Airgain (AIRG) AI Stock Analysis

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Airgain

(NASDAQ:AIRG)

Rating:49Neutral

Price Target:

$4.00

▼(-3.15%Downside)

Airgain's overall stock score reflects significant financial challenges with declining revenue and negative profitability margins. Technical analysis and valuation are not particularly favorable, but there is potential upside indicated by strategic partnerships and product innovations discussed in the earnings call. The stock's financial performance remains the most significant factor weighing down the score.

Airgain (AIRG) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$48.59M

Dividend YieldN/A

Average Volume (3M)10.36K

Price to Earnings (P/E)―

Beta (1Y)1.37

Revenue Growth8.46%

EPS Growth39.81%

CountryUS

Employees121

SectorTechnology

Sector Strength84

IndustryCommunication Equipment

Share Statistics

EPS (TTM)-0.11

Shares Outstanding11,794,084

10 Day Avg. Volume7,955

30 Day Avg. Volume10,357

Financial Highlights & Ratios

PEG Ratio0.48

Price to Book (P/B)1.67

Price to Sales (P/S)0.00

P/FCF Ratio18.01

Enterprise Value/Market Cap1.17

Enterprise Value/Revenue0.25

Enterprise Value/Gross Profit2.33

Enterprise Value/Ebitda-1.95

Forecast

1Y Price Target

$7.67

Price Target Upside85.71% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering3

Airgain Business Overview & Revenue Model

Company DescriptionAirgain, Inc. (AIRG) is a leading provider of advanced antenna technologies and systems used to enable high-performance wireless networking across a broad range of devices and markets, including connected homes, enterprise, automotive, and Internet of Things (IoT). The company specializes in designing and engineering antenna systems, leveraging its expertise to improve wireless connectivity and performance for a variety of applications. Airgain's solutions are integrated into a multitude of devices and are critical for ensuring reliable wireless communication.

How the Company Makes MoneyAirgain generates revenue primarily through the sale of its antenna products and systems to original equipment manufacturers (OEMs) and other technology companies that incorporate these solutions into their own products. The company's revenue streams are driven by the demand for enhanced wireless connectivity and are supported by its strategic partnerships with major industry players in the telecommunications and electronics sectors. Key factors contributing to Airgain's earnings include the ongoing proliferation of connected devices, the expansion of 5G networks, and the growing need for reliable IoT solutions. Additionally, Airgain may engage in licensing agreements and provide design and engineering services to further bolster its revenue.

Airgain Earnings Call Summary

Earnings Call Date:May 07, 2025

(Q1-2025)

% Change Since: 1.72%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted strategic partnerships and product innovations, such as the agreement with Omantel and the performance of Lighthouse Solar, indicating growth potential. However, challenges like declines in automotive and enterprise sales, and a negative adjusted EBITDA were significant hurdles. The company's efforts to adapt to the macro environment and prepare for future growth provide a balanced view of both opportunities and challenges.

Q1-2025 Updates

Positive Updates

Strategic Partnership with Omantel

Airgain entered into a strategic and commercial agreement with Omantel, supporting both indoor and outdoor deployments across Oman and potentially broader markets. This includes commercial collaboration, joint marketing, and co-development of new solutions.

Lighthouse Solar Performance

Initial field trials of Lighthouse Solar demonstrated strong performance, including a 20% expansion in 5G coverage, average speed increase from 1 Mbps to 250 Mbps, and over 50% improvement in spectrum efficiency.

Q1 Gross Margin Improvement

Q1 gross margin was 44.3%, marking the fifth consecutive quarterly increase, largely due to higher enterprise product margins.

AirgainConnect Achievements

Airgain achieved commercial certifications with all three major US carriers and AT&T FirstNet capable status, supporting public safety communications.

Increased Addressable Market

Airgain expanded its addressable market from $1.1 billion in 2024 to $2.6 billion in 2025, driven by platforms like Lighthouse and AirgainConnect.

Negative Updates

Decline in Automotive Sales

Automotive sales were $1.3 million, down $2 million sequentially, driven by lower shipments of aftermarket antennas and AirgainConnect gateways.

Enterprise Sales Decline

Enterprise sales were $4.3 million, down $1 million sequentially, marking a low point for the year due to lower shipments of enterprise antennas and custom IoT products.

Negative Adjusted EBITDA

Adjusted EBITDA was negative $1.2 million, primarily due to the lower revenue base.

Inventory Challenges in Automotive

Excess inventory persisted across certain product areas, including aftermarket automotive antennas, expected to take additional time for correction.

Company Guidance

In the first quarter of 2025, Airgain reported sales of $12 million, aligning with the midpoint of their guidance range. The company's consumer sales were $6.4 million, slightly down by $0.1 million sequentially, while automotive sales fell by $2 million to $1.3 million. Enterprise sales also decreased by $1 million to $4.3 million. Gross margin improved to 44.3%, marking the fifth consecutive quarterly increase, primarily due to higher enterprise product margins. Operating expenses remained stable at $6.6 million, resulting in an adjusted EBITDA of negative $1.2 million and a non-GAAP EPS of negative $0.11. The cash balance ended at $7.4 million. Looking ahead to the second quarter, Airgain projects sales between $12.5 million and $14.5 million, expecting a 12% sequential growth, primarily driven by a rebound in the enterprise market. The company anticipates non-GAAP gross margins between 42% and 45% and operating expenses of approximately $6.6 million, with a non-GAAP EPS of negative $0.06 and adjusted EBITDA of negative $0.6 million at the midpoint.

