INSEEGO CORP. — Call Transcript 2026

Hello. I'm Lance Vitanza, senior analyst at TD Cowen, and I'm delighted to have the Inseego team with me here. Of course, to my left, Juho Sarvikas, the CEO, and to his left, Steven Gatoff, the CFO. Thank you gentlemen both for being here with us today. Great to be here again. I can't believe it's been a year. I know, right? Time flies. Look, we were talking about this before we got started. A month ago the stock was at $15. Two things have happened since then. You announced a transformational transaction with Nokia in which revenues are going to double, and Nokia winds up being your number three shareholder. Right? That's good. Then you reported earnings. There was a post-Nokia bump from $15 to $20, and now the stock's at $12. We've had war. All kinds of things going on, but the reason I'm setting it up this way is I'd like to focus on the earnings first, because I think that that's clearly what is driving the stock in the near term, and then we'll get into Nokia as well. The quarter was in line. We had 8% year-on-year revenue growth. We had a 300-basis-point bump in gross margin to nearly 49%, but the stock reaction suggests investors remain worried. What do you think is the most underestimated thing here as we think about the setup for the rest of 2026? Just to acknowledge first that I think the reaction is somewhat to the Q2 guidance. We were guiding that to the 40% range midpoint, where perhaps there were expectations higher. Quite frankly, our original expectations were harder than that. There's two elements that we're working on that I'm sure we'll talk about here. We had an execution delay on our MiFi portfolio, which we're launching now across all three carriers. That's something that is a timing issue more than anything else. Secondly, our main FWA partner is still realigning on the go-to-market side. If you look at the fundamentals of the business and the growth that we're set to drive here, the big thing really is that we're going from a one-by-one matrix when it comes to customers and products to now having six products across all of the three large carriers in the U.S. The next wave of expansion is really with the MSOs, where there's a huge opportunity with 5G as well. You reiterated the $190 million full-year revenue path, right? 2Q guidance, as you mentioned, there's some timing issues that are going on there. What are the two or three highest confidence drivers that give you comfort that you're going to get to the $190 million for the full year? If I look at that one-by-one, we have the broadest mobile portfolio in the company's history. We actually also announced that we're expanding further from there in the future. If you look at going into Q3, we're now covering the sweet spot in the portfolio across AT&T, T-Mobile, and Verizon, which is a great platform to continue to drive mobile and growing mobile, quite frankly. Then, the other two key elements, really, one is the recovery with our existing large customers. While we've done a great job in ramping up a new Tier 1 carrier in FWA, the existing large guy continues to falter. What was supposed to be 1 + 1 = 2 equals two, we're not quite there yet. That's something that we foresee going into Q3. In addition to adding on MSO customer on top, there's been a lot of great work by the team on product solution readiness, getting the commercial framework in place to start engaging with the large cable guys here in the U.S. Just to sort of paraphrase and recap a little bit. On FWA, you cited the disruption at a large customer that was tied to enterprise go-to-market reset. You also secured a commitment from this customer for next gen FWA platform. What needs to happen to re-accelerate that account, and I guess the timing you're saying is Q3? Yeah. Look, the movie that played out late last year was a complete overhaul of the leadership team at this specific carrier, particularly on their enterprise team, which then of course goes to the next thing that you logically do is to revisit your strategy, take a look at how should we go to market and all of that. That process and realignment has taken longer than we expected. We were expecting to see that bounce back already in Q2. I think there's good activity now towards Q3 in getting where we need to be. Then to your point, I think a strong testimonial of the relationship is the new product that we've won an award for and will be launching this year. That product will be the fastest FWA in the market, not only in the portfolio of this carrier, but U.S.