Inseego Stock Earnings Reports

Q1 2026 highlights and investor takeaways: - Q1 revenue grew 8% YoY to $34.3M; adjusted EBITDA was $1.8M (5.1% of revenue) and non-GAAP gross margin was 48.9%. Software services remain a stable, high-margin revenue stream (~$12.3M). - Management is executing a growth-first-half / scale-and-profitability-second-half 2026 plan: Q2 revenue guidance $36.5M–$43.5M; adjusted EBITDA guidance $0.25M–$2.0M; full-year organic target of ~$190M with profitability improving in H2. - Mobile: launched 2 of 3 new Tier-1 carrier hotspot models; the third model is delayed to late June and will not meaningfully contribute to Q2. Company broadened mobile portfolio (including a new low-tier MiFi win) to capture higher volume share at lower price points. - FWA: FWA revenue was $5.3M in Q1 (sequentially down from Q4 but up YoY). One large FWA customer changed go-to-market leadership, creating near-term disruption; management expects to realign and is securing next-gen platform commitments. A recently added Tier-1 FWA customer is ramping well. - Transformational acquisition announced: Inseego intends to acquire Nokia's FWA business (approx. $200M run-rate revenue) in an asset purchase to close in Q4 2026. Management says this will more than double Inseego’s revenue, provide immediate global scale and broaden product portfolio across consumer, enterprise, mobile and FWA. - Deal structure highlights and risk mitigation: aggregate consideration of $20M ( $15M stock + $5M warrants), no cash or new debt required, Nokia to receive equity alignment and warrants, capped EBITDA make-whole transition support (quarterly cash payments up to a $38M aggregate cap) to keep the acquired business near breakeven in year one, plus a year-2/3 profit-share tied to revenue/EBITDA performance. - Operational actions: new Chief Product Officer (Koroush Saraf) hired; search for Head of Engineering underway; CTO/engineering talent expected to integrate from Nokia post-close. Management is focused on one global engineering/product/supply-chain organization. - Balance sheet: ended Q1 with ~$19M cash and ~$49M debt (post-elimination of $42M preferred at a discount). The acquisition is structured to preserve balance sheet flexibility.