AIRG

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 5:00 p.m. ET President and Chief Executive Officer - Jacob Suen Chief Financial Officer - Michael Elbaz Operator: Good afternoon. Welcome to Airgain's Second Quarter 26 Conference Call. My name is Jasmina, and I will be your operator for today's call. Joining us today are Airgain's President and CEO, Jacob Suen and CFO, Michael Elbaz. As a reminder, this call will be recorded. And made available for replay via a link found in the Investor Relations section of Airgain's website, at investors.airgain.com. Following management's prepared remarks, the call will be opened for questions from Airgain's covering analysts. I caution listeners that during this call, Airgain, management will be making forward-looking statements about future events as well as Airgain's business strategy and future financial and operating performance. Actual results could differ materially from those stated or implied by these forward-looking statements due to risks and uncertainties associated with the company's business. These forward-looking statements are qualified by the cautionary statements contained in today's earnings release and Airgain's SEC filings. This conference call contains time sensitive information that is accurate only as of the date of this live broadcast, 08/05/2026. Airgain undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this conference call. In addition, this conference call will include a discussion of non GAAP financial measures. Please see today's earnings release for further details. Including a reconciliation of GAAP to non GAAP results. Now, I would like to turn the call over to Airgain's CEO, Jacob Suen. Jacob Suen: Good afternoon, everyone. And thank you for joining us. The second quarter marked another meaningful step forward for Airgain. Revenue increased 19% sequentially to $13.7 million We achieved positive adjusted EBITDA. And we advanced important customer programs across the business. Enterprise and automotive continue their revenue growth trajectories. While consumer sales remain relatively stable supported by Wi-Fi 7 demand and strong Tier 1 relationships. We enter the second half with a stronger foundation than we had at the beginning of the year. Customer engagement is deeper Our pipeline is more mature. And more programs are progressing from evaluation into trials and deployments. We are encouraged by this progress. And we are increasingly confident in the direction of the business. Our priorities are clear. Built on the momentum in our core businesses. Convert the AirgainConnect pipeline into revenue. Advance Lighthouse, toward commercialization. And increased the operating leverage of our business model. Let me start with AirgainConnect. During the second quarter, we continue to expand our AirgainConnect portfolio through our work with FirstNet, Built with AT&T. We added MegaFi and MegaFi both FirstNet trusted solutions that use high power technology designed for demanding coverage environments. Together with AC Fleet and GoKit Pro, AirgainConnect now provides multiple connectivity solutions for vehicle, fixed, portable and rapid response applications. The portfolio serves first responders. Utilities, transportation energy and other critical field operations. Through FirstNet, AT&T offers Airgain's HPUE vehicle solution for public safety customers. Airgain also retains the ability to offer its HPV technology to other carrier networks globally. This broader portfolio gives customers greater deployment flexibility, simplifies installation and improves operational readiness. It also gives Airgain more entry points with customers and more ways to support them as connectivity needs expand. The 60 Tier 1 and Tier 2 opportunities. Our focus is increasingly on pipeline conversion and more than half of the pipeline is now in trial or post trial stages. Up from approximately 1/3 since our last call. The mix remains balanced. With approximately 55% of opportunities in first responder markets. And 45% in utilities and other commercial fleet applications. In Q2, we secured 5 Tier 2 design wins across AirgainConnect, 4 are with first responder organizations. And 1 is with a utility company. 1 of these wins is with a large countywide public safety customer covering fire, ambulance and police leaks. The potential deployment spans more than 1 thousand vehicles. But units are expected to be added in phases of vehicles enter service. This illustrates how these programs can begin modestly and grow into meaningful long term opportunities. We are also in the final phase of the sales cycle for a Tier 1 first responder opportunity. Which we are targeting to close by the end of the year. Work remains before a final award. Including customer specific certification requirements We are making the necessary investments because the opportunity demonstrates the scale of the programs we are pursuing. And the certification can be leveraged to other lead opportunities as well. Hailure relationships are an important part of our go to market strategy. As announced in June, we expand our work with FirstNet, Built with AT&T across public safety, utilities, and other critical field operations. Under this model, carrier sales teams help identify and advance customer opportunities. While Airgain supports product demonstrations. Trials, integration and customization. This extends our commercial reach and helps move qualified opportunities toward deployment. We have also developed a plug and play AirgainConnect configuration for the AT&T channel. With the eSAM and required cabling pre installed. The goal is to simplify evaluation and deployment for utilities sanitation fleets and other non first responder customers. We are working to expand this carrier enable model to additional markets. We continue to strengthen our relationship with carriers and the FirstNet authority with the support of well respected industrial veterans. Most recently, Jim Begle, former President of AT&T FirstNet, and a member of the prestigious Wireless Hall of Fame Class of 2026 has joined Airgain as a strategic advisor. Jim will help us deepen relationships with public safety, the FirstNet authority in large fleet OEMs. We believe the pipeline for AirgainConnect has reached a stable level and our emphasis is now on execution. We are benching trials supporting post trial requirements and helping customers move into phased deployments. We believe this is the right approach to build a durable AirgainConnect business. Turning to Lighthouse. We continue to prioritize The U. S. Market opportunity given the ongoing geopolitical dynamics in The Middle East. We are deepening our engagement with domestic mobile network operators service providers, enterprises and communities. We now have 2 scheduled end customer trials in The U. S. But collectively, support coverage across all 3 major carriers. This represents meaningful progress from our prior U. S. Testing. Which was conducted primarily with a network provider. The first trial is with a large logistics company seeking to improve coverage across its operating environment. Our current production ready configuration supports the mid band spectrum used by AT&T and Verizon. The second trial is with a residential community seeking to address coverage gaps commonly experienced by large communities in HOAs. Our new configuration extends Lighthouse to the spectrum used by T Mobile. And we expect pre production samples during Q3. In Q3, we also secure an international customers trial for our integrated 4G and 5G combo solution. Initial samples are expected it this quarter as well. These trials address a common problem. Inconsistent cellular coverage across large operating environments and communities. Traditional solutions can be expensive disruptive and slow to deploy. Lighthouse is designed to provide a faster and more cost effective alternative while giving mobile network operators control over network performance. We also continue to advance our engagement with a Tier 1 U.S. mobile network operator we previously mentioned. We are now working through the final certification approval process for its enterprise offering. And the operator has identified several customers for potential trials. Our commercial approach combines a top down and bottom up strategy. We work with the MNOs to obtain network approval and reach enterprise accounts. At the same time, we engage directly with end customers. Including enterprises and communities. To validate the need and create demand. Service providers and system integrators remain important deployment partners. While we are making very good strides with Lighthouse, we view Lighthouse primarily as a 2027 revenue opportunity. Our near objective is to complete trials establish reference deployments, and demonstrate a repeatable commercial model. Any revenue before then will be incremental to that plan. Now turning to our core markets, Enterprise IoT was the main driver of our sequential growth in the second quarter. And we expect it to remain an important growth driver in Q3. Demand from our long standing end customers continues to increase. Primarily in the energy monitoring applications. And we see renewed activity in the EV charging market. Shipments under the previously announced $4 million purchase order accelerated and are now expected to be completed by the end of this quarter. In parallel, we continue to expand opportunities in emerging applications such as robotics, drones, and data centers. Coco Robotics, is preparing to launch its next generation autonomous delivery vehicles. And we expect the program to begin ramping up production shipments this quarter. Initial production shipments for a drone application are also expected to begin this quarter. The near term revenue contribution is modest but the program expands our presence in autonomous and mission critical applications. Finally, we recently secured a design win for remote energy monitoring in data centers. With revenue expected to begin in early 2027. This win extend the Skywire platform into the growing data center connectivity market and create a reference point for similar opportunities. IoT order patterns can be uneven So we are not assuming the current growth rate will continue every quarter. Still, the recovery in established programs and the breadth of newer applications give us greater confidence in the long term opportunity. The near term picture in consumer is more mixed. Q2 revenue was relatively stable. Supported by Wi-Fi 7 antenna shipments and demand from Tier 1 service providers. We are managing 2 distinct factors that are affecting consumer during Q3. The first is the continuing memory shortage. Logic was in AI infrastructure is causing suppliers to prioritize high bandwidth memory. Tightening the availability and increasing the cost of the standard memory used in home gateways. The timing of improvement in the environment remains uncertain. The second factor was the FCC ruling. Which affected the timing of our MNO's new product launches. Our OEM partners have recently received conditional approvals. As a result, this issue contributed to shipping delays in the second half. Based on our backlog and customer forecast, we expect consumer revenue to decline sequentially in Q3. Which is reflected in our guidance. Importantly, these timing issues do not reflect a change in underlying demand. Our solution spans multiple OEM platforms and service providers. Reducing our reliance on any 1 gateway supplier. Wi-Fi 7 and our Tier 1 MNO programs remain important long term growth drivers. We have secured the inventory required to support our current AirgainConnect and Lighthouse plans into 2027, limiting the near term impact on these growth platforms. With that, I will turn the call over to Michael. Michael Elbaz: Thank you, Jacob. Before diving into the numbers, please note that my review of our financial results and guidance refers to non GAAP figures. Information about the non GAAP financial measures including GAAP to non GAAP reconciliations, can be found in our earnings release. Now, let's turn to our second quarter results. Q2 sales were $13.7 million slightly above the midpoint of our guidance range and up 0.7% year-over-year marking our first quarter of year over year growth in 6 quarters. Sequentially, Q2 sales increased $2.2 million or 19% driven by growth across all our markets. Enterprise sales were $6.7 million up $1.7 million sequentially. Driven by higher IoT modems, and custom product sales. Automotive sales were $1.2 million up $300 thousand sequentially reflecting higher sales of AirgainConnect vehicle gateways. Consumer sales were $5.8 million sequentially up $200 thousand driven by Wi-Fi 7 antenna shipments. Non GAAP gross margin for the second