Executive Summary / Key Takeaways

• Inseego Corp. is undergoing a significant strategic transformation, shifting from a hardware-centric model to a full-stack solutions provider focused on cloud-managed 5G wireless broadband for enterprise, SMB, and industrial markets.
• The company reported strong Q3 2025 results, with sequential revenue and Adjusted EBITDA growth, driven by robust demand for its Fixed Wireless Access (FWA) solutions, which surpassed mobile hotspot revenue for the third time.
• Key strategic initiatives include expanding its FWA and mobile footprint with Tier 1 carriers, diversifying its customer base, and accelerating its software roadmap through platforms like Inseego Connect and Inseego Subscribe.
• Inseego leverages its U.S.-based engineering and proprietary 5G Advanced technology, including the FX4100 and upcoming FX4200, to offer differentiated, enterprise-grade solutions that provide performance, ease of deployment, and security.
• Management projects overall year-over-year revenue growth for 2025, with sequential quarterly growth expected to continue from Q2 2025, underpinned by new product launches, carrier partnerships, and a strengthened balance sheet.

The Dawn of Wireless Broadband: Inseego's Strategic Pivot

Inseego Corp., founded in 1996, has long been a pioneer in wireless innovation, notably inventing the iconic MiFi hotspot and leading in millimeter wave technology. Today, the company stands at a pivotal juncture, strategically repositioning itself to capitalize on the "golden age" of wireless broadband. This era sees wireless evolving from niche applications to a preferred primary connectivity solution for homes and businesses. The global landscape is ripe for this shift, with 5G connections projected to exceed 10 billion by the end of the decade, and Fixed Wireless Access (FWA) emerging as the fastest-growing broadband technology in the U.S.

Inseego's overarching strategy, spearheaded by CEO Juho Sarvikas, is to transform into a full-stack solutions provider. This involves scaling its core FWA and mobile businesses, accelerating its software and services roadmap, and optimizing operational efficiency. The company's foundational strength lies in its U.S.-based engineering team in San Diego, which develops critical intellectual property and has a track record of industry firsts, including the world's first 5G Advanced 3GPP Release 18 data call in March 2025. This technological prowess, combined with a focus on cloud-managed solutions, underpins Inseego's ambition to power the next generation of enterprise connectivity.

Technological Edge: Powering Enterprise Connectivity

Inseego's core technology centers on its 5G WAN portfolio, delivering secure and high-performance mobile broadband and FWA solutions. These are complemented by robust cloud capabilities for real-time WAN visibility, monitoring, automation, and control. The company's proprietary Edge Router OS and Inseego Connect SaaS platform are critical differentiators.

The tangible benefits of Inseego's technology are evident in its product performance and market reception. The FX4100 FWA solution, launched in mid-Q2 2025, has seen rapid adoption, "materially outpacing adoption of our prior 2 generations". This device, along with the newly introduced X700 WiFi mesh node, creates a unified network that "eliminates the need for traditional switches and multiple access points, giving enterprises and branch locations a cost-efficient plug-and-play solution that simplifies deployment, reduces hardware complexity and delivers reliable wall-to-wall coverage". The upcoming premium FX4200 FWA product, with shipments beginning in Q4 2025, is designed to broaden use cases and expand market opportunities, including enabling Inseego to move into larger enterprise and MSO channels.

Inseego's R&D initiatives are focused on pioneering the latest wireless advancements. Its achievement of the first 5G Advanced 3GPP Release 18 data call with the Qualcomm Dragonwing Gen 4 Elite FWA platform highlights its commitment to engineering superior products. The stated goals for this technology include enhancing data traffic prioritization and network slicing functionality, which are crucial for advanced 5G applications. Furthermore, the company has released APIs for its Inseego Connect platform, enabling partners to integrate Inseego Connect into their management platforms, with a roadmap to expand into large enterprise IoT and industrial environments. The Inseego Subscribe platform is also undergoing an investment expansion plan.

For investors, these technological advancements are paramount. They contribute to Inseego's competitive moat by offering differentiated, enterprise-grade solutions that command higher value. The focus on software-defined solutions and API integration creates opportunities for recurring revenue, deeper customer engagement, and a stronger position in the lucrative enterprise networking market. This strategic emphasis on technology ensures Inseego remains at the forefront of wireless innovation, driving long-term growth and enhancing its financial performance through higher average selling prices and improved margins.

A History of Transformation and Strategic Realignment

The current strategic direction follows a significant period of financial restructuring in 2024. Inseego executed a 1-for-10 reverse stock split in January 2024 and undertook a major recapitalization effort. This included repurchasing and exchanging $146.90 million of its 2025 Convertible Notes and terminating its Prior Credit Facility. By November 2024, the company issued $40.90 million in new 9% senior secured notes due in 2029. A crucial strategic move was the sale of its Telematics business on November 27, 2024, for $52 million in cash, streamlining its focus on North American 5G wireless solutions and de-leveraging its capital structure. By the end of 2024, Inseego had dramatically reduced its total debt from over $165 million to $56 million, achieving a manageable net debt position of $16 million.