Airgain Financial Statement Overview

Summary

Airgain faces significant financial hurdles, with declining revenue, negative profitability margins, and cash flow challenges. The balance sheet provides some stability with a strong equity ratio and manageable debt levels. However, ongoing losses and negative cash flows pose risks to financial sustainability.

Income Statement

Neutral

Airgain's income statement reveals a challenging landscape with declining revenue and ongoing losses. The TTM data shows a gross profit margin of 41.77% and a net profit margin of -13.32%, indicating profitability issues. Revenue has decreased from $60.60 million to $58.38 million, a drop of 3.97%, while EBIT and EBITDA margins are negative, at -16.09% and -10.00%, respectively, reflecting operational challenges.

Balance Sheet

Neutral

The balance sheet presents a mixed picture. The equity ratio stands at 65.74%, indicating solid equity backing. However, the debt-to-equity ratio is 0.15, suggesting some leverage, though not excessive. Return on equity is negative at -25.66%, reflecting current profitability struggles. The company's liquidity position shows resilience with cash exceeding debt, but overall financial health is hindered by ongoing losses.

Cash Flow

Negative

Airgain's cash flow statement highlights negative operating and free cash flows, indicating cash management issues. The operating cash flow to net income ratio is 0.44, and the free cash flow growth rate is -2.99%, showing a decline in cash generation. The free cash flow to net income ratio is 0.46, reflecting challenges in translating revenue into positive cash flow.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
58.38M	60.60M	56.04M	75.89M	64.27M	48.50M
	Gross Profit
24.39M	24.80M	20.76M	27.97M	24.61M	22.59M
	EBIT
-9.39M	-8.93M	-12.40M	-8.58M	-10.08M	-3.18M
	EBITDA
-5.84M	-5.22M	-8.77M	-4.88M	-6.53M	-2.09M
	Net Income Common Stockholders
-7.78M	-8.69M	-12.43M	-8.66M	-10.09M	-3.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.40M	8.51M	7.88M	11.90M	14.51M	38.17M
	Total Assets
46.12M	48.44M	42.23M	54.40M	66.39M	54.93M
	Total Debt
4.42M	3.90M	1.54M	2.44M	3.06M	310.00K
	Net Debt
-2.98M	-4.61M	-6.34M	-9.46M	-11.45M	-37.86M
	Total Liabilities
15.79M	17.47M	10.82M	14.57M	22.22M	7.18M
	Stockholders Equity
30.33M	30.97M	31.41M	39.83M	44.17M	47.74M
Cash Flow		Free Cash Flow
-3.59M	-3.71M	-3.65M	3.68M	-11.91M	2.98M
	Operating Cash Flow
-3.43M	-3.53M	-3.30M	4.45M	-11.17M	3.70M
	Investing Cash Flow
-160.00K	-178.00K	-346.00K	-750.00K	-14.92M	20.89M
	Financing Cash Flow
3.79M	4.30M	-458.00K	-6.30M	2.43M	561.00K

Airgain Technical Analysis

Technical Analysis Sentiment

Positive

Last Price4.13

Price Trends

50DMA

3.89

Positive

100DMA

4.93

Negative

200DMA

6.57

Negative

Market Momentum

MACD

0.02

Negative

RSI

53.94

Neutral

STOCH

64.02

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIRG, the sentiment is Positive. The current price of 4.13 is above the 20-day moving average (MA) of 4.06, above the 50-day MA of 3.89, and below the 200-day MA of 6.57, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 53.94 is Neutral, neither overbought nor oversold. The STOCH value of 64.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AIRG.

Airgain Risk Analysis

Airgain disclosed 47 risk factors in its most recent earnings report. Airgain reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Airgain Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%
DUOT	61 Neutral	$93.58M	―	-189.13%	―	89.27%	26.30%
WKEY	56 Neutral	$82.04M	―	-51.84%	―	-61.52%	35.64%
REFR	51 Neutral	$64.00M	―	-37.98%	―	62.28%	44.68%
AIRG	49 Neutral	$48.59M	―	-25.57%	―	8.46%	39.81%
PXLW	41 Neutral	$28.96M	―	-2911.20%	―	-47.93%	-37.78%
MAXN	40 Underperform	$57.87M	―	307.38%	―	-54.68%	63.56%

* Technology Sector Average

Performance Comparison

AIRG

Airgain

4.13

-1.51

-26.77%

PXLW

Pixelworks

5.07

-7.11

-58.37%

REFR

Research Frontiers

1.92

0.12

6.67%

DUOT

Duos Technologies Group

8.31

5.28

174.26%

WKEY

WISeKey International Holding

7.02

4.76

210.62%

MAXN

Maxeon Solar Technologies

3.19

-140.81

-97.78%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.