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Inseego (INSG) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Information Technology· Aug 5, 2026

Source: earnings call transcript

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

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

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%——

Product announcements

ProductTypeDetails
MiFi PRO M4launch

Deals & partnerships

Nokia Acquisition 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

Product delays due to engineering processes 2026

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 customer H2 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 delays 2026

MSO revenue removed from 2026 outlook.

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

Decline in Inseego Subscribe revenue Starting 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 costs Q2 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

Full-year 2026 Revenue Outlook

Next quarter (Q3 2026 earnings call)
Current ~$155M
Target Reaffirm 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.

Find out whether INSG delivers this. Inve re-checks your case every morning.

Q&A highlights

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 read 6 chapters

Detailed narrative

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.

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.

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.

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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.