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Date

Thursday, Feb. 26, 2026 at 5 p.m. ET

Call participants

  • Chief Executive Officer — Jacob Suen
  • Chief Financial Officer — Michael Elbaz

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Takeaways

  • Q4 revenue -- $12.1 million, matching the low end of guidance, primarily impacted by timing and supply dynamics in enterprise embedded modems.
  • Q4 consumer revenue -- $7.3 million, driven by increased Wi-Fi 7 antenna shipments, marking the highest quarterly consumer revenue since 2022.
  • Q4 enterprise revenue -- $4.3 million, a decrease of $2.6 million sequentially due to lower embedded modem and antenna sales.
  • Q4 automotive revenue -- $0.5 million, flat on a sequential basis.
  • Q4 non-GAAP gross margin -- 46.3%, up 190 basis points sequentially and 230 basis points above guidance midpoint, driven by consumer product mix and operational efficiencies.
  • Q4 non-GAAP operating expenses -- $5.9 million, consistent with guidance and slightly down sequentially.
  • Q4 adjusted EBITDA -- Negative $0.2 million versus guidance midpoint of $0.1 million.
  • Q4 non-GAAP EPS -- Negative $0.03.
  • Year-end cash balance -- $7.4 million as of December 31, 2025, up $0.3 million sequentially due to $0.4 million ATM proceeds.
  • Full-year 2025 revenue -- $51.8 million, a decrease of $8.8 million, or 15% year over year.
  • Full-year consumer revenue -- $26.1 million, up 20%, driven by increased shipments to cable and mobile operators.
  • Full-year enterprise revenue -- $22.6 million, down $6.9 million, or 23%, attributed mainly to excess inventory at a major IoT customer and reduced antenna sales.
  • Full-year automotive revenue -- $3.1 million, down $6.3 million year over year due to demand contraction and excess aftermarket inventory.
  • Full-year non-GAAP gross margin -- 44.6%, an increase of 260 basis points led by improved consumer and enterprise margins.
  • Full-year non-GAAP operating expenses -- $25.1 million, a 6% decrease; engineering, sales, and marketing investments for AirgainConnect and Lighthouse increased by approximately 15%, while similar expenses for core markets were reduced by about 30%.
  • Full-year adjusted EBITDA -- Negative $1.5 million compared to negative $0.8 million in the prior year, reflecting continued investment in platform growth.
  • Full-year non-GAAP net loss per share -- $0.17 loss.
  • Q1 2026 guidance: Revenue -- Projected at $10.5 million-$12.5 million, with a midpoint of $11.5 million (a 5% sequential decline), reflecting anticipated seasonal weakness in the consumer segment.
  • Q1 2026 guidance: Non-GAAP gross margin -- 43.5%-46.5%, with a midpoint of 45%.
  • Q1 2026 guidance: Operating expenses -- Approximately $6 million, expected to remain flat through at least Q2.
  • Q1 2026 guidance: Non-GAAP EPS -- Negative $0.07 at the guidance midpoint.
  • Q1 2026 guidance: Adjusted EBITDA -- Negative $0.7 million at the midpoint.
  • Consumer design wins -- Secured multi-year, multimillion-dollar embedded antenna program for a Tier 1 North American MNO, including 5G home connectivity and Wi-Fi extender systems; mass production expected later in the year.
  • Additional consumer projects -- Production ramp underway for a major European operator and expansion of MSO project opportunities due to industry consolidation.
  • Enterprise design wins -- Late-year engagement with a major infrastructure customer for Cat 1 bis Skywire modules and design win with a robotics customer for deployment in autonomous systems.
  • AirgainConnect pipeline expansion -- About 100 active opportunities, including 40 Tier 1 and Tier 2, with more than 25% in trial or negotiation phases; non–first responder markets (utility, sanitation, enterprise fleet) now comprise much of the pipeline, promising faster sales cycles.
  • HPUE acquisition -- Airgain acquired the high-power user equipment product line from Nextivity, obtaining IP, customer base, and reseller agreement; prior-year revenue run rate was approximately $2 million and the acquisition is expected to be adjusted EBITDA positive immediately.
  • Lighthouse platform trials -- Successful domestic pilot with a Tier 1 U.S. MNO improved network efficiency via LTE offload to 5G spectrum; completed Latin America convention center deployment for multiple carriers in a high-density environment.
  • Lighthouse go-to-market progress -- Signed first U.S. system integrator partner and finalizing strategic global co-development partnership to extend integrated 4G/5G coverage capabilities.
  • Commercialization timeline -- Management does not anticipate material 2026 revenue from key Lighthouse trials, but expects system integrator deployments to contribute in 2026, with trial-related P&L impacts more likely in 2027.