This financial overhaul provided a stable foundation for the new leadership under CEO Juho Sarvikas, who joined in January 2025. The remaining $14.90 million principal balance of the 2025 Convertible Notes was fully repaid upon maturity in May 2025, further solidifying the balance sheet. In August 2025, the company secured a $15 million working capital facility, providing additional operational flexibility. These actions collectively demonstrate a decisive shift from managing legacy debt to building a robust financial structure capable of funding future growth initiatives.

Scaling the Core: FWA and Mobile Solutions

Inseego's strategy to scale its core FWA and mobile businesses is yielding tangible results. The FWA segment is a significant growth driver, with Q3 2025 revenue reaching $17.65 million, an impressive 81.5% increase year-over-year. This marked the second-highest FWA revenue in company history and the third time it surpassed mobile hotspot revenue, signaling a clear strategic shift. Demand for the FX4100 with T-Mobile has been strong, with deployments scaling across key verticals like retail and utilities. Inseego also secured a new Tier 1 U.S. carrier win in Q3 2025, which will begin selling FWA products in Q4 2025 and new WiFi devices in Q1 2026, broadening the company's reach to three major U.S. Tier 1 carriers. Management views the FWA enterprise market as being in its "early stages," with significant growth potential, especially as new spectrum becomes available.

In the mobile solutions segment, Q3 2025 revenue was $16.04 million, a 50.3% decrease year-over-year, primarily due to unusually high promotional activity by a carrier partner in the prior period. However, the company is refreshing its MiFi product lineup and expects to be in the market with all three Tier 1 carriers in Q1 2026, including the new carrier. While ASP erosion is anticipated in this category, it is expected to be offset by significant volume growth as Inseego aims to consolidate the MiFi market.

Beyond carrier partnerships, Inseego is expanding its reach into the enterprise market. The company closed a multimillion-dollar enterprise agreement with an industrial S&P 500 company through its IGNITE channel partner program, combining hardware with Inseego Connect software. Additionally, Inseego expanded its outdoor FWA presence by supporting rural connectivity for a leading poultry producer, demonstrating the versatility and scalability of its solutions.

Evolving to a Solutions Company: Software and Services

A cornerstone of Inseego's transformation is its evolution into a solutions company, driven by its software and services portfolio. The "Software services and other" segment generated $12.21 million in revenue in Q3 2025, a 1.5% increase year-over-year, and $36.23 million for the nine months ended September 30, 2025, an 11.5% increase year-over-year. This segment provides stable, high-margin revenue and is expected to remain consistent at approximately $12 million in Q4 2025.

Inseego Connect, the company's cloud-native SaaS platform for device and network management, is central to this strategy. A major new release in Q3 2025 elevated Connect from a support tool to a core enterprise offering, tightly integrated with the FX4100 and FX4200. It offers zero-touch provisioning, integrated security, and APIs for large-scale deployments, enabling carriers, MSOs, service providers, MSPs, and enterprises to manage 5G edge networks more efficiently. This platform creates valuable SaaS attach opportunities, expanding Inseego's total addressable market (TAM) and supporting recurring revenue growth.

Complementing Inseego Connect is Inseego Subscribe, a wireless subscriber management SaaS platform for carriers managing government and complex enterprise customer subscriptions. This platform simplifies operations, improves network usage visibility, and creates new monetization opportunities. Inseego is investing in expanded functionality, market reach, and scalability for Inseego Subscribe, with 2026 anticipated as a growth year for this software offering.

Competitive Landscape and Positioning

Inseego operates in a competitive environment, facing both direct and indirect rivals. Direct competitors include larger, diversified players like Cisco Systems , Ericsson (ERIC), Qualcomm , and AT&T (T), which offer broad networking solutions, telecommunications equipment, chipsets, and wireless services, respectively. Inseego distinguishes itself by occupying a unique position between consumer-grade white-label FWA and overly complex, high-cost enterprise solutions. The company aims to be the partner of choice for mass-scale deployments in strong alignment with carriers, MSOs, and MSPs.

Inseego's U.S.-based engineering and critical intellectual property developed in San Diego provide a significant competitive advantage. This positioning could prove particularly beneficial if national security concerns lead to a preference for domestic suppliers of broadband devices, as discussed in relation to FCC actions against "untrustworthy gear" from foreign adversaries. While larger competitors like Cisco Systems (CSCO) benefit from extensive ecosystems and scale, and Qualcomm from its core chip technology, Inseego's strength lies in its agility in niche applications and its specialized expertise in end-to-end solutions for specific verticals like telematics. Its proprietary 5G hardware and SaaS platforms offer qualitatively superior efficiency in remote management, fostering customer loyalty and potentially improving margins.

