Executive Summary

Q4 2024 delivered solid YoY growth and profitability: revenue $48.1M (+34% YoY), GAAP operating income $1.8M, and Adjusted EBITDA $5.4M (11.2% margin) as mix favored higher-value products and services .
Management guided to a soft Q1 2025 on channel inventory digestion, product transitions, and the end of a national hotspot program, with revenue $30–33M and Adjusted EBITDA $2–3M, but expects sequential growth from Q2 and full-year 2025 revenue growth vs 2024 .
Strategic actions materially improved the balance sheet: completed telematics sale for $52.7M cash and exchanged 91% of 2025 converts into long-term debt/equity; year-end 2024 ended with ~$40M cash and ~$56M total debt, ~($16M) net debt .
Stock catalysts: new CEO with deep wireless pedigree, product roadmap refresh (MiFi and FWA), services expansion (Inseego Connect/Subscribe), and enterprise/industrial FWA penetration; near-term volatility likely until inventory normalizes and new product cycles ramp .

What Went Well and What Went Wrong

What Went Well
- Strong top-line and profitability: Q4 revenue $48.1M (+34% YoY), GAAP operating income $1.8M, Adjusted EBITDA $5.4M (11.2% margin) with higher-value mix and cost discipline .
- Capital structure reset: telematics sale closed for $52.7M cash; exchange of 91% of 2025 converts into long-term notes/equity, leaving $56M total debt and ~$40M cash at 2024 YE; “net debt… exceedingly manageable $16M” .
- Commercial traction: record MiFi X PRO quarterly sales at one major NA carrier; FWA award letter for next-gen indoor device; channel and enterprise use cases (e.g., medical device connectivity) expanding .
What Went Wrong
- Near-term demand headwinds: Q1 2025 guide implies sequential step-down (rev $30–33M) on customer inventory overhang, product transitions, and an ended national hotspot program at a carrier .
- Fixed Wireless Access (FWA) mixed: sequential improvement in Q4 but slight YoY decline due to prior large purchases and inventory management at a carrier customer; also affects Q1 2025 .
- EPS still pressured at the common level in Q4 due to preferred dividends and discontinued ops mix (Q4 basic EPS $(0.10)) despite operating progress .

Financial Results

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Millions)	$35.919	$59.149	$54.032	$48.087
GAAP Gross Margin %	N/A	39.0%	34.8%	37.3%
GAAP Operating Income ($M)	$(7.752)	$2.349	$1.016	$1.790
Adjusted EBITDA ($M)	$2.301 (cont. ops)	$8.364	$6.717 (cont. ops)	$5.408 (cont. ops)
Basic EPS ($)	$(1.28)	$(0.02)	$0.66	$(0.10)

Segment/Revenue Mix

Segment	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Mobile solutions ($M)	$16.029	$25.879	$32.282	$25.499
Fixed Wireless Access solutions ($M)	$12.411	$13.317	$9.723	$10.427
Product total ($M)	$28.440	$39.196	$42.005	$35.926
Services and other ($M)	$7.479	$19.953	$12.027	$12.161
Total revenues ($M)	$35.919	$59.149	$54.032	$48.087

Additional KPIs and Balance Sheet Snapshots

Cash and cash equivalents: $39.596M at 12/31/24
Total debt (12/31/24): ~$56M (senior notes due 2029 ~$41.8M; remaining converts ~$14.9M)
Net debt commentary (12/31/24): “exceedingly manageable $16M”

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q4 2024 (given 11/12/24)	$43.0M – $47.0M	Actual: $48.1M	Beat prior guide
Adj. EBITDA	Q4 2024 (given 11/12/24)	$3.0M – $4.0M	Actual: $5.4M	Beat prior guide
Revenue	Q1 2025	N/A	$30.0M – $33.0M	New guide
Adjusted EBITDA	Q1 2025	N/A	$2.0M – $3.0M	New guide
Revenue cadence	FY 2025	N/A	Sequential growth starting Q2; FY rev growth vs 2024	New qualitative outlook

Earnings Call Themes & Trends

Topic	Q-2 (Q2’24) Mentions	Q-1 (Q3’24) Mentions	Current (Q4’24)	Trend
Capital structure	Convertible note exchanges; material debt reduction initiated	Exchanged ~91% of converts; sale of telematics announced	91% converts exchanged; telematics sale completed, cash proceeds $52.7M	Strengthening, de-risking
Product performance (MiFi)	X PRO sales up across carriers	Increased MiFi X PRO sales; channel wins	Record X PRO sales at one major NA carrier	Positive momentum
FWA trajectory	FX3110 certs (AT&T/T-Mobile/Verizon); large FWA channel deal	FWA launched in channel; mixed carrier demand	Award letter for next-gen indoor FWA; Q4 sequential up but slight YoY decline; Q1 lower on inventory transition	Building pipeline; near-term digestion
Channels/VAR strategy	Launch of Ignite program; 27 VARs	T-Mobile VIP; 12 new Ignite partners	Two large nonprofit telecom wins; broader enterprise/industrial focus	Expanding distribution
SaaS/Services	Services + cloud emphasis; Connect highlighted	Services growth; Subscribe renewal supports YoY	Inseego Connect/Subscribe prioritized; higher-margin, recurring	Mix shift to recurring
AI/Tech initiatives	Not highlighted	Not highlighted	Using AI to enhance QoS, traffic prioritization, and network slicing in Connect as 5G-Advanced arrives	Emerging lever
Macro/supply chain	Not highlighted	Not highlighted	Q1 softness from channel inventory; product transitions; end of national hotspot program	Short-term headwind

