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Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 5:00 p.m. ET Chief Executive Officer - Juho Sarvikas Chief Financial Officer - Steven Gatoff Operator: Hello, and welcome to Inseego Corp.'s Second Quarter 2026 Financial Results Conference Call. Please note that today's event is being recorded. [Operator Instructions] On the call today are Juho Sarvikas, Chief Executive Officer; and Steven Gatoff, Chief Financial Officer. During this call, certain non-GAAP financial measures will be discussed. A reconciliation to the most directly comparable GAAP financial measures is included in the earnings release, which is available on the Investor Relations section of the company's website. An audio replay of this call will also be archived there. Please also be advised that today's discussion will contain forward-looking statements. These forward-looking statements are not historical facts, but rather are based on the company's current expectations and beliefs. For a discussion on factors that could cause actual results to differ materially from the expectations, please refer to the risk factors described in the company's Form 10-K, 10-Q and other SEC filings, which are available on the company's website. Please also refer to the cautionary note regarding forward-looking statements section contained in today's press release. With that, I'd like to turn the call over to Juho Sarvikas, Chief Executive Officer. Please go ahead. Juho Sarvikas: Good afternoon, everyone, and thank you for joining us today. Q2 revenue was $44 million, above the high end of our guidance range. We delivered 28% sequential growth and 9% year-over-year growth, driven by strong product revenue. Our top line results benefited from late quarter orders from select carrier customers tied to expected memory cost increases going in the second half of the year. These orders supported our customers and contributed to revenue outperformance in the quarter, but they also weighed on gross margin and are expected to result in lower ordering levels from those customers in Q3. Over the last 18 months, we have moved much faster than this business has historically operated. Inseego typically introduced roughly one new product annually. Since I joined the company, we have significantly accelerated that pace, launching multiple new products and variants across mobile and FWA while also broadening the customer base. We now have six products across three Tier 1 carriers for the first time in the company's history. That was the right strategic direction, and it helped us win important new customer opportunities, including our newest Tier 1 carrier. But as we accelerated the pace of product development, we discovered that our engineering processes could not support the rate of new product introduction. As a result, we experienced product delays, which created a revenue gap that we will not fully recover in 2026. It is disappointing, particularly against the customer wins we brought in. As I mentioned on the last call, we've taken immediate actions, and amongst them, the search for a new engineering leader, which is going well. We have several candidates deeply engaged, and I look forward to updating you as we move through the process. Our newest Tier 1 carrier relationship is performing well across mobile and FWA. However, instead of driving the incremental growth that we expected this year, that performance is filling the gap created by product delays and weakness with our largest FWA customer. In FWA, the recovery of our largest customer is taking longer than expected. The customer is still working through changes to its enterprise go-to-market strategy and internal organization. And while I expect our next-generation product to get us back on track, we are factoring in a slower recovery in our updated outlook. As such, we're updating our full year 2026 outlook to reflect a lower second half revenue expectation. It is important to note that the revenue opportunities we have won remain intact. Our focus is getting the business to a more appropriate product delivery cadence and quality to generate more consistent revenue and deliver profitability. With that context, on today's call, I'd like to add my perspective on our Q2 operational progress, the operating dynamic behind our updated outlook and our progress preparing for the Nokia FWA integration. Starting with Q2, a key milestone was completing the launch of our refreshed mobile product family across all three North America Tier 1 carrier customers. The MiFi PRO M4 is now launched across all three carriers, including the delayed but on target late quarter launch with our largest MiFi customer. We also made a multi-carrier model available to the value-added reseller channel. This gives us a stronger mobile portfolio than the company has had in years and positions us across three largest carrier customers and the reseller channel. These launches took longer than planned, but they are now completed and in market. Our newest Tier 1 carrier relationship performed well in both mobile and FWA. That remains an important proof point for the strategy of broadening our customer base and reducing reliance on any one customer. And so when we started talking with this customer about a large Q2 purchase ahead of anticipated price increases later in the year, we worked to deliver that increased volume in the quarter. In channel, we supported a large industrial deployment using our IoT products with Inseego Connect. That is a good proof point for the value of pairing our hardware with cloud-based device management, and we continue to see Inseego Connect as an important part of our broader solution set. Overall, during Q2, we completed the key mobile portfolio launches, grew revenue and executed with our newest Tier 1 carrier. But the quarter also made it clear where we need to do better. Broad execution and delivery needs to be reliable, and we need to execute on our new broader customer base and product portfolio more consistently. That brings me to our updated 2026 outlook. We now expect full year revenue of approximately $155 million. Our updated outlook reflects a lower second half revenue expectation, particularly in Q3. There are four drivers to this updated outlook, the first half mobile delay, the slower recovery of our existing large FWA customer, Inseego Subscribe and the MSOs unpredictable sales cycle. Let me start with Subscribe since it's reflected in the updated outlook and remains a strategically important platform for us. Over the past year, we have continued to develop Subscribe from a customer-specific services arrangement into a carrier-grade subscriber life cycle management platform. The platform is designed to help service providers sell, onboard, manage and support complex enterprise and government wireless services more efficiently and at scale. During the quarter, Subscribe achieved CMMC Level 2 certification, an important cybersecurity milestone for supporting U.S. federal government programs. This strengthens the platform's ability to support communication service providers serving government customers. As our Tier 1 carrier customer on the platform has evolved its internal IT and system capabilities, the Subscribe pricing is stepping down the professional services component. As a result, beginning in Q3, we expect software services and other revenue to decline by approximately $2 million per quarter. Subscribe remains a high-margin contributor and a strategically valuable platform. We continue to advance the road map, new customer business development activities and believe Subscribe can play a broader role over time. In terms of the MSO opportunity, customer engagement remains active, and we continue to see opportunity in this market. However, the customer conversion is taking longer than expected. Given that we have removed MSO revenue from our 2026 outlook and we will treat it as upside until customer conversation (sic) [ conversion ] is proven. Let me now turn to the acquisition of Nokia's FWA business, which we announced on April 30. This will mark an important step in our evolution into a global wireless broadband platform. The acquired business will more than double our revenue base, expand our product coverage and deepen our strategic collaboration with Nokia. Strategically, the acquired business is highly synergistic and a natural extension of what we do. The business will add strong engineering capability, established global Tier 1 customer relationships and one of the strongest FWA portfolios in the market, including indoor, outdoor and millimeter-wave products. Combining their portfolio with Inseego's North America carrier relationships, mobile and FWA product portfolio and cloud software capability gives us a much broader platform for growth. With an anticipated close in Q4 2026, we are taking concrete steps to build the operating foundation for a larger global Inseego. First, we have strengthened our international regional leadership. Pranav Shroff has joined Inseego to lead APAC sales, Ossi Korpela joined to lead EMEA sales, and Steve Harmon has expanded his role to lead the Americas, including Latin America. This gives us dedicated leadership across major regions where we see opportunity for the combined portfolio. Second, Steven has expanded his role to lead our international expansion, where he will oversee the global operating structure, support integration activities and work closely with regional sales leadership to execute business primarily across EMEA and APAC. Third, we are establishing the engineering and operational footprint needed to support customers globally. We have selected Amsterdam as our center of international operations, extending the reach of our San Diego-based global headquarters. We are also continuing to build Athens as a key software development center for our global FWA portfolio. These are targeted actions to support integration readiness and customer continuity with an overriding benefit of bringing on a talented and effective engineering team. With these actions, integration planning is well underway. Our priorities are customer continuity, employee integration, road map alignment and operating discipline. The opportunity is significant, and our focus is on building the right foundation so we can integrate the business thoughtfully, support customers and enter 2027 with a strong global platform. In summary, we have streamlined our portfolio to support reliable execution, and we are taking the required actions to improve the leadership and quality of our execution. We are very clear on our focus areas as we move through the second half of the year, converting our current product portfolio into more consistent revenue, improving profitability, strengthening engineering and product delivery and aligning costs with the revised revenue profile. That focus is also critical as we prepare for the anticipated close and integration of Nokia FWA acquisition. Nokia's FWA business gives us the opportunity to become a much larger global wireless broadband platform. But our immediate priority is clear: execute against the revised outlook, rebuild consistency in the core business and enter Q4 with stronger execution. With that, I'd like to hand off to Steven. Steven Gatoff: Thanks, Juho. Hi, everyone. I'd like to follow on Juho's discussion and cover three topics today. First, I'll take you through more details on our Q2 2026 financial results. Second, I'll talk through the financial profile of the business and provide our guidance for Q3 and our updated view for full year 2026 revenue. And third, I'll share some color on the FWA acquisition work that we're doing. To be clear, the discussion of our financial results for Q2 2026 and our outlook and guidance for Q3 and the full year 2026 today are for Inseego stand-alone only and do not include any contribution from the Nokia FWA business. We are on track for a targeted close in Q4 2026, and we expect to provide certain combined company and pro forma financial information then. As we always do, we'll wrap up by opening the call for your questions. Starting with Q2 2026 financial results. Total revenue was $44 million, above the high end of our guidance range, up 28% sequentially and up 9% year-over-year. The sequential improvement was driven primarily by FWA and particularly from some strong operational deliveries late in the quarter. Product revenue was $31.7 million or 72% of total revenue and increased 12% year-over-year. Mobile Solutions revenue was $17.3 million and was the key driver, up 26% year-over-year on good traction with our newer Tier 1 carrier customer and strong channel activity with the refreshed MiFi portfolio. FWA revenue was $14.4 million for Q2, also with solid contribution from our newest Tier 1 carrier that had a large purchase in the quarter. As Juho mentioned, this strength was unfortunately partially offset by lackluster performance at another existing large FWA carrier customer. Services and other revenue came in at $12.3 million or 28% of total revenue and up 2% year-over-year. Let's talk a bit about the Q2 ordering activity tied to memory pricing and availability. As Juho mentioned, we worked with our relatively new Tier 1 carrier customer on an upsized order in Q2 to get ahead of anticipated increases in memory prices and market supply constraints in the second half of the year. That supported us closing higher-than-anticipated revenue in Q2, and it also is expected to impact the current Q3 ordering cadence. In the context of typical quarterly levels, we see something on the order of $5 million to $6 million of incremental revenue that was realized in Q2. Normally, this would not have a meaningful impact quarter-to-quarter, but in the context of the product delays we talked about, that incremental revenue has a larger impact. Similarly, while we were pleased to support our new carrier customer with a larger order, gross margin percentage saw an impact from this deal with Q2 2026 non-GAAP gross margin coming in at 34%. The impact to gross margin was a function that while the ASP was set on this deal, we needed to allocate higher cost memory units from follow-on purchases in order to fulfill the larger quantity order. The larger deal generated incremental revenue but pressured Q2 gross margin percentage. The positive on this is that we expect product margin