Airgain Reports Mixed Q3 Results with 17.6% Revenue Growth, Net Loss

Airgain, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, showing a mixed performance in revenue and profitability compared to the previous fiscal period. The company generated sales of $16.1 million for the three months ended September 30, 2024, representing a 17.6% increase from $13.7 million in the same period of 2023. However, for the nine months, total sales decreased slightly to $45.5 million from $46.0 million year-over-year.

The gross profit for the third quarter rose to $6.7 million, up from $5.2 million in the prior year, reflecting a gross profit margin of 41.7%, an increase of 350 basis points. For the nine-month period, gross profit increased to $18.4 million from $17.8 million, with a gross margin of 40.5%. Despite these improvements, the company reported a net loss of $1.8 million for the third quarter, a slight improvement from a loss of $1.9 million in the same quarter of 2023. The nine-month net loss was $6.7 million, compared to $6.9 million in the prior year.

Airgain's cash and cash equivalents decreased to $7.3 million as of September 30, 2024, down from $7.9 million at the end of 2023. Trade accounts receivable increased significantly to $11.8 million from $7.4 million, indicating a potential rise in sales activity. Total current assets rose to $23.3 million, while total current liabilities also increased to $12.1 million, resulting in total stockholders' equity of $30.8 million, slightly down from $31.4 million.

The company experienced varied performance across its market segments. Sales in the consumer market surged to $6.8 million in the third quarter, up from $4.4 million, driven by increased demand from cable and mobile network operators. Conversely, enterprise market sales fell to $6.7 million from $6.8 million, primarily due to lower custom product sales. Automotive market sales remained stable at $2.6 million.

Airgain's operating expenses increased by 19.3% in the third quarter, driven by higher personnel costs in research and development. The company also reported a significant rise in stock-based compensation expenses, which totaled $1.1 million for the third quarter, compared to $0.5 million in the same period last year.

Strategically, Airgain has established an At-the-Market (ATM) offering program to sell up to $5.0 million in common stock, with $1.7 million available for future sales. The company continues to focus on product innovation, including the recent launch of the second-generation AirgainConnect® Fleet system, aimed at enhancing its automotive product offerings.