Inseego (INSG 2.83%), a wireless networking provider focused on 5G and fixed wireless access technology, announced its results for the fiscal second quarter ended June 30, 2025, on Aug. 7, 2025. The headline news: revenue (GAAP) came in at $40.2 million, topping analyst GAAP estimates of $38.5 million, a GAAP revenue beat of 4.3%. The company posted a small net profit, but GAAP earnings per share of $(0.03) missed the $0.03 consensus. Revenue was down from last year, and results reflected both progress in new products and volatility in key business segments. The company’s GAAP gross margin was 41.1% as it continued product launches, carrier deals, and de-leveraged its balance sheet. Overall, the period showed momentum on some strategic fronts, but also highlighted ongoing challenges in achieving stable profitability and cash flow.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS | $(0.03) | $0.03 | $(0.02) | (50.0%) |
| Revenue | $40.2 million | $38.5 million | $51.6 million | (22.1%) |
| Net Income | $0.5 million | N/A | N/A |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
About Inseego and Its Core Business
Inseego specializes in wireless wide-area network (WAN) hardware and software, delivering 5G and 4G hotspots, routers, and fixed wireless access (FWA) devices. It also offers cloud-based device management software, positioning itself as a service provider to enterprise, small-business, and carrier clients. The company’s recent strategy has centered on 5G innovation, expanding its portfolio across both consumer and enterprise needs, and developing subscription-based software services on top of its hardware.
Recently, Inseego has focused on launching new product generations—most notably the FX4100 enterprise-grade wireless router and new MiFi mobile hotspots. Its performance depends heavily on relationships with major mobile carriers—particularly Verizon and T-Mobile—which have historically generated most of its revenue. Key factors for success include launching differentiated products, expanding the customer base, and growing high-margin software revenue.
Second quarter performance: Financials and operations
During the quarter, Inseego delivered GAAP revenue ahead of analyst expectations, at $40.2 million. GAAP gross margin climbed to 41.1%. Adjusted EBITDA reached $4.7 million, marking a sequential increase of 29% from Q1 2025.
However, total revenue (GAAP) declined 22% from the prior year’s comparable quarter. Mobile solutions product sales dropped by 47% compared to Q2 2024, to $13.7 million (GAAP). Management attributed this to a normalization after last year’s carrier-led promotions and acknowledged volatility related to major customer demand. FWA product revenue (GAAP) grew 9.0% compared to Q2 2024, reaching $14.5 million. Service revenue (GAAP) remained flat at $12.0 million, despite leadership emphasizing the importance of advancing recurring software and device management subscriptions.
Operationally, the company made key moves such as concluding new MiFi contracts with two top-tier carriers, winning a stocking deal from a third, and securing a sizable enterprise sale through its channel. The new FX4100 router, an enterprise wireless device, launched with T-Mobile and exceeded early sales expectations versus past hardware launches. Investment in research and development (R&D) totaled $4.8 million, general and administrative expenses increased by 20% compared to Q2 2024.
On the balance sheet, Inseego paid off $14.9 million in convertible notes, reducing its debt and opening up a fresh $15.0 million working capital facility to strengthen liquidity. Cash reserves stood at $13.2 million at quarter end, having declined from year-end 2024 as a result of debt repayments, investments in inventory, and working capital. Operating cash flow (GAAP) for 6M 2025 was negative $7.9 million.
Looking ahead: Guidance and potential risks
Management provided guidance that expects Q3 2025 revenue to be in the range of $40.0 million to $43.0 million, with adjusted EBITDA projected between $4.0 million and $5.0 million. Leadership affirmed a goal of achieving positive free cash flow for fiscal 2025, pointing to improvements expected in the second half of 2025 after investment-heavy early quarters. Guidance notes that these figures do not account for possible impacts from changes in the tariff environment.
Going forward, the company sees opportunities in accelerating adoption of 5G FWA products, expanding its software offerings, and securing further carrier partnerships. However, fixed costs, dependency on a handful of major customers, and the pace of growth in software-driven recurring revenue represent ongoing risks. Management did not provide an updated long-term margin or operating model during the call. Inseego does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