-wide. That's technology leadership, strong partnership with the customer. The thing that needs to come back together, like you said, is really the go-to-market motion and making sure that we have the right incentives and programs in play for their field teams. It sounds like then the issues, the delays to the extent that they're delays, were really on the customer side and not execution oriented at Inseego. We had both. Okay. The mobile was internal. Let's call it self-inflicted, and something that we've done a lot of work on. I'm sure we'll touch on that later in the conversation. Meanwhile, the FWA performance with the large customer was really external. Yeah. Outside of our span of control. To pivot to mobile, you've launched, obviously we've talked about two of the three Tier 1 carrier hotspot models, and now we have the third expected late July, plus we have a new low-tier MiFi win. Yeah. How should investors think about volume versus margin as we sort of ramp up with the lower tier product? Yeah. We'll tag team if that's cool. Yeah. To the conversation we have on mobile specifically, as Juho always says, it's a fixed pie, essentially, and we're growing because we have the better product, and we have new carrier relationships that are coming to fruition. We are winning share and growing the business. The gross margin for mobile that used to be in the 20-something range is now in the teens. There is margin compression on mobile, but there's growth in total revenue because you have unit volume growth. We see a total revenue curve growth, but it's a combination of margin offset by higher volume. And so- But what really matters- Go ahead, sorry. Well, what do you get out of it on the bottom line, right? How do we drive more margin capture overall? In this case, there is a volume ASP margin trade-off. The other thing I'll say on mobile is that if you look at our market share, let's say last year when we were exiting the year, think 25%. Exiting this year, we'll be at a much higher market share out of that, like Steven Gatoff was saying, FWA. If you call it two million units, our run rate will be around 50% market share at the end of the year. Wow, okay. Before we expand the portfolio further. Right. There's also opportunity that we're engaged on the premium tier. Wow. In addition to the customer expansion and getting all three guys like we've done now with the large carriers, I also want us to see us have a good, better, best lineup in the mobile category. While that market segment is not growing, unlike the FWA, the job really is to drive consolidation in that space. So far we've been trending pretty well. It sounds like it's not just adding customer. Adding customers is huge, it's also doing more with the existing customers. Correct. Is that- Yeah. Okay. That's where we have the new value segment win is with one of the existing customers. Just to go back to something that, Steven, you said about the margin compression from the mid-30s. I think you said it was from mid-30s to mid-20s today. I know that this has been happening for forever, but for those of us that are less familiar with that trend, is this just the unending price compression on the unit basis that we've seen at least, I feel like I've seen my entire career? Or is there something specific? Yeah, on mobile hotspot, yes. Yes. It's different. It is a little bit kind of Tale of Two Cities where mobile hotspot is what you said. Okay. We see continued strong gross margin on the organic FWA business. That's more enterprise, a little bit of channel. It's higher, in the mid to high 20s. Okay. That's a higher gross margin business by nature. On the compression piece, that's not something you can plan your way around. It's not something. I think it goes also with the maturity of the technology cycle. Right. 5G is now what? Almost at 6G. We're a couple of years out. Yeah. Oh, God. What's very typical is that with the technology cycle, you also see- Right. ... effect on the gross margin, right? Yeah. We have historically done the best when things get really difficult, very complicated, and it's early adoption of new technology. Now the new muscle for the company that we've been building since. Yeah. I joined beginning of last year is the ability to drive scale and win at scale in the marketplace. How does the software piece, how does that impact margins and what can we expect, or how much of that was baked into the commentary a minute ago when you said that you think that there's a sort of the margin offset? Yeah, the software has two pieces to it. It has the Inseego Connect, which is our call it device management software for Inseego devices, and then there's Subscribe, which is the subscriber management across all devices for carriers. We've taken the latter from what used to be historically at Inseego as a professional services function for a carrier, and we've really, over the last year, productized that and turned that into a platform that we're having conversations with other carriers about. The other key push that we have from a product strategy standpoint of view in the hotspot or mobile category is that it now has the same routing capability as our FWA. It's actually very disruptive looking from a capability standpoint of view compared to the previous generations. With that, what we're targeting also to do to see if we can drive a higher attach also in mobile. Meanwhile, in FWA, when our key customers sell it typically comes bundled with our cloud solution. That reduces the friction when the end enterprise