Inseego (INSG) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $34.3 million, up 8.4% year-over-year, driven by fixed wireless access (FWA) and software services, partially offset by a decline in mobile solutions revenue.

• Adjusted EBITDA was $1.8 million (5.1% margin), with a GAAP net loss of $4.5 million due to higher operating expenses and transaction costs.

• Announced transformational acquisition of Nokia's FWA business, expected to close in Q4 2026, anticipated to double revenue and expand global reach.

• Completed preferred stock exchange, eliminating $42 million in preferred stock at a 38% discount and reducing future dividend obligations.

• Appointed new Chief Product Officer and initiated search for head of engineering to support integration and portfolio expansion.

Financial highlights

• Q1 2026 revenue: $34.3 million, up 8.4% year-over-year; Adjusted EBITDA: $1.8 million (5.1% margin); GAAP net loss: $4.5 million.

• Gross margin improved to 48.9% (non-GAAP) and 48.3% (GAAP), driven by higher software and FWA mix.

• FWA revenue grew 179% year-over-year to $5.3 million; software services contributed $12.3 million.

• Cash and cash equivalents at quarter-end were $19.3 million; debt was $49 million in senior secured notes due 2029.

• No preferred stock dividends in Q1 2026 following the preferred stock exchange.

Outlook and guidance

• Q2 2026 revenue guidance: $36.5 million–$43.5 million; Adjusted EBITDA: $250,000–$2 million.

• Full-year 2026 revenue target: $190 million, with profitability and operating leverage expected to improve in the second half as scale increases.

• Nokia FWA acquisition expected to close in Q4 2026, with Nokia providing up to $38 million in EBITDA support if initially unprofitable.

• Management highlights potential need for additional capital if targets are not met.