quarter was 43.6% compared to 44.2% in the prior quarter and relatively flat year over year. The sequential decline was primarily due to a change in product and customer sales mix. Non GAAP operating expenses were $5.7 million down $400 thousand sequentially and down $800 thousand or 12% year over year reflecting continued expense discipline. Separately, GAAP operating expenses included $600 thousand in severance expenses associated with the headcount reduction we mentioned on our last call. These actions align resources with our highest priority development and customer programs. In Q2, adjusted EBITDA was $400 thousand $200 thousand higher than the midpoint of guidance Adjusted EBITDA improved by $1.3 million sequentially on higher sales and lower expenses highlighting the operating leverage in our business model. Non GAAP EPS was $0.02, $0.01 above the midpoint of guidance and an improvement of $0.10 from the prior quarter. As of 6/30/2026, our cash balance was $7.6 million, $500 thousand higher than the prior quarter. Net cash proceeds from our ATM were $1 million Now, moving to our outlook for the third quarter ending 9/30/2026. As a reminder, we provide quarterly guidance for sales non GAAP gross margin and expenses, non GAAP EPS and adjusted EBITDA, as we believe these metrics to be key indicators for the overall performance of our business. For the third quarter of 2026, we project sales to range from $14.25 million to $16.25 million with a midpoint of $15.25 million The midpoint represents an 11% sequential growth driven by continued strength in enterprise, and automotive partially offset by the projected sequential decline in consumer that Jacob just discussed. We expect non GAAP gross margin to range from 41.5% to 44.5% with a midpoint of 43%. The sequential change at the midpoint primarily reflects the anticipated decline in consumer market sales. We are experiencing higher component and module cost but we have offset these increases through pricing and product cost initiatives. We project non GAAP operating expenses to be approximately $6 million Non GAAP EPS is expected to be positive $0.04 at the midpoint of our guidance Adjusted EBITDA is expected to be positive $700 thousand at the midpoint of our guidance. Now, I would like to turn the call back over to Jacob for his closing thoughts. Operator: Jacob? Jacob Suen: Thanks, Michael. Q2 reinforce our confidence in the directions of the business. We deliver on our commitments and enter the second half with building momentum. Our Q3 outlook reflects continued sequential growth and improved profitability. With operating expenses expected to remain relatively stable. We should generate greater operating leverage as revenue scales. We are also making tangible progress across our growth platforms. AirgainConnect is producing design wins and moving more opportunities through trial and post trial stages. Lighthouse is advancing into scheduled U.S. end customer trials as we continue working through the approval process with a Tier 1 mobile network operator. We are encouraged by our progress. But we recognize that converting these opportunities takes time and consistent execution. Our priorities are clear. Deliver our Q3 outlook convert more customer programs into revenue and expand adjusted EBITDA through gross margin improvement and disciplined growth. Operator, we are now ready to take questions. Operator: We will now take questions from Airgain's sell side analysts. Our first question is from Jaeson Schmidt with Lake Street Capital Markets. Please go ahead. Jaeson Schmidt: Hey, guys. Thanks for taking my questions. Just want to start with AirgainConnect. Obviously, it sounds like the funnel continues to expand with, I think you noted, over 50% in trials or post trial stages. How should we think about those trials converting to orders and revenue in the timing around that? Jacob Suen: Jacob, yes, great questions. On the AirgainConnect, yes, definitely, we are very encouraged about the progress. And as I indicated in the call, in second quarter, we were able to convert 5 of those design wins. So we are hoping to be able to continue at an increasing rate. While we cannot give you a precise number, I would our goal is to convert at least a third of that every quarter. that is gonna be the goal. We are also very close to closing a Tier 1 opportunity and we are really wrapping up the last stage which is just the certification that should also really help the second half growth as a whole. Jaeson Schmidt: Okay. that is helpful. And then just following up on your comments on the drone application, which understanding it is minimal revenue here in the near term. But can you discuss what you are seeing in that market and if you continue to target other customers in that space? Jacob Suen: Yes. Certainly. Well, but excited about this particular opportunity relating to our IoT product. So this particular application, it is actually using our IoT modem to help, it is a point so to speak. For drone applications, we are also seeing a number of those using our automotive product including our AirgainConnect solutions as well. In that setup, they are using our AirgainConnect actually on the vehicle to be able to improve communications with the drone. So we are seeing a number of those opportunities using our overall product. Michael Elbaz: And to give you more color on this, Jacob, this is pretty exciting to see on the Skywire modem growth altogether. We have been very much entrenched with end customers that are very much into the application of energy monitoring, HVAC, you name it. it is basically very industrial. And but those are very resilient type of market markets. Seeing new applications such as robotics, a couple quarters ago and then drones this quarter, And then we started to engage with a couple of companies on a data center remote monitoring application. That is good to see that those new market application provide future growth specifically for 2027. At this point in Q3, we are counting on the robotics company to start the initial shipments on production units. We expect to see production units next quarter with the drone company and at the same time data center should be in the early part of 2027. But we are using those references points to your point there to really try to expand that top of the base and market applications. Jaeson Schmidt: Gotcha. So I appreciate that color. Jump back into queue. Thanks a lot, guys. Jacob Suen: Thank you. Operator: Our next question is from Anthony Stoss with Craig-Hallum. Please go ahead. Anthony Joseph Stoss: Thanks. Good afternoon, Jacob and Michael. Wanted to follow-up on Jaeson's questions on the AirgainConnect, the pipeline. I am curious what you are learning so far with the companies that have been in trial and the fact that you converted what they liked Also, maybe it would be helpful if you know the numbers are a rough estimate how many total vehicles are in those 60 opportunities Just trying to get a sense of average deal size perhaps and anything else you might want to be willing to share. Michael Elbaz: Yes. Absolutely, Tony. So in terms of the 60 deals that we are tracking, those are Tier 1 and Tier 2 deals. Tier 1, if you recall, those are 500-plus vehicle fleet Tier 2 are between 50 and 500 vehicles. We used to give a statistic on the Tier 3 which are below 50 vehicles Those are going to go through distribution channel very quickly on that. So the focus is on Tier 2 and Tier 1 because those are gonna be the meaningful path to revenue. If you recall about a year ago, we started to also define the overall cycle time that it would take to close from first contact or first interest or expression of interest to revenue generation. And we mentioned that the tier 2 would take about 12, 9 to 15 months, 12 months on the average a year. And the Tier 1 would be about 12 months to 18 months. And we happen to be right on that schedule right now with the Tier 2 starting to ramp up from a closure standpoint. 5 in Q2, we are very excited about that. I believe last quarter we had 1. Those 5 represent 4 first responders fleet and 1 utility company. What I can tell you is that the orders, as we are seeing from our POS data, is taking place on all 5 companies. So they are starting the deployment phase. And of course we are hoping that the deployment takes place over the next 2, 3 quarters altogether. For the Tier 1, it is a more complex type of a sale because it has multilayer type of contacts and approval sometimes certification from different departments. And sometimes in many cases, executive level approval. So this is more of a consultative type of an approach where we have been bring together an overall ROI analysis working together to be able to anticipate some of the savings and the performance improvement as well too. So those require more trials and under different type of conditions and we are going through that. 1 thing that I can share as well too is the Tier 1, Tier 2 of about 60 deals right now I would say that 70% of that is Tier 2. And about 30% of that is Tier 1. And on the Tier 1, what is interesting is that the majority are non first responders. Those are fleet that are definitely very large across the whole U. S in many cases. And at the same time, they are looking at this as an important type of decision because this is having a gateway. Whereas on the Tier 2, I would say that about 70% of that is first responders. And those are the smaller size that are looking for that simplification that we bring all the critical range that we can offer especially with the MegaFi. I hope that helps. Jacob Suen: Yeah. Let me add a little bit more color to what Michael was just saying about the differentiation. it is becoming very clear to us that for the non first responder vehicle, most of them do not have that trunk space. Those are like the sanitation vehicles. Those are like pest control vehicles and other street vehicles. They do not have that trunk space. So the current setup, it is a router on the back which is not acceptable to them. So most of them are using a, you know, like a tablet or even to say mobile device. That does not give them that coverage. And what AirgainConnect is able to offer to them is this all in 1 option that they are really intrigued And in working with the network operators, there was a major Tier 1 opportunity that basically AirgainConnect is the only viable solution today. And also going to help them save a lot of these content instead of paying multiple data plan they can consolidate. That provides them a major cost advantage and also easier to maintain, easier to manage. So we have seen that as a major differentiation that is really resonating with the prospects. And so overall, I think that overall, I would say the overall size of those 60 opportunities is tens of thousands. that is what we are seeing at this point. Great. Anthony Joseph Stoss: Thanks for the color guys. Operator: At this time, this concludes our question and answer session. If your questions were not answered, you may contact Airgain's Investor Relations team at [email protected]. I would like to turn the call over now to Mr. Suen for closing remarks. Jacob Suen: Thank you for your thoughtful questions and continued interest in Airgain. We are encouraged by our progress and look forward to updating you as we execute our priorities through the second half. We appreciate your time today. Operator, you may now conclude the call. Operator: Thank you for joining us today. For Airgain's Second Quarter 26 Earnings Call. You may now disconnect. Before you buy stock in Airgain, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Airgain wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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This article first appeared on GuruFocus. Revenue: $13.7 million, up 19% sequentially and 0.7% year-over-year. Enterprise Sales: $6.7 million, up $1.7 million sequentially. Automotive Sales: $1.2 million, up $0.3 million sequentially. Consumer Sales: $5.8 million, up $0.2 million sequentially. Non-GAAP Gross Margin: 43.6%, down from 44.2% in the prior quarter. Non-GAAP Operating Expenses: $5.7 million, down $0.4 million sequentially and down 12% year-over-year. Adjusted EBITDA: $0.4 million, up $1.3 million sequentially. Non-GAAP EPS: $0.02, an improvement of $0.10 from the prior quarter. Cash Balance: $7.6 million as of June 30, 2026, up $0.5 million sequentially. Q3 2026 Sales Guidance: $14.25 million to $16.25 million, with a midpoint of $15.25 million. Q3 2026 Non-GAAP Gross Margin Guidance: 41.5% to 44.5%, with a midpoint of 43%. Q3 2026 Non-GAAP Operating Expenses Guidance: Approximately $6 million. Q3 2026 Non-GAAP EPS Guidance: Positive $0.04 at the midpoint. Q3 2026 Adjusted EBITDA