is taking it to adoption. Quite frankly, if you're doing an enterprise deployment, you need the manageability to begin with. As the attach rates go up, though, there should be a natural uplift on margins overall, right? There's definitely- Just as the mix shift. There's definitely an installed base- Okay. ... at play here where over time we'll have growth in Connect. Like Steven was saying, I think the Subscribe is like a crown jewel that we likely should be talking more about. Okay. The work that we've done now to make what essentially was a professional services with a single large customer to a true platform and engaging the broader community. We're getting really good feedback. Let's get to the fun stuff, the Nokia piece. At least for me, that is Inseego. You've called this a transformational acquisition. Obviously, it more than doubles revenue. It makes you global instantly. What do you think, though, there's a lot of different benefits from my standpoint, but what do you think is the most important strategic benefit? I'm thinking you've got the global customer access, you've got portfolio breadth,- Yeah. ... platform unification, or is it something else? I think the first thing is the global reach. Second, I would mention synergies. Maybe Steven, you can talk into that a bit more in terms of what do we expect on that front. Yeah. Look, the big thing here is that CEO of a company of our size might wake up in the morning worrying about how to grow the company. We won't have to worry about that because now we have these large global anchor customers that we're going to use as a base to build or reinforce a global go-to-market machine and the associated capabilities. With that, we can expand the Nokia FWA business as it is, which I expect we'll be able to do, very importantly, cross-sell our mobile products and our enterprise FWA to the global market. Meanwhile, we can take the Nokia, which is more residential product. It's an excellent portfolio indoor and outdoor, their end market has been more residential. To deploy that with the large customers here in the U.S. where we have excellent relationships. I really think that this global reach, global anchor customers is something that will be a really valuable strategic asset for us that goes beyond the conversation that we're having here as we look at future strategic optionality. Anything to add? No. Okay. From a cultural standpoint, I know you obviously used to work at Nokia. How do you think that this is likely to play out? Have you had conversations with the team there, and if so, how would you describe the energy level, excitement level? Are people pleased? The big thing for me here is that I know the Nokia engineering capability, but also the quality of their processes across the board. I think there's a lot there where it's not going to be one where we're going to do things Inseego way, but we're going to pick the best of both worlds. The way I look at it is that, yes, we have a strong, robust company as we are today in Inseego, but it's an opportunity to create something new as well by adopting best practices from both companies. The other thing is just from an employee experience standpoint of view, the Capital Markets Day was in November, where it was announced that there's this portfolio of businesses that will be divested from Nokia. Yeah. Which of course, was a lot of uncertainty for the employee base. Now they have certainty. They know that they have a good home. As a part of the due diligence, we had the chance to meet with the teams globally, at least the key leadership. I'm actually traveling the next two weeks, so is Steven, to meet with some of our new European colleagues. I think it's great. The question is that how do you harness this process discipline structure and the capability that they have to operate at a large scale? Because they are number one globally in FWA. I like to think of ourselves as American technology entrepreneurs, if you will. How do you create the perfect blend where you're aggressive, you're innovating, you're bold, you're making moves, at the same time, adopt the best practices from our new colleagues at Nokia? Financial stuff aside, how long of an integration do you expect this will be? Is this something that, multiple years, or is it six months and done? Think of it, we're targeting October 1 to close. Yeah. Right now we're kind of in pre-integration planning, and to you, it's a good point. There's a ton of work, and you asked earlier, they're very engaged. We meet multiple times a week. They have dedicated integration managers and leads, a dozen people from the Nokia side who work with us constantly. We're doing all the work now to get to closing, then you'll have integration. Our view is really approaching that as kind of a one-year timeframe to, as we've said publicly before, to get to breakeven, and to turn the business, and to the conversation earlier around synergies on the cost side, because it is about running the company as a global engineering and a global product