Inseego (NASDAQ:INSG) reported fourth-quarter 2025 results that topped its guidance, with management emphasizing sequential improvement in both revenue and profitability and pointing to an expanded Tier 1 carrier footprint as a key driver heading into 2026.
Fourth-quarter results exceed guidance
CEO Juho Sarvikas said Inseego generated Q4 2025 revenue of $48.4 million and Adjusted EBITDA of $6.0 million, both above the company’s guidance and marking a third consecutive quarter of sequential growth in each metric. CFO Steven Gatoff added that Q4 Adjusted EBITDA was among the highest dollars and margin percentage “on an apples-to-apples basis” in more than a decade, though he noted that more than $1 million of benefit came from the timing of R&D spending that shifted from Q4 into Q1 2026.
- Mobile revenue: $20.4 million, up 27% sequentially, representing roughly 40% of company revenue in Q4, according to Sarvikas.
- Software services revenue: $12.0 million in Q4, described as stable and high margin.
- Non-GAAP gross margin: 43% in Q4, up 75 basis points sequentially, driven by higher-margin mobile products and SaaS contribution.
- Non-GAAP operating expenses: $17.0 million, or 35% of revenue, reflecting investments in sales and marketing and R&D to support Tier 1 execution and new product launches.
For the full year 2025, Inseego reported revenue of $166.2 million, non-GAAP gross margin of 43%, and Adjusted EBITDA of $20.1 million (a 12.1% margin). Gatoff said the full-year gross margin level was the highest, on an apples-to-apples basis, in more than a decade.
Tier 1 carrier expansion highlights: AT&T and Verizon added for FX4200
Much of management’s commentary focused on expanding Inseego’s carrier footprint in enterprise fixed wireless access. Sarvikas said the company continued to see strong performance from its FX4100 FWA product with T-Mobile during the quarter. He also highlighted that Inseego secured an FX4200 FWA award with AT&T and, shortly before the call, announced it had signed Verizon for the FX4200.
According to Sarvikas, both AT&T and Verizon placed initial stocking orders, and Inseego expects commercial sales to begin ramping “in earnest” in the first half of 2026 as programs come online. With Verizon added, Sarvikas said all three U.S. Tier 1 carriers have now chosen Inseego to support their enterprise FWA offerings, calling it an “important inflection point” for the business.
On mobile hotspots, Sarvikas said carrier stock volumes and channel activity helped drive the strongest mobile quarter of 2025. He later told analysts that Inseego’s new mobile generation is expected to launch across all three major carriers toward the latter part of Q1 2026, after delays pushed timing back.
Software platform and channel strategy
Management also discussed progress in shifting toward solution-led selling, particularly with Inseego Connect. Sarvikas said that after a major release in Q3, the company began to see an impact in Q4. For the first time, he said, Inseego Connect is being taken to market alongside FWA solutions by all three Tier 1 U.S. carriers, each through its own commercial model. Sarvikas framed this as a shift from device-led selling toward solution-led selling, with Connect positioned as a foundational layer for its “enterprise wireless edge platform.”
Inseego Subscribe remains an investment area, with Sarvikas noting ongoing work to build leadership and platform capabilities as part of longer-term software and solutions growth.
On routes to market, Sarvikas said the company is laying groundwork with VARs, MSPs, SSPs, and MSOs. In Q&A, he highlighted that CDW, Insight, and SHI were expected to launch programs and that they had been stocking the FX4200 since late 2025, which he described as setting up a steady ramp. He characterized large carriers and MSOs as potential sources of “big, immediate volume uplift,” while VARs and MSPs could become significant longer-term drivers but with a slower ramp.
Capital structure change: preferred stock retired at discount
Gatoff said Inseego ended Q4 with $24.9 million in cash and $41.0 million of debt, which he described as approximately 2x LTM Adjusted EBITDA. He attributed the year-end cash position to favorable customer payments, inventory dynamics, and working capital management.
He also detailed a post-year-end capital structure move: on January 14, Inseego retired 100% of its outstanding preferred stock. The preferred had a $42 million liquidation preference as of December 31, 2025, and was exchanged for $26 million of aggregate consideration, which management described as a 38% discount that accrued to common stockholders. Consideration included $10 million in cash, $8 million in additional senior secured notes, and about 767,000 shares of common stock. Gatoff said the preferred was held by an affiliate of Mubadala Capital, which now holds a common stock position.
Q1 2026 guidance: transition quarter, with full-year revenue target of about $190 million
Management characterized Q1 2026 as a transition quarter with several moving parts. Sarvikas said the company still expects Q1 to grow year-over-year, but outlined three reasons for lower sequential revenue: engineering delays that push new mobile product revenue into Q2; higher-than-expected inventory at a Tier 1 FWA carrier customer that will be sold through in Q1; and a go-to-market strategy change at that same carrier that is causing short-term disruption to selling logistics.
Gatoff said Q1 is often a baseline quarter for the company and noted that Q1 has been down from Q4 in three of the last four years. For Q1 2026, Inseego guided to:
- Revenue: $33 million to $36 million
- Adjusted EBITDA: $1 million to $2 million
He also said Q1 non-GAAP gross margin is expected to reflect lower mobile revenue margin, partially offset by solid FWA margin contribution and consistent software services. Operating expense dollars are expected to increase modestly sequentially in Q1, with higher total spend driven by the R&D timing shift and continued investment in sales and marketing.
For the full year 2026, Inseego guided to approximately $190 million in total revenue. In Q&A, management indicated it expects EBITDA to be lightest in Q1 and then grow through the year, with stronger profitability and margin levels in the second half as revenue ramps and operating leverage improves.
Management also addressed memory market concerns, saying it had secured supply and did not expect meaningful impacts to deployments in the first half of the year. Sarvikas said the company acted early to lock in modest price increases for the first part of the year and is working with large customers on pricing and cost sharing.
About Inseego (NASDAQ:INSG)
Inseego Corp is a U.S.-based technology company specializing in 5G and intelligent Internet of Things (IoT) device-to-cloud solutions. The company develops hardware and software platforms designed to connect devices, vehicles and remote locations to high-speed wireless networks. Its core offerings include mobile hotspots, fixed wireless access gateways and ruggedized routers optimized for enterprise, industrial and government applications.
Inseego’s product portfolio encompasses 5G MiFi® mobile hotspots, virtual network functions (VNFs) for network management, telematics devices for fleet tracking and asset monitoring, as well as a suite of cloud-native software for device lifecycle management and data analytics.