However, Inseego's smaller scale compared to industry giants can lead to higher operating costs and potentially limit its pricing power. The company's reliance on sole-source suppliers for certain components, such as Qualcomm (QCOM) chipsets, also presents a vulnerability. Barriers to entry in this industry, including high R&D costs, regulatory approvals, and patents, generally favor larger, more financially robust competitors. Despite these challenges, Inseego's strategic focus on enterprise-grade solutions, its U.S. OEM status, and its expanding software portfolio are designed to enhance its competitive standing and capture market share in a rapidly evolving market.

Financial Performance and Operational Discipline

Inseego's financial performance in Q3 2025 reflects the early successes of its strategic transformation. Total revenues for the quarter were $45.89 million, contributing to a gross profit of $19.08 million. The non-GAAP gross margin improved to 41.6%, up from 34.8% in Q3 2024, driven by a favorable mix of higher-margin service and FWA revenues. The company achieved Adjusted EBITDA of $5.8 million, representing a 12.5% margin and marking the third-highest result in over a decade.

For the nine months ended September 30, 2025, total revenues were $117.79 million, a decrease from $143.16 million in the prior-year period, primarily due to the mobile solutions decline. However, the gross margin for the nine-month period increased to 42.9% from 35.5% in 2024, underscoring the positive impact of the revenue mix shift. The company reported a net income of $1.43 million for Q3 2025 and $0.37 million for the nine months ended September 30, 2025.

Operational expenses show a disciplined approach. Research and development expenses decreased due to more capitalizable projects, while sales and marketing increased with strategic headcount additions. General and administrative expenses saw an increase, partly due to share-based compensation for the new CEO. A significant reduction in interest expense was achieved due to the successful debt restructurings and repayment of the 2025 Convertible Notes.

In terms of liquidity, Inseego held $14.56 million in cash and cash equivalents and maintained a positive working capital of $13.1 million as of September 30, 2025. The $15 million undrawn working capital facility provides additional financial flexibility. While operating cash flow for the nine months ended September 30, 2025, was negative $4.8 million, this was largely attributed to the timing of accounts receivable collections and annual bonus payouts. The company's total debt is now a manageable $40.9 million, approximately 2x LTM adjusted EBITDA.

Outlook and Guidance

Inseego's management is optimistic about its future trajectory, projecting overall year-over-year revenue growth for the full year 2025, with sequential quarterly revenue growth expected to continue from Q2 2025 onwards. This outlook is supported by new product launches, an expanded customer base, and the strategic shift towards higher-margin solutions.

For Q4 2025, Inseego provided guidance of total revenue in the range of $45 million to $48 million and Adjusted EBITDA between $4 million and $5 million. This guidance anticipates continued sequential revenue growth over Q3 2025, a notable achievement given the historical seasonality of Q4 typically being marginally lower than Q3. Mobile revenue is expected to show particular strength and solid sequential growth in Q4 2025, driven by higher volumes and expanded offerings. FWA revenue is also expected to be strong, though not at the record levels seen in Q3 2025. Software services revenue is projected to remain consistent at approximately $12 million.

Gross margins for Q4 2025 are expected to be modestly lower, in the high 30s percentage range, due to a greater proportion of mobile hotspot revenue. Operating expenses are anticipated to increase in sales and marketing and R&D to fund new products, with higher capitalized software development costs. General and administrative expenses are expected to improve as a percentage of revenue.

Key assumptions underpinning this positive outlook include the continued expansion of the enterprise FWA market, which is still in its early stages, and the potential for increased spectrum availability, such as from AT&T's EchoStar transaction and potential FCC releases of upper C-band. Management believes that enterprise FWA, consuming significantly less network resource than consumer FWA, will remain a priority for carriers.

However, risks remain. While no material impact from rising global memory market costs is expected for Q4 2025, this dynamic will be closely monitored for 2026. The uncertainty surrounding congressional E-Rate funding led to the removal of a $10 million-plus educational mobile deal from the Q2 2025 forecast, highlighting a dependency on external policy for certain revenue streams. General liquidity could also be compromised if business operations are interrupted, contractual commitments are not met, or key customers are not retained.

Conclusion

Inseego Corp. is in the midst of a profound transformation, shedding its legacy debt and refocusing its strategic vision on the burgeoning 5G wireless broadband market. Under new leadership, the company is leveraging its deep engineering expertise and proprietary U.S.-developed technology to deliver differentiated, enterprise-grade FWA and mobile solutions. The strategic pivot towards a solutions-centric model, emphasizing software platforms like Inseego Connect and Inseego Subscribe, is creating new avenues for recurring revenue and deeper customer engagement.

While the company faces a competitive landscape dominated by larger players and inherent market risks, its strong Q3 2025 performance, coupled with a positive outlook for sequential revenue growth through 2025, signals a compelling investment narrative. The disciplined financial management, significant debt reduction, and strategic customer diversification efforts position Inseego to capitalize on the expanding enterprise FWA opportunity and its technological leadership in 5G Advanced. Investors should monitor the execution of new product launches, the ramp-up with new Tier 1 carrier partnerships, and the continued expansion of its high-margin software offerings as key indicators of Inseego's long-term potential in the evolving wireless connectivity landscape.