In This Article:
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Inseego Corp (NASDAQ:INSG) delivered revenue within guidance and adjusted EBITDA came in above expectations despite softer hardware volumes.
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The company achieved a record non-GAAP gross margin percentage of 47.5% in Q1 2025.
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Inseego Corp (NASDAQ:INSG) successfully executed a key initiative by being the first OEM to make a 5G advanced 3GPP release 18 data call with Qualcomm's new platform.
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The company has overhauled its supply chain and engineering strategy, identifying significant opportunities to reduce costs and improve operational efficiency.
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Inseego Corp (NASDAQ:INSG) has strengthened its leadership team with experienced talent, including the addition of George Mulhern to the board of directors.
Negative Points
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Q1 2025 presented a slow start to the year on a revenue basis due to delayed carrier mobile broadband promotions and FWA purchases.
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The company is facing challenges with a concentrated customer base for its MyFi and FWA products, which it is actively working to diversify.
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There is uncertainty in the broader macroeconomic environment, which could potentially impact pipeline opportunities.
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Inseego Corp (NASDAQ:INSG) is experiencing temporarily lower FWA purchases from a carrier customer managing inventory levels during a transition to a next-generation product.
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The company anticipates a modest increase in sales and marketing expenses as it expands its total addressable market and engages with new customers.
Q & A Highlights
Q: Given the uncertainty in all markets right now, are you concerned that some pipeline opportunities may slip into 2026? A: Yo Sarvikas, CEO: We're not seeing that from our customer base. Most of our customers are large carriers in North America, and we're not seeing any movement on the pipeline.
Q: Can you quantify the potential revenue upside from the T-Mobile Partner Plus program? A: Yo Sarvikas, CEO: We have a large carrier FWA customer in North America, which is the bulk of our FWA revenue today. The T-Mobile Partner Plus program allows us to get T-Mobile investment in the form of subsidies for our product portfolio, creating a pull for our products.
Q: Should we expect free cash flow to be positive for 2025, and what are the levers to achieve that? A: Steven Gatoff, CFO: Yes, we are targeting free cash flow generation for the year. We are making some investments in new products, which is a use of cash, but we expect the second half of the year to be positive, outweighing the first half to produce a positive result for the year.