A maker of 5G mobile hotspots and fixed wireless routers that let people and businesses connect to cellular networks without cables. Its MiFi hotspots—a brand it invented in 2009, widely read as "my Wi-Fi"—now sit alongside its Wavemaker gateways sold through carriers like T-Mobile and Verizon. Founded in San Diego in 1996 as Novatel Wireless, the company renamed itself Inseego in 2016 as it expanded into cloud software for carriers.
CUSIP: 45782B302TechnologyUS1 holder
Jan 24, 2024 — Reclassified from Inseego Corp. (1:1)
Inseego swung to a $7.2M operating loss as Nokia deal costs and component prices hit margins, while cash fell to $1.9M.
Inseego returned to an operating loss this quarter. rose 9.4% to $44.0 million on new carrier mobile sales, but fell 7.3 points to 33.8% as memory component costs rose and product margins narrowed, while operating expenses climbed 44.9% to $22.1 million driven by costs tied to the pending Nokia FWA acquisition. The company ended the quarter with $1.9 million in cash, its lowest balance in over two years.
Key takeaways
Operating expenses rose 44.9% to $22.1 million, driven by non-recurring transaction costs for the pending Nokia fixed wireless access acquisition and higher , pushing the company to a $7.2 million operating loss after four consecutive quarters of .
increased 9.4% to $44.0 million, as a 26.5% rise in Mobile Solutions revenue from a new carrier partner more than offset a decline from a late-quarter product launch.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue rose 9.4% to $44.0M driven by new carrier mobile sales, but gross margin fell to 33.8% on higher component costs and lower product margins.
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Total increased 9.4% to $44.0M, with Mobile Solutions up 26.5% due to a new carrier partner, partially offset by a late-quarter product launch.
declined to 33.8% from 41.1% primarily due to increased memory component costs and lower margins on the current generation of products.
fell 7.3 points to 33.8%, its lowest level in eight quarters, as higher memory component costs and lower margins on the current generation of products weighed on profitability.
Cash and equivalents fell 90.3% sequentially to $1.9 million, driven by $23.8 million in cash used in operations during the quarter, with $6.5 million remaining available on the company's $20.0 million .
The company repurchased all Series E Preferred Stock in January 2026 for $26 million in total consideration, eliminating $0.9 million in quarterly preferred dividends.
Customer concentration remains extreme: Verizon and T-Mobile together accounted for 89% of total 2025 , and the Q2 2026 mobile revenue increase was attributed to a new carrier partner.
What changed
The Q2 2026 operating expense level confirmed that the 30.9% increase flagged in Q1 was not solely non-recurring: expenses rose another 9.4% sequentially to $22.1 million, with the Nokia FWA acquisition costs continuing to drive the increase.
The Q2 2026 of 33.8% answered the question of whether the 48.3% Q1 level was sustainable — it was not, as the product mix shifted and component costs rose, bringing the margin to its lowest point since Q1 2024.
Mobile Solutions rose 26.5% to $22.6 million, reversing the declines seen in the prior four quarters, though the increase was attributed to a new carrier partner rather than a return of promotional activity at existing carriers.
Cash and equivalents fell to $1.9 million from $19.3 million at the end of Q1 2026, a far steeper decline than the $13.2 million to $14.6 million range seen in mid-2025, as operating cash use of $23.8 million in the quarter consumed most of the company's liquidity.
What to watch
Whether the Nokia FWA acquisition closes and on what terms, as failure to close would leave the company with the transaction costs already incurred and no offsetting or synergy benefits, while cash has fallen to $1.9 million.
The Q3 2026 cash balance and , to gauge whether the company can fund operations without drawing on its $20.0 million , given that cash used in operations was $23.8 million in Q2 alone.
The Q3 2026 , to see whether the 33.8% level represents a floor as the new carrier mobile sales scale, or if component cost pressures and product mix continue to push margins lower.
Any change in the Verizon or T-Mobile relationships, given that the two carriers represented 89% of 2025 and the Q2 2026 mobile revenue increase was driven by a new carrier partner rather than growth at the existing two.
Operating expenses surged 44.9% to $22.1M, driven by non-recurring transaction costs for the Nokia FWA acquisition and higher .
The company repurchased all Series E Preferred Stock in January 2026 for $26M in total consideration, eliminating $0.9M in quarterly preferred dividends.
Cash used in operations was $22.1M for the six months, driven by outflows and a net loss, leaving cash at $1.9M with $6.5M available on the .
We are, from time to time, party to various legal proceedings arising in the ordinary course of business. We are currently not party to any litigation, the outcome of which, if determined adversely to us, would individually or in the aggregate be reasonably expected to have a ma…
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We are, from time to time, party to various legal proceedings arising in the ordinary course of business. We are currently not party to any litigation, the outcome of which, if determined adversely to us, would individually or in the aggregate be reasonably expected to have a material and adverse effect on our business, financial position or results of operations.
New risks center on the Nokia FWA acquisition and an FCC rule update that could restrict router imports.
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The pending acquisition of Nokia's business may not close, could divert management, and may fail to deliver expected or customer retention.
An FCC Covered List update now prohibits import or sale of consumer-grade routers from foreign countries, potentially requiring costly redesigns or supply-chain shifts if Inseego's products are reclassified.
Regulatory uncertainty could delay new product introductions, force higher levels, or require maintaining older models, harming , margins, and cash flow.
Failure to obtain required regulatory approvals or licenses in any jurisdiction may block sales and increase compliance costs.