Inseego NASDAQ: INSG reported second-quarter 2026 revenue of $44 million, exceeding the high end of its guidance range and rising 28% sequentially and 9% from a year earlier. The company said product revenue and late-quarter carrier orders helped drive the result, though those orders also pressured gross margin and are expected to reduce ordering levels in the third quarter.
Chief Executive Officer Juho Sarvikas said the company benefited from purchases by select carrier customers seeking to get ahead of anticipated memory-cost increases in the second half of the year. Chief Financial Officer Steven Gatoff estimated that roughly $5 million to $6 million of incremental revenue was recognized in the second quarter from the ordering activity.
However, Inseego reduced its full-year outlook, citing earlier product delays, a slower-than-expected recovery at its largest fixed wireless access customer, lower anticipated software-services revenue and the removal of multichannel video programming operator, or MSO, revenue from its 2026 forecast.
Quarterly Results and Product Activity
Product revenue totaled $31.7 million, or 72% of total revenue, up 12% year over year. Mobile solutions revenue increased 26% from a year earlier to $17.3 million, supported by activity with a newer tier-one carrier customer and channel demand for the refreshed MiFi portfolio. Fixed wireless access revenue was $14.4 million, including a large purchase from the newest tier-one carrier customer.
Services and other revenue was $12.3 million, representing 28% of total revenue and a 2% year-over-year increase.
Sarvikas said Inseego completed the launch of its refreshed MiFi PRO M4 mobile-product family across all three North American tier-one carrier customers. The company also made a multi-carrier model available through the value-added reseller channel. Inseego now has six products across three tier-one carriers, according to Sarvikas.
The company also supported a large industrial deployment using its IoT product with Inseego Connect, its cloud-based device-management platform.
Non-GAAP gross margin was 34% in the second quarter. Gatoff said the larger carrier deal carried a fixed selling price, while Inseego used higher-cost memory purchased for subsequent orders to fulfill part of the increased volume. The company expects product margin percentage to improve to the high teens in the third quarter as lower-margin products decline and memory-cost increases are passed through to customers.
Non-GAAP operating expenses were $16.9 million, flat sequentially and equal to 38% of revenue. Adjusted EBITDA was $0.5 million, representing a 1% margin and in line with guidance.
Inseego ended June with approximately $2 million of cash and $10 million outstanding on its revolver. Gatoff said the cash balance reflected the timing of significant product deals that closed late in the quarter, increasing accounts receivable. The company has collected material amounts of those receivables in the third quarter and has meaningfully paid down the revolver, he said.
Lower Outlook Reflects Delays and Customer Timing
Inseego now expects approximately $155 million in standalone revenue for full-year 2026. For the third quarter, it forecast revenue of $28 million to $35 million and adjusted EBITDA of negative $1 million to negative $2 million.
Sarvikas said product-development processes did not support the faster pace of product introductions undertaken over the past 18 months. The company historically introduced roughly one new product annually, but has recently launched multiple products and variants across mobile and fixed wireless access while expanding its customer base.
“The development process that we used as a company was not capable of parallel processing the complexity introduced by a broader customer base and a broader set of products,” Sarvikas said during the question-and-answer session.
The company said it has overhauled its development process and milestone model, narrowed its near-term product-introduction cadence and is searching for a new engineering leader. Sarvikas said several candidates are engaged in the process.
Inseego also cited the slower recovery of an existing large FWA carrier customer, which is working through changes to its enterprise go-to-market strategy and internal organization. Management said a next-generation FWA product is expected to help restore that customer’s ordering run rate, although the recovery is taking longer than anticipated.
In addition, Inseego removed MSO revenue from its 2026 outlook because customer conversion has taken longer than expected. Gatoff said the opportunity had previously been considered in the range of $15 million to $20 million.
Beginning in the third quarter, the company expects software services and other revenue to decline by about $2 million per quarter as a tier-one carrier customer requires less complex professional-services work related to the Inseego Subscribe platform. Gatoff clarified that the reduction is expected to be a one-time step down, rather than a recurring $2 million quarterly decline. He said the customer continues to use the SaaS platform and that the parties are discussing the terms of a renewed agreement.
Nokia FWA Acquisition Preparation Continues
Inseego continues to target a fourth-quarter 2026 closing for its acquisition of Nokia’s FWA business, subject to customary closing conditions. The company said the acquired business has an annual revenue run rate of approximately $200 million and would more than double Inseego’s revenue base.
Management said the transaction is expected to add engineering capabilities, global tier-one customer relationships and a broader FWA portfolio that includes indoor, outdoor and millimeter-wave products. Sarvikas said the acquired Nokia research-and-development function will remain intact at closing.
To prepare for integration, Inseego appointed Pranav Shroff to lead APAC sales, Ossi Korpela to lead EMEA sales and expanded Steve Harmon’s role to lead the Americas, including Latin America. The company selected Amsterdam as its center of international operations and is building Athens as a software-development center for its global FWA portfolio.
Gatoff said Inseego expects to provide separate fourth-quarter revenue guidance for its standalone business and the acquired Nokia FWA business on its third-quarter earnings call, assuming the transaction closes as planned. Beginning with its fourth-quarter 2026 results call, expected in February 2027, the company intends to report and provide guidance as a combined company.
About Inseego (NASDAQ:INSG)
Inseego Corp is a U.S.-based technology company specializing in 5G and intelligent Internet of Things (IoT) device-to-cloud solutions. The company develops hardware and software platforms designed to connect devices, vehicles and remote locations to high-speed wireless networks. Its core offerings include mobile hotspots, fixed wireless access gateways and ruggedized routers optimized for enterprise, industrial and government applications.
Inseego's product portfolio encompasses 5G MiFi® mobile hotspots, virtual network functions (VNFs) for network management, telematics devices for fleet tracking and asset monitoring, as well as a suite of cloud-native software for device lifecycle management and data analytics.
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