percentage to improve to the high teens in Q3 as we've been successful going forward with this relatively new dynamic of passing along essentially all of the memory price increases to customers this quarter. Moving down the P&L. Q2 non-GAAP operating expenses were $16.9 million or 38% of revenue, flat sequentially to Q1. So pulling this all together, Q2 2026 adjusted EBITDA came in at $0.5 million or a margin of 1%, in line with our guidance, but impacted by the lower margin revenue as we discussed. Closing out Q2 with the balance sheet. We ended June with cash of approximately $2 million. This reflected the timing of significant product delays that close -- product deals that closed late in the quarter. While you see this in the meaningful increase in accounts receivable at quarter end, we have been collecting material amounts of that cash here in Q3. We also had a balance of $10 million on our revolver at the end of June, and that too has already been paid down meaningfully from the cash collections. With that, let's now turn to the dynamics here in the current quarter and provide our Q3 guidance and updated outlook for full year 2026 revenue. Echoing Juho's earlier comments -- the timing of the new product revenue drivers has shifted out. The refreshed mobile portfolio is now in market, but the first half delays created a revenue gap we will not fully realize this year. Our existing large FWA customer has a path to recovery, including the next-generation product launch, but is admittedly taking longer than expected. And as Juho also mentioned, while the MSO market remains a compelling TAM expansion opportunity, it is taking longer to convert into signed contracts. And so we've adjusted our expectations to remove that from our 2026 forecast. Pulling this together, for Q3 2026, we expect total revenue in a range of $28 million to $35 million and adjusted EBITDA in a range of negative $1 million to negative $2 million. From a margin and profitability standpoint, we expect gross margin to modestly improve in Q3, as I mentioned, as lower-margin products are expected to decline and memory cost price pass-throughs take effect. We are focused on operating spend discipline and are actively aligning our spend with the revised revenue profile. Stepping back to look at the full year, we see 2026 revenue in the area of $155 million. This updated outlook is for Inseego only and reflects the dynamics we've been discussing. The first half product delays, the slower recovery at the existing large FWA customer, monetization of the MSO opportunity and marginally lower Subscribe revenue. We continue to focus on delivering a more diverse product set to a more diverse customer base, both of which are a new dynamic in the company's history. We've had execution issues that are having an impact in the near term, but we're adjusting those and believe the trajectory is upward as we move through this quarter and get execution back to where it needs to be to get those pieces to contribute more consistently, all the while maintaining the operating discipline and focus on improving profitability over time. Finally, I'd like to share an update on the Nokia FWA acquisition, as Juho discussed. It's a complementary business and adds a compelling scale and quality of engineering to Inseego. We continue to expect the transaction to close in Q4 2026, subject to customary closing conditions. As a reminder, we are acquiring a business with an annual revenue run rate of approximately $200 million, which more than doubles our revenue base and makes Inseego a global provider in our core wireless broadband, all with the backing and go-to-market coordination with Nokia. Once the transaction closes, our reported results will naturally include the acquired FWA business from the closing date forward. We wanted to give you a sense of how we're thinking about both reporting and guiding outlook for the company from that point forward, so everyone can align models and expectations. On our Q3 2026 financial results earnings call that we expect to have in a few months, November, assuming the transaction closes as expected, we plan to provide Q4 2026 revenue guidance for both the Inseego business and for the acquired Nokia FWA business. We intend to provide that for that quarter in order to give you a clear starting point and relative performance of the businesses. We also plan to provide a historical view of quarterly revenue for the acquired FWA business, so you have the context to build the combined revenue base into your models. Beginning with our Q4 2026 financial results earnings call expected in February 2027, we intend to guide and report as a single combined company and will include certain prior period financials and pro forma revenue comparisons so you have an apples-to-apples basis for gauging outlook and performance. Our objective is to give you the information and transparency to understand the transition, the business performance and the model of the business all while us managing and reporting the company the way we intend to run it as one integrated segment and set of products. With that, we appreciate your time and support and are glad to open the call for questions. Operator? Operator: [Operator Instructions] The first question will come from Tyler Burmeister with Lake Street Capital Markets. Tyler Burmeister: So just looking for some more details on this guidance. Maybe first, how much MSO revenue was previously assumed in your full year outlook? Steven Gatoff: Tyler, orders of magnitude, the MSO was a large opportunity that we had talked about. And so if you thought about in kind of the $15 million to $20 million ZIP code, it was a considerable -- it wasn't in the numbers and it's still a considerable opportunity. Tyler Burmeister: Okay. Okay. And then I just want to make sure I understand the Subscribe software dynamic that's going on your customer is evolving away from your offering. I think you said it's going to decline $2 million a quarter, so decline $2 million a quarter towards 0 over the next, call it, 6 quarters. Is that the correct way to think about that? Juho Sarvikas: Yes. So the customer has further developed their in-house systems and IT capabilities and with that require less complex professional services from Inseego. So we have adjusted the pricing to reflect that reality. Tyler Burmeister: But just to be clear, it's not going to decline $2 million and stay at that level. It's going to continue to decline $2 million each quarter going forward. Is that right? Steven Gatoff: No. The revenue is going to go down starting this quarter, $2 million and then stay at that level. So if it was approximately, let's say, $11 million, we expect it to go down to $9 million and then stay at $9 million a quarter. Tyler Burmeister: Okay. And then your full year guidance still implies a decent snapback in Q4. I guess, what gives you confidence that we're going to see that snapback in Q4 sequentially? And maybe what's the greatest risk to that number? Juho Sarvikas: Great question, Tyler. So I think the big thing going into Q4 is a normalized ordering cadence, and that applies to both the MiFi mobile as well as the FWA range. The big thing there really is the recovery of our existing largest Tier 1 FWA customer. Like we mentioned in our prepared notes, we're introducing a new generation of that FWA product, which will be part of the solution in getting the run rate levels where we should be at. Steven Gatoff: Yes. The numbers behind that, Tyler, to your point and Juho's color is we expect mobile to kind of come back to where it was last year, essentially. And then we expect FWA to rebound off of a low this quarter, Q3 from the larger deal that got done in Q2. So it's really not that Q4 is expected to go up to a huge number. It's really Q3 is much lower than we wanted. And so we are looking for some normalization, if you will, for what Q4 we believe should be. Tyler Burmeister: Okay. Understood. And then maybe just pivoting a little bit here. On the Nokia acquisition, you guys hired the international team and started that headquarters like you talked about. I'm just wondering the strategy there. How much work can you really do before the deal is closed? Can you kind of start cross-selling opportunities, start those conversations with customers? Any color there would be great. Juho Sarvikas: We've had the opportunity to meet the large -- our new largest customers that we'll have after the acquisition, already some of them in the due diligence space. And of course, they're very keen to hear from us together with Nokia on how do we secure business continuity, what does the new engagement look like and also learn about our expanded product portfolio where from what you know from our business today, the mobile part is net new discussion that we can have independently right now as Inseego as well as the enterprise FWA. So I think those discussions are very encouraging and super happy to have now the leadership -- two key leaders in the theater in anticipation of the close by the full team will then come over. Steven Gatoff: Yes. The work on that front, to Juho's good point, has been going really well from a front-end customer-facing go-to-market and as well on the back-end integration work with Nokia and team is going very well. Juho Sarvikas: It's a good summary. Operator: [Operator Instructions] The next question will come from Lance Vitanza with TD Cowen. Lance Vitanza: Hello. Can you guys hear me? Juho Sarvikas: Yes. Lance Vitanza: Sorry about that. Hey, I'm very sorry to keep you waiting. So a couple of questions. The first is you've been talking about the engineering execution issues for a couple of quarters now. Could you refresh my memory, help me better understand the nature of the bottleneck there? Is it primarily a product development issue? Is this certification testing, manufacturer transfer issue or something else? And I know you've been looking for some personnel changes for some time. Is there anything in particular that gives you confidence that this bottleneck will be resolved shortly rather than continuing to lead to further pressure on future guidance? Juho Sarvikas: Lance, I think that's a fantastic question. So if you take a step back and look at Inseego over the past years, the company has typically introduced one product per year, typically for a single customer, which is a reflection on the intensity of new product launches and also the diversity or lack of thereof of the customer base. Over the past 18 months, we've been successful in expanding both the customer base as well as winning new opportunities in an expanded product portfolio. And I guess the big discovery here is that where we got most challenged were in the basics. The development process that we used as a company was not capable of parallel processing the complexity introduced by a broader customer base and a broader set of products. The big work that we've done with the team, we've overhauled the development process, our milestone model, and very importantly, instilled a level of discipline where there are no shortcuts. Every milestone is adhered to detailed program planning, things that you would take for -- that are essential building blocks of reliable delivery from an engineering standpoint of view. The other important thing to note is that, look, we've just introduced this new mobile range across all of the three carriers as well as channel. And we've launched the 4100, 4200 to the marketplace. Now what we're doing next is that we're narrowing down the new product introduction cadence and ensuring that with that focused road map, the team has full focus in executing on schedule with high quality. When it comes to the new engineering leader, [ search ], like I mentioned in our prepared remarks, very pleased with the pipeline, say, finalists that we have assembled. A lot of people excited about the opportunity to create something new, not only within Inseego, but also with the acquisition in mind, of course. So you should expect to hear back from us on this in the immediate term. Lance Vitanza: Great. And then can you help us understand -- and I know you've talked a couple of times you mentioned Q4 closings. So it sounds like the timing of Nokia is still very much on track. Is there any implications for either the economics of the transaction with Nokia, including the amount of equity or ownership Nokia ultimately receives or any expectations that the company's combined operating profile once the transaction closes, do you see the stuff that's happening in the back half of the year as putting pressure on those expectations? Steven Gatoff: Yes, great question. The short answer is no. There are -- there's no aspects of the deal qualitatively or quantitatively in the contract that give any reason for pause or would upset the apple cart to be candid. And so what it comes down to is like, okay, what does the business look like going forward? -- on both sides, right, for what our business looks like going forward as well as the acquired business. And as we said when we -- last quarter and when we announced the acquisition as well, there's just a tremendous opportunity for us to improve our engineering acumen and bench and to run it globally a lot more efficiently to bring the team together, right? It's one engineering function, not a bolt-on as some people typically do. That's not what we're doing. And so when these come together, it really is hitting the ground running in a field and a product in a production capacity that we know this is what we do. And so everyone is pretty eager to get going on both sides to do it. Lance Vitanza: Great. And then just one last one for me. At announcement, and I think you reiterated this a minute ago, but the Nokia FWA business was described at operating a roughly $200 million revenue run rate base. I think that was based on the first quarter results. I might have that wrong. But in any case, as we move toward the anticipated 4Q close, can you provide any update on how that Nokia business has been performing relative to that baseline? And if the acquired business were to be tracking materially above or below that run rate by closing, are there any mechanisms in the transaction structure that would adjust the economics or otherwise protect Inseego shareholders? Steven Gatoff: Yes. That's a great question. Just to take that last bit