Summary

Airgain (AIRG +0.00%) reported a mixed quarterly performance with declining annual revenue but higher gross margins and stable operating expenses, as the company shifts focus to platform commercialization. Management emphasized recent substantial consumer and enterprise design wins and announced the acquisition of Nextivity's HPUE product line, expected to deliver immediate adjusted EBITDA benefit. The expanding pipeline for AirgainConnect now features larger, more diversified opportunities outside first responders, accelerating the company's transition to higher-value, integrated connectivity platforms. Despite softening near-term revenue in the consumer and enterprise markets due to inventory dynamics and seasonality, guidance indicates material 2026 contributions from system integrator-driven Lighthouse deployments, with key trial wins expected to impact 2027 results rather than the current year.

  • Management described a flat OpEx profile for the first half of 2026, with planned increases contingent on second-half revenue growth.
  • The CEO cited the addition of Frank Jules as strategic advisor, leveraging past experience as President of AT&T Global Business Solutions to advance go-to-market traction in enterprise and carrier channels.
  • Price mix advantages and cost optimization improved contribution margins in core businesses, offsetting ongoing platform-related investment drag on adjusted EBITDA.
  • Leadership reported rapid expansion in AirgainConnect's utility, sanitation, and enterprise fleet pipeline, highlighting shorter sales cycles and progress toward multi-quarter ramp in commercial deployments.
  • A new global partnership will combine Lighthouse with complementary cellular technology for turnkey 4G/5G deployments, broadening the market opportunity in complex environments.

Industry glossary

  • HPUE: High-Power User Equipment; radio technology supporting enhanced uplink performance and network reach, especially in mission-critical wireless applications such as FirstNet.
  • Cat 1 bis: A cellular IoT standard that enables low-cost, low-power LTE connectivity for devices requiring long life cycles and mission reliability.
  • MSO: Multiple System Operator; generally refers to major cable network providers engaging in broadband infrastructure deployments.
  • MNO: Mobile Network Operator; refers to wireless service providers with licensed spectrum holdings, including Tier 1 national and regional carriers.
  • System integrator: An entity that combines multiple technology components (hardware, software, services) into customized, deployable solutions for enterprises or carriers.

Full Conference Call Transcript

Jacob Suen: Good afternoon, everyone, and thank you for joining us. First, I would like to reflect on 2025, which was a pivotal and highly productive year for Airgain, Inc. as we executed against our long-term strategy and positioned the company for its next phase of growth. During the year, we strengthened the resilience of our existing business, improved margins and reinforced our financial foundation. We expanded our design-win pipelines with Tier 1 service providers, securing important new programs that deepen our strategic customer relationships and position us for growth. We also made significant progress advancing our AirgainConnect vehicle gateway platform and our Lighthouse infrastructure platform.

Both platforms achieved important clinical validations, customer engagements and ecosystem milestones that move them closer to scaled commercial deployment. Together, these accomplishments mark an important transition for Airgain, Inc. Over the past several years, we have defined our strategy, developed differentiated platform solutions, and validated them with customers. As we enter 2026, our focus is increasingly centered on commercial execution, converting our growing pipeline into deployments, and scaling our platforms to drive sustainable long-term growth. This transformation is rooted in Airgain, Inc.'s DNA: our deep RF engineering expertise, system-level design capabilities, and long-standing carrier relationships.

By leveraging these strengths, we have deliberately repositioned Airgain, Inc. beyond component-level products into integrated connectivity platforms addressing large and expanding opportunities across fleet, enterprise, and infrastructure markets. At the same time, we have remained disciplined in managing our business. We improved gross margins, optimized our cost structure, and focused our investments on the highest ROI opportunities. These actions have lowered our breakeven point and improved the scalability and resiliency of our business. While fourth quarter revenue came in at the lower end of our guidance range, this was driven primarily by timing dynamics rather than any structural change in demand.

Importantly, the strategic progress we have made has strengthened our competitive position, expanded our growth opportunities, and reinforced our confidence in Airgain, Inc.'s long-term outlook. With our existing business providing a stable, cash-generating foundation and our strategic platforms advancing toward commercialization, we believe Airgain, Inc. is entering an important phase focused on execution, scaling, and realizing the significant opportunities ahead.