management, a global supply chain. It is putting two businesses together that have an unbelievably high amount of overlap in cost and people. What I really like about the discussion with Justin and the Nokia leadership team was that we were immediately on the same page in terms of how important the business and customer continuity is. What was important for them, now as they're focusing very successfully so on the infrastructure side of the AI super cycle, making sure that there's a good home for the edge. Of course, the partnership, the whole concept of the deal reflects all of that, right? They will benefit from our success. Like Steven was saying, we have that one-year period to make sure that we do a great job with the integration, associated TSAs. I think we feel good about the risk mitigation activities and the plan and the journey ahead. Any risk to whether or not this transaction closes? Not that we see, no. Yeah. We don't believe that there's any regulatory or other major considerations. In terms of the economic bridge, and I know it's obviously early, I'm not going to ask you about what to look for on the back end of the merger, but you do have a one-year $38 million of sort of a guaranteed EBITDA backstop, so to speak. Yep. from Nokia, and then there's a profit-sharing on the back end of that. I think there may be, in some of the conversations that I've had, there's some confusion about the extent to which the incentives for Nokia are tied to revenue versus tied to profitability. Sure, yeah. The make whole, to your point, the first year, run the business, deliver the products, transition, put them together. That make whole is based on the EBITDA of the acquired business. What that business does is, to your point, backstop to get to zero. That's year one. Year two is a profit sharing of the profitability EBITDA from that business with Nokia that is based on the revenue of that business. If they hit the revenue numbers that we entered the deal into, very simple, like there was management presentations, there's awesome, you do that, and then we'll share the EBITDA with you that they can get upwards of 50% of that EBITDA if it hits the number, and if it doesn't, it could be zero. Of the acquired business. It's the EBITDA- Of the acquired business. That's right. Yeah, there's no way for them to load up on unprofitable consumer FWA and then claw back EBITDA dollars- No. ... that were generated [into you] Right. No. It's profits generated from the acquired business to the extent they got it. And look- Yeah. ... you know the lead times in the industry. If we close October 1- Right. ... it will be a year before- Right. ... we're all one joined hardware platform, software platform, and device roadmap. it's really designed- Yeah. ... to protect and give us the time to do it properly and create a profitable new business. I know it's obviously early, you haven't closed the transaction yet, but is it possible to think about which of the synergies you expect you'll get first? I would assume it's go-to-market, you know. Probably, the two big pieces, there's the revenue go-to-market selling. Revenue-generating synergies, if you will, but then there's also the cost-saving synergies. Yeah. Of putting two businesses together, that's likely the first to come to fruition. Right as you close the business and you put together two engineering teams and product management teams, those are probably the biggest, two biggest areas. We're not going to go and discontinue committed customer programs- Sure. ... day one to be able to drive the synergy. We need to have that complete. Right. Transition to one team, one platform, and everything else. Okay. On the go-to-market side, in the U.S., we have very robust sales teams, or I should say North America, and customer relationships. For APAC, Europe, Middle East, Africa, some of the key markets, we're building virtually brand new. There's people and key roles that are coming over from the transaction, there's also new ones to resource. The go-to-market, I think the sales motion, global perspective, less synergistic, like Steven was saying from a revenue synergy with the cross-sell. We do expect. We're not assuming in the base scenario any of the revenue synergies than the cross-selling, but that's obviously something that we have a keen eye on. I know that you mentioned that when Nokia announced that they were going to do something with this business, right, I would imagine that that certainly put a damper on the revenue growth and maybe even turned the revenue growth to negative revenue growth. Do you think that is it possible that that gets turned around before you take over, or would that be too optimistic? Our $200 million number that we put out there- Yeah. ... is assuming existing run rate. Okay. That's not assuming any growth, new customer, existing run rate. At closing, $200 million, or no? Now. Now. Okay. Now. Yes. It would be Q1, $200 million based on the Q1 run rate. Yeah, Q1 times four. More the same. $200 million. You're not making any statement