first, there is no repricing of the transaction in either direction. And if you go back to the deal terms, the price of the equity that was used to issue the shares to Nokia was $10 and change. And so that's the price at which equity was issued and the deal was monetized. And so candidly, that's in the favor of the Inseego stockholders right now. If the stock price had doubled, it would be a different conversation. So right now, that's not an issue in my humble opinion. You are correct in the -- what you said, Lance, about the run rate of the business when we discussed this at first, it was based on Q1. When we look forward to working with -- when we look ahead to the business, we don't own it yet. So it's not really our place to go disclose what it's doing right now in the current quarter. We have not been authorized to do that. But we're still comfortable with that $200 million bogey of an annual run rate, and we'll definitely be updating that between now and the next call is when the deal closes. And so we'll be updating that, particularly given the time of year when we're all embarking on 2027 planning right now. And so we would expect to have a bit more color and insights for you. But that is still a valid number and something we are comfortable with. Operator: [Operator Instructions] The next question will come from Christian Schwab with Craig-Hallum Capital Group. Christian Schwab: Just as far as the engineering effort and the capability of your company to introduce new products on a timely basis, which we kind of struggled with as we kind of took on a bunch of new initiatives. I'm kind of confused on how the combined company would look. So in the near term, we're struggling with developing and successfully attacking the MSO market as well as getting new products out in a timely fashion at the right cost. And then we're about to close and buy, for lack of a better word, Nokia's [ mess ], who's going to be running or how do you plan on implementing engineering of the combined company with a lot of products in many geographical locations? Juho Sarvikas: Christian, great question. So maybe one thing to say before going into commentary on the business and the capabilities that we're acquiring from Nokia. So like you know, we experienced delays, particularly in the new mobile range that we introduced to market that greatly impacted the year. Those products are now out. That was the big, let's call it, chunk or body of work where we discovered that our processes did not scale and causing the delay. But the products are out. They're now ramped to velocity, and they're shipping. They're the -- we, of course, lost revenue from the year. But on a go-forward basis, the opportunity is intact. And like I mentioned, if you look at the latter half of the year, we're essentially introducing one new product. So we've been very thoughtful about making sure that we have the right ability to focus our existing team while we're continuing to develop the processes and search for the right leader to finalize that transformation as it pertains to Inseego. As a part of the Nokia FWA acquisition, the carve-out includes their R&D function in its totality. So if you look at what day 1 looks like from a Nokia engineering capability in the FWA business, it remains intact as it is. And this team has been executing reliably. So from a Nokia standpoint of view, there is no jeopardy in that. They also come, of course, with a set of leadership from Nokia side. And then if you look at what I intend to do from a global one engineering function standpoint of view like Steven was describing it, where we're going to onboard a new highly qualified leader to look at then what does the combined organization look like. The important thing here, which is a key part of the deal, I'm sure you recall the EBITDA make-whole, which will enable us to fund the Nokia engineering to deliver on the committed Nokia road map. So I don't view this as a compounding issue. I view them as something that are separate in the short, midterm with the time to integrate and develop the right go-forward setup for the combined company. Christian Schwab: Okay. Great. And then we talked about the Q2 preorder before ASP increases took place. But then when they gave you the order, you still had to go buy memory at cost -- so the gross margins were less than expected. And I want to make sure that, that's what you said, not what I heard. That's question one. Question two, the ASP increases are now out there, I guess, is my next question, meaning that all three large U.S. carriers in the United States know that on a go-forward basis in Q3, Q4, et cetera, it takes into account additional component costs. Is that right? Steven Gatoff: Yes, let's both tag team and hit those both up maybe the first one, Christian. The bottom line is, yes, you basically heard that and digested it as intended, which is, just to say all out again, is -- we had units and plans for a normalized buying amount of deal size in Q2 through conversations, the customer wanted to do a much larger order. And so given the memory pricing, and we had talked in previous quarters, too, how we felt good about supply and pricing. We had visibility to memory for the first half of the year and into Q3 now as well. But when we went through the larger order, we had to basically go use, if you will, higher cost memory that we had purchased, but had planned on using it for Q3 deals at a higher price. And since the price on the deal is fixed, we use that higher price, not for the whole transaction, but for part of it. And so that pulled down the margin for that transaction. But as we said and as you just said well, is for Q3, we're engaged with all the customers, all the carriers about price increases. And candidly, it's a new muscle for us like it is for everyone else, right? When we talked about this topic 6 months ago, it was just -- you and other guys were asking questions about where are you with raising prices to address the memory price increase, and we were all collectively just broaching that topic. No one really has gone first in the industry insofar as passing that along. And so it really wasn't a thing yet. In our opinion, it just kind of became a thing this quarter that people started passing on prices. And you see that whether it's Apple or Qualcomm or pick a topic that's -- now it's pretty obvious and maybe 3 months ago when we did the transaction very early in the quarter right out of the gate. And so now when we're doing this, there's much more memory muscle and seeding of the market, and so we have better coverage. Juho Sarvikas: Yes. And I think we mentioned in the previous call, coming into this year, we came in with healthy inventory levels. So Q3 was really when this transition happened for us, which perhaps a little bit later than some of the industry players who had not covered on key components like we had. So Q2 is a bit of a transition quarter, like Steven was saying, Q3 -- we've largely cascaded pricing out. Look, the way that this operates now is that the memory -- you will know the memory pricing upon delivery. And that's not us. That's an industry-level phenomenon. And with that Q4, we will deal with as we approach the Q4 deliveries. And this is something where different -- well, some of our large customers have adopted a strategy where they buy now while they still have visibility. So that's really the rules of the engagement at this stage of the -- of what we see in the component market. Christian Schwab: My last question on the software, well, your only customer for practical purposes, has chosen to go in-house and use a less complicated software. And so that's going to go from $11 million to $9 million, as you discussed. Is there an expiration date? Is that what it's going -- is that going to be readdressed in one year or two years, three years or five years? Or is it up for discussion on a continual basis? I guess that wasn't clear to me. Steven Gatoff: Sure. Just to correct, though, that's not quite the dynamic that you had said. That's not what's going on. It's not that they're going in-house on their own platform. Just to clarify, they subscribe to the platform, to the Subscribe platform, SaaS offering. And we also have an amount of professional services, call it, NRE, nonrecurring engineering that we provided them for a while with new leadership, with new investments with the team, et cetera, the complexity of what we needed to do on the pro services side has changed. And so we've adjusted the pricing for that less complex work going forward. And so that -- they're still taking the service and the work. It's just the nature of it is less complex and less robust and therefore, priced a bit lower. We are working with them right now on the term of the long-term agreement. What does that look like, different terms. And so we're deeply engaged with them. They've been a good partner through this. And so it's kind of in the normal course of a transaction of a contract renewal cycle, and that's what we're going through right now. Christian Schwab: Okay. Thanks for that clarity. Steven Gatoff: Yes. Christian Schwab: So the term length is still yet to be determined, Steven? You're... Steven Gatoff: Yes, that's right. Christian Schwab: Still negotiating that. Steven Gatoff: We've had terms with them anywhere from one to three years has been kind of the range. The last one was two, the one before that was three. We've done a quarter or two. So it's not -- we're not talking five and 10 years, and we're not talking about six months. Operator: This concludes our question-and-answer session. I'd like to turn the call back over to you, Juho, for closing remarks. Juho Sarvikas: Thank you for the thoughtful questions and for joining us today. I want to thank our employees for their continued hard work and shareholders for their ongoing support. Steven and I will be at the Lake Street Conference on September 10 in New York City, and we look forward to seeing some of you at that event. We appreciate your time today, and I look forward to updating you as we move forward. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in Inseego, 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 Inseego 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 $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 215% 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 August 13, 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. Inseego (INSG) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

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. Revenue outperformance in Q2 was driven by accelerated orders from a new Tier 1 carrier seeking to hedge against anticipated memory cost increases and supply constraints. Management acknowledged that the rapid acceleration of product launches—moving from one per year to multiple variants—overwhelmed legacy engineering processes, leading to costly delays. The company is undergoing a fundamental overhaul of its development discipline, shifting to a milestone-based model to support parallel processing of complex carrier requirements. A strategic pivot is underway to reduce customer concentration, evidenced by having products across three Tier 1 carriers simultaneously for the first time in company history. Gross margin pressure in Q2 resulted from fulfilling fixed-price orders with higher-cost memory units acquired to meet unexpected volume demands. The 'Inseego Subscribe' platform is transitioning from a professional services-heavy model to a standardized SaaS platform as the primary customer matures its internal IT capabilities. Full-year 2026 revenue guidance was lowered to approximately $155 million to reflect a slower recovery at a major FWA customer and the removal of speculative MSO revenue. Q3 revenue is expected to be lower due to the 'pull-forward' effect of Q2 carrier orders and a $2 million quarterly step-down in Subscribe services revenue. Management expects a Q4 recovery driven by a normalized ordering cadence and the launch of next-generation FWA products designed to regain market share. The company is implementing a price pass-through strategy for memory costs, which is expected to improve product margins to the high teens starting in Q3. Integration planning for the Nokia FWA acquisition is focused on establishing an international footprint in Amsterdam and Athens to support a global Tier 1 customer base. The Nokia FWA acquisition, expected to close in Q4 2026, will more than double the revenue base and add significant engineering scale to address current execution gaps. A search for a new engineering leader is in the final stages to address the 'basics' of product delivery and quality control. The MSO (Multiple System Operator) market opportunity remains active but has been removed from the 2026 forecast until contracts are signed, reflecting a shift to conservative guidance. Subscribe achieved CMMC Level 2 certification, a critical requirement for expanding the platform's reach into U.S. federal government programs. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects a return to normalized ordering levels for mobile products and a rebound in FWA following a low point in Q3. Confidence is tied to the launch of a next-generation FWA product specifically aimed at recovering volume with their largest legacy customer. The $2 million quarterly decline represents a reduction in professional services/NRE rather than a loss of the SaaS platform subscription. Management clarified that revenue is expected to stabilize at approximately $9 million per quarter following the initial step-down. Contract renewal discussions are ongoing, with typical terms ranging from one to three years. The Nokia FWA R&D function will be acquired in its totality, maintaining its existing leadership and reliable execution record. Inseego will utilize an 'EBITDA make-whole' provision from the deal to fund Nokia's engineering team and ensure road map continuity. The company intends to merge the teams under a single global engineering leader to improve engineering acumen and run the combined organization more efficiently. Management noted that passing through memory costs is a 'new muscle' for the industry, as pricing is now often determined at the time of delivery. Q2 margins were uniquely pressured by a transition period where inventory coverage was exhausted by a single large, fixed-price order.