Let me begin with our core markets, starting with consumer. Our consumer business continues to perform well and remains a critical foundation for Airgain, Inc., benefiting from the transition to Wi‑Fi 7 and our deep relationships with Tier 1 cable and mobile network operators. Consumer revenue reached $26,100,000 for the full year, representing a 20% increase compared to 2024. Just as importantly, this business continues to deliver strong adjusted EBITDA profitability, reflecting the strength of our brand, technology leadership, strategic customer relationships, and disciplined operating model. Our consumer business remains a critical strategic foundation for Airgain, Inc., providing durable revenue, strong cash generation, and the financial stability to continue investing in and scaling our growth platforms.

Historically, our consumer business was primarily focused on leading MSOs, where we established strong incumbency positions and long-standing customer relationships. Over the past few years, we have successfully applied that same strategy and approach to Tier 1 MNOs, expanding our engagement into larger, longer-duration programs. As a result, we are increasingly involved early in the design cycle, working alongside customers as a strategic partner to help optimize system performance and connectivity architecture. We believe this deeper integration strengthens our incumbency and reinforces Airgain, Inc.'s position as a trusted connectivity partner across Tier 1 service providers as our solutions become embedded in next-generation broadband platforms.

This growing incumbency and the stickiness of our relationships with Tier 1 MNOs directly enabled our most recent design win. As you saw from our press release earlier this week, we secured a multi-year, multimillion-dollar embedded antenna design win supporting a next-generation 5G home connectivity platform for a Tier 1 North American MNO. This program includes antenna systems for both a 5G fixed wireless access router and an in-home Wi‑Fi extender and is expected to enter mass production later this year. This win builds on our previously announced Wi‑Fi 7 design win for a next-generation fiber broadband gateway with another Tier 1 North American MNO.

In addition, a program we secured with a large European operator two years ago is now ramping into production. In recent industry consolidation among Tier 1 MSOs has expanded our project opportunities and strengthened our design-win pipeline. These design wins reinforce our brand strength and validate our position as an incumbent connectivity partner with Tier 1 carriers. Importantly, these relationships extend beyond our consumer business. As customers view Airgain, Inc. as a trusted connectivity partner, they create strategic pathways for our AirgainConnect vehicle gateway platform and Lighthouse infrastructure platform, expanding our opportunity to support broader enterprise, fleet, and infrastructure connectivity deployments.

While we expect consumer growth to be modest in 2026, we believe the depth of our customer relationships, expanding design-win pipeline, and growing incumbency position provide a strong foundation for future growth as these programs scale through 2026 and into 2027.

Turning to our enterprise market, we continue to sharpen our focus on higher-value opportunities while strengthening the profitability and strategic positioning of this business. IoT represented the majority of our enterprise revenue in 2025. While revenue declined year over year due to excess inventory in a large customer we have discussed previously, the profitability of this business improved significantly. Over the past year, we took deliberate actions to focus on our Skywire embedded modem portfolio, improving product mix, increasing gross margin, and optimizing operating expenses. These actions reflect our disciplined approach to investing in areas where we see the strongest long-term return and greatest strategic value. Our Skywire portfolio continues to benefit from strong brand recognition and customer loyalty.

Skywire is widely recognized for its reliability, pre-certification, and ease of integration, enabling customers to accelerate deployment timelines and simplify deployment. These advantages make Skywire an increasingly attractive solution across a wide range of IoT applications, reinforcing our position as a trusted connectivity partner. We are also making strong progress on our Cat 1 bis embedded modem roadmap within the Skywire portfolio. Cat 1 bis is an emerging cellular standard optimized for IoT applications, offering lower costs, lower power consumption, and longer product life cycles while maintaining reliable LTE connectivity. Importantly, we are seeing growing validation of the Skywire platform through new customer engagements and design wins.

Late last year, a large industrial infrastructure customer selected our Cat 1 bis‑based Skywire modules as part of a major deployment initiative. This engagement highlights the growing customer preference for pre-certified, fully integrated connectivity solutions that simplify deployment, reduce engineering complexity, and accelerate time to market. We also secured a design win with an emerging robotics customer developing next-generation autonomous systems. They selected Skywire for its reliability, pre-certification, and ability to support seamless nationwide connectivity across distributed robotic fleets. This win expands Skywire into the fast-growing robotics and automation market and demonstrates the platform's ability to support increasingly advanced, mission-critical applications.

