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Inseego Corp (INSG)
NASDAQ:INSG
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Inseego (INSG) AI Stock Analysis

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INSG

Inseego

(NASDAQ:INSG)

Rating:55Neutral
Price Target:
$11.50
▼(-10.23% Downside)
Inseego's overall stock score is primarily impacted by its challenging financial performance, with high leverage and negative cash flows. However, strong earnings call results and positive corporate events provide some optimism. Technical indicators suggest bullish momentum, but valuation concerns persist due to a high P/E ratio.
Positive Factors
Financial Performance
2Q results topped guidance and estimates, with FWA strength offsetting Mobile softness.
Revenue Growth
3Q revenue and Adj. EBITDA are modeled above the midpoint of guidance, supported by continued FWA momentum.
Negative Factors
Market Exposure
Lowering estimates driven by pressure in Mobile from concentrated carrier exposure.
Profitability Challenges
Profitability faces headwinds from E-Rate program delay and seasonal softness in Mobile.

Inseego (INSG) vs. SPDR S&P 500 ETF (SPY)

Inseego Business Overview & Revenue Model

Company DescriptionInseego Corp. engages in the design and development of fixed and mobile wireless solutions, industrial Internet of Things (IIoT), and cloud solutions for large enterprise verticals, service providers, small and medium-sized businesses, governments, and consumers worldwide. The company provides wireless 4G and 5G hardware products, including private LTE/5G networks, First responders network authority/Firstnet, SD-WAN, telematics, remote monitoring and surveillance, and fixed wireless access and mobile broadband devices. Its products include 4G and 5G fixed wireless routers and gateways, mobile hotspots, and wireless gateways and routers for IIoT applications; and Gb speed 4G LTE hotspots and USB modems, integrated telematics, and mobile tracking hardware devices, which are supported by applications software and cloud services designed to enable customers to analyze data insights and configure/manage their hardware remotely. In addition, the company sells software-as-a-service (SaaS), software, and services solutions in various mobile and IIoT vertical markets comprising fleet management, vehicle telematics, stolen vehicle recovery, asset tracking, monitoring, business connectivity, and subscription management. Its SaaS delivery platforms include telematics, asset tracking, and management platforms which provide fleet, vehicle, aviation, asset, and other telematics applications; and Inseego Subscribe, a hosted SaaS platform that helps organizations in managing the selection, deployment, and spend of their customers wireless assets by helping them to save money on personnel and telecom expenses. Inseego Corp. was founded in 1996 and is based in San Diego, California.
How the Company Makes MoneyInseego generates revenue primarily through the sale of hardware, software, and subscription services. The company's key revenue streams include the sale of 4G and 5G mobile broadband devices, IoT hardware, and cloud-based software solutions that support data analytics and management. Additionally, Inseego offers subscription-based services that provide ongoing support and software updates. Significant partnerships with major telecommunications companies and service providers also contribute to their earnings, as these relationships allow Inseego to expand its market reach and offer bundled solutions to customers.

Inseego Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements, including sequential growth, successful product launches, and new carrier wins, indicating strong momentum and execution of growth strategies. Although there were challenges such as the removal of a significant deal from the forecast and increased accounts receivables, the highlights noticeably outweigh the lowlights.
Q2-2025 Updates
Positive Updates
Sequential Growth in Revenue and EBITDA
Inseego delivered sequential growth in Q2 2025 in both revenue and adjusted EBITDA, exceeding guidance through strong FWA demand and a favorable product mix.
Successful Launch of FX4100
The FX4100 FWA solution was launched mid-Q2 and has exceeded expectations with strong early demand, significantly outpacing adoption of prior generations.
New Tier 1 Carrier Wins
Inseego successfully renewed its MiFi products with two large Tier 1 carrier customers and added a new Tier 1 carrier to stock both mobile and FWA products.
Strong FWA Revenue
For the second time in history, FWA revenue surpassed mobile hotspot revenue, indicating strong execution of growth strategy and successful ramp of the new FX4100 product.
Multimillion-Dollar Enterprise Agreement
Closed a multimillion-dollar enterprise agreement with an industrial S&P 500 company, facilitated through Inseego IGNITE channel partners.
Improved Capital Structure
Materially reduced total debt and set up a $15 million working capital facility with BMO Bank, providing additional flexibility for growth initiatives.
Negative Updates
Removal of a $10 Million-Plus Deal from Forecast
A $10 million-plus educational mobile deal was removed from the forecast due to congressional E-Rate funding for hotspots sitting in limbo with no established path forward.
Increase in Accounts Receivables
Accounts receivables increased significantly, primarily due to channel fill from new product launches, affecting cash flow.
Company Guidance
During the Inseego Corp.'s Second Quarter 2025 Financial Results Conference Call, the company reported sequential growth in both revenue and adjusted EBITDA, with total revenue for Q2 reaching $40.2 million. This performance was driven by strong fixed wireless access (FWA) demand, a favorable product mix, and disciplined expense management, exceeding the initial guidance. Notably, FWA revenue surpassed mobile hotspot revenue for only the second time in the company's history, marking a significant shift in their product mix. The company reported a non-GAAP gross margin of 41.2% and adjusted EBITDA of $4.7 million, reflecting a margin of 11.7%. Looking forward, Inseego expects sequential revenue growth for each of the next two quarters and has provided guidance for Q3 with total revenue projected between $40 million and $43 million and adjusted EBITDA ranging from $4 million to $5 million.

