Inseego Corp 10-Q for FY2026 Q1

Inseego Corp. (INSG)

10-Q 2026-05-08 For: 2026-03-31

Added on May 08, 2026

About this 10-Q

Inseego Corp filed this 10-Q on May 8, 2026, covering the quarter ended March 31, 2026 (FY2026 Q1).

Headline figures

Quarter ended March 31, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $34.34M; up 8.4% from $31.67M a year earlier
Net loss: $4.54M; compared with a net loss of $1.57M a year earlier
Diluted EPS: $0.65; compared with -$0.16 a year earlier

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Delaware		81-3377646
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

9710 Scranton Road, Suite 200
San Diego,	California	92121
(Address of Principal Executive Offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	INSG	Nasdaq Global Select Market


Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☒
		Emerging growth company	☐


		Page
PART I—FINANCIAL INFORMATION

Item 1.	Financial Statements	3

	Condensed Consolidated Balance Sheets (Unaudited)	3

	Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited)	4





	Condensed Consolidated Statements of Stockholders’ Deficit (Unaudited)	6

	Condensed Consolidated Statements of Cash Flows (Unaudited)	7

	Notes to Condensed Consolidated Financial Statements (Unaudited)	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30

Item 4.	Controls and Procedures	30

PART II—OTHER INFORMATION

Item 1.	Legal Proceedings	32

Item 1A.	Risk Factors	32

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33

Item 3.	Defaults Upon Senior Securities	33

Item 4.	Mine Safety Disclosures	33

Item 5.	Other Information	33

Item 6.	Exhibits	34

SIGNATURES		35


	March 31, 2026		December 31, 2025
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	19,297	$	24,886
Accounts receivable, net of allowance for expected credit losses of $145 and $159, respectively	15,719		25,086
Inventories	12,541		7,726
Prepaid expenses and other current assets	5,704		6,389

Total current assets	53,261		64,087
Property, plant and equipment, net of accumulated depreciation of $29,571 and $26,063, respectively	1,308		1,087
Intangible assets, net of accumulated amortization of $34,022 and $32,336, respectively	21,873		20,676
Goodwill	3,949		3,949
Operating lease right-of-use assets	3,235		3,451
Other assets	531		557

Total assets	$	84,157	$	93,807
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	24,741	$	23,583
Accrued expenses and other current liabilities	27,397		24,856




Total current liabilities	52,138		48,439
Long-term liabilities:
Operating lease liabilities	2,649		2,910
Deferred tax liabilities, net	189		186
2029 Senior Secured Notes, net	50,415		41,611
Other long-term liabilities	4,181		4,705

Total liabilities	109,572		97,851
Commitments and contingencies (Note 9.)
Stockholders’ deficit:
Preferred stock, par value $0.001; 2,000,000 shares authorized:
Preferred stock, par value $0.001; 39,500 shares designated, no shares outstanding as of March 31, 2026, 25,000 issued and outstanding as of and December 31, 2025 (aggregate liquidation preference of $41,966 as of December 31, 2025)	—		—
Common stock, par value $0.001; 150,000,000 shares authorized, 16,228,548 and 15,388,978 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively	16		15
Additional paid-in capital	871,990		903,899
Accumulated other comprehensive loss	376		403
Accumulated deficit	(897,797)		(908,361)
Total stockholders’ deficit	(25,415)		(4,044)
Total liabilities and stockholders’ deficit	$	84,157	$	93,807


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


			INSEEGO CORP.
			(Exact name of registrant as specified in its charter)


	Three Months Ended March 31,
		2026		2025
Revenues:
Mobile solutions		$	16,688	$	17,790
Fixed wireless access solutions		5,314		1,903
Product		22,002		19,693
Software services and other		12,336		11,980
Total revenues		34,338		31,673
Cost of revenues:
Product		16,382		15,396
Software services and other		1,359		1,294
Total cost of revenues		17,741		16,690
Gross profit		16,597		14,983
Operating costs and expenses:
Research and development		5,810		4,535
Sales and marketing		5,622		3,934
General and administrative		6,937		4,490
Depreciation and amortization		1,794		2,064
Impairment of capitalized software		—		384
Total operating costs and expenses		20,163		15,407
Operating income (loss)		(3,566)		(424)
Other (expense) income:
Interest expense		(1,061)		(1,026)