These design wins reinforce Skywire’s strong competitive positioning and demonstrate its expanding role across industrial, infrastructure, robotics, and other emerging IoT segments. Taken together, these actions have strengthened the financial and strategic foundation of our IoT business. We expect modest growth in 2026 as customer inventory levels normalize and new design wins scale into production in the second half of the year. Turning to our other core markets, our aftermarket antenna business continues to be affected by excess channel inventory, and while this has created short-term variability, we have taken a disciplined approach to managing this business, focusing on profitability and operational efficiency.

Turning now to AirgainConnect and our broader vehicle gateway strategy. AirgainConnect represents a key pillar of our long-term platform strategy and reflects Airgain, Inc.'s evolution to delivering integrated, system-level connectivity solutions. Vehicle gateways are becoming increasingly critical as enterprise, utility, infrastructure, and public safety operators rely on continuous, high-performance wireless connectivity to support mission-critical field operations. Our AirgainConnect AC‑Fleet platform is a fully integrated, all-in-one vehicle gateway solution that combines high-performance antennas, embedded cellular modems, and secure cloud-based management into a ruggedized system purposely built for demanding mobile environments. This integrated architecture delivers superior performance, simplifies deployment, and improves operational reliability for customers operating in harsh, real-world conditions.

AC‑Fleet is highly differentiated in the market due to its system-level integration, rugged design, and ability to support mission-critical applications where connectivity performance, durability, and reliability are essential. We continue to make strong progress expanding and advancing our AirgainConnect pipeline, reflecting increasing customer engagement and growing validation of our platform. As of last week, our pipeline included approximately 100 active opportunities, including 40 Tier 1 and Tier 2 opportunities, roughly double the number we had just a few months ago. These larger, more strategic opportunities now reflect expanding engagement with major enterprise, utility, sanitation, and infrastructure customers. Just as importantly, these opportunities are progressing meaningfully toward commercialization.

More than a quarter of our Tier 1 and Tier 2 opportunities are in trial or negotiation phases, and we believe this demonstrates clear customer validation and advancement toward potential deployment. We are also seeing a significant shift in the composition of our pipeline. Many of our largest opportunities are now outside the traditional first-responder market, reflecting strong momentum in enterprise fleet, sanitation, and utility applications. These markets represent larger deployment opportunities and shorter sales cycles. A clear example of this progress is our large utility customer’s engagement, which has advanced from an initial product evaluation to a broader enterprise-level initiative.

This expansion significantly increases the potential scope and long-term value of the opportunity, reinforcing the strength of our platform and value proposition. Overall, the growth, quality, and advancement of our pipeline reflect increasing market adoption, positioning AirgainConnect to contribute more meaningfully as we move through 2026 and beyond.

As part of our commitment to this vehicle gateway strategy, I am excited to announce that we recently acquired the HPUE, or high-power user equipment, product line from Nextivity. This acquisition brings proven, deployed technology into Airgain, Inc.'s portfolio and expands our ability to support mission-critical connectivity applications. HPUE technology improves uplink performance, extends network reach, and enables reliable connectivity in demanding operating environments. It is actively deployed today across commercial and public safety networks, including FirstNet, where performance and reliability are essential. The addition of HPUE expands and strengthens our AirgainConnect platform, enhancing our ability to deliver more comprehensive, high-performance connectivity solutions for enterprise, fleet, utility, and public safety customers.

Strategically, this acquisition expands our vehicle gateway portfolio, customer engagement, and addressable market, positioning us to capture long-term value as mission-critical connectivity requirements continue to evolve. Together, AC‑Fleet and HPUE significantly strengthen our vehicle gateway competitive positioning as we capitalize on the growing demand for reliable, system-level connectivity solutions across enterprise and infrastructure markets. While AirgainConnect focuses on enabling reliable connectivity in mobile environments, our Lighthouse platform extends these capabilities into fixed infrastructure, enabling carriers, tower operators, and enterprise customers to improve network coverage, capacity, and performance.

