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    INSG
    Earnings call· Jun 2026(Q2 FY26)

    INSEEGO Q2 FY26 earnings call INSG

    Aug 5, 2026 Source

    Executive summary

    Inseego Q2 FY26 — Revenue Beat, but Full-Year Outlook Cut on Product Delays and FWA Customer Slowdown

    Inseego delivered a Q2 revenue beat, but revised its full-year outlook downward, citing product development delays, a slower-than-expected recovery with a key FWA customer, and extended MSO conversion timelines. The company is actively addressing engineering bottlenecks and aligning costs with the revised revenue profile, while also preparing for the significant Nokia FWA acquisition to expand its global footprint and product portfolio.

    Highlights

    4

    • Q2 revenue of $44 million exceeded the high end of guidance, driven by 28% sequential and 9% year-over-year growth.

    • Successfully launched the refreshed MiFi PRO M4 mobile product family across all three North America Tier 1 carrier customers.

    • Newest Tier 1 carrier relationship performed well in both mobile and FWA, contributing to Q2 revenue outperformance.

    • Inseego Connect secured a large industrial deployment, demonstrating value of hardware-cloud pairing.

    Concerns

    4

    • Full-year 2026 revenue outlook cut to approximately $155 million due to product delays, slower FWA customer recovery, and MSO conversion delays.

    • Non-GAAP gross margin in Q2 was 34%, pressured by higher-cost memory units allocated to a large customer order.

    • Inseego Subscribe software services revenue expected to decline by $2 million per quarter starting Q3 due to reduced professional services.

    • Engineering processes could not support the accelerated pace of new product introduction, leading to product delays and a revenue gap.

    Guidance & targets

    4
    CategoryTargetConfidence
    Full-year 2026 Revenue
    approximately $155 million
    high materiality
    Medium
    Q3 2026 Total Revenue
    $28 million to $35 million
    high materiality
    Medium
    Q3 2026 Adjusted EBITDA
    negative $1 million to negative $2 million
    high materiality
    Medium
    Q3 2026 Gross Margin
    high teens
    medium materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Mobile Solutions
    Key driver, good traction with newer Tier 1 carrier customer and strong channel activity with refreshed MiFi portfolio.
    		$17.3M+26%——
    FWA
    Solid contribution from newest Tier 1 carrier, partially offset by lackluster performance at another existing large FWA carrier customer.
    		$14.4M———
    Services and other
    28% of total revenue. Includes Inseego Subscribe, which will see a $2M quarterly decline starting Q3.
    		$12.3M+2%——

    Operational metrics

    9
    Total revenue
    $44M+28% sequential, +9% YoY
    Q2 FY26

    Above the high end of guidance range.

    Product revenue
    $31.7M+12% YoY
    Q2 FY26

    Driven by strong product revenue.

    Non-GAAP gross margin
    34%
    Q2 FY26

    Impacted by higher cost memory units allocated to a large Q2 order; expected to improve to high teens in Q3.

    Non-GAAP operating expenses
    $16.9Mflat sequentially
    Q2 FY26

    Operating spend discipline.

    Adjusted EBITDA
    $0.5M
    Q2 FY26

    In line with guidance, but impacted by lower margin revenue.

    Cash balance
    $2M
    end of June

    Reflected timing of significant product deals that closed late in the quarter, leading to meaningful increase in accounts receivable.

    Revolver balance
    $10M
    end of June

    Already paid down meaningfully from cash collections in Q3.

    Incremental revenue from Q2 pull-forward orders
    $5M-$6M
    Q2 FY26

    From a relatively new Tier 1 carrier customer, pulled forward due to anticipated memory price increases and supply constraints in H2; impacted Q3 ordering cadence.

    Inseego Subscribe revenue decline
    $2M
    per quarter

    Due to a Tier 1 carrier customer evolving internal IT capabilities, requiring less complex professional services; revenue will step down and then remain at the lower level.

    Industry KPIs

    5
    MetricValueDetails
    Orders backlog qualityLate quarter orders
    Product orders order growthUpsized order
    Recurring software service revenue$12.3MUSD
    Revenue mix by product customer typeProduct revenue: $31.7M; Services and other revenue: $12.3MUSD
    Design wins product cycle transitionsMiFi PRO M4 launched

    Product announcements

    1
    ProductTypeDetails
    MiFi PRO M4launch

    Deals & partnerships

    1
    NokiaAcquisition of Nokia's Fixed Wireless Access (FWA) business.Approximately $200 million annual revenue run rate (acquired business)

    The acquired business will add indoor, outdoor, and millimeter-wave FWA products. Integration planning is well underway, including strengthening international regional leadership (Pranav Shroff for APAC, Ossi Korpela for EMEA, Steve Harmon for Americas), establishing Amsterdam as the center of international operations, and building Athens as a key software development center.

