Wed, May 7, 9:06 PM (15 days ago)
**Airgain, Inc. (AIRG) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $12.013 million, down 15.6% YoY due to lower sales in enterprise and automotive markets, partially offset by increased consumer market sales. - **Gross Profit:** $5.160 million, down 7.5% YoY, with a gross margin improvement to 43% from 39.2%. - **Operating Expenses:** $8.256 million, up 0.6% YoY, with increased personnel expenses offset by lower project development costs. - **Net Loss:** $1.546 million, improved from $2.455 million in Q1 2024, with a net loss per share of $0.13. - **Cash Flow:** Net cash used in operating activities was $1.025 million, with $7.401 million in cash and cash equivalents at quarter-end. **Key Metrics and Trends:** - **Sales by Market:** Enterprise sales decreased by $4.6 million, automotive by $0.5 million, while consumer sales increased by $2.9 million. - **Gross Margin:** Improved by 380 basis points YoY to 43%, driven by better enterprise product margins and favorable market sales mix. - **Operating Expenses:** Increased by $0.1 million, with higher personnel expenses offset by lower project development costs. - **Other Income:** $1.574 million, including a $1.494 million employee retention credit refund and $221,000 in interest income. **Uncertainties and Future Operations:** - **Macroeconomic Factors:** Elevated interest rates, market volatility, inflation, and trade policy shifts create uncertainty in end customer demand and supply chain constraints. - **Tariff Increases:** Mitigated by product exemptions, ODM customer sales, and tariff-favorable sourcing regions. - **Liquidity:** Existing cash and cash equivalents are expected to meet working capital requirements for at least the next 12 months. - **Goodwill Impairment:** No impairment charges required as of March 31, 2025, but future events could impact assumptions and judgments. **Management's Outlook:** - Focus on strategic product initiatives and operational efficiencies to drive revenue growth and profitability. - Continued investment in engineering and sales teams to execute product roadmap and penetrate domestic and international markets. - Monitoring macroeconomic conditions and geopolitical uncertainties that may impact business operations and financial performance.