Turning now to Lighthouse. Lighthouse represents our infrastructure platform focused on expanding and improving cellular coverage across both indoor and outdoor environments. As a reminder, Lighthouse is designed to help carriers, tower operators, and enterprise customers extend network coverage, improve performance, and optimize capacity in areas where traditional infrastructure deployment is difficult, costly, or insufficient. As network operators continue to expand 4G and 5G coverage and address growing data demand, we believe Lighthouse represents significant long-term opportunity for Airgain, Inc. During the quarter, we successfully completed two important Lighthouse trials that demonstrate the real-world, volume, clinical differentiation of our platform.

In a domestic trial with a Tier 1 U.S. mobile network operator, Lighthouse demonstrated the ability to significantly improve network performance through advanced carrier aggregation and capacity offloading capabilities. In this one-day deployment, Lighthouse enabled seamless offloading of congested LTE traffic onto underutilized 5G spectrum, increasing overall network efficiency and performance. These capabilities are particularly important for operators as they manage growing network congestion while maximizing the value of their existing spectrum and infrastructure investments. Internationally, we also completed a live trial with a major global tower operator at a large convention center in Latin America. This deployment demonstrated Lighthouse’s ability to support multiple carriers simultaneously and rapidly improve network performance in a high-density environment.

These results validate Lighthouse’s ability to address complex, real-world coverage challenges and reinforce its applicability across a wide range of infrastructure deployment scenarios. These successful trials represent important milestones and further validate the strength and differentiation of our technology. In parallel, we established our first system integrator partnership in the U.S. and are actively engaging with additional system integrators to expand our routes to market. System integrators play a critical role in deploying and scaling infrastructure solutions, and the engagement represents an important step in accelerating Lighthouse adoption and commercialization. We are also finalizing a strategic partnership with a leading global provider of intelligent cellular coverage solutions to co-develop next-generation integrated 4G and 5G coverage platforms.

This partnership combines Lighthouse with complementary cellular coverage technologies to deliver more comprehensive and scalable solutions for operators, enterprises, and infrastructure customers. Importantly, it expands Lighthouse’s applicability across a broader range of deployment scenarios, including complex indoor/outdoor environments. This collaboration represents a significant strategic milestone for Lighthouse. It validates the strength of our platform, enhances our ecosystem positioning, and accelerates our ability to bring integrated infrastructure solutions to market. We look forward to sharing more details at Mobile World Congress next week and believe this partnership represents an important catalyst while advancing Lighthouse commercialization and long-term growth.

Taken together, the progress we are making across trials, customer engagement, and partner development reinforces our confidence in Lighthouse’s long-term opportunity and positions the platform to begin contributing more meaningfully as deployments scale over time. I will now turn the call over to Michael Elbaz for the financial results. Michael?

Michael Elbaz: Thank you, Jacob. Before diving into the numbers, please note that my review of our financial results and guidance refers to non-GAAP figures. Information about the non-GAAP financial measures, including GAAP to non-GAAP reconciliations, can be found in our earnings release. Now, let's turn to our fourth quarter results. Q4 sales came in at $12,100,000, which was at the low end of our guidance range, primarily reflecting timing and supply factors within our enterprise embedded modems product line. These dynamics were timing related and did not reflect a change in underlying customer demand.

Consumer sales reached $7,300,000, reflecting another strong sequential performance driven by increased Wi‑Fi 7 antenna shipments to cable operators. $7,300,000 represents the highest quarterly consumer revenue since 2022, reflecting the successful transition of MSO customers to next-generation Wi‑Fi 7 platforms and reinforcing the strength and durability of our consumer business. Enterprise sales came in at $4,300,000, down $2,600,000 sequentially, driven by lower embedded modems and enterprise antenna sales. Automotive sales came in at $500,000, flat sequentially. Non-GAAP gross margin for the fourth quarter was 46.3%, 230 basis points higher than the midpoint of our guidance and a 190 basis points sequential increase.

The sequential gross margin improvement was driven by the favorable product mix in the consumer market along with operational efficiencies. Non-GAAP operating expenses for the fourth quarter totaled $5,900,000, in line with our guidance and slightly lower sequentially. In Q4, adjusted EBITDA was negative $200,000 compared to $0.1 million at the midpoint of guidance. Non-GAAP EPS was negative $0.03. As of 12/31/2025, our cash balance was $7,400,000, up $300,000 sequentially, primarily due to cash proceeds of $400,000 from our ATM.