    Risks & headwinds

    5
    Product delays due to engineering processes2026

    Created a revenue gap that will not be fully recovered in 2026.

    Mitigation: Search for a new engineering leader, overhauling development processes, instilling discipline, and narrowing new product introduction cadence.

    Slower recovery of largest FWA customerH2 2026

    Taking longer than expected, factored into updated full-year outlook.

    Mitigation: Introduction of next-generation product to get back on track.

    MSO opportunity conversion delays2026

    MSO revenue removed from 2026 outlook.

    Mitigation: Will treat as upside until customer conversation is proven.

    Decline in Inseego Subscribe revenueStarting Q3 2026

    Expected to decline by approximately $2 million per quarter starting Q3.

    Mitigation: Platform remains high-margin and strategically valuable; advancing roadmap and new customer business development activities.

    Gross margin pressure from memory costsQ2 2026, expected to improve in Q3

    Q2 non-GAAP gross margin at 34% due to higher cost memory units.

    Mitigation: Expect product margin percentage to improve to high teens in Q3 by passing along memory price increases to customers.

    What to watch in Q3 FY26

    5

    Full-year 2026 Revenue Outlook

    Next quarter (Q3 2026 earnings call)
    Current~$155M
    TargetReaffirm or revise upward

    Why it matters

    Indicates whether product delays and FWA customer recovery are stabilizing and if MSO opportunities are materializing.

    Stepping back to look at the full year, we see 2026 revenue in the area of $155 million.

    Q&A highlights

    6

    How much MSO revenue was previously assumed in the full-year outlook?

    Steven Gatoff stated that MSO was a large opportunity, in the $15 million to $20 million range, and was considered a considerable opportunity, but has now been removed from the 2026 forecast.

    “Tyler, orders of magnitude, the MSO was a large opportunity that we had talked about. And so if you thought about in kind of the $15 million to $20 million [ ZIP ] code, it was a considerable -- it wasn't in the numbers and it's still a considerable opportunity.”

    asked by Tyler Burmeister · answered by Steven Gatoff

    2 min read6 chapters

    Detailed Narrative

    01

    Q2 Performance and Strategic Wins

    Inseego reported Q2 revenue of $44 million, exceeding guidance, driven by strong product revenue and late-quarter orders from carrier customers anticipating memory cost increases. The company successfully completed the launch of its refreshed MiFi PRO M4 mobile product family across all three North America Tier 1 carriers, including a new Tier 1 relationship that performed well in both mobile and FWA.

    02

    Updated 2026 Outlook Drivers

    The full-year 2026 revenue outlook was revised down to approximately $155 million. This adjustment is primarily due to first-half mobile product delays creating an unrecoverable revenue gap, a slower-than-expected recovery with a large existing FWA customer, and the removal of MSO revenue from the forecast as customer conversion takes longer.

    03

    Inseego Subscribe Evolution

    The Inseego Subscribe platform, a high-margin contributor, will see its software services and other revenue decline by approximately $2 million per quarter starting in Q3. This is a result of a Tier 1 carrier customer evolving its internal IT capabilities, requiring less complex professional services from Inseego, leading to adjusted pricing.

    04

    Engineering and Product Delivery Challenges

    The company acknowledged that its engineering processes could not support the accelerated pace of new product introductions, leading to product delays. Management is actively overhauling development processes, instilling discipline, and is in the final stages of hiring a new engineering leader to address these bottlenecks.

    05

    Nokia FWA Acquisition Integration

    Inseego is preparing for the anticipated Q4 2026 close of the Nokia FWA business acquisition, which is expected to more than double its revenue base to ~$200M annual run rate. Integration planning is well underway, including strengthening international regional leadership, establishing Amsterdam as the center for international operations, and building Athens as a key software development center.

    06

    Q3 Outlook and Margin Dynamics

    For Q3 2026, Inseego expects total revenue between $28 million and $35 million and adjusted EBITDA between negative $1 million and negative $2 million. Gross margin is expected to modestly improve in Q3 as lower-margin products decline and memory cost pass-throughs to customers take effect, a new dynamic for the company.

    AI-generated summary of the company’s earnings call. Not investment advice.