as to whether or not that number will be higher, lower, or the same in October when you close? That's right. Yeah. The key thing here really is that we also know which customers walked away. Yeah. Of course, it will be a great idea to go have an intro discussion with those customers and say, "Hey, we're here. Here's what we do. Here's the partnership with Nokia, and here's how much more we can do for you now on the back of the broader portfolio- Sure. ... broader engagement. Let's talk." That has been key, of course, we'll wait for October 1 before we operate the business or do any of that, these initial introductions, I think really favorable reception. Western player, known brand, known technology leader in the industry. No reason to stop to wait to have those conversations. It sounds like those are already ongoing. Yeah, we've definitely done the introductions. Just, when you say walk away, I had the sense that it wasn't so much that people walking away as it was just saying like, "Hey, we're going to take a pause here, and we're going to just wait to see how things shake out." Is that sort of more accurate or no? Is it really the case that people sort of said like, "Hey, I'm moving away from Nokia," and now you got to go get them and bring them back? Well, some deals that were getting done- Yeah. ... in the December, January, February timeframe that were in process- Yeah. ... got paused and got done away. Okay. I see. Because they needed to fulfill a deal in January. I see. I don't know what's going to happen. It wasn't just pushing stuff to the right necessarily. Right. Combination. Okay. Yeah. I got you. Okay. Maybe just in terms of some additional upside drivers, looking ahead here, software services, we talked about that just a little bit, but I want to kind of come back to that. You highlighted Nokia's global footprint, and that obviously has the ability to really expand that with strong reception so far. What's the plan to broaden software and services beyond the existing customer base and how should we be thinking about how relevant that might ultimately be to the broader story? I think twofold. One, our Inseego Connect, and Inseego Subscribe for that matter, centers around the carrier, and now we have all of a sudden access to all of the large carriers globally. I think it will be very nice to develop a broader strategy from where we're today with Inseego Connect, which is device and network management for our own enterprise products. Now we'll be participating in residential, and we could do something broader with that same carrier audience when it comes to device network management. I'm sure you can name multiple consumer-facing features, whether it's content filtering or other elements. There's a lot. There's a rich domain that we can now look at with a much broader lens than we've done previously. That's something that we're exploring. On Inseego Subscribe, now that we've done the investment and made it a true platform in a sense, we're getting really good feedback in segments where you have the most complicated customers. Large enterprises with difficult customization requirements, unique billing requirements, and then anything really that has to do with government or federal/SLED categories where we have a lot of unique IP in understanding how the contracting works, how the spend management works and everything else. Those discussions we've already started some time ago in the U.S. to identify areas where we can add value to new partners with that solution. What about the sort of the impact potentially of tariffs and/or kind of Buy American increasing sentiment that that's something that's a strategic priority, at least for the administration that's in the White House these days? I'm thinking about that as more of a potential positive for your base business than anything else. Are you seeing any positive or negatives from either the tariffs or? Look, I think the FCC ruling- Yeah. ... that started with residential routers. Yeah. If you have a router that's intended for residential use case as a primary end market, needs to be designed, developed, and manufactured in the U.S. I think you might already know this, but there's limited manufacturing in the U.S. today. We are unique in that we have design and development resources- Right. ... in the U.S. So that is- To create that. Yes. Then manufacturing, I'm not going to say it's super easy, but it's easy. The industry just needs to agree that now we're going to increase the manufacturing value add, and everybody needs to accept that fact. We're already doing the difficult stuff. We can easily move our production to U.S. Let's see how that environment develops. The way it works today is that if you already have FCC approval, you don't need to do anything. It's only on new products that you plan to take to U.S. It's going to catch potential future competition devices trying to enter U.S. that do not tick those three boxes, which none of them would, no one in the industry does today. I think that's a really interesting