Guidance: Positive $0.7 million at the midpoint. Warning! GuruFocus has detected 4 Warning Signs with AIRG. Is AIRG fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue increased 19% sequentially to $13.7 million, marking the first year-over-year growth in six quarters. Achieved positive adjusted EBITDA of $0.4 million, improving by $1.3 million sequentially. AirgainConnect pipeline grew to approximately 60 Tier 1 and Tier 2 opportunities, with over half now in trial or post-trial stages. Secured five Tier 2 design wins in Q2, including a large countrywide public safety customer with potential deployment across more than 1,000 vehicles. Lighthouse advanced with two scheduled U.S. end customer trials and a new international trial for the integrated 4G/5G combo solution. Enterprise IoT growth driven by energy monitoring, EV charging, and new applications like robotics, drones, and data centers. Expanded AirgainConnect portfolio with MegaFi 2 and MegaGo 2, both FirstNet trusted solutions, and strengthened carrier relationships with FirstNet/AT&T. Q3 guidance projects continued sequential growth with sales midpoint of $15.25 million and positive adjusted EBITDA of $0.7 million. Consumer revenue expected to decline sequentially in Q3 due to memory shortage and FCC ruling impacting new product launch timing. Memory shortage, driven by AI infrastructure demand, is tightening availability and increasing costs for standard memory used in home gateways. FCC ruling caused shipping delays in the second half, affecting consumer market sales. Non-GAAP gross margin declined sequentially to 43.6% due to product and customer sales mix. Lighthouse is viewed primarily as a 2027 revenue opportunity, with near-term revenue only incremental. GAAP operating expenses included $0.6 million in severance expenses from headcount reduction. IoT order patterns remain uneven, and the company is not assuming current growth rates will continue every quarter. Higher component and module costs are pressuring gross margins, though partially offset by pricing and cost initiatives. Q: How should we think about the AirgainConnect pipeline trials converting to orders and revenue, and what is the timing around that?A: Jacob Suen (CEO) stated that the company is encouraged by the progress, having converted five design wins in Q2. The internal goal is to convert at least one-third of the pipeline every quarter. He also noted they are very close to closing a Tier 1 opportunity, with only final certification requirements remaining, which should significantly help second-half growth. Q: Can you provide more color on the AirgainConnect pipeline, including what customers like about the product, the total number of vehicles in the 60 opportunities, and the average deal size?A: Michael Elbaz (CFO) detailed that the 60 opportunities are split roughly 70% Tier 2 (50-500 vehicles) and 30% Tier 1 (500+ vehicles). The five Q2 wins (four first responders, one utility) are already in the deployment phase. Jacob Suen (CEO) added that the key differentiator is the all-in-one solution, which is particularly appealing to fleets without trunk space, and that the total potential size of the 60 opportunities is in the tens of thousands of vehicles. Q: What are you seeing in the drone application market, and are you targeting other customers in that space?A: Jacob Suen (CEO) confirmed the company is excited about the drone opportunity, which uses their IoT modem. They are also seeing opportunities where their AirgainConnect automotive product is used on vehicles to improve communication with drones. Michael Elbaz (CFO) added that while the near-term revenue is modest, they expect initial production shipments for the drone company next quarter, and they are using these wins as reference points to expand into new market applications like data centers. Q: What is the outlook for the consumer segment given the memory shortage and FCC ruling impacts?A: Jacob Suen (CEO) explained that the consumer market is facing two distinct headwinds in Q3: a continuing memory shortage affecting home gateway production and an FCC ruling that delayed new product launches by MNOs. While these issues are causing a projected sequential decline in consumer revenue, he emphasized they are timing issues, not a change in underlying demand, and that WiFi 7 and Tier 1 MNO programs remain long-term growth drivers. Q: Can you elaborate on the progress with the Tier 1 U.S. mobile network operator for the Lighthouse product?A: Jacob Suen (CEO) stated that they are working through the final certification and approval process for the operator's enterprise offering. The operator has already identified several customers for potential trials. The company is pursuing a dual top-down and bottom-up strategy, working with MNOs for network approval while engaging directly with end customers to validate demand. Q: What is the revenue expectation for the Lighthouse product, and what are the near-term objectives?A: Jacob Suen (CEO) clarified that they view Lighthouse primarily as a 2027 revenue opportunity. The near-term objective is to complete trials, establish reference deployments, and demonstrate a repeatable commercial model. Any revenue before 2027 would be incremental to that plan. Q: What drove the sequential growth in the Enterprise segment, and what is the outlook for Q3?A: Michael Elbaz (CFO) noted that Enterprise IoT was the main driver of sequential growth in Q2, driven by higher IoT modems and custom product sales. Demand from long-standing customers is increasing, particularly in energy monitoring, and there is renewed activity in the EV charging market. The company expects Enterprise to remain an important growth driver in Q3. Q: Can you provide details on the Q3 2026 financial guidance?A: Michael Elbaz (CFO) provided guidance for Q3 2026: sales are projected to be between $14.25 million and $16.25 million (midpoint $15.25 million, representing 11% sequential growth). Non-GAAP gross margin is expected to be between 41.5% and 44.5%, with operating expenses around $6 million. Non-GAAP EPS is expected to be positive $0.04, and adjusted EBITDA is expected to be positive $0.7 million at the midpoint. Q: How is the company managing the higher component and module costs?A: Michael Elbaz (CFO) stated that while they are experiencing higher component and module costs, they have successfully offset these increases through pricing actions and product cost initiatives. This is reflected in their Q3 gross margin guidance. Q: What is the company's strategy for the AirgainConnect portfolio, and how is the carrier relationship with FirstNet helping?A: Jacob Suen (CEO) explained that the expanded portfolio, including MegaFi 2 and MegaGo 2, provides multiple connectivity solutions for various applications. The carrier-enabled model with FirstNet built with AT&T extends their commercial reach, and they have developed a plug-and-play configuration to simplify evaluation and deployment for non-first responder customers. They are also working to extend this model to additional markets. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Q2 highlighted by strong sequential growth and continued momentum across enterprise IoT and AirgainConnect SAN DIEGO, August 05, 2026--(BUSINESS WIRE)--Airgain, Inc. (NASDAQ: AIRG), a leading provider of advanced wireless connectivity solutions, today reported financial results for the second quarter ended June 30, 2026. "Airgain delivered strong sequential improvement in the second quarter, with revenue increasing 19% and adjusted EBITDA returning to positive territory," said Jacob Suen, President and CEO of Airgain. "Our performance was led by growing demand for our IoT modem solutions and increasing contributions from our AirgainConnect portfolio, demonstrating the operating leverage in our model as revenue scales. We expect continued sequential revenue growth and positive adjusted EBITDA in the third quarter, driven by strength across enterprise IoT modems and vehicle gateways, while navigating near-term industry supply constraints in our consumer business. With new opportunities advancing across robotics, drones, data center monitoring, public safety, and enterprise network infrastructure, we look forward to building on this momentum through the second half of the year." Second Quarter 2026 and Recent Operational Highlights Expanded the AirgainConnect portfolio with the addition of the FirstNet Trusted™ MegaFi 2™ and MegaGo 2™ HPUE solutions, broadening Airgain’s offering for public safety agencies, utilities, and other critical field operations. Advanced new IoT opportunities across high-growth applications, including autonomous robotics and drones, with production shipments expected to begin in the second half of 2026, and secured a new design win supporting remote energy monitoring in data centers, with revenue expected to begin in 2027. Secured commitments for two U.S. Lighthouse enterprise trials with a leading logistics company and a large residential community, while advancing the platform’s product roadmap and integrated 4G/5G solution with Nextivity. Second Quarter 2026 Financial Highlights GAAP Sales of $13.7 million GAAP gross margin of 42.3% GAAP operating expenses of $7.5 million GAAP net loss of $1.7 million or $(0.13) per share Non-GAAP Non-GAAP gross margin of 43.6% Non-GAAP operating expenses of $5.7 million Non-GAAP net income of $0.3 million or $0.02 per share Adjusted EBITDA of $0.4 million Second Quarter 2026 Financial Results Sales for the second quarter of 2026 were $13.7 million, compared to $11.5 million in the first quarter of 2026 and $13.6 million in the second quarter of 2025. Second quarter 2026 revenue consisted of $6.7 million from the enterprise market, $5.8 million from the consumer market, and $1.2 million from the automotive market. Sequentially, sales increased $2.2 million or 19.1%. Enterprise sales increased $1.7 million, driven by higher IoT modem shipments. Automotive sales increased $0.3 million, driven by higher vehicle gateway shipments. Consumer sales increased $0.2 million, driven by Wi-Fi 7 antenna shipments. Compared to the second quarter of 2025, sales increased $0.1 million, or 0.7%, primarily reflecting a $0.4 million increase in automotive revenue and a $0.2 million increase in consumer revenue, partially offset by a $0.5 million decrease in enterprise revenue. GAAP gross profit for the second quarter of 2026 was $5.8 million, compared to $5.0 million for the first quarter of 2026 and $5.8 million for the same quarter a year ago. Non-GAAP gross profit for the second quarter of 2026 was $6.0 million, compared to $5.1 million for the first quarter of 2026 and $6.0 million for the same quarter a year ago (see note regarding "Use of Non-GAAP Financial Measures" below for further discussion of this non-GAAP measure). GAAP gross margin for the second quarter of 2026 was 42.3%, compared to 43.2% for the first quarter of 2026 and 42.9% for the same quarter a year ago. The sequential decline was primarily driven by an unfavorable customer sales mix change, and a lower consumer gross margin rate due to an unfavorable product mix. Non-GAAP gross margin for the second quarter of 2026 was 43.6% compared to 44.2% for the first quarter of 2026 and 43.8% for the same quarter a year ago (see note regarding "Use of Non-GAAP Financial Measures" below for further discussion of this non-GAAP measure). GAAP operating expenses for the second quarter of 2026 were $7.5 million, compared to $7.1 million for the first quarter of 2026 and $7.8 million for the same quarter a year ago. The sequential increase was primarily due to a severance expense recorded in the second quarter. Operating expenses for the second quarter of 2026 decreased from the same quarter a year ago, primarily due to lower amortization of intangible assets, partially offset by higher employee-related expenses. Non-GAAP operating expenses for the second quarter of 2026 were $5.7 million compared to $6.1 million in the first quarter of 2026 and $6.5 million for the same quarter a year ago (see note regarding "Use of Non-GAAP Financial Measures" below for further discussion of this non-GAAP measure). GAAP net loss for the second quarter of 2026 was $1.7 million or ($0.13) per share (based on 12.8 million shares), compared to net loss of $1.9 million or ($0.15) per share (based on 12.3 million shares) for the first quarter of 2026 and net loss of $1.5 million or ($0.12) per share (based on 11.8 million shares) for the same quarter a year ago. Non-GAAP net income for the second quarter of 2026 was $0.3 million or $0.02 per share (based on 13.2 million diluted shares), compared to a non-GAAP net loss of $1.0 million or ($0.08) per share (based on 12.3 million shares) for the first quarter of 2026 