1Q Review: Core Biz Stable; Nokia Deal Adds Scale, Upside Execution-Dependent

研报英文原文证据摘录

1Q Review: Core Biz Stable; Nokia Deal Adds Scale, Upside Execution-Dependent

TD Cowen Inseego Corp

Global Research May 13, 2026

Software Services was stable as expected, supported by continued contribution from Inseego

Subscribe and broader cloud-based device management offerings. Management also pointed

to encouraging engagement with additional Tier-1 carriers and highlighted growing interest in

subscriber lifecycle management capabilities, particularly within enterprise and government-

focused deployments where provisioning, billing, and fleet management complexity remains

elevated.

Non-GAAP gross margin of 48.9% exceeded our estimate and expanded 140 bps y/y, primarily

driven by a richer mix of software services revenue and increased contribution from higher-

margin FWA deployments vs. 1Q25. Gross margin also benefited from improved portfolio mix

as the company continues shifting toward more enterprise-oriented connectivity solutions and

SaaS-linked offerings.

Adj. EBITDA contracted y/y as Inseego accelerated investment in R&D, carrier ramps, product

launches, and broader commercial infrastructure ahead of anticipated 2H26 revenue scaling.

While near-term profitability remains pressured by these investments, they are intentional and

consistent with management’s strategy to position the company for broader multi-product

growth and improved operating leverage into 2H26 and beyond.

Lower 2Q Guidance Resets Our Estimates with Focus Shifting to 2H Ramp

Management introduced 2Q26 guidance below our prior estimates, reflecting a weaker near-

term FWA setup than we had previously modeled as the company works through disruption at

one of its largest FWA customers following changes to that customer’s enterprise go-to-market

organization.