thing that we're watching super closely. The other thing I'll mention is that today our end market is enterprise. If you look at our mobile, over 60% sales channels to an enterprise end customer. Our FWA is exclusively enterprise. As we approach FCC with filings, which we've done since all of this came to effect, we have our literature, we have our end market, we have everything pointed towards enterprise. We have not had any reason to engage on this. Now you do. Nokia residential products, when the time comes, we'll engage on that discussion, but we have very flexible resourcing strategy. We can choose to do the work in the U.S., and we'll continue to closely monitor how the manufacturing ecosystem develops. It's amazing that two years ago, we could not have gotten 25 minutes into a conversation about Inseego without talking about balance sheet and liquidity. Now it's easy to ignore, but I do want to just ask you, as we think about liquidity sources of working capital and so forth over the balance of the year, obviously we're not worried, but what should investors expect to see, if anything, in terms of sources of liquidity, whether or not there's credit facilities that get drawn to support- Yeah. ... pending merger or capital raising and so forth? Yeah. You just named them all. That's spot on. Those two pieces, one, when the acquisition closes, we in Inseego receive a $10 million investment from Nokia, so that's helpful. That's incoming cash. We also are making investment in inventory and in the launch of new products and derive the growth that we see in the back half of the year, so that is a use of capital, and we are funding that and would expect to start drawing on credit facility. We have a $20 million revolver that was put in place many months ago. That is part of the capitalization over the next six months. Got you. The other- Yeah, go ahead. ... key thing to note is with the memory dynamic. Oh, right. I keep saying that I'm actually very happy with what the team has done in terms of creating a buffer. But- That's also informing- Yeah. ... the cash conversation, of course. Yeah. How do you strike the perfect balance? We'll see what the prices are first half of next year. Right. Not sure if they will be coming down yet. Actually you got me thinking of Nokia now, right? They're at 11% shareholder, I think you've said- That's right. ... on the back end of this transaction. Yep. What does that mean in terms of their involvement, corporate governance? Are they on the board? No. How voting? No. They're not, no board seat. They're a common stockholder, so there's no preference on their shares or super voting rights or anything. They're a passive- They're a passive. ... commercial partner- Yeah. ... but passive shareholder. Passive shareholder. And also- Common. ... from a strategic standpoint of view, two important things. One is this go to market collaboration, which we announced. Sure. We'll have a joint sales pipeline incentive training program. Yeah. where we'll continue to leverage the big Nokia machine. They're super deep across all of the global carrier accounts, so that's going to be helpful for us. Secondly, technology collaboration. As we get towards the AI RAN, distributed AI computing infrastructure, 6G, all of that, the CPE will become more of an integrated part of the network. Because if you look at today, the network and the CPE kind of know what one another are doing, but it's not a part of the same management stack. It's not pervasive. There's a lot of opportunity for us to lead and also differentiate together with Nokia. We just have another couple of seconds, but before we finish, I do want to ask you, what is, if there's just one thing that you want to leave in the mind of the investor that's maybe taking a fresh look or a new look at Inseego, how would you characterize the opportunity? Look, I think we've done a great job in what we said a year ago, which is to diversify the revenue base and take a very predominant role at the enterprise wireless edge here in U.S. Now what we're doing on top of that is that we're unlocking this global opportunity with strong anchor customers that we can build, that will fund the investment and build the required global infrastructure as a huge benefit, doubling the company revenue and enabling the cross-sell. If you look at from addressable market that we have now, than what we've been talking about just a couple of months ago, completely different picture. There's good path to further expansion with what I would consider our organic business. This new global opportunity that will materialize 1st October really changes the company from addressable market growth trajectory, everything else standpoint of view. I think we're super excited. Yeah. On the journey ahead, now it's really all we need to do is to execute. Thank you very much for being here. We're going to have to leave it here, but I really look forward to continuing to follow the progress of the company. Awesome. Thanks so much, Lance. Thanks, Lance. Thank you.