Interested in Inseego? Here are five stocks we like better. Q2 revenue beat expectations: Inseego reported $44 million in revenue, up 28% sequentially and 9% year over year, helped by strong product sales and $5 million–$6 million in early carrier purchases ahead of expected memory-cost increases. Full-year outlook was lowered: The company now expects approximately $155 million in 2026 revenue, citing product-development delays, slower recovery from a major fixed wireless access customer, reduced services revenue and the removal of anticipated MSO revenue. Nokia FWA acquisition remains targeted for Q4 2026: Inseego expects the transaction to more than double its revenue base and add global customer relationships, engineering capabilities and a broader fixed wireless access product portfolio. 3 Defense Stocks Under $20 With Massive Upside Inseego (NASDAQ:INSG) reported second-quarter 2026 revenue of $44 million, exceeding the high end of its guidance range and rising 28% sequentially and 9% from a year earlier. The company said product revenue and late-quarter carrier orders helped drive the result, though those orders also pressured gross margin and are expected to reduce ordering levels in the third quarter. Chief Executive Officer Juho Sarvikas said the company benefited from purchases by select carrier customers seeking to get ahead of anticipated memory-cost increases in the second half of the year. Chief Financial Officer Steven Gatoff estimated that roughly $5 million to $6 million of incremental revenue was recognized in the second quarter from the ordering activity. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control However, Inseego reduced its full-year outlook, citing earlier product delays, a slower-than-expected recovery at its largest fixed wireless access customer, lower anticipated software-services revenue and the removal of multichannel video programming operator, or MSO, revenue from its 2026 forecast. Product revenue totaled $31.7 million, or 72% of total revenue, up 12% year over year. Mobile solutions revenue increased 26% from a year earlier to $17.3 million, supported by activity with a newer tier-one carrier customer and channel demand for the refreshed MiFi portfolio. Fixed wireless access revenue was $14.4 million, including a large purchase from the newest tier-one carrier customer. → 3 Drone Stocks That Should Soar After the Summer Slump Services and other revenue was $12.3 million, representing 28% of total revenue and a 2% year-over-year increase. Sarvikas said Inseego completed the launch of its refreshed MiFi PRO M4 mobile-product family across all three North American tier-one carrier customers. The company also made a multi-carrier model available through the value-added reseller channel. Inseego now has six products across three tier-one carriers, according to Sarvikas. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure The company also supported a large industrial deployment using its IoT product with Inseego Connect, its cloud-based device-management platform. Non-GAAP gross margin was 34% in the second quarter. Gatoff said the larger carrier deal carried a fixed selling price, while Inseego used higher-cost memory purchased for subsequent orders to fulfill part of the increased volume. The company expects product margin percentage to improve to the high teens in the third quarter as lower-margin products decline and memory-cost increases are passed through to customers. Non-GAAP operating expenses were $16.9 million, flat sequentially and equal to 38% of revenue. Adjusted EBITDA was $0.5 million, representing a 1% margin and in line with guidance. Inseego ended June with approximately $2 million of cash and $10 million outstanding on its revolver. Gatoff said the cash balance reflected the timing of significant product deals that closed late in the quarter, increasing accounts receivable. The company has collected material amounts of those receivables in the third quarter and has meaningfully paid down the revolver, he said. Inseego now expects approximately $155 million in standalone revenue for full-year 2026. For the third quarter, it forecast revenue of $28 million to $35 million and adjusted EBITDA of negative $1 million to negative $2 million. Sarvikas said product-development processes did not support the faster pace of product introductions undertaken over the past 18 months. The company historically introduced roughly one new product annually, but has recently launched multiple products and variants across mobile and fixed wireless access while expanding its customer base. “The development process that we used as a company was not capable of parallel processing the complexity introduced by a broader customer base and a broader set of products,” Sarvikas said during the question-and-answer session. The company said it has overhauled its development process and milestone model, narrowed its near-term product-introduction cadence and is searching for a new engineering leader. Sarvikas said several candidates are engaged in the process. Inseego also cited the slower recovery of an existing large FWA carrier customer, which is working through changes to its enterprise go-to-market strategy and internal organization. Management said a next-generation FWA product is expected to help restore that customer’s ordering run rate, although the recovery is taking longer than anticipated. In addition, Inseego removed MSO revenue from its 2026 outlook because customer conversion has taken longer than expected. Gatoff said the opportunity had previously been considered in the range of $15 million to $20 million. Beginning in the third quarter, the company expects software services and other revenue to decline by about $2 million per quarter as a tier-one carrier customer requires less complex professional-services work related to the Inseego Subscribe platform. Gatoff clarified that the reduction is expected to be a one-time step down, rather than a recurring $2 million quarterly decline. He said the customer continues to use the SaaS platform and that the parties are discussing the terms of a renewed agreement. Inseego continues to target a fourth-quarter 2026 closing for its acquisition of Nokia’s FWA business, subject to customary closing conditions. The company said the acquired business has an annual revenue run rate of approximately $200 million and would more than double Inseego’s revenue base. Management said the transaction is expected to add engineering capabilities, global tier-one customer relationships and a broader FWA portfolio that includes indoor, outdoor and millimeter-wave products. Sarvikas said the acquired Nokia research-and-development function will remain intact at closing. To prepare for integration, Inseego appointed Pranav Shroff to lead APAC sales, Ossi Korpela to lead EMEA sales and expanded Steve Harmon’s role to lead the Americas, including Latin America. The company selected Amsterdam as its center of international operations and is building Athens as a software-development center for its global FWA portfolio. Gatoff said Inseego expects to provide separate fourth-quarter revenue guidance for its standalone business and the acquired Nokia FWA business on its third-quarter earnings call, assuming the transaction closes as planned. Beginning with its fourth-quarter 2026 results call, expected in February 2027, the company intends to report and provide guidance as a combined company. Inseego Corp is a U.S.-based technology company specializing in 5G and intelligent Internet of Things (IoT) device-to-cloud solutions. The company develops hardware and software platforms designed to connect devices, vehicles and remote locations to high-speed wireless networks. Its core offerings include mobile hotspots, fixed wireless access gateways and ruggedized routers optimized for enterprise, industrial and government applications. Inseego's product portfolio encompasses 5G MiFi® mobile hotspots, virtual network functions (VNFs) for network management, telematics devices for fleet tracking and asset monitoring, as well as a suite of cloud-native software for device lifecycle management and data analytics. 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 "Inseego Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Total Revenue: $44 million in Q2 2026, above the high end of guidance, up 28% sequentially and 9% year over year. Product Revenue: $31.7 million, or 72% of total revenue, up 12% year over year. Mobile Solutions Revenue: $17.3 million, up 26% year over year, driven by traction with a newer tier 1 carrier customer and channel activity. FWA Revenue: $14.4 million in Q2, with solid contribution from the newest tier 1 carrier, partially offset by weakness at an existing large FWA customer. Services and Other Revenue: $12.3 million, or 28% of total revenue, up 2% year over year. Non-GAAP Gross Margin: 34% in Q2 2026, impacted by a large deal with a new carrier customer and higher-cost memory units. Non-GAAP Operating Expenses: $16.9 million, or 38% of revenue, flat sequentially. Adjusted EBITDA: $0.5 million, or a margin of 1%, in line with guidance. Cash Position: Approximately $2 million at end of June, with a $10 million revolver balance, both impacted by late-quarter product deliveries and subsequent collections. Q3 2026 Guidance: Total revenue expected between $28 million and $35 million; adjusted EBITDA expected between -$1 million and -$2 million. Full Year 2026 Revenue Outlook: Approximately $155 million, reflecting lower second-half expectations due to product delays, slower FWA customer recovery, and removal of MSO revenue. Warning! GuruFocus has detected 6 Warning Signs with INSG. Is INSG 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. Q2 revenue of $44 million exceeded the high end of guidance, with 28% sequential and 9% year-over-year growth. Successfully launched the refreshed mobile broadband family (MiFi Pro MP4) across all three North American Tier 1 carriers and the reseller channel. Newest Tier 1 carrier relationship is performing well in both mobile and FWA, reducing reliance on any single customer. Subscribe platform achieved CMMC Level 2 certification, a key milestone for supporting U.S. federal government programs. Nokia FWA acquisition remains on track for Q4 2026 close, with integration planning progressing and strong customer engagement. Full-year 2026 revenue outlook lowered to approximately $155 million due to product delays and slower-than-expected recovery in the largest FWA customer. Q3 2026 revenue guidance of $28-$35 million reflects a significant sequential decline, with adjusted EBITDA expected to be negative. Gross margin in Q2 was pressured to 34% due to higher-cost memory allocated to a large customer order, impacting profitability. Subscribe revenue is expected to decline by approximately $2 million per quarter starting in Q3 as a Tier 1 customer reduces professional services. MSO opportunity has been removed from 2026 outlook due to a longer-than-expected sales cycle, with revenue now treated as upside. Q: How much MSO revenue was previously assumed in the full-year outlook, and what is the current status of that opportunity? A: CEO Juho Sarvikas stated that the MSO opportunity was a large one, estimated in the $15 to $20 million range. While it remains a considerable opportunity, it has been removed from the 2026 outlook due to a longer-than-expected conversion cycle, and it will be treated as upside until customer conversations are proven. Q: Can you clarify the dynamic with the Subscribe software revenue decline? Is it expected to decline by $2 million per quarter indefinitely? A: CEO Juho Sarvikas clarified that the customer is not moving in-house but rather requires less complex professional services as its internal capabilities have evolved. The revenue will decline by $2 million starting in Q3, from approximately $11 million to $9 million per quarter, and then remain at that level, not continue to decline sequentially. Q: What gives you confidence in a sequential revenue snap-back in Q4, and what is the greatest risk to that number? A: CEO Juho Sarvikas and CFO Steven Gatoff explained that Q4 confidence is based on a normalized ordering cadence for both mobile and FWA, particularly the recovery of the largest FWA customer with a next-generation product launch. The numbers imply Q3 is much lower, and Q4 is expected to return to normalized levels, not a huge spike. The primary risk is the pace of recovery at the existing large FWA customer. Q: Can you help us understand the nature of the engineering execution bottleneck and what gives you confidence it will be resolved? A: CEO Juho Sarvikas explained that the company's development processes were not capable of handling the complexity of a broader customer base and product portfolio. The team has overhauled the development process and milestone model, instilling discipline with no shortcuts. The new mobile range is now launched across all three carriers, and the company is narrowing its NPI cadence to ensure focus. The search for a new engineering leader is progressing well with several finalists engaged. Q: Are there any implications for the Nokia FWA acquisition economics or combined operating profile given the back-half challenges? A: CEO Juho Sarvikas stated there are no aspects of the deal that would upset the apple cart. The transaction is on track for a Q4 close. The combined engineering function will be run as one global team, not a bolt-on, which is expected to improve efficiency and hit the ground running. Q: Can you provide an update on how the Nokia FWA business is performing relative to the $200 million run rate baseline, and are there any mechanisms to adjust economics? A: CFO Steven Gatoff confirmed there is no repricing mechanism in the transaction. The equity was issued at a price of $10 and change, which is currently in favor of Inseego shareholders. While the company is not authorized to disclose the acquired business's current-quarter performance, they remain comfortable with the $200 million annual run rate bogey and will provide more color as the deal closes. Q: How will the engineering of the combined company be managed, given the current struggles and the addition of Nokia's R&D function? A: CEO Juho Sarvikas clarified that the current product delays were largely tied to the new mobile range, which is now shipped. The Nokia carve-out includes its R&D function in totality, which has been executing reliably. The plan is to onboard a new, highly qualified leader to oversee the combined global engineering organization, with the EBITDA milestone from the deal funding the Nokia engineering team to deliver on its committed roadmap. Q: Can you confirm that the Q2 gross margin pressure was due to fulfilling a larger order with higher-cost memory, and are price increases now being passed through to all customers? A: CFO Steven Gatoff confirmed that the larger Q2 order required using higher-cost memory units, which pulled down the margin for that transaction. CEO Juho Sarvikas added that the industry has now shifted to passing along memory price increases, and the company is engaged with all carriers on this. Q3 product margins are expected to improve to the high teens as a result. Q: Regarding the Subscribe software customer, is there an expiration date on the current agreement, and what is the term length? A: CFO Steven Gatoff clarified that the customer is still taking the service, but the complexity of the professional services work has changed, leading to adjusted pricing. The company is currently negotiating the term of the long-term agreement, with a historical range of 1 to 3 years. The last agreement was 2 years, and the previous one was 3 years. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Q2 2026 revenue of $44.0 millionQ2 2026 Adjusted EBITDA* of $0.5 million and GAAP Net Loss of $8.4 million SAN DIEGO, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Inseego Corp. (Nasdaq: INSG) (the “Company”), the cloud-first wireless edge company, today reported its results for the second quarter of 2026 ended June 30, 2026. “We delivered revenue ahead of guidance in Q2, reflecting benefits from the diversification of both our customer base and product portfolio this past year,” said Juho Sarvikas, CEO of Inseego. “A key operational milestone was reached in Q2 as we have now launched our refreshed Mobile product family across all three North American Tier-1 carrier customers, a significant accomplishment in the Company’s history. As we move into the second half of 2026, our focus is on converting the launched product portfolio into revenue, improving gross margins, strengthening our engineering and product delivery, and aligning costs with the revised revenue profile.” Steven Gatoff, CFO of Inseego, added: “We delivered sequential and year-over-year revenue growth in Q2, and Adjusted EBITDA within our guided range. We continue to work towards the anticipated Q4 2026 closing of the FWA acquisition with Nokia.” Q2 2026 Financial Highlights Total revenue for Q2 2026 was $44.0 million. Adjusted EBITDA* for Q2 2026 was $0.5 million. GAAP Net Loss was $8.4 million. GAAP gross margin for Q2 2026 was 33.8%. Business Highlights Expanded the MiFi PRO M4 across all three major U.S. carrier networks through launches with AT&T, T-Mobile, and Verizon, strengthening Inseego’s mobile broadband position in the business mobility market. Broadened MiFi PRO M4 availability with a new unlocked, multi-carrier model available through select VARs, extending Inseego’s reach through the channel and supporting flexible enterprise and public sector deployments. Selected Amsterdam as its center for international operations and announced the appointment of Pranav Shroff as Senior Vice President and Managing Director, India and Asia-Pacific (APAC) Sales, and Ossi Korpela as Senior Vice President and Managing Director, Europe, Middle-East, and Africa (EMEA) Sales. Expanded our working capital facility with BMO Bank from $15.0 million to $20.0 million. Investor Events Inseego management will be participating in the following upcoming investor events: September 10, 2026 – Lake Street Capital Markets 10th Annual Best Ideas Growth Conference (New York, NY) Q3 and Full-Year 2026 Guidance Q3 2026 total revenue in the range of $28.0 million to $35.0 million. Q3 2026 Adjusted EBITDA* in the range of negative $2.0 million to negative $1.0 million. Full-year 2026 total revenue of approximately $155 million. Conference Call Information Inseego will host a conference call and live webcast today at 5:00 p.m. ET. A Q&A session will be held live directly after the prepared remarks. To access the conference call: Online, visit https://investor.inseego.com/events-presentations Those without internet access or unable to pre-register may dial in by calling: An audio replay of the conference call will be available one hour after the call through August 19, 2026. To hear the replay, parties in the United States may call 1-855-669-9658 and enter access code 7903540 followed by the # key. International parties may call 1-412-317-0088. In addition, the Inseego Corp. press release will be accessible from the Company's website before the conference call begins. *Adjusted EBITDA is a non-GAAP financial measure. See “Non-GAAP Financial Measures” below for more information, and the tables at the end of this release for a reconciliation to the closest GAAP measure. About Inseego Corp. Inseego is a leader in cloud-first wireless edge solutions, delivering secure, resilient connectivity across people, places, and machines. As wireless becomes foundational infrastructure, Inseego unifies connectivity, management, security, and subscriber lifecycle management into a platform that orchestrates cellular, satellite, Wi-Fi, and emerging wireless technologies at the edge. Its portfolio includes 5G fixed wireless access routers, MiFi mobile hotspots IoT solutions under the Skyus brand, and cloud platforms including Inseego Connect and Inseego Subscribe, all designed in the U.S. Built on its core strength and long-term leadership in cellular technology, Inseego solutions enable service providers and channel partners to deploy and manage enterprise-grade wireless solutions at scale. Learn more at www.inseego.com. © 2026. Inseego Corp. All rights reserved. The Inseego name and logo are trademarks of Inseego Corp. Cautionary Note Regarding Forward-Looking Statements Some of the information presented in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements often address expected future business and financial performance and often contain words such as “may,” “estimate,” “anticipate,” “believe,” “expect,” “intend,” “plan,” “project,” “will” and similar words and phrases indicating future results. The information presented in this news release related to our financial guidance, future business outlook, the future demand for our products, and other statements that are not purely historical facts are forward-looking. These forward-looking statements are based on management’s current expectations, assumptions, estimates, and projections. They are subject to significant risks and uncertainties that could cause results to differ materially from those anticipated in such forward-looking statements. We, therefore, cannot guarantee future results, performance, or achievements. Actual results could differ materially from our expectations. Factors that could cause actual results to differ materially from the Company’s expectations include: (1) the Company’s dependence on a small number of customers for a substantial portion of our revenues; (2) the future demand for wireless broadband access to data and device management software and services and our ability to accurately forecast; (3) the growth of wireless wide-area networking and device management software and services; (4) customer and end-user acceptance of the Company’s current product and service offerings and market demand for the Company’s anticipated new product and service offerings; (5) our ability to develop sales channels and to onboard channel partners; (6) increased competition and pricing pressure from participants in the markets in which the Company is engaged; (7) dependence on third-party manufacturers and key component suppliers worldwide; (8) the impact of fluctuations of foreign currency exchange rates; (9) the impact of supply chain challenges on our ability to source components and manufacture our products; (10) unexpected liabilities or expenses; (11) the Company’s ability to introduce new products and services in a timely manner, including the ability to develop and launch 5G products at the speed and functionality required by our customers; (12) litigation, regulatory and IP developments related to our products or components of our products; (13) the Company’s ability to raise additional financing when the Company requires capital for operations or to satisfy corporate obligations; (14) the Company’s plans and expectations relating to acquisitions, divestitures, strategic relationships, international expansion, software and hardware developments, personnel matters, and cost containment initiatives, including restructuring activities and the timing of their implementations; (15) the global semiconductor shortage and any related price increases or supply chain disruptions, (16) the potential impact of COVID-19 or other global public health emergencies on the business, (17) the impact of high rates of inflation and rising interest rates, (18) the impact of import tariffs on our materials and products, and (19) the impact of geopolitical instability on our business. Additionally, in connection with Inseego’s planned acquisition (“Proposed Transaction”) of Nokia’s Fixed Wireless Access business (the “Business”), factors that may cause actual results to differ materially from current expectations include, but are not limited to: (1) the occurrence of any event, change or other circumstances that could give rise to the termination of the Asset Purchase Agreement with respect to the Proposed Transaction, (2) the outcome of any legal proceedings that may be instituted against the parties following the announcement of the Proposed Transaction; (3) the inability to complete the Proposed Transaction, including due to failure to satisfy any conditions to closing; (4) the risk that the announcement and/or consummation of the Proposed Transaction disrupts Inseego’s current plans or operations; (5) the ability to recognize the anticipated benefits of the Proposed Transaction, which may be affected by, among other things, the potential loss of customers and/or employees of the Business, competition, and/or the ability of Inseego to grow and manage growth profitably; (6) the risk that Inseego will not be able to integrate the Business successfully; (7) the risk that costs savings and other anticipated synergies from the Proposed Transaction may not be realized when expected, or at all; (8) the diversion of Inseego’s management’s time on issues related to the Proposed Transaction. These factors, as well as other factors set forth as risk factors or otherwise described in the reports filed by the Company with the SEC (available at www.sec.gov), could cause results to differ materially from those expressed in the Company’s forward-looking statements. The Company assumes no obligation to update publicly any forward-looking statements, even if new information becomes available or other events occur in the future, except as otherwise required under applicable law and our ongoing reporting obligations under the Securities Exchange Act of 1934, as amended. Non-GAAP Financial Measures Inseego Corp. has provided financial information in this press release that has not been prepared in accordance with GAAP. Non-GAAP net income (loss) and non-GAAP net income (loss) per share, for example, exclude the impact of share-based compensation expense, impairment of capitalized software, amortization of intangible assets purchased through acquisitions, non-recurring transaction related costs, and other non-recurring gains and losses. Adjusted EBITDA, in addition to those items excluded from non-GAAP net income (loss), excludes all interest expense, taxes, depreciation, amortization, and other non-operating income/expense. Non-GAAP net income (loss), non-GAAP net income (loss) per share, and Adjusted EBITDA are supplemental measures of our performance that are not required by, or presented in accordance with, GAAP. These non-GAAP financial measures have limitations as an analytical tool. They are not intended to be used in isolation or as a substitute for cost of revenues, operating expenses, net income (loss), net income (loss) per share or any other performance measure determined in accordance with GAAP. We present these non-GAAP financial measures because we consider them to be an important supplemental performance measure. We use these non-GAAP financial measures to make operational decisions, evaluate our performance, prepare forecasts and determine compensation. Further, management and investors benefit from referring to these non-GAAP financial measures in assessing our performance when planning, forecasting and analyzing future periods. Share-based compensation expenses are expected to vary depending on the number of new incentive award grants issued to both current and new employees, the number of such grants forfeited by former employees, and changes in our stock price, stock market volatility, expected option term and risk-free interest rates, all of which are difficult to estimate. In calculating non-GAAP financial measures, we exclude certain non-cash and one-time items to facilitate comparability of our operating performance on a period-to-period basis because such expenses are not, in our view, related to our ongoing operational performance. We use this view of our operating performance to compare it with the business plan and individual operating budgets and in the allocation of resources. We believe that these non-GAAP financial measures are helpful to investors in providing greater transparency to the information used by management in its operational decision-making. The Company believes that using these non-GAAP financial measures also facilitates comparing our underlying operating performance with other companies in our industry, which use similar non-GAAP financial measures to supplement their GAAP results. In the future, we expect to continue to incur expenses similar to the non-GAAP adjustments described above, and the exclusion of these items in the presentation of our non-GAAP financial measures should not be construed as an inference that these costs are unusual, infrequent, or non-recurring. Investors and potential investors are cautioned that material limitations are associated with using non-GAAP financial measures as an analytical tool. The limitations of relying on non-GAAP financial measures include, but are not limited to, the fact that other companies, including other companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting their usefulness as a comparative tool. Investors and potential investors are encouraged to review the reconciliation of our non-GAAP financial measures in this press release with our GAAP financial results. Investor Relations Contact: Matt Glover, Gateway Group: (949) 574-3860 [email protected]

IPG Photonics (IPGP) came out with quarterly earnings of $0.58 per share, beating the Zacks Consensus Estimate of $0.4 per share. This compares to earnings of $0.3 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +45.00%. A quarter ago, it was expected that this high-powered laser maker would post earnings of $0.32 per share when it actually produced earnings of $0.29, delivering a surprise of -9.38%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. IPG, which belongs to the Zacks Lasers Systems and Components industry, posted revenues of $278.58 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.21%. This compares to year-ago revenues of $250.72 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. IPG shares have added about 21.8% since the beginning of the year versus the S&P 500's gain of 11%. While IPG has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for IPG was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.47 on $277.13 million in revenues for the coming quarter and $1.66 on $1.11 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Lasers Systems and Components is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Computer and Technology sector, Inseego (INSG), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This holding company is expected to post quarterly loss of $0.09 per share in its upcoming report, which represents a year-over-year change of -250%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Inseego's revenues are expected to be $40.1 million, down 0.