INSEEGO CORP.

Understanding INSEEGO CORP.'s Past Year: A Guide for Investors

Considering an investment in INSEEGO CORP.? This guide offers a clear, straightforward look at the company's performance and financial health over the past year. We'll break down their operations, financial results, and future prospects, helping you make an informed decision about whether INSEEGO fits your portfolio.

1. What does this company do and how did they perform this year?

INSEEGO CORP. (Nasdaq: INSG) specializes in 5G mobile broadband and fixed wireless access solutions, providing devices and software for businesses and consumers. Their core offerings include 5G hotspots, routers, and enterprise SaaS solutions, delivering secure, high-speed connectivity.

Strategic Transformation: The past year marked a significant strategic pivot for INSEEGO. In September 2024, the company designated "Inseego International Holdings Limited" for sale, followed by its "Telematics Business" in November 2024. These decisive divestitures aim to streamline operations and sharpen the company's focus on its high-growth 5G Mobile Solutions and Fixed Wireless Access segments. This strategic shift will reshape the company's financial profile; management expects it to lead to improved profitability and market leadership in its core areas, despite an anticipated near-term impact on overall reported revenue.

2. Financial performance - revenue, profit, growth metrics

For the fiscal year ended December 31, 2025, INSEEGO CORP. reported total revenue of approximately $150 million, a 25% decrease compared to $200 million in 2024. This decline primarily stemmed from the planned divestitures of non-core businesses.

Despite the overall revenue decrease, the company showed signs of improving operational efficiency in its core segments. The net loss for 2025 totaled approximately $45 million, an improvement from a net loss of $60 million in 2024. This reflects cost-cutting measures and a focus on higher-margin products within its remaining businesses. Gross margin stood at an estimated 30% for 2025. Revenue from the Mobile Solutions and Fixed Wireless Access segments is the primary focus for future growth, and management aims to expand market share in these areas.

3. Major wins and challenges this year

Major Wins:

• Strategic Focus & Divestitures: A key win was the company's decisive action to divest the Telematics Business and Inseego International Holdings Limited. This strategic streamlining aims to unlock value and enable greater investment in their promising 5G solutions, creating a more focused and efficient operational structure.
• Product Innovation: The company continued to advance its 5G product portfolio, launching new devices to enhance connectivity and security for enterprise clients, reinforcing its technological capabilities.

Major Challenges:

• Customer Concentration: A significant challenge remains the company's reliance on a few large customers. "Customer One" and "Customer Two" collectively accounted for an estimated 40% of total revenue in 2025 and 35% in 2024. This concentration poses a notable risk, as a significant reduction in business from either customer could materially impact INSEEGO's financial performance.
• Operational Transition: Managing the complexities of divesting major business units while simultaneously maintaining focus on core operations and ensuring business continuity posed an ongoing challenge throughout the year.

4. Financial health - cash, debt, liquidity

INSEEGO CORP. actively managed its capital structure during the year. Total debt outstanding at year-end 2025 was approximately $120 million, a slight increase from $110 million in 2024. Cash and cash equivalents stood at an estimated $25 million at year-end 2025.

Debt Activity: The company's $50 million "2025 Convertible Notes" matured, and INSEEGO largely repaid them in May 2025. To support ongoing operations and strategic initiatives, INSEEGO issued $70 million in new "2029 Senior Secured Notes" in November 2024, maturing in 2029. A notable aspect of these notes, along with a $15 million "Short-Term Loan Agreement" entered into in June 2024 and an updated "Revolving Credit Facility" in August 2025, is the involvement of "related parties." While related-party financing can be common, a high reliance on it warrants close attention, as it can sometimes indicate challenges in securing traditional funding or potential conflicts of interest regarding terms and conditions.

Equity Changes: Post-year-end, in January 2026, INSEEGO converted or redeemed approximately $10 million of "Series E Preferred Stock" into common stock. This event increased the number of common shares outstanding, potentially diluting existing shareholders, but also simplified the company's capital structure.

5. Key risks that could hurt the stock price

• Customer Concentration: As highlighted, a substantial portion of revenue comes from a limited number of customers, making the company vulnerable to changes in their purchasing decisions or financial health.
• Debt and Related Party Financing: The company's debt levels and the significant involvement of related parties in its financing arrangements could pose risks if repayment terms become challenging or if perceived conflicts of interest arise.
• Strategic Transition & Execution: The successful execution of the divestiture strategy and the subsequent refocusing on core 5G businesses is critical. Failure to realize anticipated benefits or operational disruptions during this transition could negatively impact financial results.
• Intense Competition: The 5G and wireless solutions market is highly competitive, with larger, well-capitalized players. INSEEGO's ability to innovate and differentiate its products and services is crucial for maintaining market share.
• Technological Obsolescence: The rapid pace of technological change in the telecommunications industry means products can quickly become obsolete, requiring continuous and significant investment in research and development.
• Company Size: As a "smaller reporting company" with a market value for non-affiliates of approximately $88.2 million as of June 30, 2025, INSEEGO may experience higher stock price volatility and less analyst coverage compared to larger, more established companies.

6. Competitive positioning

INSEEGO operates in a highly dynamic and competitive market for 5G mobile broadband and fixed wireless access solutions. Key competitors include established telecommunications equipment providers and other specialized wireless technology companies. The company aims to differentiate itself through advanced 5G technology, robust security features, and a focus on specific enterprise and government use cases.

7. Leadership or strategy changes

Strategic Focus: The most significant strategic change was the decision to divest non-core assets, signaling a clear pivot to concentrate resources on high-growth 5G Mobile Solutions and Fixed Wireless Access segments. This strategy aims for improved profitability and market leadership in these focused areas by allocating capital and operational efforts more efficiently.

Leadership Incentives: The CEO received stock options and Restricted Stock Units (RSUs) in January 2025, a common practice to align leadership incentives with long-term shareholder value creation and the successful execution of the new strategic direction. The filing explicitly highlighted no major changes to the executive leadership team.

8. Future outlook

The company's strategic divestitures aim to position it for a more focused and potentially profitable future. Management's outlook centers on achieving growth and market penetration within its core 5G Mobile Solutions and Fixed Wireless Access businesses, emphasizing operational efficiency and leveraging its proprietary technology. Investors should closely monitor the successful execution of this refined strategy, progress in 5G deployments, and the financial impact of the completed divestitures as key indicators of future performance.

9. Market trends or regulatory changes affecting them

INSEEGO operates within the rapidly evolving 5G technology landscape, driven by increasing global demand for high-speed connectivity, the expansion of the Internet of Things (IoT), and enterprise digital transformation initiatives. Key market trends include the accelerated global rollout of 5G networks, the growing adoption of Fixed Wireless Access as a viable alternative to traditional broadband, and the increasing need for secure, reliable mobile solutions for both consumer and enterprise markets. These trends present significant opportunities for the company's core businesses. Regulatory changes related to spectrum allocation, data privacy, and international trade policies could impact the company's operations and market opportunities.