INSEEGO CORP. FORM 10-Q

Press release · 05/09 10:24
INSEEGO CORP. FORM 10-Q

INSEEGO CORP. FORM 10-Q

Inseego Corp. reported its financial results for the quarter ended March 31, 2025. The company’s condensed consolidated balance sheet showed total assets of $123.1 million, total liabilities of $64.4 million, and total stockholders’ deficit of $41.3 million. The company’s condensed consolidated statements of operations and comprehensive loss reported a net loss of $12.1 million for the quarter, compared to a net loss of $10.3 million for the same period last year. The company’s condensed consolidated statements of cash flows showed a net cash used in operating activities of $14.1 million for the quarter, compared to a net cash used in operating activities of $11.4 million for the same period last year. The company’s management’s discussion and analysis of financial condition and results of operations highlighted the company’s efforts to reduce costs and improve operational efficiency, as well as its plans to invest in new products and technologies to drive growth.

Financial Performance Overview

Inseego is a leader in the design and development of cloud-managed wireless wide area network (WAN) and intelligent edge solutions. The company’s financial performance for the three months ended March 31, 2025 showed a mix of positive and negative trends compared to the same period in 2024.

Revenues

  • Total revenues for Q1 2025 were $31.7 million, down 15.5% from $37.5 million in Q1 2024.
  • Mobile solutions revenues increased 16.5% to $17.8 million, driven by higher sales of premium 5G MiFi devices.
  • Fixed wireless access solutions revenues decreased 86.6% to $1.9 million, due to lower sales with one carrier partner and in the company’s channel program.
  • Services and other revenues increased 48.8% to $12.0 million, primarily from growth in the Inseego Subscribe SaaS offering.

Profitability

  • Gross profit increased to $15.0 million (47.3% gross margin) in Q1 2025, up from $13.2 million (35.3% gross margin) in Q1 2024.
  • The improvement in gross margin was due to a higher proportion of higher-margin service revenues and increased margins on premium 5G MiFi products.
  • Operating expenses decreased 4.8% to $15.4 million, driven by lower depreciation and amortization costs.
  • Net loss from continuing operations was $1.2 million, an improvement from a $5.5 million loss in Q1 2024.

Cash Flows and Liquidity

  • Cash and cash equivalents totaled $35.1 million as of March 31, 2025.
  • The company had negative operating cash flows of $3.5 million in Q1 2025, largely due to the payout of annual bonuses.
  • Inseego has $14.9 million in 2025 Convertible Notes that matured on May 1, 2025 and $40.9 million in 2029 Senior Secured Notes.
  • The company’s ability to maintain profitability and positive cash flows is dependent on achieving adequate revenue levels to support its cost structure.

Outlook Inseego is focused on its core 5G wireless solutions business after divesting its telematics operations in 2024. The company faces risks related to licensing necessary third-party technology, product quality issues, talent retention, global economic conditions, and geopolitical instability. Maintaining profitability and positive cash flows will be critical to Inseego’s future success.