and a non-GAAP net loss of $0.5 million or ($0.04) per share (based on 11.8 million shares) for the same quarter a year ago (see note regarding "Use of Non-GAAP Financial Measures" below for further discussion of this non-GAAP measure). Adjusted EBITDA for the second quarter of 2026 was $0.4 million, compared to ($0.9) million for the first quarter of 2026 and ($0.4) million for the same quarter a year ago (see note regarding "Use of Non-GAAP Financial Measures" below for further discussion of this non-GAAP measure). Third Quarter 2026 Financial Outlook GAAP Sales are expected to be in the range of $14.25 million and $16.25 million, or $15.25 million at the midpoint GAAP gross margin is expected to be in the range of 40.8% to 43.8% GAAP operating expense is expected to be approximately $6.8 million GAAP net loss per share is expected to be $(0.03) per share at the midpoint Non-GAAP Non-GAAP gross margin is expected to be in the range of 41.5% to 44.5% Non-GAAP operating expense is expected to be approximately $6.0 million Non-GAAP net income per share is expected to be $0.04 at the midpoint Adjusted EBITDA is expected to be $0.7 million at the midpoint The Company's financial outlook for the three months ending September 30, 2026, including reconciliations of GAAP to non-GAAP measures can be found at the end of this press release. Conference Call Management will hold a conference call today, August 5, 2026, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss financial results for the second quarter ended June 30, 2026. Management will host the presentation, followed by a question-and-answer period. Dial-In: 877 407-2988 or 201 389-0923 or Call Me Confirmation #: 13761822 The conference call will be broadcast simultaneously and be available for replay via the investor section of the company’s website at investors.airgain.com. For webcast access, please follow the web address below to register for the conference call. Registration: Here A replay of the webcast will be available via the registration link after 8:00 p.m. Eastern Time until August 5, 2027. About Airgain, Inc. Headquartered in San Diego, California, Airgain, Inc. (NASDAQ: AIRG) is a leading provider of advanced wireless connectivity solutions that drive cutting-edge innovation in 5G technology. We are committed to delivering high-performance, cost-effective, and energy-efficient wireless solutions that enable rapid market deployment. Our mission is to connect the world through integrated, innovative, and optimized wireless solutions. Our diverse product portfolio serves three primary markets: enterprise, automotive, and consumer. For more information, visit airgain.com, or follow us on LinkedIn and X. Airgain, AirgainConnect, and the Airgain logo are trademarks or registered trademarks of Airgain, Inc. All other trademarks are the property of their respective owner. Forward-Looking Statements Airgain cautions you that statements in this press release that are not a description of historical facts are forward-looking statements. These statements are based on the company’s current beliefs and expectations. These forward-looking statements include statements regarding our expectations about our pipeline, and timing for production units and shipments and future revenue, the leverage in our model and scalability of revenue, market opportunities and momentum thereto, the size of potential opportunities from design wins, and our third quarter 2026 financial outlook. The inclusion of forward-looking statements should not be regarded as a representation by Airgain that any of our plans will be achieved. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in our business, including, without limitation: the market for our products is developing and may not develop as we expect; our operating results may fluctuate significantly, including based on seasonal factors, which makes future operating results difficult to predict and could cause our operating results to fall below expectations or guidance; supply constraints on our contract manufacturers' and our customers' ability to obtain necessary components in our respective supply chains, including with respect to memory semiconductors which suppliers may redirect toward higher-margin AI applications, may delay our volume ramp timelines, increase our costs and negatively affect our sales and operating results; risks associated with the performance of our products, including bundled solutions with third-party products; our products are subject to intense competition, and competitive pressures from existing and new companies may harm our business, sales, growth rates, and market share; emerging satellite-to-device connectivity technologies may reduce demand for terrestrial wireless solutions or require significant engineering investment to address hybrid connectivity requirements; the potential for partnerships, strategic alliances and advisors to not meet expectations; risks associated with quality and timing in manufacturing our products and our reliance on third-party manufacturers; we may not be able to maintain strategic collaborations under which our bundled solutions are offered; overall global supply shortages, including with respect to memory chips, and logistics delays within the supply chain that our products are used in, and uncertainty regarding tariffs and trade policies and their potential impact, as well as in each case, their adverse effect on general U.S. and global economic conditions and financial markets, and, ultimately, our sales and operating results; any rise in interest rates and inflation may adversely impact our margins, the supply chain and our customers’ sales, which may negatively affect our sales and operating results; our future success depends on our ability to develop and successfully introduce new and enhanced products for the wireless market that meet the needs of our customers, including our ability to transition to provide a more diverse solutions capability; we sell to customers who are price conscious, and a few customers represent a significant portion of our sales, and if we lose any of these customers, our sales could decrease significantly; we rely on a limited number of contract manufacturers to produce and ship all of our products, and our contract manufacturers rely on a single or limited number of suppliers for some components of our products and channel partners to sell and support our products, and the failure to manage our relationships with these parties successfully or a failure of these parties to perform could adversely affect our ability to market and sell our products; if we cannot protect our intellectual property rights, our competitive position could be harmed or we could incur significant expenses to enforce our rights; and other risks described in our prior press releases and in our filings with the Securities and Exchange Commission (SEC), including under the heading "Risk Factors" in our Annual Report on Form 10-K and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and we undertake no obligation to revise or update this press release to reflect events or circumstances after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Note Regarding Use of Non-GAAP Financial Measures To supplement our financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), this earnings release and the accompanying tables and the related earnings conference call contain certain non-GAAP financial measures, including adjusted earnings before interest, taxes, depreciation, amortization (Adjusted EBITDA), non-GAAP net income (loss) attributable to common stockholders (non-GAAP net income (loss)), non-GAAP net income (loss) per (basic or diluted) share (non-GAAP EPS), non-GAAP operating expense, non-GAAP gross profit and non-GAAP gross margin. We believe these financial measures provide useful information to investors with which to analyze our operating trends and performance. In computing Adjusted EBITDA, non-GAAP net income (loss), and non-GAAP EPS, we exclude stock-based compensation expense, which represents non-cash charges for the fair value of stock awards; interest income, net of interest expense offset by other expense, depreciation and amortization, workforce reduction severance and exit costs, and provision (benefit) for income taxes. In computing non-GAAP operating expense, we exclude stock-based compensation expense, amortization of intangibles, workforce reduction severance, and exit costs. In computing non-GAAP gross profit and non-GAAP gross margin, we exclude stock-based compensation expense, and amortization of intangible assets. Because of varying available valuation methodologies, subjective assumptions, and the variety of equity instruments that can impact a company’s non-cash operating expenses; we believe that providing non-GAAP financial measures that exclude non-cash expense allows for meaningful comparisons between our core business operating results and those of other companies, as well as providing us with an important tool for financial and operational decision making and for evaluating our own core business operating results over different periods of time. Management considers these types of expenses and adjustments, to a great extent, to be unpredictable and dependent on a considerable number of factors that are outside of our control and are not necessarily reflective of operational performance during a period. Our non-GAAP measures may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in our industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. Our Adjusted EBITDA, non-GAAP net income (loss), non-GAAP EPS, non-GAAP operating expense, non-GAAP gross profit and non-GAAP gross margin are not measurements of financial performance under GAAP and should not be considered as an alternative to operating or net income or as an indication of operating performance or any other measure of performance derived in accordance with GAAP. We do not consider these non-GAAP measures to be a substitute for, or superior to, the information provided by GAAP financial results. Reconciliations with specific adjustments to GAAP results and outlooks are provided at the end of this release. View source version on businesswire.com: https://www.businesswire.com/news/home/20260805031417/en/ Contacts Airgain Contact Michael ElbazChief Financial [email protected] Airgain Investor Contact Matt GloverGateway Group, Inc.+1 949 574 [email protected]

Interested in Airgain, Inc.? Here are five stocks we like better. Second-quarter revenue rose to $13.7 million, up 19% sequentially, while adjusted EBITDA turned positive at $400,000. Enterprise IoT growth offset consumer headwinds, though consumer revenue is expected to decline in the third quarter because of memory shortages and FCC-related launch delays. AirgainConnect momentum strengthened, with about 60 Tier 1 and Tier 2 opportunities and more than half in trial or post-trial stages. The company secured five Tier 2 design wins, including a potential public-safety deployment covering more than 1,000 vehicles. Lighthouse coverage-platform trials are advancing across U.S. and international customers, but management views meaningful revenue primarily as a 2027 opportunity. Airgain expects third-quarter revenue of $14.25 million to $16.25 million and adjusted EBITDA of approximately $700,000 at the midpoint. Airgain (NASDAQ:AIRG) reported second-quarter revenue of $13.7 million, up 19% sequentially and 0.7% from a year earlier, as growth in enterprise, automotive and consumer markets helped the wireless connectivity provider post positive adjusted EBITDA. President and CEO Jacob Suen said the company entered the second half of 2026 with deeper customer engagement, a more mature pipeline and a growing number of programs moving from evaluations into trials and deployments. Airgain’s priorities include expanding its core businesses, converting its AirgainConnect pipeline into revenue, advancing its Lighthouse platform toward commercialization and improving operating leverage. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Airgain continued to broaden its AirgainConnect portfolio during the quarter through its work with FirstNet, built with AT&T. The company added MegaFi 2 and MegaGo 2, which are FirstNet Trusted solutions using high-power user equipment technology for demanding coverage environments. The AirgainConnect portfolio now includes solutions for vehicle, fixed, portable and rapid-response uses, serving first responders, utilities, transportation, energy and other field operations. Suen said Airgain’s carrier relationships help identify customer opportunities, while the company supports demonstrations, trials, integration and customization. → 3 Drone Stocks That Should Soar After the Summer Slump The AirgainConnect pipeline now includes approximately 60 Tier 1 and Tier 2 opportunities, with more than half in trial or post-trial stages, compared with about one-third at the time of the prior earnings call. The opportunity mix was approximately 55% first responder customers and 45% utilities and other commercial fleet applications. During the second quarter, Airgain secured five Tier 2 AirgainConnect design wins: four with first-responder organizations and one with a utility company. One win involved a countywide public-safety customer with fire, ambulance and police fleets, representing a potential deployment of more than 1,000 vehicles over time. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure In response to analyst questions, management said the Tier 2 opportunities generally involve fleets of 50 to 500 vehicles and may take roughly nine to 15 months to convert from initial customer interest to revenue. Tier 1 opportunities involve fleets of more than 500 vehicles and can take 12 to 18 months, according to the company. Airgain is also in the final sales stage for a Tier 1 first-responder opportunity that it is targeting to close by year-end, although customer-specific certification requirements remain. Suen said the certification investments could also be used with other prospective customers. The company recently added Jim Buglia, former president of AT&T FirstNet, as a strategic adviser to help deepen relationships with public-safety organizations, the FirstNet Authority and large fleet original equipment manufacturers. Airgain said its Lighthouse cellular coverage platform is advancing into end-customer trials in the United States. The company has scheduled two U.S. trials that collectively support coverage across all three major carriers. The first trial is with a large logistics company seeking better cellular coverage across its operating environment. Airgain’s production-ready configuration supports the mid-band spectrum used by AT&T and Verizon. A second trial with a residential community is intended to address coverage gaps in large communities and homeowners associations. That configuration supports T-Mobile spectrum, with pre-production samples expected during the third quarter. Airgain also secured an international customer trial for an integrated 4G and 5G combination solution, with initial samples expected in the third quarter. Meanwhile, the company said it is working through final certification and approval with a previously disclosed Tier 1 U.S. mobile network operator for an enterprise offering. Despite the progress, Suen said Lighthouse is primarily a 2027 revenue opportunity. The near-term focus is on completing trials, establishing reference deployments and demonstrating a repeatable commercial model. Enterprise IoT was the primary contributor to Airgain’s sequential growth in the second quarter, Suen said. Enterprise sales totaled $6.7 million, up $1.7 million sequentially, driven by higher IoT modem and custom-product sales. Shipments under a previously announced $4 million purchase order accelerated and are expected to be completed by the end of the third quarter. Airgain expects production shipments for Coco Robotics’ next-generation autonomous delivery vehicles to begin during the third quarter. Initial production shipments for a drone application are also expected this quarter, while a recently secured data-center remote-energy-monitoring design win is expected to begin producing revenue in early 2027. Consumer sales were $5.8 million, supported by Wi-Fi 7 antenna shipments and Tier 1 service-provider demand. However, Airgain expects consumer revenue to decline sequentially in the third quarter because of a continuing memory shortage and delays in customer product launches following an FCC ruling. Suen said OEM partners have recently received conditional approvals, but the issue delayed shipments during the second half. Automotive sales were $1.2 million in the second quarter, reflecting higher sales of AirgainConnect vehicle gateways, Chief Financial Officer Michael Elbaz said. Non-GAAP gross margin was 43.6%, compared with 44.2% in the prior quarter, primarily due to product and customer mix. Non-GAAP operating expenses fell to $5.7 million, down $400,000 sequentially and $800,000, or 12%, year over year. GAAP operating expenses included $600,000 in severance expenses tied to a previously disclosed headcount reduction. Adjusted EBITDA was positive $400,000, improving by $1.3 million sequentially. Non-GAAP earnings per share were $0.02, an improvement of $0.10 from the prior quarter. Cash totaled $7.6 million as of June 30, up $500,000 from the prior quarter, including $1 million in net proceeds from the company’s at-the-market program. For the third quarter, Airgain forecast revenue of $14.25 million to $16.25 million, with a midpoint of $15.25 million representing 11% sequential growth. The company expects non-GAAP gross margin of 41.5% to 44.5%, non-GAAP operating expenses of about $6 million, non-GAAP EPS of $0.04 at the midpoint and adjusted EBITDA of positive $700,000 at the midpoint. Airgain, Inc (NASDAQ: AIRG) is a provider of intelligent wireless connectivity solutions designed to enhance data transmission, network performance and antenna efficiency for a range of devices. Headquartered in San Diego, California, the company develops both embedded and external antenna systems, as well as associated connectivity software, to support wireless applications across cellular, Wi-Fi, machine-to-machine (M2M) and Internet of Things (IoT) markets. The company's product portfolio includes modular smart antennas, parallel path phase-diversity antennas and advanced array antenna solutions that are optimized for environments such as smart homes, industrial automation, transportation and enterprise networking. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Airgain Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Transitioning from a component supplier to a higher-value system-level connectivity company, evidenced by expanded platform capabilities and deeper Tier 1 commercial engagements. Acquired HPUE MegaFi 2 assets from Nextivity to broaden the AirgainConnect portfolio, allowing the company to serve diverse deployment needs from fully integrated gateways to high-power router solutions. AirgainConnect pipeline grew approximately 40% sequentially to over 55 Tier 1 and Tier 2 opportunities, with a favorable shift toward non-first responder markets like energy and enterprise fleets. Lighthouse platform transitioned from network validation to the commercial phase, focusing on solving Tier 1 MNO pain points regarding the high cost and disruption of traditional 5G in-building upgrades. Consumer segment performance was impacted by typical seasonality and a specific supply constraint involving memory availability and pricing at a single OEM serving cable operators. Enterprise IoT momentum is recovering, highlighted by a $4 million purchase order from a long-standing customer and new design wins in robotics and autonomous defense craft. Q2 2026 guidance projects a 17% sequential revenue increase at the midpoint, driven primarily by growth in the enterprise and automotive sectors. Lighthouse commercialization is expected to begin in late 2026 with indoor deployments, followed by a broader opportunity in 2027 as outdoor evaluations conclude. Consumer revenue is expected to remain stable in Q2 as supply constraints ease, with two major Tier 1 MNO design wins scheduled to ramp in the second half of the year. Management anticipates improved operating leverage throughout 2026, with guidance for Q2 2026 reflecting positive adjusted EBITDA and EPS. International expansion for Lighthouse in the Middle East is expected to resume with initial deployments in the coming months following a pause due to regional conflict. The acquisition of MegaFi 2 assets strengthens the company's position within the AT&T FirstNet ecosystem, enabling direct ordering through the AT&T Speed portal. A specific supply chain headwind regarding memory pricing and availability is currently limited to one OEM but is being monitored for potential impacts on the timing of antenna shipments. Operating expenses were reduced by 8% year-over-year, reflecting a more disciplined OpEx model designed to maximize profitability as revenue scales. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed there was no revenue or margin impact in Q1, but they are being conservative with Q2 consumer guidance due to a 'temporary blip' at one OEM. The company maintains visibility through its relationships with multiple OEMs for the same service providers, providing a buffer if one supplier faces allocation issues. Tier 1 cycles remain 12 to 18 months, but the velocity of closing Tier 2 and Tier 3 deals has doubled from one per month last year to two per month in 2026. The opportunity size is increasing as the pipeline shifts toward large enterprise fleets, which can involve tens of thousands of vehicles compared to smaller first-responder fleets. Technology validation is complete; the company is now working with a Tier 1 MNO business sponsor to identify enterprise customers for live trials. The primary target is customers who previously rejected 5G upgrades due to high costs, as Lighthouse offers a solution at a fraction of the cost of traditional systems.

Airgain says it's converting strategic groundwork into commercial momentum as Airgain Connect expands via the acquisition of HPUE MegaFi 2 assets and inclusion in AT&T FirstNet, with a pipeline of >55 tier 1/2 opportunities (up ~40%) and more than one-third now in trial or post-trial stages. Lighthouse is moving from validation toward a live enterprise trial with a tier‑1 MNO and a business sponsor, targeting initial commercialization late 2026 and broader opportunities in 2027, while international engagement with Omantel has resumed. Financially, Q1 revenue was $11.5M (non‑GAAP gross margin 44.2%, adjusted EBITDA -$0.9M, cash $7.1M); Q2 guidance is $12.5M–$14.5M (midpoint $13.5M) with expected positive non‑GAAP EPS of $0.01 and adjusted EBITDA of $0.2M at the midpoint. Interested in Airgain, Inc.? Here are five stocks we like better. Airgain (NASDAQ:AIRG) reported first-quarter 2026 results that management described as a “solid start” to the year, pointing to expanding commercial activity across its core markets and growth platforms, including Airgain Connect and Lighthouse. President and CEO Jacob Suen said the company is “began converting the strategic groundwork we laid last year into broader commercial momentum across the business,” as it continues its shift toward “a higher value system-level connectivity company.” Suen highlighted expanded Airgain Connect capabilities following the acquisition of the “HPUE MegaFi 2 assets from Nextivity,” which he said strengthens Airgain’s vehicle gateway portfolio for public safety, utilities, and enterprise fleet applications. He said the addition enables Airgain to serve customers seeking either “a fully integrated vehicle gateway” or “a simpler high-power router solution.” → 3 Emerging Markets ETFs to Maximize Exposure to High-Potential Countries According to Suen, both AirgainConnect Fleet and AirgainConnect MegaFi 2 are part of the AT&T FirstNet offering and can be ordered through AT&T’s SPID portal. On commercial progress, Suen said Airgain closed a tier 2 energy-sector customer in March that is deploying Airgain Connect across “more than 300 maintenance and service vehicles” after field trials showed improved connectivity and ease of installation. → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches He also said the Airgain Connect pipeline has expanded and advanced: More than 55 tier 1 and tier 2 opportunities, up about 40% from roughly 40 cited on the prior call. More than one-third of tier 1 and tier 2 opportunities are now in trial or post-trial stages, up from a quarter on the prior call. Most opportunities are now coming from non-first responder markets, which Suen said makes the mix “more attractive.” During Q&A, Suen said tier 1 sales cycles remain “12 to 18 months,” and the company is “in the cycle time.” He added that tier 2 and tier 3 deal velocity has increased, saying that in 2025 the company closed “one deal per month,” while in 2026 year-to-date “it’s been about two deals per month.” Suen also said opportunity sizes are increasing as the company pursues larger non-first responder fleets that can involve “10,000s of vehicles.” → Tyson Foods' Total Returns: Tasty Treats for Income Investors? Suen said Airgain is progressing Lighthouse in the U.S. by working with “a business sponsor and a tier 1 Mobile Network Operator” toward a live enterprise trial, which he characterized as a move “from network validation into the business