Turning to our results for the full year of 2025. Sales totaled $51,800,000, down $8,800,000, or 15%, compared to the prior year. Consumer sales were $26,100,000 for the full year, up 20%, driven by increased shipments to both cable and mobile network operators. Following typical seasonal softness in the first quarter, we expect the consumer business to grow modestly, supported by ongoing MSO demand and the expected ramp of recently secured Tier 1 MNO design wins in 2026. Enterprise sales were $22,600,000, down $6,900,000, or 23% year over year, primarily due to excess inventory at a strategic IoT customer and lower enterprise antenna demand.

We expect the enterprise market to grow in 2026, driven by modest growth in our IoT business and revenue contributions from our Lighthouse platform in the second half of the year. Automotive sales were $3,100,000, down $6,300,000 year over year, reflecting lower demand and excess channel inventory in the aftermarket antenna business. We expect the automotive market to return to growth in 2026, driven by increasing revenue contributions from our AirgainConnect platforms. Non-GAAP gross margin was 44.6%, up 260 basis points year over year, driven by consumer and enterprise margin increases.

These improvements reflect a favorable product mix within these markets, the ramp of differentiated higher-margin products, and the impact of cost reduction and operational efficiency initiatives implemented over the past year. Looking ahead, we expect higher-value platform solutions such as AirgainConnect and Lighthouse to further support gross margin expansion in 2026 and beyond. Non-GAAP operating expenses totaled $25,100,000, reflecting a 6% decrease year over year. Despite the decline in expenses, we increased engineering, sales, and marketing expenses for our AirgainConnect and Lighthouse platforms by approximately 15%, while reducing comparable expenses in our core markets by approximately 30%.

These actions significantly improved the contribution margins of our core markets and demonstrated the structural efficiency gains that we have made across the business. In 2025, we took disciplined steps to optimize our cost structure and build a more efficient and scalable organization. As a result, Airgain, Inc. is now better positioned to drive stronger profitability and operating leverage as revenue grows. For the full year 2025, adjusted EBITDA was negative $1,500,000 compared to negative $800,000 in 2024, reflecting continued investment in our platform strategy. Non-GAAP net loss per share was $0.17.

Now, moving to our outlook for the first quarter, ending 03/31/2026. As a reminder, we provide quarterly guidance for sales, non-GAAP gross margin and expenses, non-GAAP EPS, and adjusted EBITDA as we believe these metrics to be key indicators of the overall performance of our business. For the first quarter of 2026, we project sales to range from $10,500,000 to $12,500,000, with a midpoint of $11,500,000. The midpoint represents a 5% sequential decline driven by the consumer seasonal impact. We expect non-GAAP gross margin for the first quarter to be in the range of 43.5% to 46.5%, or 45% at the midpoint. We expect operating expenses to remain flat at approximately $6,000,000.

Non-GAAP EPS is expected to be negative $0.07 at the midpoint of our guidance. Adjusted EBITDA is expected to be negative $700,000 at the midpoint of our guidance.

Overall, the actions that we have taken over the past year have strengthened Airgain, Inc.'s operating model and positioned the company for improved financial performance as we move through 2026. We expanded gross margins, improved the efficiency and contribution margins of our core markets, and established a more scalable cost structure. The strength and profitability of our core markets, specifically consumer and IoT, provide the financial foundation to support continued investment in our growth platforms. As AirgainConnect and Lighthouse progress toward commercialization, we believe Airgain, Inc. is well positioned to drive revenue growth, margin expansion, and increased operating leverage. Now, I would like to turn the call back over to Jacob Suen for his closing thoughts. Jacob?

Jacob Suen: Thanks, Michael. As we look ahead, Airgain, Inc. is operating from a position of strength, supported by the stronger foundation, expanding platform capabilities, and growing strategic momentum. We have entered the next stage of our evolution, focused on commercial execution, scaling our platforms, and converting our expanding pipeline into meaningful revenue growth. While near-term timing dynamics and the natural growing pains of scaling a platform business remain, the progress we are making is clear. Customer engagement is accelerating, our pipeline continues to expand, and we are advancing key initiatives that position us to scale and accelerate commercialization. We are strengthening our go-to-market capabilities with the addition of Frank Jules as strategic advisor.

Frank previously served as President of AT&T Global Business Solutions, where he led a $44,000,000,000 organization serving enterprise and carrier customers worldwide. His deep industry relationships and strategic insight are already helping accelerate customer engagement and open doors with key enterprise and carrier customers. This environment enhances our ability to scale our go-to-market efforts, expand our reach with strategic customers, and more efficiently convert pipeline opportunities into commercial deployments. We are also strengthening our platforms through strategic and capital-efficient initiatives, including the acquisition of the HPUE product line from Nextivity, which enhances our leadership in mission-critical connectivity. In addition, the strategic co-development partnership we mentioned will further enhance Lighthouse capabilities and accelerate its path toward commercialization.

