Executive Summary

Q3 2025 was a solid execution quarter: revenue rose 14% sequentially to $45.9M and Adjusted EBITDA increased 22% to $5.8M, both above company guidance; GAAP gross margin held above 40% for a third straight quarter (41.6%) .
Mix continues to improve: FWA revenue reached $17.7M (second-highest in company history) and Software Services & Other contributed $12.2M (27% of total), supporting margins and profitability .
Against S&P Global consensus, revenue beat ($45.9M vs $41.9M*) while Primary EPS missed ($0.12 actual vs $0.17* est), implying a top-line beat but lighter EPS conversion vs expectations (non-GAAP EPS basis) . Values retrieved from S&P Global.*
Q4 2025 guidance calls for $45.0–$48.0M revenue and $4.0–$5.0M Adjusted EBITDA (9–10% implied margin); management flagged potential gross margin moderation on higher mobile mix and memory-cost headwinds but sustained sequential growth as a catalyst, alongside a new Tier-1 carrier ramp and the FX4200 launch .

What Went Well and What Went Wrong

What Went Well

FWA acceleration and portfolio expansion: “FWA shipment volumes were up more than 50% YoY,” driven by FX4100 traction at T-Mobile; FX4200 launched to move up-market into larger enterprise, including MSP/MSO channels .
Beat guidance and expanded profitability: Q3 revenue ($45.9M) and Adjusted EBITDA ($5.8M) exceeded prior guidance, with Adjusted EBITDA margin at 12.5% and GAAP gross margin at 41.6% .
Customer/channel diversification: Inseego “secured a new Tier‑1 U.S. carrier” for both FWA and mobile, with FWA shipments to begin late Q4 and mobile in Q1 2026, broadening the base beyond its largest carrier .

What Went Wrong

EPS below Street despite revenue beat: Primary EPS came in ~$0.12 vs ~$0.17* consensus; margin mix and increased D&A contributed, and management guided non-GAAP gross margin to moderate in Q4 on a higher mobile mix . Values retrieved from S&P Global.*
Memory cost backdrop: Management flagged rising memory prices (capacity shifting to AI) creating industry-wide cost pressure into 2026; not material for Q4 but a watch item for margins .
Opex/Capex cadence: Q4 OpEx to increase in S&M and R&D to support launches and scaling; higher capitalized software spend expected—good for growth but near-term EPS headwind .

Financial Results

Quarterly trends and YoY/Seq comparisons

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Revenue ($M)	$54.0	$31.7	$40.2	$45.9
Adjusted EBITDA ($M)	$6.72	$3.66	$4.73	$5.75
GAAP Diluted EPS (Cont. Ops)	$(0.16)	$(0.16)	$(0.03)	$0.03
Non-GAAP Diluted EPS	$0.03	$0.02	$0.08	$0.12
GAAP Gross Margin (%)	34.8%	47.3%	—	41.6%

Notes: Q2 2025 non-GAAP gross margin was 41.2% (management disclosure) .

Q3 2025 vs S&P Global consensus (Street)

Metric	Consensus (Q3 2025)	Actual (Q3 2025)	Surprise
Revenue ($M)	$41.86*	$45.89	+$4.03M (Beat)
Primary EPS ($)	$0.17*	$0.12	-$0.05 (Miss)

Values retrieved from S&P Global.*

Segment/Revenue Mix (YoY)

Revenue ($M)	Q3 2024	Q3 2025
Mobile Solutions	$32.28	$16.04
Fixed Wireless Access (FWA)	$9.72	$17.65
Product (Mobile + FWA)	$42.01	$33.69
Software Services & Other	$12.03	$12.21
Total Revenue	$54.03	$45.89

Q3 2025 KPIs and Balance Sheet

KPI	Q3 2025
Adjusted EBITDA ($M) and Margin (%)	$5.75 (12.5%)
GAAP Gross Margin (%)	41.6%
Product vs Software Mix	73% / 27%
FWA Revenue ($M)	$17.65
Software Services & Other ($M)	$12.21
Cash & Cash Equivalents ($M)	$14.56
Net Debt snapshot	~$26M (only $41M Sr. Secured Notes; $15M cash)
Undrawn working capital facility	$15M (BMO Bank)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($M)	Q3 2025	$40–$43 (issued Aug 7, 2025)	Actual: $45.9	Beat vs guide
Adjusted EBITDA ($M)	Q3 2025	$4–$5 (issued Aug 7, 2025)	Actual: $5.8	Beat vs guide
Revenue ($M)	Q4 2025	N/A	$45–$48	New
Adjusted EBITDA ($M)	Q4 2025	N/A	$4–$5 (9–10% implied)	New
Non-GAAP Gross Margin (%)	Q4 2025	N/A	High 30s; modestly lower on mobile mix	New qualitative
Tariffs assumption	Q4 2025	—	Excludes potential tariff impacts	New qualitative