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report IPG Photonics Corporation (IPGP) : Free Stock Analysis Report Inseego (INSG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Leadership appointments across APAC and EMEA, international headquarters in Amsterdam, and Athens development center to bolster Inseego's international reach and global customer support SAN DIEGO, June 30, 2026 (GLOBE NEWSWIRE) -- Inseego Corp. (Nasdaq: INSG), the cloud-first wireless edge company, today announced several initiatives to advance the company’s international growth strategy to support its planned acquisition of Nokia’s fixed wireless access business. Inseego has appointed Pranav Shroff as Senior Vice President and Managing Director, India and Asia Pacific (APAC) Sales, and Ossi Korpela as Senior Vice President and Managing Director, Europe, Middle-East, Africa (EMEA) Sales. Both will become members of Inseego’s executive team. Inseego also announced that Steve Harmon, Chief Commercial Officer, will expand his coverage to lead the Americas, including the company’s expansion into Latin America. Steven Gatoff, Inseego’s Chief Financial Officer, will expand his role to lead the company’s international expansion where he will oversee the company’s global operating structure, support integration activities, and work closely with regional sales leadership to scale the business across EMEA, APAC, and other international markets. Inseego will also invest in its international development center in Athens, Greece, and has selected Amsterdam as its center for international operations, extending the reach of Inseego’s San Diego-based global headquarters. “These moves are important steps in Inseego’s evolution into a leading global wireless broadband company,” said Juho Sarvikas, CEO of Inseego. “A major strategic rationale for the Nokia FWA acquisition was the opportunity to expand our reach beyond North America and serve customers in key international markets. The combination of experienced regional leaders, a strong engineering presence in Greece, and a new center for international operations in Amsterdam, sets the right foundation to drive growth and support customers around the world. Ossi and Pranav join Inseego in these pivotal roles to drive the business forward, having worked with them in the past, I am confident they will have an impact in our international growth strategy.” Strengthening regional leadership across the Americas, APAC, and EMEA Pranav Shroff joins Inseego as Senior Vice President and Managing Director, APAC Sales, bringing more than 25 years of experience building and scaling technology businesses across mobile, 5G, and connected devices. He has held senior leadership roles at Apple, Airtel, HMD Global, and Nokia, with experience spanning product, marketing, go-to-market strategy, and P&L ownership across some of the world’s most competitive technology markets. “APAC is one of the most dynamic connectivity markets in the world, with enormous opportunity across fixed wireless access, mobile broadband, and enterprise wireless,” said Shroff. “Inseego has the technology, customer relationships, and momentum to play an important role in this region. I am excited to work with our teams and leading global carriers to build the next chapter of growth.” Ossi Korpela joins Inseego as Senior Vice President and Managing Director, EMEA Sales, bringing two decades of leadership in the mobile and connectivity industry. He has built and scaled operator, channel, and enterprise businesses across EMEA and global markets. Korpela spent more than a decade at Nokia in senior commercial and general management roles, including Global Account Director for global operator groups and General Manager for North Europe. He later led the Nordic devices and operator channel business at Microsoft and served as General Manager for Europe North at HMD Global. He has also held managing director and P&L leadership roles across premium brands, including Porsche, and most recently advised technology and growth companies. “European operators are at the center of the fixed wireless access opportunity, and they value partners they can trust,” said Korpela. “I am joining Inseego to help ensure that customers who built their businesses on this technology have continuity and a clear path forward, and to help bring Inseego’s solution to consumers and businesses across EMEA.” Steve Harmon, Inseego’s Chief Commercial Officer, will expand his mandate to lead Americas sales, including the company’s expansion into Latin America. In this role, Harmon will continue to oversee sales in North America while building on the company’s expanded portfolio and global customer relationships to support growth opportunities across Latin America. “Our commitment to building a global business is reflected in the strength of the team we are putting in place,” said Juho Sarvikas, CEO of Inseego. “Steve has built a disciplined commercial engine in North America, Ossi brings deep knowledge of the European operator landscape, and Pranav brings the regional insight, senior operator relationships, and technology depth we need across APAC. Together, they give Inseego strong commercial leadership across the Americas, EMEA, and APAC as we support our customers and pursue the next phase of growth.” Investing in Athens as a center of wireless engineering talent As part of strengthening its international reach, Inseego will establish a key engineering center in Athens, Greece, recognizing the depth of engineering talent in the region and the strong software and wireless engineering capabilities of the Nokia team. The Athens team will continue to play an important role in product development, customer support, and the advancement of Inseego’s global fixed wireless access portfolio at a global level. Selecting Amsterdam as international headquarters Inseego has selected Amsterdam as its center for international operations, extending the reach of its San Diego-based global headquarters, citing the city’s attractive business climate, strong connectivity to European and global markets, and logistical advantages for shipping to and from customers and partners across the region. The international headquarters will extend the reach of Inseego as a strong, operating business following the acquisition of Nokia’s FWA business. The Amsterdam operations will serve customers while building and expanding regional capabilities for a disciplined foundation for growth and profitability. “Amsterdam gives Inseego an efficient, well-connected base for supporting international customers and scaling our operations across Europe and beyond,” said Steven Gatoff, Chief Financial Officer of Inseego. “As we expand globally, we are focused on building a business infrastructure that supports customer continuity, operational discipline, and long-term growth.” About Inseego Inseego is a leader in cloud-first wireless edge solutions, delivering secure, resilient connectivity across people, places, and machines. As wireless becomes foundational infrastructure, Inseego unifies connectivity, management, security, and subscriber lifecycle management into a platform that orchestrates cellular, satellite, Wi-Fi, and emerging wireless technologies at the edge. Its portfolio includes 5G fixed wireless access routers, MiFi mobile routers, IoT solutions under the Skyus brand, and cloud platforms including Inseego Connect and Inseego Subscribe, all designed in the U.S. Built on its core strength and long-term leadership in cellular technology, Inseego solutions enable service providers and channel partners to deploy and manage enterprise-grade wireless solutions at scale. Learn more at www.inseego.com. Media Relations Contact:[email protected]

Image source: The Motley Fool. Thursday, May 7, 2026 at 5 p.m. ET Chief Executive Officer — Juho Sarvikas Chief Financial Officer — Steven Gatoff Need a quote from a Motley Fool analyst? Email [email protected] Juho Sarvikas: Good afternoon, everyone, and thank you for joining us today. This is a very exciting chapter for Inseego and an important step in the company's transformation to diversify revenue and at scale. Over the past year, we have been executing a strategy focused on increasing stockholder value by strengthening the foundation of the company, expanding our product portfolio and customer base, broadening our routes to market and solidifying our leading position as the partner of choice across mobile and enterprise FWA. Last week, we accelerated that strategy in a very significant way with the announcement of a truly transformational acquisition for Inseego. It is the largest revenue deal in the company's history, and it's one that we structured very thoughtfully to meaningfully derisk the profile of the transaction. We view it as a major milestone and important inflection point for the company for three reasons: First, it will more than double the revenues as of the company and take us from a North America-centric player to be the new global leader in wireless broadband in one decisive move as our end markets expand from North America to Asia Pacific and Europe, Middle East and Africa. Second, it gives us one of the broadest portfolios in the industry across consumer and business markets, including FWA, mobile routers and IoT gateways that we can use to address the expanded TAM. And third, it establishes a unique and strategic partnership with Nokia across go-to-market, AI, 6G and the future of the wireless edge. Before I discuss the acquisition in more detail, I want to first cover our Q1 2026 results and provide color on our operational progress and some challenges in the quarter that we're managing through. Q1 revenue grew 8% year-over-year to $34.3 million. Adjusted EBITDA was $1.8 million, and both revenue and adjusted EBITDA were within our guidance. We also delivered healthy gross margins at 48.9%. As we said on our Q4 call in February, 2026 is a year of investment in carrier ramps, product launches and portfolio expansion in the first half, followed by benefits of greater scale, improving operating leverage and stronger profitability as the year progresses. Q1 played out largely as we expected and in line with what we discussed on our Q4 call. One challenge in Q1 was in FWA. Our large FWA customer overhauled its executive team and changed its approach to enterprise go-to-market, which created disruption for us in the quarter. We are working with them to realign the go-to-market and expect to see progress. Meanwhile, we've secured a commitment for our next-generation FWA platform with that same customer, reinforcing both the strength of that relationship and our position at the leading edge of sever technology. In addition, our recently added Tier-1 customer is ramping very well in FWA. This goes to show the importance of executing on our strategy of diversifying our revenue base. Mobile delivered $16.7 million of revenue. On last quarter's call, we said we had engineering delays in our new mobile hotspot product family, which consists of a model for each of our Tier-1 carriers that would impact Q1. While we have successfully launched two out of three models, the delay in the third is persisting into Q2, we anticipate to launch in late June. I'm happy to share with you that we've executed on our strategy to broaden the mobile portfolio across multiple value tiers and secured a carrier commitment for a new low-tier MiFi product, which is an important step in expanding the portfolio and positioning the category for broader contribution over time. I've made important changes to address the execution issues I mentioned. I've brought in a new Chief Product Officer and launched a search for Head of Engineering. It's important to note that as part of the Nokia FWA acquisition, I will be integrating people and best practices from Nokia, an industry leader in engineering technology, which will help us scale both our existing business and the newly acquired business. We recently welcomed Koroush Saraf as our new Chief Product Officer. Koroush brings more than 20 years of experience across networking, cybersecurity, hardware, software and edge infrastructure with expertise in AI, SD-WAN, cloud security and 5G. He held product leadership roles at ZPE Systems, Accredo, Palo Alto Networks and Fortinet, where he helped bring products to market across connectivity, networking and security. Koroush understands how to build and scale product platforms across hardware and software, and his background is closely aligned with our strategic priorities as we continue expanding the portfolio. So, in summary, Q1 played out as we expected. As we move into Q2, we continue to build our FWA business. And in mobile, while we have launched a new product generation with two out of our three Tier-1 carriers, the additional delay with the third one will impact our Q2 outlook. As it won't launch until late June, it therefore, won't benefit most of the quarter. Moving to the transformational announcement we made last week, the acquisition of Nokia's FWA business. What makes this transaction compelling is what it means for Inseego strategically for our market position, our global reach, our technology roadmap and our ability to lead the wireless broadband edge as AI, 5G evolution and eventually 6G expand the opportunity in front of us. The simplest way to think about this transaction is that it's transformative for Inseego. We are acquiring Nokia's approximately $200 million revenue run rate FWA business. That more than doubles our revenue base, gives us immediate global scale in revenue and reach and positions Inseego as one of the leading global players in FWA with what we believe is the broadest platform in the industry across mobile, fixed, enterprise and consumer connectivity. It also establishes a partnership with Nokia across technology, go-to-market collaboration and ownership alignment. From a scale, reach, financial and technology standpoint of view, this acquisition transforms Inseego and sets us on a greatly accelerated growth trajectory. For Inseego, the strategic logic is very clear. This acquisition materially advances our product roadmap and gives us immediate global presence. It takes what has been a U.S.-centric business and makes Inseego instantly global. It also gives us a strong set of global Tier-1 customers and creates real opportunity to take Inseego products into Nokia's customer base and Nokia FWA products into Inseego's customer base. It gives us a different level of scale from day one and positions us to compete across a much broader set of customer segments, geographies and use cases. This gives us a much stronger position in FWA market, which is growing rapidly and becoming more important globally. The drivers are clear. Operators are increasingly using FWA to monetize 5G, expand broadband access and serve a broader range of consumer and enterprise use cases. At the same time, AI-driven workloads are increasing uplink demand, lowering latency tolerance and pushing more intelligence to the edge, while 5G evolution, millimeter wave and over time, 6G continue to expand what wireless broadband networks can support. We believe this transaction gives us exactly the right platform to capitalize on those key trends. This is also a strong fit for both companies. Nokia is sharpening its focus on AI infrastructure and network leadership. Inseego is building a leadership position at the wireless broadband edge. Bringing these two together creates a very compelling combination and a strong fit strategically for both sides. On a personal level, this transaction means a great deal to me as well. I spent nearly eight years at Nokia, so I know the teams, the products, the customers and the quality in which they operate the business. I also know the depth of technology and the relevance of this business in the broader wireless broadband ecosystem. This is a business we understand, a market we deeply believe in and an opportunity we are generally excited to bring into Inseego. I also want to thank Nokia President and CEO, Justin Hotard, and his team for the partnership and the work they've done to get us to this point. We appreciate the relationship and are excited about what we will build together going forward. It has been one week since we announced the deal. And while there is obviously a lot of work ahead of us, the response we've seen from partners and customers has been overwhelmingly positive. As I mentioned earlier, an important part of this acquisition for me is the ability to add strong Nokia expertise to our company. I'm driving to one global engineering team, one product team and one integrated supply chain. Signing the deal only got us to the starting line. I'm laser-focused on making sure we execute along the way, starting with the overall integration of the business. We are approaching integration the right way with a clear focus on customer continuity, employee integration and building the right culture. We have a dedicated and experienced team leading this effort. Importantly, the business and financial attractiveness of this deal is well aligned. In this regard, this is not a bolt-on. It's about bringing