Inseego Corp. Reports 22.1% Revenue Decline in Q2 2025

Inseego Corp. reported a decline in financial performance for the second quarter of 2025, with total revenues of $40.2 million, down 22.1% from $51.6 million in the same period last year. The decrease was primarily driven by a significant drop in mobile solutions revenue, which fell by 47.2% to $13.7 million, attributed to reduced sales with a key carrier partner. Conversely, fixed wireless access solutions saw a 9.0% increase in revenue to $14.5 million, bolstered by the successful launch of a new indoor solution. For the first half of 2025, total revenues were $71.9 million, down from $89.1 million in the prior year.

The company's gross profit for the second quarter was $16.5 million, resulting in a gross margin of 41.1%, an improvement from 36.4% in the previous year. This increase in gross margin was due to a higher proportion of service and fixed wireless access revenues, which typically carry better margins. Operating costs decreased by 10.1% to $15.2 million, with notable reductions in research and development and sales and marketing expenses. However, general and administrative expenses rose by 20.0% to $4.7 million, largely due to increased share-based compensation related to the hiring of a new CEO.

Inseego's balance sheet as of June 30, 2025, showed total assets of $83.1 million, down from $100.0 million at the end of 2024. The company reported a stockholders' deficit of $10.5 million, an improvement from a deficit of $12.9 million at the end of the previous fiscal year. Cash and cash equivalents decreased significantly to $13.2 million from $39.6 million, reflecting negative cash flows from operations of $7.9 million for the first half of 2025. The company attributed this to the payout of annual bonuses and increased working capital needs.

In terms of strategic developments, Inseego completed the sale of its telematics business in November 2024 for approximately $52 million, a move aimed at refocusing on its core 5G wireless solutions. The divestiture has been classified as discontinued operations in the financial statements. The company also reported a significant increase in share-based compensation expenses due to new awards granted to the CEO, which may impact future profitability.

Looking ahead, Inseego's management expressed cautious optimism about the potential for revenue growth driven by new product launches and an expanding customer base. However, the company remains vigilant regarding market conditions and the need for continued operational efficiency to navigate its ongoing challenges. The outlook emphasizes the importance of achieving a sustainable revenue mix to support its evolving cost structure and maintain liquidity.