Executive Summary
Inseego Corp reported QQ3 2024 revenue of $54.0 million, up 11.22% year over year and down 8.65% quarter over quarter, reflecting a resilient top line amid a higher base in the prior year and seasonality. Gross profit stood at $18.8 million, producing a gross margin of approximately 34.8%, while operating income was modest at $1.0 million, resulting in an EBITDA of $5.83 million and an EBITDA margin near 10.8%. Net income reached $8.97 million, supported by total other income of about $6.56 million, with a diluted EPS of $0.51 relative to $0.38 basic, underscoring a one-time or non-core contributor to profitability in the quarter. Free cash flow was solid at $10.8 million on $12.1 million of operating cash flow, and minimal capital expenditure, signaling healthy cash generation from ongoing operations. However, the balance sheet remains a material risk: negative shareholders’ equity of roughly $85.1 million, total debt of $115.2 million with net debt around $103.3 million, and liquidity metrics that show a current ratio of 0.45 and a cash ratio near 0.06. The company ended QQ3 with $11.97 million of cash and cash equivalents, signaling limited cushion for near-term working capital needs or debt maturities without external financing or equity support. The qualitative backdrop points to growth in IoT/enterprise SaaS avenues, but the negative equity and leverage profile warrant cautious execution on medium-term profitability and capital structure improvements.
Key Performance Indicators
QoQ: -18.40% | YoY:892.08%
QoQ: -56.75% | YoY:105.87%
QoQ: 1 337.34% | YoY:139.75%
QoQ: 2 551.61% | YoY:119.69%
Key Insights
Revenue analysis: QQ3 2024 revenue of $54.032M, up 11.22% YoY and down 8.65% QoQ. Gross margin: 34.8% (gross profit $18.80M on $54.032M revenue). Operating income: $1.016M with an operating margin of ~1.88%. EBITDA: $5.834M (EBITDA margin ~10.8%). Net income: $8.969M (net margin ~16.6%), aided by total other income of $6.563M. EPS (basic) $0.38; EPS (diluted) $0.51. Cash flow: operating cash flow $12.074M; free cash flow $10.796M. Balance sheet: total assets $113.39M; total liabilities $198.453M...
Financial Highlights
Revenue analysis: QQ3 2024 revenue of $54.032M, up 11.22% YoY and down 8.65% QoQ. Gross margin: 34.8% (gross profit $18.80M on $54.032M revenue). Operating income: $1.016M with an operating margin of ~1.88%. EBITDA: $5.834M (EBITDA margin ~10.8%). Net income: $8.969M (net margin ~16.6%), aided by total other income of $6.563M. EPS (basic) $0.38; EPS (diluted) $0.51. Cash flow: operating cash flow $12.074M; free cash flow $10.796M. Balance sheet: total assets $113.39M; total liabilities $198.453M; stockholders’ equity negative at -$85.063M. Debt: total debt $115.229M; net debt $103.257M. Liquidity: current ratio 0.451; quick ratio 0.355; cash ratio 0.0634. DSO 29.54 days; DIO 42.48 days; DPO 83.13 days; CCC -11.11 days. Revenue mix and product contribution are not disaggregated in the provided data. Valuation context: P/E ~5.61, P/BV negative due to negative equity, P/S ~3.72, EV/EBITDA ~17.48.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
54.03M |
11.22% |
-8.65% |
| Gross Profit |
18.80M |
892.08% |
-18.40% |
| Operating Income |
1.02M |
105.87% |
-56.75% |
| Net Income |
8.97M |
139.75% |
1 337.34% |
| EPS |
0.38 |
119.69% |
2 551.61% |
Key Financial Ratios
operatingProfitMargin
2.82%
operatingCashFlowPerShare
$0.98
freeCashFlowPerShare
$0.98
Management Commentary
No earnings call transcript was provided in the supplied material. As a result, there are no management quotes or thematic insights to anchor the highlights. Notwithstanding, the QQ3 2024 results show a positive net income driven by other income despite modest operating profitability, suggesting potential non-operating tailwinds or one-time items that warrant clarification on subsequent disclosures.
Not available in the provided data.
—
Not available in the provided data.
—
Forward Guidance
There is no explicit forward guidance in the provided data. Based on the quarter’s trajectory and the balance sheet configuration, investors should monitor: 1) the cadence of cash flow generation versus working capital usage and near-term liquidity needs, 2) the trajectory of debt maturities and potential refinancing requirements, and 3) progress in the company’s IoT/enterprise SaaS initiatives (telematics, asset tracking, fleet management, and managed services) that could meaningfully improve recurring revenue and gross margins over time. Given the negative equity, any meaningful improvement in profitability or gross margin would need to be supported by stronger operating leverage, successful monetization of SaaS offerings, or a capital strategy to address the balance sheet. Management visibility on key customer or geographic exposures, as well as product mix shifts toward higher-margin subscriptions, would be critical factors to monitor ahead of any significant guidance.