services durability: Services revenue held ~$12M with strong margins, underpinned by Inseego Subscribe; APIs for Inseego Connect broaden TAM and stickiness .

Selected quotes:

“FWA revenue surpassed mobile hotspot revenue… We see this as an indicator of… successful ramp of our new FX4100 product” .
“We… renewed our stock MiFi products with our two large Tier one carrier customers… added a new Tier one carrier to stock both our mobile and FWA products” .

What Went Wrong

Mobile YoY decline: Q2 mobile revenue fell 47% YoY due to prior-year promotional comps and program timing .
AR and inventory built late in quarter: Accounts receivable rose with late-quarter FX4100 uptake, and inventory investment increased to support second-half product launches, pressuring operating cash flow (-$7.9M in H1) .
E‑Rate risk: A >$10M education mobile hotspot deal was removed from H2 forecast due to Congressional uncertainty, adding variability to the outlook .

Financial Results

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$48.1	$31.7	$40.2
Non-GAAP Gross Margin %	37.4%	47.5%	41.2%
Adjusted EBITDA ($USD Millions)	$5.4	$3.7	$4.7
GAAP Operating Income ($USD Millions)	—	$(0.4)	$1.3
GAAP EPS (Basic & Diluted) ($)	—	$(0.16) total; $(0.14) continuing	$(0.03) total; $(0.03) continuing

Segment breakdown (Q2 2025):

Revenue Segment	Q2 2025 ($USD Millions)
Mobile Solutions	$13.672
Fixed Wireless Access Solutions	$14.511
Services & Other	$12.040
Total	$40.223

KPIs and Balance Sheet (Q2 2025):

KPI	Q2 2025
Cash & Cash Equivalents ($USD Millions)	$13.221
2029 Senior Secured Notes – Net Carrying ($USD Millions)	$41.721
Total Debt (management commentary) ($USD Millions)	~$41
AR Concentration – Top Two Customers (% of Revenue)	62.2% and 24.2%
Noncancellable Purchase Obligations ($USD Millions)	$62.3
Working Capital Facility (BMO)	$15M revolving, SOFR+1.0–2.5%, matures Aug 2028

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($USD Millions)	Q2 2025	$37–$40	Actual $40.2	Beat high end
Adjusted EBITDA ($USD Millions)	Q2 2025	$2.5–$3.5	Actual $4.7	Raised vs guide
Revenue ($USD Millions)	Q3 2025	—	$40–$43	New guide
Adjusted EBITDA ($USD Millions)	Q3 2025	—	$4–$5	New guide
Non-GAAP Gross Margin %	Q3 2025	—	“fairly consistent” with Q2	Maintained
OpEx (non-GAAP)	Q3 2025	—	Up on S&M and product investments	Increased
Services Revenue ($USD Millions)	Q3 2025	—	~ $12	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Enterprise FWA ramp	Transition to next-gen FWA, expected H1 softness then mid-2025 ramp	FX4100 launch exceeded expectations; FWA revenue surpassed mobile	Positive acceleration
Tier-1 carrier diversification	Goal to broaden stock SKUs and add Tier-1s	Renewed two Tier-1 MiFi stocks; new Tier-1 stocking mobile and FWA	Diversification improving
Software/API strategy (Connect, Subscribe)	API enablement to unlock TAM; services strength	Expanded Connect feature set and APIs; services steady at $12M	Building ARR/value
Supply chain and tariffs/macro	Mitigation (Taiwan/Vietnam), tariff exposure monitored	Added Chief Supply Chain Officer; larger H2 product portfolio investment	Operational resilience
Channel program & large deals	Q2 variability tied to large channel deal timing	Closed multi‑million enterprise FX4100+Connect deal; channel ramp continues	Scaling indirect
Regulatory/government	E‑Rate uncertainty flagged as risk	Removed >$10M education mobile deal from H2 forecast	Headwind persists

Management Commentary

Strategy execution: “Q2 was a pivotal quarter… momentum with our products and customer traction… well positioned to drive long term sustainable growth” .
Product success: “FX4100… greatly exceeded our expectations with strong early demand… positions FWA as a key growth driver” .
Balance sheet actions: “We paid off the $15,000,000 remaining balance on the convertible notes… set up a $15,000,000 working capital facility… we don’t currently need or plan to draw” .
Guidance tone: “We expect sequential revenue growth for each of the next two quarters… services ~$12,000,000; margins fairly consistent; OpEx up to drive growth” .

Q&A Highlights

Enterprise win mechanics: Multi‑million industrial S&P 500 deployment via Ignite channel; value from hardware + Inseego Connect manageability .
Guidance variability drivers: Mix of carrier mobile volumes, FWA ramp, and channel close rates; removal of >$10M education deal reduces H2 variability risk .
Cash flows and working capital: AR uptick from late FX4100 shipments; inventory builds to support unprecedented H2 product launches; goal remains to drive cash .
FWA mix outlook: Management is “bullish” on FWA trajectory versus mobile, with enterprise TAM expansion .
Software monetization: Expect expanding monetization from MDM (Connect) and subscriber management (Subscribe) with growing customer uptake .

Estimates Context

Metric	Period	Consensus	Actual	Surprise
Revenue ($USD Millions)	Q1 2025	32.06*	31.67	Miss
Primary EPS ($)	Q1 2025	-0.0633*	0.0277*	Beat
Revenue ($USD Millions)	Q2 2025	38.53*	40.22	Beat
Primary EPS ($)	Q2 2025	0.0267*	0.0805*	Beat

Note: “Primary EPS” differs from GAAP EPS attributable to common (due to preferred dividends and share effects). GAAP EPS was -$0.03 in Q2 2025; “Primary EPS” per S&P Global was positive, reflecting a different basis*. Values retrieved from S&P Global.*

Key Takeaways for Investors

FWA ramp is real: FX4100 traction and new Tier‑1 wins underpin an improving revenue mix and margin quality; watch carrier sell‑through and mesh attach rates .
Services resilience: ~$12M quarterly services with high margin provides ballast against product variability; API expansion should add ARR and stickiness .
Beat and raise quarter: Inseego beat Q2 revenue and EBITDA guidance and consensus; Q3 guide implies sequential growth; tone is confident despite E‑Rate headwind .
Balance sheet derisked: Convert paydown and an undrawn $15M facility add flexibility for product investments and working capital without dilution .
Concentration to diversification: Revenue concentration remains high, but renewed and new Tier‑1 relationships and channel wins should gradually reduce risk .
Near-term trading: FWA momentum and estimate beats are positive catalysts; monitor AR/inventory normalization and large-deal timing to gauge cash conversion .
Medium-term thesis: Platform strategy (shared router OS + Connect + Subscribe) across mobile and FWA should drive scale, differentiated enterprise value, and sustainable profitability .

* Values retrieved from S&P Global.

INSEEGO CORP. (INSG)·Q2 2025 Earnings Summary