Shares climb despite the miss. Inseego Corp reported Q4 2025 earnings per share of $0.12, falling 29.4% short of the $0.17 consensus estimate, yet the stock rallied 3.6% in after-hours trading to $10.20. The communication equipment maker generated revenue of $165.9 million for the quarter, though no consensus estimate was available for comparison. The market’s positive reaction came despite this being the company’s first EPS miss in three quarters, following a string of beats that saw surprises of 201.8% in Q2 and 143.7% in Q1.
Product momentum builds. The stock’s resilience points to investor focus on new product launches rather than backward-looking results. Inseego announced February 17 that Verizon Business added the company’s FX4210 5G router to its 5G Business Internet portfolio, marking a significant carrier win for the FX4200 series. Management signaled on the Q3 call that these new products would drive “richer value capture” through device-cloud integration, with CEO Juho Sarvikas noting Q3’s $45.9 million revenue and $5.8 million adjusted EBITDA marked “our second consecutive quarter of sequential growth in both metrics.”
Revenue trajectory reverses course. Full-year 2025 revenue of $165.9 million represented a 15.1% decline from prior year levels, continuing a troubling pattern visible in quarterly filings. Q3 2025 revenue of $45.9 million compared to $54.0 million in Q3 2024, while Q2 showed $40.2 million versus $59.1 million year-over-year. The company’s slim operating margin of 4.7% and negative profit margin of -0.1% underscore the pressure to drive volume with new products while maintaining profitability.
Balance sheet shows dramatic shift. Stockholders’ equity improved to negative $7.7 million as of September 30, 2025, a remarkable turnaround from negative $85.1 million just three months earlier. Total assets declined to $85.8 million from $113.4 million over the same period, suggesting aggressive balance sheet restructuring. The company’s $154.6 million market cap trades at a forward P/E of 24.3x, based on forward EPS estimates of $0.415, though current quarter estimates call for a loss of $0.84.
MiFi strategy pivots to volume. Management’s Q3 guidance commentary reveals a strategic shift toward market share gains: “What you should expect to see us do is to enter a, I’ll call it a higher velocity price point in the market drive significant shares share gain when it comes to volume share.” This volume-first approach with the new FX4200 series and anticipated MiFi launches suggests near-term margin pressure in exchange for customer acquisition, a risky bet given the company’s already compressed margins and history of losses.
This article was generated using AlphaStreet’s proprietary financial analysis technology and reviewed by our editorial team.