At the same time, our core markets continue to provide a stable and cash-generating foundation that supports ongoing investment in our growth platforms. Importantly, the work we have done over the past few years has fundamentally repositioned Airgain, Inc. We have strengthened our operating model, improved margins, expanded our addressable market, and built differentiated platform capabilities aligned with large and growing connectivity opportunities. We are encouraged by the continued expansion of our pipeline, the strengthening of our go-to-market capabilities, and recent multi-year design wins with Tier 1 service providers, which reinforce the durability and strategic importance of our core business.

Our priorities are clear: execute with discipline, convert pipeline opportunities into deployments, accelerate commercialization, and scale our platforms to drive sustainable growth. We are confident in our strategy, encouraged by our progress, and believe Airgain, Inc. is well positioned to deliver meaningful long-term growth. We will now open for questions.

Operator: Thank you. We will now be conducting a question-and-answer session. Our first question today is coming from Jason Schmidt from Lake Street Capital. Your line is now live.

Jason Schmidt: Yes, thanks for taking my questions. Just curious if you could update us on what we should be looking for, the next steps for these Lighthouse trials? Obviously, they were completed this past quarter. How should we think about these opportunities finally impacting the P&L?

Jacob Suen: Yeah. Hi, Jason. Great to have you joining us. Yes. Great questions, by the way. So for the trial that we mentioned for the U.S. market, the trial was very successful. So now we are engaging with their business side, the product side, on a couple of things. One is creating a business plan, a business support case. Additionally, we are also working on the network interoperability. As well as the international opportunity that we mentioned in Latin America, also been very successful. And I should add that we are actually going to have a follow-up meeting next week during MWC with the executive members to discuss the next step.

Michael Elbaz: And Jason, in terms of timing, your question there, those are—we are not counting on those for any FY 2026 revenues. This would be for FY 2027. What we are counting on in FY 2026 are really the system integrators that we have in the U.S. We have one partner so far. We are actively working on signing a couple of them as well too over the next few months. And this will definitely allow us to have more of a deployment of some of the critical needs that exist in the U.S. In the Middle East, we are also making progress there as well too with our partner, Omantel, but also with other Middle Eastern partners.

But we foresee that to be a meaningful contribution from a revenue standpoint—that is certainly the 2026.

Jason Schmidt: Okay. That is really helpful. And then looking at the Nextivity product line announcement, just curious if there is a built-in customer base here or how we should be thinking about the potential demand pull for these products?

Michael Elbaz: Very good question, Jason. I will start, and then Jacob can weigh in on that as well too. So first of all, we are very excited about this acquisition. This is a small acquisition, but it is highly strategic to our vehicle gateway platform. Just a couple items there is that it is a non-cash, non-equity type of acquisition. We essentially are acquiring the HPUE intellectual property along with the customer base, and we basically are going to be running the MegaFi 2 product line, supporting the current FirstNet customers with a goal of expanding the current revenue run rate by the end of the year.

I am mentioning this because as part of the acquisition, we also have entered into a reseller agreement with Nextivity. Nextivity had been working on some international customers who are interested with the HPUE solution, and therefore once those designs are won and the project revenue starts to ramp up, certainly by the end of this year we will be able to support Nextivity with this reseller agreement. To give you a sense about the revenue run rate, last year’s revenue were close to $2,000,000, or about $0.5 million of run rate on a quarterly basis, with the potential uptick by 2026 and 2027 as those international customers ramp up.

And most importantly is that this acquisition here is going to be adjusted EBITDA positive on day one. Jacob?

Jacob Suen: No. Yeah. I think that—Michael, you said it well. I think that it is really going to enhance us both domestically with the FirstNet partnership. And that is one of the main reasons that we also really are attracted, because as you know, we value the first responder market with our AC‑Fleet. So there is a lot of synergy between the AC‑Fleet and the HPUE. It really fits another piece of the puzzle as far as the overall AirgainConnect platform is concerned. So we are very excited about this particular acquisition, and we look forward to work with our partners, FirstNet partners, and also our SIs to really expand this product line domestically and internationally.

