Inseego’s QQ1 2025 period (quarter ended 2025-03-31) shows a meaningful top-line decline versus a year-ago period, with revenue of $31.673 million, down 29.6% YoY and 34.1% QoQ from the prior quarter’s $48.087 million. The company posted a gross margin of 47.3% on a gross profit of $14.983 million, but operating income remained negative at -$0.424 million, yielding a net loss of -$2.434 million and an EPS of -$0.16. EBITDA stood at $1.978 million, signaling some operating cash generation before non-cash and financing items, yet year-on-year profitability remains challenged as dependence on hardware volumes, working capital movements, and elevated Opex continues to weigh on bottom-line results.
From a liquidity and balance-sheet perspective, Inseego ended QQ1 2025 with cash and cash equivalents of $35.15 million and total debt of $60.36 million, resulting in a net debt position of about $25.22 million. Total assets were $92.99 million against liabilities of $105.99 million and negative shareholders’ equity of -$12.99 million, reflecting a substantial accumulated deficit (retained earnings of -$908.06 million historically) and sizable non-cash equity components. The firm remains cash-flow negative from operations (-$3.47 million) and free cash flow negative (-$3.50 million) for the quarter, underscoring ongoing liquidity considerations even as the company sustains product development, SaaS initiatives, and IIoT/cloud solutions.
Looking ahead, the absence of formal forward guidance in the provided materials limits explicit forecast benchmarks. However, the investment trajectory appears anchored in monetizing SaaS platforms (Inseego Subscribe, fleet/telematics offerings) and expanding private LTE/5G solutions for enterprise and government segments. Near-term investor focus should be on the trajectory of gross margin stability, control of operating expenses, and the pace of working-capital optimization to convert revenue activity into positive free cash flow, alongside a gradual reduction in net debt and improvements in liquidity.
Key Performance Indicators
Revenue
31.67M
QoQ: -34.13% | YoY:-29.63%
Gross Profit
14.98M
47.31% margin
QoQ: -16.50% | YoY:8.91%
Operating Income
-424.00K
QoQ: -123.69% | YoY:66.46%
Net Income
-2.43M
QoQ: -330.04% | YoY:45.36%
EPS
-0.16
QoQ: -60.00% | YoY:57.89%
Revenue Trend
Margin Analysis
Key Insights
Operating: -$3.467 million; Free Cash Flow: -$3.499 million.
Cash at end of period: $35.149 million; Net debt: $25.215 million; Total debt: $60.364 million.
Current ratio: 1.12; Quick ratio: 0.864; Cash ratio: 0.595.
Total assets: $92.999 million; Total liabilities: $105.991 million; Total stockholders’ equity: -$12.995 million; Retained earnings: -$908.059 million.
Sales mix indicators suggest hardware-intensive revenue with higher-margin SaaS/cloud services as a strategic lever.
Financial Highlights
Revenue: $31.673 million in Q1 2025, YoY -29.63% and QoQ -34.13%.
Gross Profit: $14.983 million, YoY +8.91%, QoQ -16.50%; Gross Margin: 47.31%.
Operating Income: -$0.424 million; Operating Margin: -1.34%.
Net Income: -$2.434 million; Net Margin: -7.68%.
EPS (diluted): -$0.16; EPS YoY: +57.89%; QoQ: -60.00%.
EBITDA: $1.977 million; EBITDA Margin: 6.24%.
Cash flow - Operating: -$3.467 million; Free Cash Flow: -$3.499 million.
Cash at end of period: $35.149 million; Net debt: $25.215 million; Total debt: $60.364 million.
Current ratio: 1.12; Quick ratio: 0.864; Cash ratio: 0.595.
Total assets: $92.999 million; Total liabilities: $105.991 million; Total stockholders’ equity: -$12.995 million; Retained earnings: -$908.059 million.
Sales mix indicators suggest hardware-intensive revenue with higher-margin SaaS/cloud services as a strategic lever.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
31.67M
-29.63%
-34.13%
Gross Profit
14.98M
8.91%
-16.50%
Operating Income
-424.00K
66.46%
-123.69%
Net Income
-2.43M
45.36%
-330.04%
EPS
-0.16
57.89%
-60.00%
Key Financial Ratios
currentRatio
1.12
grossProfitMargin
47.3%
operatingProfitMargin
-1.34%
netProfitMargin
-7.68%
returnOnAssets
-2.62%
returnOnEquity
18.7%
debtEquityRatio
-4.54
operatingCashFlowPerShare
$-0.23
freeCashFlowPerShare
$-0.23
priceToBookRatio
-9.43
priceEarningsRatio
-12.59
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript not provided in the data set. No management quotes or call highlights available for QQ1 2025. If a transcript becomes available, we will extract themes by category (strategy, ops, market conditions) and provide context-rich quotes.