two complementary organizations together with a clear set of opportunities for scale, efficiency and cost synergies over time. The transaction structure is designed to give us the flexibility to integrate thoughtfully, continue investing in the roadmap and optimize the business as we execute. Steven will walk through the structure in more detail. But from my perspective, that operating framework is an important part of what makes this transaction so compelling. At the same time, we remain fully focused on the existing business. We are driving that business forward while preparing to bring these two organizations together as one fully aligned team, serving a much larger global opportunity across mobile, enterprise and consumer wireless broadband. With that, let me turn the call over to Steven to discuss the Q1 financials, Q2 outlook and the Nokia acquisition structure and economics in more detail. Steven Gatoff: Thank you, Juho. Hi, everyone. Thank you for joining us. I'd like to cover three topics today, as Juho said. First, I'll take you through our Q1 2026 financial results. Second, I'll share some color on the financial profile of the business and provide our guidance for Q2 2026. And third, as Jo mentioned, I'll provide more details on the FWA acquisition structure and economics. To be clear, though, the discussion of our financial results for Q1 2026 and our outlook and guidance for Q2 and the full year 2026 are for Inseego only and do not include any of the Nokia FWA business. The acquisition is anticipated to close in Q4 2026, and we will look to provide the relevant financial information in that time frame. As we always do, we'll wrap up today by opening the call to your questions. Starting with our financial results. Q1 played out largely as expected, as Juho mentioned, and reflected the timing and transition dynamics that we discussed on the last call. We delivered year-over-year revenue growth, healthy gross margins and adjusted EBITDA within our guided range. And we did this while we continue to invest in the product, go-to-market and operating capabilities needed to support the larger organic growth opportunities ahead. On the top line, total revenue for Q1 was $34.3 million, up 8% year-over-year and driven by higher FWA volumes relative to the prior year period, along with a consistent contribution from our software services offerings. As expected, mobile was the larger dollar revenue contributor in the quarter at $16.7 million. FWA revenue was $5.3 million for the quarter. And while that was a sequential decline from Q4 2025 that reflected the timing and customer-specific dynamics that we highlighted on the last call, FWA revenue was up meaningfully year-over-year, supported by higher carrier volumes and a broader customer footprint. Software services revenue was $12.3 million, as mentioned, continuing to provide a stable high-margin contribution to results. Moving down the P&L. Non-GAAP gross margin in Q1 was 48.9%, up about 640 basis points sequentially, primarily as a result of a higher proportion of software services revenue. Non-GAAP operating expenses for Q1 were essentially flat to Q4 2025 of $16.9 million. As we discussed previously, this reflects the planned investment in sales and marketing and R&D in the quarter. These are deliberate investments tied to carrier ramps, portfolio expansion and broader go-to-market readiness for the second half of 2026. Adjusted EBITDA in Q1 2026 was $1.8 million or 5.1% of revenue, which was at the higher end of our guidance. That result reflects what we said on the last call, lower profitability in the first part of the year driven by front-end investment while preserving the setup for stronger scale and profitability in the second half of the year. Turning to the balance sheet. We ended Q1 with a higher-than-anticipated cash balance of $19 million from a large customer clearing their quarter end AP balances. We drove healthy working capital through the quarter and finished Q1 with a manageable debt balance of approximately $49 million. That is $8 million higher than the year-end balance on our successful elimination of all of the $42 million in outstanding Preferred Stock that we executed in January at a meaningful 38% discount. Let's now turn to Q2 2026 guidance. We continue to view 2026 as a growth year with front-loaded investment in the first half designed to position us for greater scale, stronger operating leverage and improved profitability in the second half of the year. That basic first half, second half dynamic remains unchanged and is playing out as communicated. As we said on the Q4 2025 call in February, framing Q1, the first half of the year reflects several dynamics. First, the second half of 2025 benefited from a strong FWA ramp with a Tier-1 customer and elevated mobile volumes tied to carrier promotions and ordering cadence. Second, we are in the early stages of launching several new FWA programs with our Tier-1 carrier customers, and those revenue ramps build over time rather than all at once. And third, our refreshed MiFi portfolio is setting up for contribution in late Q2 and beyond as we work through the delays that Juho talked to. Against that backdrop, we remain positive on the outlook for both mobile and FWA in 2026 as we continue expanding our business with our Tier-1 carrier customers and broadening our routes to market. Looking at Q2 2026, we expect revenue to increase about 12% sequentially from Q1, driven by improved contribution from growth in FWA among both our carrier and channel customers, offset somewhat by a lower mobile quarter on MiFi, as Juho discussed. We expect software services revenue to remain consistent at approximately $12 million. From a profitability standpoint, we expect Q2 2026 adjusted EBITDA to be lower sequentially with the anticipated increased spend in sales and marketing and R&D before that spend lowers again and revenue ramps to drive higher profitability levels in the second half of 2026 as we highlighted. Pulling this all together, we're providing the following guidance for Q2 2026. Total revenue in a range of $36.5 million to $43.5 million and adjusted EBITDA in a range of $250,000 to $2 million. We see a higher range to the upside on revenue as we now have multiple new product launches and carrier initiatives in market, a new dynamic for Inseego and the specific timing of which can land on either side of quarter end. Stepping back to the full year 2026, we continue to expect organic growth and see a path to deliver $190 million of revenue with the year building sequentially and profitability improving meaningfully in the back half as revenue scales. With that, let's turn now to the FWA acquisition. As we've said, we held the conference call last week on April 30 to walk through the transaction. So, I'll keep the focus today on the key structural and financial points. We encourage anyone who hasn't already to listen to the webcast and download the acquisition presentation that's on the Investor Relations section of our website at inseego.com. Overall, this is an asset purchase structure with an aggregate consideration of $20 million that consists of $15 million in Inseego common stock and $5 million in warrants to be issued to Nokia. We're very bullish on the deliberate transaction structure that we put together that meaningfully derisks the addition, of international scale and value creation for the company in a disciplined way and that aligns both parties around stockholder value creation. We would offer there are three aspects of the acquisition that we'd like to highlight. First, the way we structure the transaction preserves balance sheet flexibility. We are materially increasing the scale of the business without using cash or incurring any debt and that matters. Second, the transaction structure creates real alignment between Inseego and Nokia. Nokia is not simply divesting an asset and moving on. They're becoming a shareholder of Inseego and have aligned incentives around execution and long-term stockholder value creation. And third, the transition support framework aspect of the transaction is important. We designed the structure to maintain the acquired FWA business at EBITDA breakeven for the first year following the close. This will be achieved through quarterly cash payments from Nokia that are equal to the negative EBITDA of the acquired business at first year. That support gives us stability during the transition while preserving upside to realize the broader cost savings and operating synergy opportunities over time. As we discussed, the EBITDA make whole is capped at $38 million in aggregate, which we see as wholly adequate for that first year of operations. There is also a longer-term alignment mechanism through profit sharing in years two and three following the close, where Nokia will be able to participate in positive EBITDA generated by the acquired business that is correlated with its performance. In this regard, we see an opportunity to leverage greater supply chain scale and purchasing power and to realize engineering efficiencies through product design and development model benefits in order to drive profitability over time. We believe the structure creates an attractive and disciplined framework for Inseego shareholders and the scale is compelling with the acquired FW business, essentially doubling the size of Inseego and bringing approximately $200 million of revenue on a run rate basis from their Q1 2026 results. When you combine that scale with the transition support, the equity alignment and the revenue and cost synergy opportunities, we believe the way we structure this acquisition meaningfully derisks the transaction financially, complementing the strategically compelling nature of the opportunity. As noted earlier on the announcement call, we currently expect the acquisition to close in Q4 2026, subject to customary closing conditions, and we look forward to providing more financial details on the business as we move to the closing. With that, we appreciate your time and support and are glad to open the call for questions. Operator? Operator: [Operator Instructions] And the first question will come from Tyler Burmeister with Lake Street Capital Markets. Tyler Burmeister: Steven, maybe first on the Nokia acquisition you guys announced last week. I'm wondering if you're able to at this point or if it's something we have to wait closer to closing, to provide a little more detail on exactly what that year two, year three profit sharing looks like, what some of the metrics are that you would hit for Nokia to participate in that? Steven Gatoff: Yes. We'll do both of those. We will provide more details in our filings, and we're happy to share that the basic structure of the profit share is based on the revenue performance of the acquired business. And the way it works is that Nokia will be able to participate somewhere between 0% and 50% of the EBITDA, positive EBITDA that's generated from the business based on where the revenue of that business comes in. Tyler Burmeister: Great. Maybe pivoting to the core Inseego business here in the quarter. Gross margins, maybe as we look through the year, obviously, there's going to be some mix headwind as your product revenue ramps in Q2 and the second half of the year. Wondering if you could just maybe give some thoughts on gross margins for the remainder of this year. Steven Gatoff: Yes. We'll tag team on that as usual. And I think you just summarized it really well. That is exactly what's going on that in the reported quarter in Q1, the margin was quite high, mostly on mix, mostly on a higher proportion of software because of the lower print on mobile basically and certainly on FWA, which is generally a higher-margin business. And then as we roll out though, more products, like I mentioned earlier, is this is really the first period in the company's history where we have multiple product launches across multiple carriers. And so, the good news is we're looking to grow revenue and compete well, and that does bring some gross margin pressure in so far as rate. So that is kind of the dynamic that you summarized quite well. Juho Sarvikas: Yes. I think Steven also mentioned in his prepared remarks that it's a new dynamic for the company. So if you look at our revenue engines that we have now compared to a year ago when there were really three products across two carriers. Now we're ramping up three mobile products across all three carriers. These mobile products are positioned now to capture a much larger share of the market at a lower price point with some pressure on the gross margin that you'll see reflected. Meanwhile, on FWA, we're very happy to see the ramp of our new Tier-1 carrier partner while we continue to work with the existing large partner to realign on the go-to-market side. And then the big element in addition to that would be our targeted expansion to the MSO. So you get from those three revenue drivers to over six. And then, of course, with channel, we're now in the middle of the FX4200, our new product introduction to the market, and I expect to see a rebound effect there in Q2 and ongoing growth in addition to mobile, which has always been a strong driver in channel for us. Tyler Burmeister: I appreciate all that color. Maybe last one, if I can sneak one more in. I was wondering on your software business, The Inseego Subscribe, which is the majority of that business with one carrier customer today, I was wondering how you might think about the opportunity to expand that with Nokia's international carrier customer base post the close? Do you think there could be a more or less likely opportunity for inroads with some of those customers there? Juho Sarvikas: Yes. So absolutely, the global footprint opens up more market opportunity for Subscribe as well. Look, the big thing for me with Subscribe as we've done heavy investment on the platform over the past year plus. And on the back of that, expand our customer engagement with the immediate priority being the other large Tier-1 carriers here in the U.S. I'm extremely, extremely encouraged by how well the solution has been received. And again, as a recap, what Subscribe really is, is a full subscriber life cycle management business support solution, and it specializes in the most difficult part of the market, which would be our Fed/SLED segment. And that specialty is something where we see the differentiation and the value of the platform continue to deliver. In addition, under Steven's leadership, we have hired two new senior leaders for the business, Head of Engineering and Head of Product. And I'm very happy with the traction that these two new leaders have been driving to the platform. Operator: The next question will come from Lance Vitanza with TD Cowen. Lance Vitanza: Two questions, I guess. The first is on the Nokia deal, which looks like it's a lot of potential upside there. How should we think about the gross margin potential once you sort of get that business integrated? How should we, is that 10% gross margin? Is it 20% gross margin business? Just trying to think about what this thing could actually look like in a couple of years' time. Steven Gatoff: Yes. So let's tag team, of course. It's a good question, and we're working that through. And I think your good question has two aspects to it. Like what is it at closing and then what is it over time? And in our view, those are reasonably different, not amazingly. But to your point, a good portion of the customer base right now is a high velocity consumer-based, residential-based model. The product is pretty diverse. It can go to business as well. But the margin profile of that business is more of a teens kind of gross margin than it is in the 20s right now, but we expect to be able to drive that in the future once we close. Juho Sarvikas: There's not really a single gross margin percentage that will exist in nature in that business. If you look at the, like Steven was saying, the book of business that we're