Other income (expense), net		125		303
Income (loss) before income taxes		(4,502)		(1,147)
Income tax provision (benefit)		34		23
Income (loss) from continuing operations		(4,536)		(1,170)
Income (loss) from discontinued operations (net of income tax provision (benefit) of $— and $400, respectively)		—		(400)
Net income (loss)		(4,536)		(1,570)
Preferred stock dividends		—		(864)
Preferred stock exchange deemed contribution		15,100		—
Net income (loss) attributable to common stockholders		$	10,564	$	(2,434)
Per share data:
Net earnings (loss) per share
Basic
Continuing operations		$	0.66	$	(0.14)
Discontinued operations		—		(0.03)
Basic earnings (loss) per share*		$	0.66	$	(0.16)
Diluted
Continuing operations		$	0.65	$	(0.14)
Discontinued operations		—		(0.03)
Diluted earnings (loss) per share*		$	0.65	$	(0.16)
Weighted-average shares used in computation of net earnings (loss) per share
Basic		16,093,430		15,002,003
Diluted		16,356,246		15,002,003

Other comprehensive income (loss):
Foreign currency translation adjustment		(27)		6
Comprehensive loss		$	(4,563)	$	(1,564)


	Preferred Stock			Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive (Loss) Income		Total Stockholders’ Deficit
	Shares	Amount		Shares	Amount
Balance, December 31, 2024	25	$	—	14,991	$	15	$	892,534	$	(905,625)	$	218	$	(12,858)
Net income (loss)	—	—		—	—		—		(1,570)		—		(1,570)
Foreign currency translation adjustment	—	—		—	—		—		—		6		6
Exercises of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan, net of taxes withheld	—	—		16	—		(174)		—		—		(174)



Share-based compensation	—	—		—	—		1,601		—		—		1,601

Preferred stock dividends	—	—		—	—		864		(864)		—		—
Balance, March 31, 2025	25	$	—	15,007	$	15	$	894,825	$	(908,059)	$	224	$	(12,995)

Balance, December 31, 2025	25	$	—	15,389	$	15	$	903,899	$	(908,361)	$	403	$	(4,044)
Net income (loss)	—	—		—	—		—		(4,536)		—		(4,536)
Foreign currency translation adjustment	—	—		—	—		—		—		(27)		(27)
Exercises of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan, net of taxes withheld	—	—		73	—		(420)		—		—		(420)
Share-based compensation	—	—		—	—		2,304		—		—		2,304


Preferred stock exchange	(25)	—		767	1		(33,793)		15,100		—		(18,692)

Balance, March 31, 2026	—	$	—	16,229	$	16	$	871,990	$	(897,797)	$	376	$	(25,415)


	March 31, 2026		December 31, 2025
Finished goods	$	12,541	$	7,726
Raw materials and components	—		—
Total inventories	$	12,541	$	7,726


	March 31, 2026		December 31, 2025

Rebate receivables	$	2,085	$	2,608
Receivables from contract manufacturers	912		1,494




Other	2,707		2,287
Total prepaid expenses and other	$	5,704	$	6,389


	March 31, 2026		December 31, 2025
Deferred revenue	$	4,640	$	6,168
Payroll and related expenses	4,949		6,796
Accrued contract manufacturing liabilities	4,155		5,874
Cash payable for preferred stock exchange	6,479		—
Operating lease liabilities	996		968
Royalties	629		884
Accrued interest	1,991		914





Other	3,558		3,252
Total accrued expenses and other current liabilities	$	27,397	$	24,856


	March 31, 2026		December 31, 2025
Long-term deferred revenue	$	4,034	$	4,558

Other	147		147
Total other long-term liabilities	$	4,181	$	4,705


	March 31, 2026
	Total	Level 1	Level 2	Level 3
Assets:
Cash equivalents:
Money market funds	13,624	13,624	—	—