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Forward Guidance
There is no formal forward guidance in the supplied materials for QQ1 2025. Given the quarterly metrics, the near-term emphasis would likely be on stabilizing gross margins, controlling operating expenditures (R&D, G&A, S&M), and accelerating cash flow conversion. Investors should monitor: (1) quarterly trend in gross margin progression toward the mid-40s% range, (2) operating expense discipline to approach breakeven on a quarterly operating income basis, (3) progression of free cash flow and reduction of net debt, and (4) growth in SaaS/net-new ARR from Inseego Subscribe and fleet-telematics platforms. Expect management commentary on customer wins, contract renewals, and cross-sell of SaaS versus hardware as a key signal of margin resilience and recurring-revenue strength.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
0A52.L Focus
47.31%
-1.34%
18.70%
-12.59%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Base case: Inseego’s QQ1 2025 figures point to a transitional phase where the company leverages a high gross-margin hardware mix and expanding SaaS offerings, but profitability and cash-flow generation remain under pressure. The stock presents a high-risk, high-reward profile given negative equity, a net debt position, and a fragile quarterly cash-flow cadence. If management can translate SaaS adoption into meaningful recurring revenue growth and move operating expenses toward breakeven, there is potential for improved margins and cash generation.
Bull case: A faster-than-expected ramp in Inseego Subscribe and telematics platforms could lift recurring revenue, improve gross-to-operating leverage, and move the company toward positive free cash flow while stabilizing margins. The cash balance provides runway for strategic investments and debt management.
Bear case: Continued revenue volatility, limited operating-margin expansion, and persistent cash-burn could erode liquidity and exacerbate the negative equity condition. In such a scenario, the business could face tighter financing conditions or require additional equity or debt capacity to sustain ongoing operations.
Key factors to monitor include: quarterly revenue trajectory (hardware vs. SaaS mix), gross margin progression, Opex discipline, free cash flow realization, working-capital management, and any formal forward guidance or strategic pivots announced by management.
Key Investment Factors
Growth Potential
Growth is anchored in expanding private LTE/5G deployments, IIoT applications, and a larger SaaS footprint (fleet management, asset tracking, and telematics). The company’s SaaS platforms (e.g., Inseego Subscribe) offer recurring revenue with higher visibility and margin potential if adoption accelerates and customer retention improves.
Profitability Risk
Key risks include continued revenue volatility in hardware and enterprise sectors, high negative equity and leverage constraints, and reliance on macro conditions affecting capex in telecoms and enterprise networks. Ongoing operating losses and negative cash flow create liquidity pressure, making sensitivity to working-capital swings and FX/note-bearing items important.
Financial Position
Solid cash reserves relative to quarterly cash burn but a net debt position persists. Total debt of $60.364M exceeds cash of $35.149M, yielding net debt of $25.215M. Negative shareholders’ equity (-$12.995M) reflects a long history of deficits, though accumulated other comprehensive income partially offsets some of the equity impairment. The balance sheet shows moderate current liquidity metrics but structural leverage remains a constraint on downside risk.
SWOT Analysis
Strengths
Gross margin around 47% in Q1 2025 despite revenue decline, suggesting a favorable product mix or pricing discipline within hardware offerings.
Diverse product portfolio spanning 4G/5G fixed wireless, private networks, IIoT, and cloud/SaaS solutions (e.g., Inseego Subscribe).
Positive EBITDA of approximately $1.98 million in the quarter indicates some operating leverage before non-cash and financing costs.
Cash balance of $35.15 million provides liquidity headroom for near-term working-capital needs and investment in product/SaaS platforms.
Weaknesses
Net loss of $2.434 million and negative EPS (-$0.16) in QQ1 2025 underscores ongoing profitability challenges.
Negative shareholders’ equity (-$12.995 million) and sizable accumulated deficits.
Negative free cash flow (-$3.499 million) and operating cash flow (-$3.467 million) raise liquidity risk if revenue deteriorates or working capital worsens.
Revenue decline YoY and QoQ indicate demand variability or execution gaps in sales/market adoption.
Opportunities
Scale recurring revenue via SaaS platforms (Inseego Subscribe) and cross-sell to existing hardware customers.
Growth potential from private LTE/5G network deployments and IIoT applications in enterprise verticals (fleet management, asset tracking, monitoring).
Potential partnerships or channel expansions to accelerate adoption of cloud-based services and remote management capabilities.
Threats
Macro headwinds in technology/hardware spend and telecom capex could dampen near-term demand.
Competition from larger telecom equipment and IoT players with greater scale may pressure pricing and market share.
Credit and liquidity risk if operating performance does not improve and debt levels remain elevated.