Fri, May 9, 10:04 AM (35 days ago)
**Inseego Corp. (INSG) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $31.7 million, down 15.5% from $37.5 million in Q1 2024. - **Mobile Solutions:** $17.8 million, up 16.5%. - **Fixed Wireless Access Solutions:** $1.9 million, down 86.6%. - **Services and Other:** $11.98 million, up 48.8%. - **Gross Profit:** $15.0 million, up from $13.2 million, with a gross margin of 47.3%. - **Operating Loss:** $424,000, improved from a loss of $2.95 million in Q1 2024. - **Net Loss:** $1.57 million, improved from a loss of $4.46 million in Q1 2024. - **Earnings per Share (EPS):** $(0.16), improved from $(0.44) in Q1 2024. - **Cash Flow:** Negative operating cash flow of $3.5 million, primarily due to annual bonus payouts. **Profit Margins:** - **Gross Margin:** 47.3%, up from 35.3% in Q1 2024. - **Operating Margin:** -1.3%, improved from -7.9% in Q1 2024. **Cash Flow:** - **Operating Cash Flow:** Negative $3.5 million, due to working capital changes and bonus payouts. - **Investing Cash Flow:** Negative $1.02 million, primarily due to software development investments. - **Financing Cash Flow:** Positive $42,000, from stock option exercises. **Earnings Changes:** - **Year-over-Year:** Net loss improved by $2.89 million. - **Quarter-over-Quarter:** Operating loss improved by $2.53 million. **Quarterly Performance Discussion:** - **Revenue Decline:** Primarily due to a significant drop in fixed wireless access solutions. - **Gross Margin Improvement:** Driven by higher-margin service revenues and premium 5G MiFi offerings. - **Operating Expenses:** Decreased by 4.8%, with notable reductions in depreciation and amortization. - **Interest Expense:** Decreased by $1.15 million, due to lower coupon interest on convertible notes. **Trends and Uncertainties:** - **Customer Concentration:** Two customers accounted for 89.7% of revenues. - **Supply Chain Risks:** Dependence on sole-source suppliers and potential supply disruptions. - **Market Risks:** Exposure to foreign currency exchange rates and inflationary pressures. **Future Operations Impact:** - **Debt Repayment:** 2025 Convertible Notes matured on May 1, 2025. - **Liquidity:** $35.1 million in cash and cash equivalents as of March 31, 2025. - **Strategic Focus:** Continued focus on 5G solutions and streamlining operations post-telematics divestiture. **Conclusion:** Inseego Corp. showed improved financial performance in Q1 2025, with better gross margins and reduced operating losses. However, the company faces challenges related to customer concentration, supply chain risks, and market uncertainties. The divestiture of the telematics business and focus on 5G solutions are strategic moves to enhance future operations and financial health.