Inseego Corp. Q3 FY2025 earnings call

• Q3 was a strong quarter with revenue of $45.9 million and adjusted EBITDA of $5.8 million, both above guidance and sequential growth. - Strategy focuses on scaling core FWA and mobile solutions in enterprise market and evolving into a solutions company integrating hardware, network management, and software. - Key accomplishments: extended FWA leadership with FX4100 growth and FX4200 launch, advanced solution strategy with new Inseego Connect release, and strengthened leadership bench with new C-level executives and board members.

In Q3 2025, total revenue was $45.9 million. FWA revenue was the second highest in company history and surpassed mobile hotspot revenue for the third time. FWA shipment volumes were up over 50% year-over-year. Mobile revenue was lower year-over-year as expected but is expected to grow sequentially in Q4 2025 with new products and expanded customer set. Software services revenue, consisting of Inseego Connect MDM cloud and Inseego Subscribe SaaS, was consistent at $12 million. FWA contributed significantly, with revenue driven by the FX4100 ramp and the new FX4200, while mobile had solid volumes from the MiFi M3100, and software services provided stable high-margin revenue.

For Q4 2025, total revenue is expected to be in the range of $45 million to $48 million and adjusted EBITDA in the range of $4 million to $5 million. Mobile revenue is expected to show sequential growth in Q4. FWA revenue won't match Q3's elevated level but is expected to be strong. Software services revenue is expected to remain consistent at ~$12 million. Non-GAAP gross margin is expected to be modestly lower in Q4 due to more mobile hotspot revenue. Memory market cost increases are noted but not materially impacting Q4 2025.

• Rising costs in the memory market, though not materially impacting Q4 2025, could be a concern moving forward. - Competitive landscape poses challenges, but Inseego's unique position and domestic IP could be advantages. - Regulatory actions, such as FCC measures against untrustworthy gear, could impact the market but also present opportunities if Inseego is well-positioned.

Q: Scott Searle with ROTH Capital asked about monetization changes for Subscribe and Connect and seasonality in Q1.

A: Juho Sarvikas discussed Inseego Connect graduating to a core part of the enterprise platform and Steven Gatoff mentioned Subscribe is being invested in with new executives, while Steven Gatoff explained Q4 seasonality is due to fewer selling days and Q1 may have different dynamics.

Q: Christian Schwab with Craig-Hallum Capital Group inquired about new customer ramping, software adoption by other Tier 1s, and market share gains.

A: Juho Sarvikas and Steven Gatoff talked about new carrier ramp for MiFi and FWA, opportunity for Subscribe across carriers, and Inseego's unique position for domestic supply.

Q: Lance Vitanza with Cowen asked about staggered timing of FWA and mobile shipments and FCC actions.

A: Juho Sarvikas explained staggered timing is due to product development cycles and saw FCC actions as an upside opportunity.

Q: Cam Tierney on behalf of Tore Svanberg at Stifel asked about Inseego Connect API read-throughs and FWA long-term view.

A: Juho Sarvikas mentioned positive feedback on APIs and Steven Gatoff and Juho Sarvikas stated FWA is a steady growth driver going forward.