Speaker 2: Hello. I'm Lance Vitanza, senior analyst at TD Cowen, and I'm delighted to have the Inseego team with me here. Of course, to my left, Juho Sarvikas, the CEO, and to his left, Steven Gatoff, the CFO. Thank you gentlemen both for being here with us today. Hello. hello I'm Lance Vitanza, senior analyst at TD Cowen, and I'm delighted to have the Inseego team with me here. i'm lance vitanza senior analyst at td cowen and i'm delighted to have the inseego team with me here Of course, to my left, Juho Sarvikas, the CEO, and to his left, Steven Gatoff, the CFO. of course to my left juho sarvikas the ceo and to his left steven gatoff the cfo Thank you gentlemen both for being here with us today. thank you gentlemen both for being here with us today

Speaker 1: Great to be here again. I can't believe it's been a year. Great to be here again. great to be here again I can't believe it's been a year. i can't believe it's been a year

Speaker 2: I know, right? Time flies. Look, we were talking about this before we got started. A month ago the stock was at $15. Two things have happened since then. You announced a transformational transaction with Nokia in which revenues are going to double, and Nokia winds up being your number three shareholder. I know, right? i know right Time flies. time flies Look, we were talking about this before we got started. look we were talking about this before we got started A month ago the stock was at $15. a month ago the stock was at $15 Two things have happened since then. two things have happened since then You announced a transformational transaction with Nokia in which revenues are going to double, and Nokia winds up being your number three shareholder. you announced a transformational transaction with nokia in which revenues are going to double and nokia winds up being your number three shareholder Right? That's good. Then you reported earnings. There was a post-Nokia bump from $15 to $20, and now the stock's at $12. We've had war. All kinds of things going on, but the reason I'm setting it up this way is I'd like to focus on the earnings first, because I think that that's clearly what is driving the stock in the near term, and then we'll get into Nokia as well. The quarter was in line. We had 8% year-on-year revenue growth. We had a 300-basis-point bump in gross margin to nearly 49%, but the stock reaction suggests investors remain worried. What do you think is the most underestimated thing here as we think about the setup for the rest of 2026? Right? right That's good. that's good Then you reported earnings. then you reported earnings There was a post-Nokia bump from $15 to $20, and now the stock's at $12. there was a post-nokia bump from $15 to $20 and now the stock's at $12 We've had war. we've had war All kinds of things going on, but the reason I'm setting it up this way is I'd like to focus on the earnings first, because I think that that's clearly what is driving the stock in the near term, and then we'll get into Nokia as well. all kinds of things going on but the reason i'm setting it up this way is i'd like to focus on the earnings first because i think that that's clearly what is driving the stock in the near term and then we'll get into nokia as well The quarter was in line. the quarter was in line We had 8% year-on-year revenue growth. we had 8% year-on-year revenue growth We had a 300-basis-point bump in gross margin to nearly 49%, but the stock reaction suggests investors remain worried. we had a 300-basis-point bump in gross margin to nearly 49% but the stock reaction suggests investors remain worried What do you think is the most underestimated thing here as we think about the setup for the rest of 2026? what do you think is the most underestimated thing here as we think about the setup for the rest of 2026

Speaker 1: Just to acknowledge first that I think the reaction is somewhat to the Q2 guidance. We were guiding that to the 40% range midpoint, where perhaps there were expectations higher. Quite frankly, our original expectations were harder than that. There's two elements that we're working on that I'm sure we'll talk about here. We had an execution delay on our MiFi portfolio, which we're launching now across all three carriers. Just to acknowledge first that I think the reaction is somewhat to the Q2 guidance. just to acknowledge first that i think the reaction is somewhat to the q2 guidance We were guiding that to the 40% range midpoint, where perhaps there were expectations higher. we were guiding that to the 40% range midpoint where perhaps there were expectations higher Quite frankly, our original expectations were harder than that. quite frankly our original expectations were harder than that There's two elements that we're working on that I'm sure we'll talk about here. there's two elements that we're working on that i'm sure we'll talk about here We had an execution delay on our MiFi portfolio, which we're launching now across all three carriers. we had an execution delay on our mifi portfolio which we're launching now across all three carriers That's something that is a timing issue more than anything else. Secondly, our main FWA partner is still realigning on the go-to-market side. If you look at the fundamentals of the business and the growth that we're set to drive here, the big thing really is that we're going from a one-by-one matrix when it comes to customers and products to now having six products across all of the three large carriers in the U.S. The next wave of expansion is really with the MSOs, where there's a huge opportunity with 5G as well. That's something that is a timing issue more than anything else. that's something