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 2025 and Q2 2025)	Current Period (Q3 2025)	Trend
FWA momentum, FX4100/FX4200	Q1: Slower FWA start; pivot to FX4100; sequential growth outlook . Q2: FX4100 launched mid-Q2; strong demand; FWA surpassed mobile for only second time; X700 mesh introduced .	FWA shipments up >50% YoY; FX4100 traction at T-Mobile; FX4200 launched to expand up-market and MSO/MSP path .	Strengthening
Carrier diversification (new Tier‑1)	Q1: Goal to add Tier‑1s; de-concentrate . Q2: Won new Tier‑1 across FWA and mobile, renewals at two Tier‑1s .	New Tier‑1 secured; FWA starts late Q4, mobile starts Q1 2026 .	Expanding
Software (Inseego Connect APIs; Subscribe)	Q1: API enablement; roadmap to enterprise/industrial; Subscribe investments . Q2: APIs released; expanding features; Subscribe investments continue .	Connect now core to platform; SaaS attach opportunities; 2026 viewed as growth year for Subscribe monetization .	Building ARR base
Capital structure / liquidity	Q1: Paid off remaining converts May 1; targeting FCF positive in H2 . Q2: $13.2M cash; $15M undrawn facility; total debt ~$41M (~2x LTM EBITDA) .	$14.6M cash at Q3; only $41M senior secured notes; $15M undrawn facility .	Stable/Improved
Macro/costs (Memory market)	—	Memory cost tightening with AI capacity shift; not material Q4, watch for 2026 .	Headwind watch
Regulatory/national security	Q1: Emphasized U.S. IP, supply chain optionality; tariff mitigation .	FCC scrutiny on “untrustworthy gear” seen as opportunity for U.S. OEMs .	Potential tailwind

Management Commentary

CEO: “We delivered key wins and extended our enterprise FWA leadership with strong FX4100 demand, launched our premium FX4200 5G solution, and broadened our Tier‑1 carrier base… We’re focused on continuing to scale our cloud-managed wireless broadband solutions to drive sustainable growth and profitability” .
CFO: “We delivered another quarter of sequential growth, with revenue and adjusted EBITDA both above guidance… Strong gross margins, disciplined expense management, and effective working capital drove meaningful operating leverage” .
On product-market fit: “It’s clear that our FWA solutions are gaining traction beyond early adopters and becoming a trusted primary option for mission‑critical connectivity” .
On software evolution: “We’ve graduated Inseego Connect from a support tool to a core part of the enterprise platform… creating SaaS attach opportunities that expand our TAM and recurring revenue” .

Q&A Highlights

Software monetization cadence: Management expects 2026 to be a growth year for Subscribe; Connect is now a core enterprise platform with richer “device cloud” value capture via FX4200 and APIs .
Seasonality and near-term trajectory: Q4 historically has fewer selling weeks; new carrier programs/launches expected to drive Q4 sequential growth; mobile strength offsets potential FWA normalization from record Q3 .
Regulatory upside: FCC actions on untrusted gear in CPE may favor U.S. OEMs; management sees this as a “significant upside opportunity” .
New Tier‑1 ramp and mix: Staggered timing reflects normal development cycles; mobile volumes could ramp significantly with new carrier, while FWA remains the longer-term growth driver .

Estimates Context

S&P Global consensus vs actual (Q3 2025): Revenue $41.86M* vs actual $45.89M (beat); Primary EPS $0.17* vs actual $0.12 (miss). Values retrieved from S&P Global.*
Implications: Street likely raises revenue but may trim near-term EPS/margin assumptions given Q4 gross margin commentary (higher mobile mix and memory costs). Anchoring to software attach and FWA ramp is key for 2026 mix/earnings power .

Key Takeaways for Investors

Mix upgrade continues: FWA scaled with FX4100 momentum and FX4200 launch; software/services steady at ~27% of revenue, sustaining margins and EBITDA growth .
Execution beat: Both revenue and Adjusted EBITDA exceeded guidance, with a 12.5% Adjusted EBITDA margin; Q4 guide implies continued sequential growth albeit with some gross margin moderation .
Near-term trade: Top-line momentum (new Tier‑1 ramps, refreshed MiFi lineup) vs. EPS sensitivity to product mix and memory costs; watch gross margin trajectory into Q4/Q1 .
2026 setup: Larger SaaS attach (Connect, Subscribe) and broader carrier/MSO channels can drive recurring revenue and improve conversion; management explicitly points to 2026 as a growth year for Subscribe .
Balance sheet: Convert overhang removed; only $41M senior secured notes due 2029; $15M undrawn facility provides flexibility to support growth .
Regulatory/“homegrown” angle is an emerging tailwind—Inseego stresses U.S.-designed IP and readiness for carrier/MSO needs .

Appendix: Source financial statements and reconciliations are from Inseego’s Q3 2025 earnings press release and exhibits (Form 8‑K, Nov 6, 2025), Q3 2025 earnings call transcript, and prior-quarter earnings materials. Citations appear in brackets.

S&P Global consensus figures are shown with an asterisk and the following disclaimer: Values retrieved from S&P Global.*

INSEEGO CORP. (INSG)·Q3 2025 Earnings Summary