and commercial base.” If the trial proceeds as expected, Suen said initial commercialization could begin toward the end of 2026, with a broader opportunity developing in 2027. He cited customer challenges including “coverage, capacity, and the cost of network upgrades,” and said Lighthouse can offer a faster and more cost-effective option than traditional in-building systems such as DAS or small cells. Suen said indoor deployments represent the near-term opportunity, with initial deployments “targeted toward the end of this year,” while outdoor use cases are expected to follow a longer evaluation cycle. Internationally, Suen said Airgain’s relationship with Omantel in the Middle East remains “an important entry point,” noting deployment activity had been paused due to conflict in the region, but engagement has resumed and the company expects to move forward with initial deployments “over the coming months.” In response to an analyst question, Suen said technology validation has been completed through prior trials and the company is now working with the MNO’s sales team to identify one or two enterprise customers for a live trial. He described target customers as those where the MNO previously “had to walk away from deals” due to budget constraints and said Airgain’s approach could offer a solution at “a fraction of” legacy costs. In consumer, Suen said Airgain secured a “multi-year, multi-million dollar embedded antenna design win” for a next-generation 5G home connectivity platform with a tier 1 North American mobile network operator, with production units anticipated later in 2026. He said consumer revenue declined sequentially due to seasonality, and the company expects Q2 consumer revenue to remain “relatively stable” while it monitors a gateway-level supply constraint tied to memory availability and pricing at a single OEM serving cable operators. CFO Michael Elbaz said the company saw “no revenue impact” and “no gross margin impact” from the memory-related shortages in Q1, and said the company is being conservative in Q2 expectations because the impacted OEM believes the issue is temporary and “will be worked out by the end of the quarter.” During Q&A, Suen said Airgain has a “path” to returning to prior consumer revenue levels of $7 million to $8 million per quarter, but added the timing is uncertain: “Is that gonna be happening this year or next year? We don’t know that yet, although it’s trending very positively.” In enterprise IoT, Suen said Airgain received a $4 million purchase order from a long-standing customer, with shipments expected to be completed in 2026 and initial shipments in Q2. He also pointed to a new design win with Coco Robotics and said the company is seeing activity in adjacent areas such as drones, including “pre-production shipments in Q2” for a program involving autonomous VTOL rotorcraft for defense and commercial applications. Elbaz reported first-quarter sales of $11.5 million, which he said was at the midpoint of guidance. By segment, he reported enterprise sales of $5.0 million, automotive sales of $0.9 million, and consumer sales of $5.6 million. During Q&A, Suen clarified Q1 revenue mix as 49% consumer, 8% automotive, and 43% enterprise. Non-GAAP gross margin was 44.2%, down from 46.3% in the prior quarter, which Elbaz attributed primarily to “an unfavorable product mix.” Non-GAAP operating expenses were $6.1 million, modestly higher sequentially due to first-quarter marketing and trade show activity, but down 8% year-over-year as the company worked to optimize its operating model. Adjusted EBITDA was negative $0.9 million, while non-GAAP EPS was negative $0.08. Airgain ended the quarter with $7.1 million in cash, which Elbaz said was relatively flat sequentially, including $0.6 million in net cash proceeds from its at-the-market offering. For the second quarter ending June 30, 2026, Elbaz guided for sales of $12.5 million to $14.5 million, with a $13.5 million midpoint, representing 17% sequential growth at the midpoint driven by enterprise and automotive. The company expects non-GAAP gross margin of 42.5% to 45.5% (44% at the midpoint) and operating expenses of about $5.8 million. Elbaz said non-GAAP EPS is expected to be positive $0.01 at the midpoint, with adjusted EBITDA expected to be positive $0.2 million at the midpoint. In closing remarks, Suen said the company has “good visibility into Q2” and sees momentum across consumer demand, IoT repeat orders and new design wins, Airgain Connect conversions, and Lighthouse deployment activity. “Our focus is execution,” he said, including converting pipeline into deployments and improving profitability through 2026. Airgain, Inc (NASDAQ: AIRG) is a provider of intelligent wireless connectivity solutions designed to enhance data transmission, network performance and antenna efficiency for a range of devices. Headquartered in San Diego, California, the company develops both embedded and external antenna systems, as well as associated connectivity software, to support wireless applications across cellular, Wi-Fi, machine-to-machine (M2M) and Internet of Things (IoT) markets. The company's product portfolio includes modular smart antennas, parallel path phase-diversity antennas and advanced array antenna solutions that are optimized for environments such as smart homes, industrial automation, transportation and enterprise networking. The article "Airgain Q1 Earnings Call Highlights" was originally published by MarketBeat.

Image source: The Motley Fool. Wednesday, May 6, 2026 at 5 p.m. ET Chief Executive Officer — Jacob Suen Chief Financial Officer — Michael Elbaz Need a quote from a Motley Fool analyst? Email [email protected] Jacob Suen: Good afternoon, everyone, and thank you for joining us. The first quarter marked a solid start to 2026 as we began converting the strategic groundwork we laid last year into broader commercial momentum across the business. Over the past several years, we have been transforming Airgain, Inc. into a higher-value, system-level connectivity company. In Q1, that transformation showed up through customer wins, expanded platform capabilities, and deeper commercial engagements across our core markets and growth platforms. Let me start with our platform initiatives. First, we expanded AirgainConnect's capabilities through the acquisition of the HPUE MEGA 52 assets [inaudible]. This acquisition expands our portfolio and strengthens our vehicle gateway capabilities across public safety, utility, and enterprise fleet applications. It also broadens what we can offer to our customers. Some customers need a fully integrated vehicle gateway; others want a simpler, high-power router solution. With AirgainConnect, we can now support a wider range of deployment needs. Both AirgainConnect Fleet and AirgainConnect MegaFi 2 are part of the AT&T FirstNet offering, and customers can order these solutions directly through the AT&T Speed Portal. We are also seeing encouraging progress in the AirgainConnect pipeline. In March, we closed a Tier 2 customer in the energy sector that operates across multiple U.S. regions. This customer is deploying AirgainConnect across a fleet of more than 300 maintenance and service vehicles, following field trials that demonstrated improved connectivity performance and ease of installation. As of last week, our pipeline includes more than 55 Tier 1 and Tier 2 opportunities, up roughly 40% from the approximately [inaudible] Tier 1 and Tier 2 opportunities we mentioned on our last call. The mix is also becoming more attractive, with most of these opportunities now coming from non–first responder markets. Importantly, these opportunities are also advancing through the funnel. More than one-third of our Tier 1 and Tier 2 opportunities are now in trial or post-trial stages, compared to [inaudible] a quarter on our last call. This gives us increasing confidence that the pipeline is not only broader but also moving closer to conversion. At the same time, Tier 1 engagement continues to deepen, with several opportunities becoming more strategic. While these larger opportunities take longer to convert, we believe the pipeline is moving in the right direction. These emerging opportunities reinforce our view that the strategy we outlined on our last call is working and that AirgainConnect is positioned to become a more meaningful contributor as we move through 2026 and beyond. Second, we continue to advance Lighthouse. In the U.S., we are now working with a business sponsor and a Tier 1 mobile network operator to progress toward a live enterprise trial. This moves Lighthouse from network validation into the business and commercial phase. If the trial progresses as expected, we believe initial commercialization opportunities could begin toward the end of 2026, with a broader opportunity developing in 2027. This opportunity with the Tier 1 MNO is being driven by clear customer pain points around coverage, capacity, and the course of network upgrades. In many in-building environments, traditional solutions such as DAS or small cells can be expensive, disruptive, and slow to deploy. Lighthouse gives customers a faster and more cost-effective path to upgrading from 4G to 5G coverage. For indoor deployments, the value proposition is straightforward: better coverage, lower cost, and faster deployment. For outdoor use cases, Lighthouse reduces coverage gaps and provides network performance benefits, non-disruptive integration, and scalability. Based on our engagement with this Tier 1 MNO, we believe indoor deployments could represent the near-term opportunity, with initial deployments targeted toward the end of this year. Outdoor deployments remain an important longer-term opportunity, and I expect them to follow a more extended evaluation and commercialization cycle. In the Middle East, our relationship with Omantel remains an important entry point. Deployment activity was paused due to the conflict in the region, but engagement is now ongoing, and we expect to move forward with initial deployments over the coming months. We continue to advance our roadmap for integrated 4G and 5G coverage solutions designed for challenging indoor and outdoor environments. This roadmap supports 4G and 5G co-location, expands the range of deployment scenarios we can address, and strengthens the long-term commercial opportunity for Lighthouse. We are seeing customer interest in trialing the combined solution as units become available. As our engagement with the Tier 1 MNO and enterprise customers has progressed, we believe we now have a clear path to commercialization with our current product roadmap. As a result, we have realigned our resources and priorities to focus on accelerating commercialization and revenue generation. Now turning to our core markets. In consumer, we secured a multiyear, multimillion-dollar embedded antenna design win for a next-generation 5G home connectivity platform with a Tier 1 North American MNO, with production units anticipated later this year. As expected, consumer revenue declined sequentially due to seasonality. Looking into Q2, we expect consumer revenue to remain relatively stable with underlying demand still healthy. The primary factor we are monitoring in the near term is a supply constraint at the gateway level, particularly around memory availability and pricing. This is impacting our OEM's ability to ship finished systems and, in turn, affects the timing of our antenna shipments. At this point, this dynamic is limited to a single OEM serving cable operators. Based on feedback from this OEM, they are actively working to address the issue, and we believe the impact is temporary. As we mentioned earlier, we have secured two Tier 1 MNO design wins, and we remain on track for those programs to lift in the second half of the year. In enterprise IoT, momentum is building. We received a $4 million purchase order from a longstanding IoT solution customer, with shipments expected to be completed this year, including initial shipments in Q2. This order reflects the resumption of demand from this customer and improves our near-term visibility. We are also seeing continued traction across our embedded modem portfolio, expanding opportunities in emerging applications. We increased our IoT presence in robotics through a new design win with Cocoa Robotics. We are seeing additional activity in adjacent areas such as [inaudible], including pre-production shipments in Q2 for a new customer program focused on autonomous VTOL [inaudible] with [inaudible] in commercial applications. [inaudible] Q1 reflects progress across our growth platforms and our core markets. Both enterprise and automotive grew sequentially. IoT momentum improved, AirgainConnect engagement progressed, and product Lighthouse moved into