Inseego Corp. Reports 15.5% Revenue Decline in Q1 2025, Driven by Drop in Fixed Wireless Access Solutions

Inseego Corp. reported a decline in financial performance for the first quarter of 2025, with total revenues of $31.7 million, down 15.5% from $37.5 million in the same period of 2024. The decrease was primarily driven by a significant drop in fixed wireless access solutions, which fell by 86.6% to $1.9 million, compared to $14.2 million in the prior year. In contrast, mobile solutions revenue increased by 16.5% to $17.8 million, attributed to higher sales of premium 5G MiFi devices. Services and other revenues also rose by 48.8% to $12.0 million, largely due to a two-year service contract renewal with a major customer.

The company's gross profit for the quarter was $15.0 million, reflecting a gross margin of 47.3%, an improvement from 35.3% in the previous year. This increase in gross margin was primarily due to a higher proportion of service revenues and improved margins on premium products. Operating costs decreased to $15.4 million from $16.2 million, with notable reductions in depreciation and amortization expenses. However, general and administrative expenses rose due to increased share-based compensation related to the hiring of a new CEO.

Inseego's balance sheet as of March 31, 2025, showed total assets of $93.0 million, down from $100.0 million at the end of 2024. Current liabilities decreased to $59.1 million from $63.5 million, while total liabilities were reported at $106.0 million, down from $112.9 million. The company maintained cash and cash equivalents of $35.1 million, a decrease from $39.6 million at the end of the previous year. The company’s stockholders’ deficit increased slightly to $13.0 million from $12.9 million.

Strategically, Inseego completed the divestiture of its telematics business in November 2024 for approximately $52 million, a move aimed at refocusing on its core 5G wireless solutions. The results from the telematics business have been classified as discontinued operations in the financial statements. Looking ahead, Inseego's management expressed a commitment to streamline operations and focus on growth opportunities within its primary product offerings, although they acknowledged the challenges posed by market conditions and the need for continued investment in research and development to drive future growth.