Total cash equivalents	13,624	13,624	—	—


FORM						10-Q


	March 31, 2026		December 31, 2025
Principal gross amount	$	48,879	$	40,879
Add: unamortized debt premium	2,032		1,247
Less: unamortized issuance costs	(496)		(515)
Net carrying amount	$	50,415	$	41,611


	January 6, 2025
Valuation date stock price	$	11.23
Simulation term (years)	10
Risk-free interest rate	4.57		%
Volatility	84.00		%
Expected dividend yield	—		%






Non-vested — December 31, 2025			1,846,156
Granted			2,451
Vested			(115,215)
Forfeited			(47,551)
Non-vested — March 31, 2026			1,685,841


	December 31, 2025
	Total	Level 1	Level 2	Level 3
Assets:
Cash equivalents:
Money market funds	17,737	17,737	—	—
Certificates of deposit	—	—	—	—
Total cash equivalents	17,737	17,737	—	—






Outstanding — December 31, 2025			1,517,039
Granted			—
Exercised			(481)
Canceled			(5,000)
Outstanding — March 31, 2026			1,511,558

Exercisable — March 31, 2026			409,138


	Income/(Loss) (Numerator)		Shares (Denominator)	Per-Share Amount*




















































For the three months ended March 31, 2026
Basic EPS
Net income (loss)	$	(4,536)

Add: preferred stock exchange deemed contribution	15,100


Income (loss) attributable to common stockholders	$	10,564	16,093	$	0.66

Diluted EPS
Income (loss) attributable to common stockholders	$	10,564	16,093
Effect of dilutive stock options and unvested restricted stock			263


Diluted EPS	$	10,564	16,356	$	0.65













For the three months ended March 31, 2025
Basic and Diluted EPS
Income (Loss) from continuing operations	$	(1,170)
Less: preferred stock dividends	(864)

Income (loss) from continuing operations attributable to common stockholders	(2,034)		15,002	$	(0.14)
Income from discontinued operations, net of tax	(400)		15,002	$	(0.03)
Income (loss) attributable to common stockholders	$	(2,434)	15,002	$	(0.16)


	As of March 31,
	2026	2025
Common stock warrants	2,930	3,018
Stock options	1,280	1,121
Restricted stock units	103	1,318
Employee stock purchase plan	28	29
2025 Convertible Notes	—	119
Total	4,341	5,605


	Warrants	Weighted-Average Exercise Price		Weighted-Average Remaining Term (Years)
Outstanding — December 31, 2024	3,018,304	$	12.59	3.76



Outstanding — March 31, 2025	3,018,304	$	12.59	3.51

Outstanding — December 31, 2025	2,929,770	$	12.63	2.76



Outstanding — March 31, 2026	2,929,770	$	12.63	2.51


	Three Months Ended March 31,				Change
Product Category	2026		2025		$		%
Mobile solutions	$	16,688	$	17,790	$	(1,102)	(6.2)	%
Fixed wireless access solutions	5,314		1,903		3,411		179.2
Product	22,002		19,693		2,309		11.7
Software services and other	12,336		11,980		356		3.0
Total revenues	$	34,338	$	31,673	$	2,665	8.4


	Three Months Ended March 31,				Change
Operating costs and expenses	2026		2025		$		%
Research and development	$	5,810	$	4,535	$	1,275	28.1	%
Sales and marketing	5,622		3,934		1,688		42.9
General and administrative	6,937		4,490		2,447		54.5
Depreciation and amortization	1,794		2,064		(270)		(13.1)
Impairment of capitalized software	—		384		(384)		*
Total	$	20,163	$	15,407	$	4,756	30.9


	Three Months Ended March 31,				Change
Other (expense) income	2026		2025		$		%
Interest expense	$	(1,061)	$	(1,026)	$	(35)	3.4	%


Other income (expense), net	125		303		(178)		(58.7)
Total	$	(936)	$	(723)	$	(213)	29.5	%



(a)			Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)			Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)			Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)			Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and



(a)			All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)			Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.




/s/ Juho Sarvikas
Juho Sarvikas
Chief Executive Officer (principal executive officer)




/s/ Steven Gatoff
Steven Gatoff
Chief Financial Officer (principal financial officer)




			•						the Quarterly Report on Form 10-Q of the Company for the quarter ended March 31, 2026 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and




			•						the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.