Inseego Financial Statement Overview

Summary
Inseego faces significant financial challenges with declining revenues, high leverage, and negative cash flows. Improvements in gross profit margins are overshadowed by overall profitability and solvency concerns.
Income Statement
35
Negative
Inseego's income statement shows declining revenue with a negative growth rate of -9.81% TTM, indicating a challenging market environment. The gross profit margin improved to 39.22% TTM, suggesting better cost management. However, the net profit margin remains low at 3.72% TTM, and EBIT margin is negative, reflecting operational inefficiencies.
Balance Sheet
25
Negative
The balance sheet reveals a concerning financial structure with negative stockholders' equity and a high debt-to-equity ratio of -4.15 TTM, indicating significant leverage. Return on equity is negative, highlighting profitability challenges. The equity ratio is also negative, pointing to potential solvency issues.
Cash Flow
30
Negative
Cash flow analysis shows negative operating cash flow and free cash flow TTM, with a significant decline in free cash flow growth. The operating cash flow to net income ratio is negative, indicating cash flow issues. However, free cash flow to net income ratio is positive, suggesting some cash generation relative to net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue174.01M191.24M195.69M245.32M262.40M313.83M
Gross Profit68.24M68.80M35.78M66.91M75.92M90.84M
EBITDA10.41M9.76M-13.71M-32.62M-15.52M-72.55M
Net Income6.48M4.57M-46.19M-67.97M-47.91M-111.19M
Balance Sheet
Total Assets83.07M100.00M121.80M159.02M215.84M227.39M
Cash, Cash Equivalents and Short-Term Investments13.22M39.60M7.52M7.14M47.50M40.02M
Total Debt43.61M60.71M170.73M173.94M157.87M175.21M
Total Liabilities93.57M112.86M223.90M229.13M240.70M255.29M
Stockholders Equity-10.50M-12.86M-102.11M-70.12M-24.85M-27.81M
Cash Flow
Free Cash Flow-9.36M33.42M-3.00M-46.61M-54.05M-15.05M
Operating Cash Flow-7.72M33.52M7.17M-33.29M-25.21M20.05M
Investing Cash Flow41.53M43.03M-10.17M-13.32M6.08M-34.71M
Financing Cash Flow-64.22M-38.78M2.21M5.43M29.92M42.08M

Inseego Technical Analysis

Technical Analysis Sentiment
Positive
Last Price12.81
Price Trends
50DMA
8.58
Positive
100DMA
8.20
Positive
200DMA
9.53
Positive
Market Momentum
MACD
1.35
Negative
RSI
82.30
Negative
STOCH
82.80
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INSG, the sentiment is Positive. The current price of 12.81 is above the 20-day moving average (MA) of 9.94, above the 50-day MA of 8.58, and above the 200-day MA of 9.53, indicating a bullish trend. The MACD of 1.35 indicates Negative momentum. The RSI at 82.30 is Negative, neither overbought nor oversold. The STOCH value of 82.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INSG.

Inseego Risk Analysis

Inseego disclosed 6 risk factors in its most recent earnings report. Inseego 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

Inseego Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$249.48M22.2939.51%4.63%328.61%
65
Neutral
$184.01M-14.61%-23.33%-142.22%
61
Neutral
$35.51B8.11-10.49%1.89%8.55%-8.72%
58
Neutral
$1.49B-81.20%75.16%28.13%
57
Neutral
$92.03M-10.16%-24.50%60.82%
57
Neutral
$111.76M-4.46%-12.22%71.69%
55
Neutral
$194.66M39.37111.75%-10.99%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
INSG
Inseego
12.81
-1.58
-10.98%
KVHI
KVH Industries
5.71
1.15
25.22%
LTRX
Lantronix
4.52
0.82
22.16%
BKTI
BK Technologies
70.70
50.81
255.46%
SILC
Silicom
16.78
3.60
27.31%
ONDS
Ondas Holdings
5.33
4.58
610.67%

Inseego Corporate Events

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Inseego Secures $15M Credit Facility with BMO Bank
Positive
Aug 7, 2025

On August 5, 2025, Inseego Corp. entered into a $15 million revolving secured asset-backed credit facility with BMO Bank N.A., providing further operating flexibility and liquidity. The facility, which matures on August 5, 2028, is secured by a continuing security interest in substantially all property of each loan party. Inseego also reported strong financial results for Q2 2025, with a revenue of $40.2 million and an adjusted EBITDA of $4.7 million, marking a 27% and 29% sequential increase respectively. The company launched its new FX4100 enterprise-grade wireless router and expanded its carrier footprint, signaling strong market demand and positioning for durable growth and profitability.

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.Date of analysis: Aug 23, 2025