Jason Schmidt: Perfect. Appreciate the color, guys. I will jump back into queue. Thank you.

Jacob Suen: Thank you, Jason.

Operator: Thank you. Our next question is coming from Anthony Stoss from Craig-Hallum Capital Group. Your line is now live.

Anthony Stoss: Hey, Jacob. Hey, Michael. You have always had a strong pipeline on the AirgainConnect, lots of trials. What can you do to convert those into sales faster? And just curious, why have not a lot of these converted much sooner? And then I have a follow-up after that.

Michael Elbaz: Yeah. Thank you, Tony, for the question. So let me start as well too. So first off, we are making some really good progress on the pipeline. As you pointed out, it is actually growing. We have currently about 100 active opportunities. Last November update we provided 80 of overall opportunities. But unlike last November, we currently have about 40 of Tier 1 and Tier 2 opportunities today compared to 20 last November. So what changed here is that we are becoming much more successful with the non–first responder market.

Those tend to be a lot faster, and those represent the utility, the sanitation, and the fleet enterprise—or the enterprise fleet, I should say—customers, and those are coming online from a pipeline standpoint, and they are also very eager to even start trials faster than first responders. First responders tend to have quite a bit of budget constraints or government’s funding, whereas some of those private and public companies have a much more centralized commercial decision-making process.

So if we go back to the cycle time that we have mentioned before, with Tier 1 being 12 to 18 months of a cycle time and the Tier 2 being six to 12 months of a cycle time, if we go back to and start with the AT&T certification as the clock starts, we are right on the cusp of closing down some of the Tier 2 customers, and we expect to have a couple of those by the end of this quarter and start ramping up in Q2, certainly. And the Tier 1 would be definitely slated in Q4. Now, things may change, of course. But right now, we feel we are progressing.

We, of course, want to be doing faster, but we also have our hands full with a lot of trials going on right now. Jacob?

Jacob Suen: I was just going to add that we are actually in negotiation stage with a number of these opportunities. So we are getting closer and closer to be able to get some of the bigger deals soon. We are getting the smaller deals, but the bigger deals are the ones that take longer time, but we are—in our mind, we are right on track at this point.

Anthony Stoss: Got it. And then two-part question, probably for Michael. You commented that you expect gross margins to be up year over year. Do you need a whole bunch of these AirgainConnect people to convert to hit that bogey? And then also, OpEx—you would expect it to be roughly flat from where it was December and the March guide for the remainder of the year?

Michael Elbaz: Yes. So on the gross margin, right now, where we are right now is a good place to be. And the fact of the matter that Lighthouse and AirgainConnect are certainly higher margin than our corporate average, and mainly because they are premium value type of solutions. And so depending upon the revenue that we estimate, that will have a change on the overall gross margin. But as they come online, especially in 2026, we expect to see a benefit on our gross margin.

From an OpEx standpoint, as I mentioned, 2025 was quite a bit of a transformation year because we certainly optimized the overall cost of our core markets or existing business lines, and we were able to really make those quite profitable, specifically our consumer business and our IoT business as well too, and likewise directing and reallocating some of those resources towards the growth platform. And so we expect that trend to continue. However, from an expense standpoint and vis-a-vis the overall EBITDA goal that we have, we expect to be remaining flat in Q1, likely to be flattish also in Q2.

And then as the revenue ramps in the second half of the year, hopefully, we will be able to increase our overall OpEx as well too in the second half of the year.

Anthony Stoss: Got it. Thank you very much.

Michael Elbaz: Thank you.

Operator: Thank you. At this time, that concludes our question-and-answer session. If your question was not answered, you may contact Airgain, Inc.'s Investor Relations team at [email protected]. I would now like to turn the call over to Mr. Suen for closing remarks.

Jacob Suen: Thank you all for your thoughtful questions and for your continued interest in Airgain, Inc. If there is one key takeaway, it is that Airgain, Inc. is a more focused and disciplined company, entering 2026 with a stronger foundation and improving operating model in the position for sustainable growth and increasing platform adoption. We believe the strategic foundation we have built positions Airgain, Inc. to deliver meaningful and sustainable long-term growth. Michael and I will be attending the 30th Annual ROTH Conference in Dana Point next month. We look forward to connecting with many of you there and continuing the conversation. Operator, you may now conclude the call.

Operator: Thank you for joining us today for Airgain, Inc.'s fourth quarter and full year 2025 earnings call. You may now disconnect.