Inseego Corp (0A52.L) Q2 2025 Earnings Report

Revenue: USD 40.223 million; YoY change: -32.00%; QoQ change: +26.99%
Gross Profit: USD 16.515 million; Gross Margin: 41.06%; YoY: -28.32%; QoQ: +10.22%
Operating Income: USD 1.28 million; Operating Margin: 3.18%; YoY: -45.51%; QoQ: +401.89%
EBITDA: USD 3.254 million; EBITDA Margin: 8.09%
Net Income: USD 0.507 million; Net Margin: 1.26%; YoY: -18.75%; QoQ: +120.83%
EPS (Diluted): -0.025; YoY: -61.29%; QoQ: +84.38%
Operating Cash Flow: USD -4.469 million; Free Cash Flow: USD -5.658 million
Cash, End of Period: USD 13.221 million; Beginning Cash: USD 35.149 million; Net change in cash: USD -21.928 million
Balance Sheet Highlights: Total Assets USD 83.072 million; Total Liabilities USD 93.568 million; Total Stockholders’ Equity USD -10.496 million (negative equity); Cash & Short-Term Investments USD 13.221 million; Total Debt USD 43.607 million; Net Debt USD 30.386 million; Current Ratio ≈ 1.22x; Working Capital ≈ USD 9.941 million
Notes: The quarterly metrics reflect a mix shift toward software/SaaS offerings and ongoing leverage on a relatively small revenue base. EBITDA margin aligns with small-cap hardware/software peers, but the company remains cash-flow negative in operating activities and levered with a substantial debt burden and negative equity.

Note: No earnings call transcript data were provided in the input. As a result, themed highlights and management quotes could not be extracted directly. If transcript access becomes available, we will append a themed synthesis (strategy, operations, market conditions) with quoted remarks and context.

Given the QQ2 2025 results, Inseego presents a high-risk, high-variance investment profile. The company delivers a positive EBITDA and a narrow net income, coupled with a solid gross margin, but is constrained by negative equity and a meaningful debt burden that supports a net debt position of approximately USD 30.4 million. Near-term cash flow is negative, raising liquidity questions unless deleveraging and working-capital improvements gain traction. The potential upside hinges on successful monetization of SaaS offerings and a material shift toward recurring revenues, alongside disciplined cost management and debt reduction. Investors should approach with caution, prioritizing visibility on cash flow normalization, debt reduction milestones, and sustainability of the SaaS revenue base before considering meaningful exposure. For risk-tolerant investors, a wait-and-see stance until deleveraging signs emerge may be prudent; for opportunistic players, a small allocation could be considered if there are clear catalysts toward FCF positivity and equity recovery.