Management Commentary

Strategic focus: “Wireless is the future of broadband… two strategic vectors: execute and scale FWA and MiFi; accelerate software and services roadmap” .
Go-to-market: “Strengthen two-pronged strategy with carriers and VARs… expand from SMB/mid-market to large enterprise/industrial” .
On Q4 execution: “Achieved 34% YoY revenue growth, improved gross margins… third consecutive quarter of positive GAAP operating income… double-digit adjusted EBITDA margins” .
Balance sheet: “Exchange of more than 91% of $162M converts… ended 2024 with $56M total debt and ~$40M cash; net debt ~$16M” .
Outlook tone: “Sequential decline in Q1… but anticipate delivering overall YoY revenue growth in 2025; sequential quarterly revenue growth starting Q2” .

Q&A Highlights

Inventory and cadence: Management confirmed Q1 is a trough on elevated customer inventories and program end, with sequential growth starting Q2 and back-half ramp underpinning FY 2025 YoY growth .
Growth drivers H2’25: New customer/design-win visibility, refreshed MiFi, broadened FWA portfolio, and deeper enterprise/industrial penetration (plus residential exploration) .
Procurement/operations: CEO plans to rework procurement, ODM/manufacturing partnerships, and leverage rapid prototyping capabilities to improve costs and time-to-market; benefits begin in 2025 with further scalability ahead .
Portfolio/inorganic: Focus on being “partner of choice” in mobile/fixed broadband across hardware, device software, and cloud; consider inorganic opportunities thoughtfully .
OpEx/Investment: Near-term step-up to fund product initiatives in 1H25 (some capitalized), tapering in H2 as products launch .

Estimates Context

Metric	Q4 2024 Actual	S&P Global Consensus	Surprise
Revenue ($M)	$48.087	N/A	N/A
Primary EPS ($)	$(0.10) basic EPS	N/A	N/A

Note: Consensus data from S&P Global was unavailable at time of retrieval due to access limits; consequently, we cannot quantify beats/misses versus Street for Q4 2024 or Q1 2025 guidance at this time. Values retrieved from S&P Global.*

Guidance Changes and Drivers

Q4 2024 vs guidance: Actual revenue $48.1M vs $43–47M guided; Adj. EBITDA $5.4M vs $3–4M guided—benefiting from strong carrier hotspot sell-through and services growth .
Q1 2025: Revenue $30–33M; Adj. EBITDA $2–3M—softness driven by elevated channel/customer inventory, product transitions to next-gen FWA, and the end of a one-time national hotspot program .
FY 2025 qualitative outlook: Management expects sequential growth from Q2 and full-year revenue growth versus 2024 as refreshed MiFi SKUs, next-gen FWA devices, and expanded enterprise/industrial channels ramp; SaaS (Connect/Subscribe) to support margin mix .

Additional Relevant Press Releases (Q4 context)

Telematics sale completion: $52.7M in cash received; divestiture sharpened focus and enhanced liquidity .
Debt restructuring and capital structure improvement (Nov 12, 2024): Exchanged $91.5M face value; ~91% of $162M converts repurchased/exchanged at discount .
Product/channel announcements around Q4: MiFi and FWA launches; multi-carrier certifications; channel expansion .

Key Takeaways for Investors

The operating turnaround is tracking: three straight quarters of positive GAAP operating income, double-digit Adjusted EBITDA margin in Q4, and clear gross margin progress from mix and discipline .
Capital structure risk greatly reduced: convert overhang largely eliminated, cash bolstered by telematics sale, longer-dated 2029 senior notes—provides runway to execute the product and go-to-market plan .
Near-term air pocket (Q1) is transitory: inventory digestion and program roll-off are known; management signaled sequential recovery beginning Q2 and FY growth in 2025 .
Execution swing factors: on-time launch and carrier ranging of next-gen FWA/MiFi; channel velocity in enterprise/industrial; uptake of Connect/Subscribe to expand recurring revenue and margins .
Watch mix and margins: services/SaaS growth and enterprise-leaning FWA should support gross margin uplift; procurement/manufacturing actions could further improve unit economics .
Trading implications: shares may be volatile into Q1 print and inventory normalization; look for confirmation of sequential growth inflection from Q2, carrier ranging milestones, and SaaS momentum to support multiple expansion .
Medium-term thesis: experienced CEO with carrier/vendor relationships, refreshed product cadence, and healthier balance sheet position the company to participate in enterprise/industrial 5G FWA and managed connectivity growth .

Sources used: Q4 2024 press release (including financial statements and reconciliation) ; Q4 2024 earnings call transcript ; Q3 2024 press release ; Q2 2024 press release .

INSEEGO CORP. (INSG)·Q4 2024 Earnings Summary