more focused commercialization discussions. Our consumer business remains supported by strong Tier 1 relationships. Importantly, our pipeline is broader and continues to expand. We enter this next phase with a more focused operating model, improving visibility, and clear opportunities to convert customer engagement into revenue. With that, I will turn the call over to Michael. Michael Elbaz: Thank you, Jacob. Before diving into the numbers, please note that my review of our financial results and guidance refers to non-GAAP figures. Information about the non-GAAP financial measures, including GAAP to non-GAAP reconciliations, can be found in our earnings release. Now let's turn to our first quarter results. Q1 sales came in at $11.5 million, which was at the midpoint of our guidance range. Enterprise sales were $5 million, up $0.7 million sequentially, driven by higher embedded modem sales. Automotive sales were $0.9 million, up $0.4 million sequentially, reflecting higher sales of AirgainConnect vehicle gateways. Consumer sales came in at $5.6 million, sequentially down $1.7 million, primarily due to seasonal impact. Non-GAAP gross margin for the first quarter was 44.2%, compared to 46.3% in the prior quarter and relatively flat year over year. The sequential decline was primarily due to a lower enterprise margin rate driven by an unfavorable product mix. Non-GAAP operating expenses for the first quarter amounted to $6.1 million. While modestly higher sequentially due to typically higher first-quarter marketing and trade show activities, operating expenses declined by 8%, or $0.5 million, year over year as we continue to optimize our OpEx model. In Q1, adjusted EBITDA was negative $0.9 million, or $2 million lower than the midpoint of guidance. Non-GAAP EPS was negative $0.80, compared to negative $0.07 at the midpoint of guidance. As of 03/31/2026, our cash balance was $7.1 million, relatively flat sequentially. Net cash proceeds from our ATM were $0.6 million. Now moving to our outlook for the second quarter ending 06/30/2026. As a reminder, we provide quarterly guidance for sales, non-GAAP gross margin and expenses, non-GAAP EPS, and adjusted EBITDA as we believe these metrics to be key indicators for the overall performance of our business. For Q2 2026, we project sales to range from $12.5 million to $14.5 million, with a midpoint of $13.5 million. The midpoint represents a 17% sequential increase driven by enterprise and automotive. We believe our outlook reflects improving demand visibility across the business and continued progress in converting the commercial traction Jacob discussed into revenue. We expect non-GAAP gross margin for the second quarter to be in the range of 42.5% to 45.5%, or 44% at the midpoint. We project operating expenses to decrease sequentially to approximately $5.8 million. Non-GAAP EPS is expected to be positive $0.10 at the midpoint of our guidance. Adjusted EBITDA is expected to be positive $2 million at the midpoint of our guidance. Overall, the actions we have taken over the past few quarters have improved our operating leverage and positioned us to convert top-line growth more effectively into profitability. Now I would like to turn the call back over to Jacob for his closing thoughts. Jacob Suen: Thanks, Michael. As we look ahead, we have good visibility into Q2 and see positive momentum for both our core and growth platforms for the rest of the year. Beyond Q2, we see a broader set of drivers. Demand in our consumer business remains healthy, and we expect improvement as supply constraints ease. IoT continues to build momentum through repeat orders and new application design wins. AirgainConnect is progressing from engagement toward conversion, with growing activity across utility and enterprise markets. And Lighthouse is moving toward targeted commercial deployment in the U.S. and Middle East. Taken together, these drivers reflect a more focused and better-positioned business with a stronger platform portfolio, a broader pipeline, and an operating model positioned for improved leverage as revenue scales. Our focus is execution: converting pipeline into deployments, driving growth, and improving profitability as we move through 2026. Operator, we are now ready to take questions. Operator: We will now open the call for questions. Thank you. We will now be taking questions from Airgain, Inc.'s sell-side analysts. Our first question is from Anthony Stoss with Craig Hallum Capital Group. Please proceed. Anthony Stoss: Great. Thank you. Good afternoon, Jacob and Michael. Michael, I was trying to write as fast as I could. Can you just give me the revenue split? So I got consumer $5.6 million, but I missed auto and enterprise. —of revenue in the quarter that came from auto and same question for enterprise. Michael Elbaz: So auto would be about— Jacob Suen: —40% approximately. I do not have the other numbers in front of me. Michael Elbaz: And enterprise would be about—higher, actually—50%. Anthony Stoss: Enterprise 50, auto 40, and consumer 10? Jacob Suen: No. No. Consumer is $5.6 million. Michael Elbaz: Yes, I will have to come back to you on this, Tony. I do not have those numbers. But the bottom line is, on enterprise and automotive— Jacob Suen: —we are seeing sequential growth, and we expect that momentum to continue. And consumer in Q1 was due to seasonality; we also expect consumer to improve throughout the year. Anthony Stoss: Perfect. And then, Jacob, just— Michael Elbaz: Tony, the number is 49% on consumer, 8% on automotive, and 43% on enterprise in Q1. Anthony Stoss: Perfect. Thank you. Related to the memory shortages, I get it. A lot of people are talking about it. It is going to get worse throughout the remainder of the year. But given that, I guess the first part of the question is how much of your revenue was affected in Q1 as a result of not being able to ship? And then, Jacob, more longer-term picture, when do you think—Which quarter? Is it this year? Is it next year?—when you can get back to the kind of $7 million to $10 million in quarterly revenue on the consumer side? Michael Elbaz: So yes, Tony, this is Michael. In terms of Q1 impact, we had no revenue impact from the shortages. We had no gross margin impact from the shortages. In Q2, we are being conservative on the consumer. Typically, you would see that seasonal down in Q1, which we saw, and a rebound in Q2. Right now, we are expecting to be relatively flat, mainly because one specific OEM is being impacted. They believe it is a temporary blip right now, and it will be worked out by the end of the quarter. But again, we have been conservative on that. Jacob Suen: Yes. And regarding your questions about the consumer revenue, certainly, as we indicated, the good news is that we always have the stability regarding the MSOs. We are now adding the MNOs. We are now working on two major MNOs in the U.S., so that should help us be well-positioned for the rest of the year. Are we able to get to the $7 million to $8 million range like we used to have? We do have the path for that. Now, is that going to be happening this year or next year? We do not know that yet, although it is trending very positively. We mentioned the design win with the MNO that should start shipping in the latter part of this year. Anthony Stoss: Got it. And then my last question related to AirgainConnect. Are you seeing a speeding up of some of these trials or your ability to convert? It is great to see that Tier 2 energy customer. What is your feel on how quickly you can convert the trials into more signed deals? Michael Elbaz: So on the Tier 1–type customers, we mentioned before 12 to 18 months of cycle time, and we are in the cycle time. The good news here is that the pipeline is changing favorably for us quarter over quarter. For example, we mentioned on the call that we have a current pipeline of over 55 deals in Tier 1 and Tier 2 customers. Twenty percent of that is Tier 1 customers, and another 20% of that—the vast majority—are for non–first responders. So they tend to be moving quicker; however, because those tend to be also strategic-type deals, they also very much have multilayer meetings, engagements, trials taking place. And so we are basically on track to what we had mentioned about the 12 to 18–month cycle. On Tier 2, we just mentioned that we closed a Tier 2 customer. Overall, the velocity of the design wins that we have—primarily on Tier 3 and Tier 2 so far—is accelerating. Last year, we would be closing one deal per month, and this year so far, up until May, it has been about two deals per month. I hope this is helpful. Anthony Stoss: Yeah. No. Very helpful. And— Jacob Suen: Yeah. Tony, I also had the Tier 1 opportunity size [inaudible]. Before you buy stock in Airgain, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Airgain wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $473,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,204,650!* Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 203% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 6, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Airgain AIRG Q1 2026 Earnings Call Transcript was originally published by The Motley Fool

Q1 highlighted by continued operational execution across core business and growth platforms SAN DIEGO, May 06, 2026--(BUSINESS WIRE)--Airgain, Inc. (NASDAQ: AIRG), a leading provider of advanced wireless connectivity solutions, today reported financial results for the first quarter ended March 31, 2026. "The first quarter marked a solid start to 2026 as we began converting the strategic groundwork we laid last year into broader commercial momentum across the business," said Jacob Suen, President and CEO of Airgain. "During the quarter, we secured a multi-year Tier 1 North American MNO design win for a next-generation 5G home connectivity platform, received a $4 million follow-on IoT order from a leading solutions provider, and expanded our IoT presence in robotics through a new design win with Coco Robotics. We also expanded our AirgainConnect offering with the acquisition of the HPUE product line and entered a strategic partnership with Nextivity to advance integrated 4G and 5G coverage solutions. These developments reflect growing validation of Airgain’s connectivity portfolio across the consumer, enterprise IoT, automotive, and infrastructure market applications. While first quarter revenue reflected seasonal dynamics in the consumer market, we were encouraged by the sequential growth in the enterprise and automotive markets and the continued progress in our growth platforms." First Quarter 2026 and Recent Operational Highlights Acquired high-power user equipment (HPUE) product line assets from Nextivity, expanding Airgain’s portfolio and strengthening its vehicle gateway capabilities Entered a strategic partnership with Nextivity to co-develop integrated 4G/5G coverage solutions for challenging indoor and outdoor environments Secured a multi-year, multi-million-dollar embedded antenna design win for a next-generation 5G home connectivity platform with a Tier 1 North American MNO, with production units anticipated later this year Received a $4 million purchase order from a leading Internet of Things (IoT) solutions provider, with shipments expected to be completed this year Secured a design win with Coco Robotics for next-generation autonomous delivery platforms, representing a multi-million-dollar opportunity over the life of the rollout First Quarter 2026 Financial Highlights GAAP Sales of $11.5 million GAAP gross margin of 43.2% GAAP operating expenses of $7.1 million GAAP net loss of $1.9 million or $(0.15) per share Non-GAAP Non-GAAP gross margin of 44.2% Non-GAAP operating expenses of $6.1 million Non-GAAP net loss of $1.0 million or $(0.08) per share Adjusted EBITDA of ($0.9) million First Quarter 2026 Financial Results Sales for the first quarter of 2026 were $11.5 million, compared to $12.1 million in the fourth quarter of 2025 and $12.0 million in the first quarter of 2025. First quarter 2026 revenue consisted of $5.6 million from the consumer market, $5.0 million from the enterprise market, and $0.9 million from the automotive market. Sequentially, sales declined $0.6 million or 5.0%, primarily due to seasonal decline in the consumer market, where revenue decreased by $1.7 million from the fourth quarter of 2025. This was partially offset by a $0.7 million increase in enterprise sales, driven by higher embedded modems sales, and a $0.4 million increase in automotive sales, driven by vehicle gateway shipments. Compared to the prior-year quarter, sales declined $0.5 million, or 4.2%, primarily reflecting a $0.8 million decrease in consumer revenue and a $0.4 million decrease in automotive revenue, partially offset by a $0.7 