Inseego reported a strong sequential rebound in Q2 2024, with revenue of $59.15 million, up 31.4% QoQ and 10.4% year over year, signaling improved demand for its wireless hardware, IoT, and cloud solutions. The company delivered a gross profit of $23.04 million and a robust EBITDA of $7.04 million, translating into a gross margin of 38.95% and an EBITDA margin of 11.90%, underscoring improving operating leverage as volumes recover. Despite a positive bottom-line contribution of $0.62 million and a non-GAAP-like cash generation profile, net income remained modest due to ongoing interest expense and non-operating charges, with reported earnings per share of -$0.0155 for the quarter.
On the balance sheet, liquidity remains constrained despite meaningful operating cash flow. Total assets stood at $149.56 million while total liabilities reached $251.33 million, resulting in negative equity of approximately -$101.76 million. The company reported strong operating cash flow of $28.76 million and free cash flow of $26.96 million, led by a substantial working capital swing of $23.24 million. Cash balance rose to $48.99 million, and net debt stood at roughly $128.32 million, with a current ratio of 0.389 and a quick ratio of 0.314, indicating limited near-term liquidity headroom.
Overall, the QQ2 2024 results illustrate a potential recovery path supported by growing revenue, improving gross margins, and meaningful cash flow generation, but the balance sheet remains a material restraint. Management's ability to deleverage, sustain revenue momentum, and monetize SaaS offerings will be critical to materially improve liquidity and earnings quality going forward.