Inseego Earnings Call: Growth, Stumbles and Nokia Bet

Inseego ((INSG)) has held its Q2 earnings call. Read on for the main highlights of the call.

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Inseego’s latest earnings call painted a picture of a business in transition, balancing solid Q2 momentum and a major strategic acquisition against execution missteps and a weaker near-term outlook. Management acknowledged product delays, margin pressure, and tighter liquidity, even as they highlighted strong carrier traction, a growing mobile and FWA footprint, and a planned Nokia FWA deal that could more than double revenue.

Q2 Revenue Beat and Growth

Inseego delivered Q2 revenue of $44.0 million, topping the high end of guidance and showing clear top-line momentum. Sales rose 28% sequentially and 9% year over year, helped by strong product demand and late-quarter carrier orders that pulled some revenue forward.

Product Revenue Strength

Product revenue reached $31.7 million, or 72% of total revenue, underscoring the company’s hardware-led rebound. Within that, Mobile Solutions climbed 26% year over year to $17.3 million, while FWA products contributed $14.4 million and remained a core growth driver.

Completed Mobile Portfolio Launches

The company completed a refreshed mobile product rollout across all three Tier 1 carriers in North America, including the MiFi PRO M4 family and its variants. It also introduced a multi-carrier model for resellers, giving Inseego broader channel reach and customer coverage than it has had before.

New Tier 1 Carrier Win Performing Well

Management highlighted that its newest Tier 1 carrier relationship is ramping nicely across both mobile and FWA offerings. This partnership materially supported Q2 deliveries and serves as proof that Inseego’s strategy to diversify and broaden its carrier base is gaining traction.

Subscribe Platform Milestone

On the software side, the Subscribe lifecycle management platform achieved a key CMMC Level 2 cybersecurity certification. This strengthens its credentials for U.S. federal-related programs and boosts the strategic value of the platform in highly regulated, security-sensitive deployments.

Nokia FWA Acquisition (Strategic Growth Opportunity)

The headline strategic move was Inseego’s planned acquisition of Nokia’s FWA business, expected to close in Q4 2026. The acquired unit carries an annual revenue run rate of about $200 million, which could more than double Inseego’s scale while adding global reach, engineering depth, and Tier 1 customer relationships.

Operational and Global Integration Preparations

To prepare for larger scale and integration, Inseego is bolstering its international leadership across APAC, EMEA, and the Americas. It chose Amsterdam as its international operations hub and designated Athens as a software development center, laying groundwork for coordinated global execution.

Q2 Profitability and Margin Outlook

Profitability remains thin, with Q2 non-GAAP adjusted EBITDA at $0.5 million, or a 1% margin. Management expects product margins to improve into the high teens in Q3 as memory cost pass-throughs normalize, which should modestly support overall gross margins.

Q2 Cash Collection Progress

The balance sheet showed just about $2 million in cash at quarter end with $10 million drawn on the revolver, underscoring tight liquidity. Management said collections improved materially in Q3 and allowed a meaningful revolver paydown, but cash timing remains a key watchpoint.

Product Delays and Engineering Execution Issues

The accelerated cadence of product launches exposed weaknesses in Inseego’s engineering and development processes, leading to delays and missed revenue. Management does not expect to fully recover the lost 2026 revenue and is searching for new engineering leadership while overhauling development practices.

Lowered Full-Year 2026 Revenue Outlook

Reflecting those setbacks, the company cut its standalone full-year 2026 revenue outlook to roughly $155 million. The downgrade captures first-half mobile delays, slower FWA customer recovery, reduced Subscribe professional services, and the removal of previously anticipated MSO revenue.

Q3 Revenue and Profitability Pressure

Near-term pressure is evident in Q3 guidance calling for revenue of $28 million to $35 million and adjusted EBITDA between negative $1 million and negative $2 million. This implies a step down from Q2 and signals that the business will absorb a softer quarter as it works through timing and margin headwinds.

Slower Recovery at Largest FWA Customer

A key drag on expectations is the slower-than-planned recovery at Inseego’s largest FWA customer, which is undergoing its own organizational and go-to-market changes. Management still expects next-generation products to support this relationship over time but is baking a more gradual rebound into its outlook.

Memory-Driven Order Timing Impacting Margins and Demand

Late-quarter orders from carriers seeking to lock in ahead of expected memory price increases added roughly $5 million to $6 million of Q2 revenue. However, fulfilling those orders with higher-cost memory squeezed non-GAAP gross margin to 34% and is now likely to depress ordering levels from those customers in Q3.

Subscribe Professional Services Decline

Subscribe services face a structural step down as a Tier 1 carrier customer builds more internal IT capabilities and pays less for professional services. Inseego expects software and other revenue to decline by about $2 million per quarter beginning in Q3, settling at a lower but steadier run-rate level.

MSO Opportunity Removed from 2026 Forecast

The company also reset expectations around the MSO market, where conversion has been slower than anticipated and timelines remain uncertain. Inseego removed a previously discussed $15 million to $20 million MSO opportunity from its 2026 plan and will now treat any upside there as incremental if and when it materializes.

Balance Sheet Constraints at Quarter End

Management acknowledged that ending Q2 with roughly $2 million in cash and a drawn revolver highlights ongoing balance sheet constraints. With large deals delayed and collections uneven, working capital management and financing flexibility remain critical as the company heads into an integration-heavy period.

Forward-Looking Guidance and Outlook

The updated guidance frames a choppy near-term path with Q3 revenue guided to $28 million to $35 million and slightly better product margins but negative EBITDA. For 2026, Inseego sees roughly $155 million in standalone revenue, excluding MSO upside, alongside the expected Q4 2026 close of the Nokia FWA acquisition with its roughly $200 million run-rate business.

In summary, Inseego’s earnings call outlined a near term marked by execution risk, compressed margins, and liquidity tightness, offset by solid Q2 growth and strategic wins. Investors will be watching whether new leadership, revamped processes, and the Nokia FWA deal can convert today’s growing pains into durable scale and improved profitability over the next few years.