Airgain Reports Q1 2025 Revenue of $12M, 15.6% Decline Year-Over-Year

Airgain, Inc. reported its financial results for the first quarter of 2025, revealing a revenue of $12.0 million, a decrease of 15.6% from $14.2 million in the same period last year. The decline was primarily attributed to a significant drop in sales within the enterprise market, which fell from $8.9 million to $4.3 million, largely due to reduced demand for embedded modems and custom IoT products. In contrast, the consumer market saw an increase in sales, rising to $6.4 million from $3.5 million, driven by higher shipments to cable and mobile network operators. The company's gross profit for the quarter was $5.2 million, down from $5.6 million, but the gross margin improved to 43% from 39.2%, reflecting better margins on enterprise products.

Operating expenses for the quarter totaled $8.3 million, slightly up from $8.2 million in the prior year. Research and development expenses decreased by 19.9% to $2.5 million, while sales and marketing and general and administrative expenses increased by 14.2% and 12.5%, respectively. The company reported a loss from operations of $3.1 million, compared to a loss of $2.6 million in the previous year. However, other income, including a $1.5 million employee retention credit refund, helped reduce the net loss to $1.5 million, or $0.13 per share, compared to a net loss of $2.5 million, or $0.23 per share, in the same quarter of 2024.

Airgain's balance sheet as of March 31, 2025, showed total assets of $46.1 million, down from $48.4 million at the end of 2024. Current assets decreased to $24.0 million, primarily due to a decline in cash and cash equivalents, which stood at $7.4 million, down from $8.5 million. The company’s total liabilities also decreased to $15.8 million from $17.5 million, reflecting a reduction in current liabilities. The stockholders' equity was reported at $30.3 million, down from $31.0 million at the end of the previous year.

In terms of strategic developments, Airgain continues to focus on expanding its product offerings in the 5G technology space, with a diverse portfolio that includes solutions for enterprise, automotive, and consumer markets. The company is also navigating macroeconomic challenges, including inflation and supply chain constraints, while monitoring customer demand. Looking ahead, Airgain anticipates that its existing cash reserves will be sufficient to meet working capital requirements for at least the next 12 months, as it continues to invest in growth initiatives and operational efficiencies. The company remains optimistic about its long-term prospects, particularly as market conditions improve.