million increase in enterprise revenue. GAAP gross profit for the first quarter of 2026 was $5.0 million, compared to $5.4 million for the fourth quarter of 2025 and $5.2 million for the same quarter a year ago. Non-GAAP gross profit for the first quarter of 2026 was $5.1 million, compared to $5.6 million for the fourth quarter of 2025 and $5.3 million for the same quarter a year ago (see note regarding "Use of Non-GAAP Financial Measures" below for further discussion of this non-GAAP measure). GAAP gross margin for the first quarter of 2026 was 43.2%, compared to 44.8% for the fourth quarter of 2025 and 43.0% for the same quarter a year ago. The sequential decline was primarily driven by lower enterprise gross margin due to unfavorable product mix. Non-GAAP gross margin for the first quarter of 2026 was 44.2% compared to 46.3% for the fourth quarter of 2025 and 44.3% for the same quarter a year ago (see note regarding "Use of Non-GAAP Financial Measures" below for further discussion of this non-GAAP measure). GAAP operating expenses for the first quarter of 2026 were $7.1 million, compared to $7.9 million for the fourth quarter of 2025 and $8.3 million for the same quarter a year ago. Operating expenses for the first quarter of 2026 decreased from both the fourth quarter of 2025 and the same quarter a year ago, primarily due to lower amortization of intangible assets and lower employee-related expenses. Non-GAAP operating expenses for the first quarter of 2026 were $6.1 million compared to $5.9 million in the fourth quarter of 2025 and $6.6 million for the same quarter a year ago (see note regarding "Use of Non-GAAP Financial Measures" below for further discussion of this non-GAAP measure). GAAP net loss for the first quarter of 2026 was $1.9 million or ($0.15) per share (based on 12.3 million shares), compared to net loss of $2.4 million or ($0.20) per share (based on 12.0 million shares) for the fourth quarter of 2025 and net loss of $1.5 million or ($0.13) per share (based on 11.6 million shares) for the same quarter a year ago. Non-GAAP net loss for the first quarter of 2026 was $1.0 million or $(0.08) per share (based on 12.3 million shares), compared to a non-GAAP net loss of $0.3 million or ($0.03) per share (based on 12.0 million shares) for the fourth quarter of 2025 and a non-GAAP net loss of $1.3 million or ($0.11) per share (based on 11.6 million shares) for the same quarter a year ago (see note regarding "Use of Non-GAAP Financial Measures" below for further discussion of this non-GAAP measure). Adjusted EBITDA for the first quarter of 2026 was $(0.9) million, compared to ($0.2) million for the fourth quarter of 2025 and ($1.2) million for the same quarter a year ago (see note regarding "Use of Non-GAAP Financial Measures" below for further discussion of this non-GAAP measure). Second Quarter 2026 Financial Outlook GAAP Sales are expected to be in the range of $12.5 million and $14.5 million, or $13.5 million at the midpoint GAAP gross margin is expected to be in the range of 41.6% to 44.6% GAAP operating expense is expected to be approximately $6.6 million GAAP net loss per share is expected to be ($0.07) at the midpoint Non-GAAP Non-GAAP gross margin is expected to be in the range of 42.5% to 45.5% Non-GAAP operating expense is expected to be approximately $5.8 million Non-GAAP net income per share is expected to be $0.01 at the midpoint Adjusted EBITDA is expected to be $0.2 million at the midpoint The Company's financial outlook for the three months ending June 30, 2026, including reconciliations of GAAP to non-GAAP measures, can be found at the end of this press release. Conference Call Management will hold a conference call today on May 6, 2026, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss financial results for the first quarter ended March 31, 2026. Management will host the presentation, followed by a question-and-answer period. Dial-In: 877-407-2988 or +1 201 389-0923 or Call Me Confirmation #: 13760326 The conference call will be broadcast simultaneously and be available for replay via the investor section of the company’s website at investors.airgain.com. For webcast access, please follow the web address below to register for the conference call. Registration: Here A replay of the webcast will be available via the registration link after 8:00 p.m. Eastern Time until May 6, 2027. About Airgain, Inc. Headquartered in San Diego, California, Airgain, Inc. (NASDAQ: AIRG) is a leading provider of advanced wireless connectivity solutions that drive cutting-edge innovation in 5G technology. We are committed to delivering high-performance, cost-effective, and energy-efficient wireless solutions that enable rapid market deployment. Our mission is to connect the world through integrated, innovative, and optimized wireless solutions. Our diverse product portfolio serves three primary markets: enterprise, automotive, and consumer. For more information, visit airgain.com, or follow us on LinkedIn and X. Airgain, AirgainConnect, and the Airgain logo are trademarks or registered trademarks of Airgain, Inc. All other trademarks are the property of their respective owner. Forward-Looking Statements Airgain cautions you that statements in this press release that are not a description of historical facts are forward-looking statements. These statements are based on the company’s current beliefs and expectations. These forward-looking statements include statements regarding our expectations about our pipeline, and timing for production units and shipments, expected benefits and synergies of the HPUE acquisition and strategic partnerships, the size of potential opportunities from design wins, the potential to strengthen enterprise and carrier go-to-market engagement, and our second quarter 2026 financial outlook. The inclusion of forward-looking statements should not be regarded as a representation by Airgain that any of our plans will be achieved. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in our business, including, without limitation: the market for our products is developing and may not develop as we expect; our operating results may fluctuate significantly, including based on seasonal factors, which makes future operating results difficult to predict and could cause our operating results to fall below expectations or guidance; supply constraints on our contract manufacturers' and our customers' ability to obtain necessary components in our respective supply chains, including with respect to memory semiconductors which suppliers may redirect toward higher-margin AI applications, may delay our volume ramp timelines, increase our costs and negatively affect our sales and operating results; risks associated with the performance of our products, including bundled solutions with third-party products; our products are subject to intense competition, and competitive pressures from existing and new companies may harm our business, sales, growth rates, and market share; emerging satellite-to-device connectivity technologies may reduce demand for terrestrial wireless solutions or require significant engineering investment to address hybrid connectivity requirements; the potential for partnerships, strategic alliances and advisors to not meet expectations; risks associated with quality and timing in manufacturing our products and our reliance on third-party manufacturers; we may not be able to maintain strategic collaborations under which our bundled solutions are offered; overall global supply shortages, including with respect to memory chips, and logistics delays within the supply chain that our products are used in, and uncertainty regarding tariffs and trade policies and their potential impact, as well as in each case, their adverse effect on general U.S. and global economic conditions and financial markets, and, ultimately, our sales and operating results; any rise in interest rates and inflation may adversely impact our margins, the supply chain and our customers’ sales, which may negatively affect our sales and operating results; our future success depends on our ability to develop and successfully introduce new and enhanced products for the wireless market that meet the needs of our customers, including our ability to transition to provide a more diverse solutions capability; we sell to customers who are price conscious, and a few customers represent a significant portion of our sales, and if we lose any of these customers, our sales could decrease significantly; we rely on a limited number of contract manufacturers to produce and ship all of our products, and our contract manufacturers rely on a single or limited number of suppliers for some components of our products and channel partners to sell and support our products, and the failure to manage our relationships with these parties successfully or a failure of these parties to perform could adversely affect our ability to market and sell our products; if we cannot protect our intellectual property rights, our competitive position could be harmed or we could incur significant expenses to enforce our rights; and other risks described in our prior press releases and in our filings with the Securities and Exchange Commission (SEC), including under the heading "Risk Factors" in our Annual Report on Form 10-K and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and we undertake no obligation to revise or update this press release to reflect events or circumstances after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Note Regarding Use of Non-GAAP Financial Measures To supplement our financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), this earnings release and the accompanying tables and the related earnings conference call contain certain non-GAAP financial measures, including adjusted earnings before interest, taxes, depreciation, amortization (Adjusted EBITDA), non-GAAP net income (loss) attributable to common stockholders (non-GAAP net income (loss)), non-GAAP net income (loss) per (basic or diluted) share (non-GAAP EPS), non-GAAP operating expense, non-GAAP gross profit and non-GAAP gross margin. We believe these financial measures provide useful information to investors with which to analyze our operating trends and performance. In computing Adjusted EBITDA, non-GAAP net income (loss), and non-GAAP EPS, we exclude stock-based compensation expense, which represents non-cash charges for the fair value of stock awards; interest income, net of interest expense offset by other expense, depreciation and amortization, workforce reduction severance and exit costs, and provision (benefit) for income taxes. In computing non-GAAP operating expense, we exclude stock-based compensation expense, amortization of intangibles, workforce reduction severance, and exit costs. In computing non-GAAP gross profit and non-GAAP gross margin, we exclude stock-based compensation expense, and amortization of intangible assets. Because of varying available valuation methodologies, subjective assumptions, and the variety of equity instruments that can impact a company’s non-cash operating expenses; we believe that providing non-GAAP financial measures that exclude non-cash expense allows for meaningful comparisons between our core business operating results and those of other companies, as well as providing us with an important tool for financial and operational decision making and for evaluating our own core business operating results over different periods of time. Management considers these types of expenses and adjustments, to a great extent, to be unpredictable and dependent on a considerable number of factors that are outside of our control and are not necessarily reflective of operational performance during a period. Our non-GAAP measures may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in our industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. Our Adjusted EBITDA, non-GAAP net income (loss), non-GAAP EPS, non-GAAP operating expense, non-GAAP gross profit and non-GAAP gross margin are not measurements of financial performance under GAAP and should not be considered as an alternative to operating or net income or as an indication of operating performance or any other measure of performance derived in accordance with GAAP. We do not consider these non-GAAP measures to be a substitute for, or superior to, the information provided by GAAP financial results. Reconciliations with specific adjustments to GAAP results and outlooks are provided at the end of this release. View source version on businesswire.com: https://www.businesswire.com/news/home/20260506517953/en/ Contacts Airgain Contact Michael Elbaz Chief Financial Officer [email protected] Airgain Investor Contact Matt Glover Gateway Group, Inc. +1 949 574 3860 [email protected]