acquiring, you have anything from a very advanced millimeter wave deployment in Australia with a significantly higher gross margin contract to emerging markets and everything in between. The other things that I'm very excited about and in all of the discussions with our existing customer base that has become apparent is that now on the back of this asset and with Inseego becoming #1 in wireless broadband globally, we're viewed as a great candidate to take that asset here in the U.S. to residential deployments with our existing large Tier-1 carriers. So there's significant growth opportunity for us, both cross-selling our existing Inseego broadline to global markets, but then also taking this new Nokia FWA asset and competing here in residential or consumer domestically. Lance Vitanza: And just to sort of follow up on that, like the go-to-market and the distribution capabilities that Nokia can sort of bring to bear here, is there a way to sort of get that started before the closing or at least to sort of get it into position so that when the deal closes, you can kind of hit the ground running day one? Or how should we think about the ramp in terms of their ability to kind of add value from a distribution standpoint? Juho Sarvikas: That's an excellent question. One of the key things that we've discussed with Justin Hotard from the beginning was to align on the market opportunity. As a part of that, the notion of this strategic go-to-market collaboration continuing with Nokia even beyond we close the transaction. So we will train. We will have a joint account management, pipeline management process. We will incentivize the Nokia global sales team to continue to hunt for us. So on the go-to-market side, that is a very valuable asset for us. It's also good to note that here in the U.S., we already have the sales structure in place to capitalize on the opportunity. Lance Vitanza: And then maybe just one switching gears for a second, just on the regulatory kind of Washington policy. And I've seen some headlines over the past couple of months, but honestly, I haven't been following it as closely as I could or probably should. But are you getting any sort of a tailwind in terms of what the FCC has been sort of doing in terms of thinking about what can or cannot go into the supply chain these days? Juho Sarvikas: Yes. So, the FCC ruling is on residential routers where the primary intended use case is for residential deployment. Our solutions for the FWA and a hotspot for that matter, are intended for, primarily for enterprise use. They have manageability, security, all of that enterprise feature set. Like you know, our mobile products also cross-sell into the consumer segment. So as the situation progresses, I do see this as a potential upside driver for us given that we will be able to cater for both segments with a product that, again, primarily intended for enterprise use as opposed to residential. The other thing I would note here is that the criteria here is produced in U.S. and produced means designed, developed and manufactured. We are unique in that we design and develop here in the U.S. And then when it comes to manufacturing, we have optionality for that as well. So I do believe that our unique position as an American company with design development here in San Diego gives us a great opportunity to capitalize on what's next on that front. Operator: The next question will come from Scott Searle with ROTH Capital. Scott Searle: I got on the call a little bit late, so I apologize. I'm going to stay away from supply chain issues because I'm sure they've got addressed, and I can take that offline. But Juho, maybe looking at the second half of this year, we kind of back some revenue more into the second half. So it's a really back-end loaded year. I'm wondering if you could kind of give us what's your level of confidence in terms of the number of operators and/or products and programs that you expect to be launching up? Do you feel pretty comfortable about how the operator cadence of launches is going to perform in the mid to second half of this year? Juho Sarvikas: Scott, thanks for joining us. Really appreciate your time. To your point, if you look at the revenue engines that we have going into the second half, we're in a really unique position with those three new hotspots launching and ramping by the end of the first half, in addition, on the call today, we announced that we have secured a new value tier win in a hotspot with a large Tier-1 carrier. So there's more work to be done, more business to be expanded, but the mobile portfolio going into the second half is in excellent shape despite some of the time delays that we've experienced on the first half that's reflected in the Q1 performance and Q2 guide. Meanwhile, on FWA, very, very encouraged by the performance and the partnership with our new large Tier-1 FWA customer, while we continue to realign the go-to-market and sales strategy with our existing large ones. So those are huge for us. In addition, I see great opportunity in the MSO space. We've done a lot of work both on product and cloud side. to become the perfect solution and ideal partner for the large MSOs when it comes to failover day one and other use cases. So I view all of that as very encouraging. And as we have all of these expiring in the second half, we see visibility to that $190 million that we set as a target for the year. Scott Searle: Very helpful. And Juho, maybe just to follow up on that. MSO customers, is that likely in the second half of this year? And maybe I wonder if you could just comment on the competitive landscape. There are a lot of dynamics going on out there, obviously related to FCC regulation and security issues. But the breadth of the product portfolio that you now have and as you start to move from the high tier into the mid-tier and low tier, are competitors starting to dwindle and go away and just kind of opening up share gains for you within the existing operator base? Juho Sarvikas: Thanks. I'll take those one by one. On the MSO engagement pipeline, very strong. The job left to do now is the final conversion. But again, we have good readiness pipeline and visibility into that opportunity space. The SEC ruling, which was, at this point, specific to residential routers in the following Q&A was also identified to cover hotspots as a category. So there's a couple of things that we have going for our favor. First of all, intended primary use case is the enterprise. We have manageability and security and all of those features that cover. And secondly, if you look at the degree to which you produce in design, develop and manufacture in the U.S., we're in a unique position, as a company to do all of that here in the U.S. So whatever happens there next and how that situation develops, I would expect will always be favorable for us as carriers transition their portfolios and new products go into SEC filings. If you look at the volume opportunities in the marketplace, we've done a great job in consolidating the MiFi mobile market, already now with that mid-tier portfolio that were mid-high tier portfolio that we're in the middle of launching across all three carriers. Like you know, we've positioned now for higher volume capture where we used to be significantly higher priced than bulk of the market. Now we can drive volume share gains there, which in itself is great. And I do believe that this value tier win that we now have secured in mobile further takes oxygen out from the marketplace in our favor. So we're committed in driving increasing gains in that segment. Scott Searle: Got you. Very helpful. And if I could, just 2 quick ones on Nokia. I imagine you've probably had some inbounds and engagements with customers on both sides of the acquisition. I'm wondering what the operator response is now with you guys taking over with there being a long-term roadmap and direction for the company in terms of solidifying those existing relationships and then the cross-sell opportunities for you to bring in higher-end mobile hotspots and otherwise into that carrier customer base. And on the gross margin front, I know it's early, but I'm kind of wondering if you've been able to get a quick peek at what's in the box and the BOM breakdown and have a roadmap to be able to enhance the gross margin profile once you guys get closer to close date and integration. Juho Sarvikas: Thanks, Scott. We've, as a part of the due diligence process, met with the top customers, top five, think about like that. Since then, we've had meetings with the global, our new global customers across existing ones and the ones that are targeted for further expansion with the Nokia FWA business. And the feedback has been single-handedly positive. We're a trusted known technology leader in the landscape. While we've been operating exclusively, almost exclusively in North America, so far, the reputation, commitment and dedicated focus in this mobile or wireless broadband space is something that's very much acknowledged. Also the strategic partnership that will carry forward with Nokia is something that's a big confidence builder, of course. for our customer base. But I feel like we're in a great position to continue to be and quite frankly, expand the customer footprint for the business that we're acquiring as a trusted partner of choice. The other thing that I've been very, very encouraged with is that in these discussions, of course, we've also socialized our Inseego portfolio, be that our enterprise FWA or mobile, and we've already uncovered cooperation opportunities with these new international customers where they have a business need that we can feed. And if you translate that then into the cloud on the ARR side, I think it's a great value proposition to have your, now your entire fleet, whether it's residential, enterprise or mobile managed by a single platform. So all of that feels very good. In the meanwhile, as we've engaged with our existing large customer base, the Tier-1 MSO community and beyond here in North America, the fact that we're becoming overnight the largest global wireless broadband provider gives us the scale and the capability to compete also very aggressively here in residential and other opportunities. So everything that we've seen in the discussions that we've had makes me believe that we have, we're in a great position to be the new home for the business, grow it and really take it to a place where we have one team, one technology and product platform that we now take this expanded global set of customers across enterprise, consumer, mobile and fixed. Steven Gatoff: And then, Scott, to your good question on gross margin. As we said a little bit earlier, it's interesting, the margin right now overall in a small number of customers, but large players. It doesn't really exist in nature in that it's in the kind of mid-teens, if you will. But that exists from a very, very large single customer that is the definition of a high-velocity model where you have tremendous market share and tremendous volumes in the millions of units. And so the technology and the engineering quality that Nokia has executed in their business is so compelling, they have been able to add additional customers at much higher margins with two handles on in the 20s. And so as we see that trajectory of the ability to build off of a foundation of a very strong, high-velocity model that has very efficient supply chain, very efficient operations and then go add higher-margin business to that, that becomes a really compelling story for us, and it's kind of what we've been able to do domestically, organically and that we look to do there on a global basis. Juho Sarvikas: I think the big thing for me here is that if you look at the product portfolio and the market opportunity, they're completely complementary. Meanwhile, on the engineering and product side, you have a few companies that are now making their own connectivity modules, own software platforms, their own device roadmaps. And now we have the ability to create one platform on all levels and also drive significant synergies even on the device roadmap side and then have one team execute behind that. That's one of the key things here, which we believe will make us very successful with the acquisition. Operator: This will conclude our question-and-answer session as well as conference call. Thank you all for attending today's presentation. You may now disconnect. Before you buy stock in Inseego, 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 Inseego wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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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. The acquisition of Nokia's Fixed Wireless Access (FWA) business is expected to more than double annual revenue and expand market presence from North America to a global scale. Q1 performance was driven by an 8% year-over-year revenue increase, supported by higher FWA carrier volumes and stable high-margin software services. Management attributed FWA disruption to a large customer's executive overhaul and shifting enterprise go-to-market strategy, though a next-gen platform commitment was secured. Mobile revenue faced headwinds from engineering delays in a new hotspot family, with two of three Tier-1 carrier models launched and the third delayed until late June. Strategic diversification is progressing through a new Tier-1 FWA customer ramp and a secured commitment for a new low-tier MiFi product to capture broader market share. Leadership changes, including a new Chief Product Officer and a search for a Head of Engineering, aim to address recent execution issues and integrate Nokia's technical expertise. Management maintains a full-year 2026 revenue target of $190 million, assuming sequential growth and improved operating leverage in the second half. Q2 guidance reflects a 12% sequential revenue increase driven by FWA ramps, partially offset by the timing of the third Tier-1 mobile hotspot launch in late June. Profitability is expected to improve significantly in the back half of the year as front-loaded investments in R&D and sales and marketing begin to scale. The Nokia acquisition is anticipated to close in Q4 2026, with integration focusing on a unified global engineering team and supply chain synergies. Future growth drivers include expansion into the MSO (Multiple System Operator) space for failover use cases and cross-selling Inseego products to Nokia's international base. The $20 million Nokia transaction is structured as an asset purchase using equity and warrants to preserve cash and avoid incurring new debt. A unique 'EBITDA make-whole' provision requires Nokia to cover negative EBITDA of the acquired business for the first year, capped at $38 million. A profit-sharing mechanism in years two and three allows Nokia to participate in 0% to 50% of positive EBITDA based on revenue performance tiers. Management highlighted the elimination of $42 million in preferred stock at a 38% discount in January, significantly strengthening the balance sheet foundation. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The current business has a 'teens' gross margin profile due to high-velocity residential models, but newer contracts are reaching the 20% range. Management expects to drive margin expansion through supply chain scale, purchasing power, and engineering efficiencies from a unified product platform. The global footprint from the Nokia deal provides a significant opportunity to scale the Subscribe platform to international Tier-1 carriers. Immediate priority remains expanding the solution with other large U.S. Tier-1 carriers following recent platform investments and leadership hires. Management views potential FCC restrictions on foreign-produced routers as a tailwind due to Inseego's U.S.-based design and development. The company's focus on enterprise-grade security and manageability differentiates its products from standard residential hardware targeted by regulators.