that is a timing issue more than anything else Secondly, our main FWA partner is still realigning on the go-to-market side. secondly our main fwa partner is still realigning on the go-to-market side If you look at the fundamentals of the business and the growth that we're set to drive here, the big thing really is that we're going from a one-by-one matrix when it comes to customers and products to now having six products across all of the three large carriers in the U.S. if you look at the fundamentals of the business and the growth that we're set to drive here the big thing really is that we're going from a one-by-one matrix when it comes to customers and products to now having six products across all of the three large carriers in the u.s The next wave of expansion is really with the MSOs, where there's a huge opportunity with 5G as well. the next wave of expansion is really with the msos where there's a huge opportunity with 5g as well

Speaker 2: You reiterated the $190 million full-year revenue path, right? 2Q guidance, as you mentioned, there's some timing issues that are going on there. What are the two or three highest confidence drivers that give you comfort that you're going to get to the $190 million for the full year? You reiterated the $190 million full-year revenue path, right? 2Q guidance, as you mentioned, there's some timing issues that are going on there. you reiterated the $190 million full-year revenue path right 2q guidance as you mentioned there's some timing issues that are going on there What are the two or three highest confidence drivers that give you comfort that you're going to get to the $190 million for the full year? what are the two or three highest confidence drivers that give you comfort that you're going to get to the $190 million for the full year

Speaker 1: If I look at that one-by-one, we have the broadest mobile portfolio in the company's history. We actually also announced that we're expanding further from there in the future. If you look at going into Q3, we're now covering the sweet spot in the portfolio across AT&T, T-Mobile, and Verizon, which is a great platform to continue to drive mobile and growing mobile, quite frankly. Then, the other two key elements, really, one is the recovery with our existing large customers. If I look at that one-by-one, we have the broadest mobile portfolio in the company's history. if i look at that one-by-one we have the broadest mobile portfolio in the company's history We actually also announced that we're expanding further from there in the future. we actually also announced that we're expanding further from there in the future If you look at going into Q3, we're now covering the sweet spot in the portfolio across AT&T, T-Mobile, and Verizon, which is a great platform to continue to drive mobile and growing mobile, quite frankly. if you look at going into q3 we're now covering the sweet spot in the portfolio across at&t, t-mobile and verizon which is a great platform to continue to drive mobile and growing mobile quite frankly Then, the other two key elements, really, one is the recovery with our existing large customers. then the other two key elements really one is the recovery with our existing large customers While we've done a great job in ramping up a new Tier 1 carrier in FWA, the existing large guy continues to falter. What was supposed to be 1 + 1 = 2 equals two, we're not quite there yet. That's something that we foresee going into Q3. In addition to adding on MSO customer on top, there's been a lot of great work by the team on product solution readiness, getting the commercial framework in place to start engaging with the large cable guys here in the U.S. While we've done a great job in ramping up a new Tier 1 carrier in FWA, the existing large guy continues to falter. while we've done a great job in ramping up a new tier 1 carrier in fwa the existing large guy continues to falter What was supposed to be 1 + 1 = 2 equals two, we're not quite there yet. what was supposed to be 1 + 1 = 2 equals two we're not quite there yet That's something that we foresee going into Q3. that's something that we foresee going into q3 In addition to adding on MSO customer on top, there's been a lot of great work by the team on product solution readiness, getting the commercial framework in place to start engaging with the large cable guys here in the U.S. in addition to adding on mso customer on top there's been a lot of great work by the team on product solution readiness getting the commercial framework in place to start engaging with the large cable guys here in the u.s

Speaker 2: Just to sort of paraphrase and recap a little bit. On FWA, you cited the disruption at a large customer that was tied to enterprise go-to-market reset. You also secured a commitment from this customer for next gen FWA platform. What needs to happen to re-accelerate that account, and I guess the timing you're saying is Q3? Just to sort of paraphrase and recap a little bit. just to sort of paraphrase and recap a little bit On FWA, you cited the disruption at a large customer that was tied to enterprise go-to-market reset. on fwa you cited the disruption at a large customer that was tied to enterprise go-to-market reset You also secured a commitment from this customer for next gen FWA platform. you also secured a commitment from this customer for next gen fwa platform What needs to happen to re-accelerate that account, and I guess the timing you're saying is Q3? what needs to happen to re-accelerate that account and i guess the timing you're saying is q3

Speaker 1: Yeah. Look, the movie that played out late last year was a complete overhaul of the leadership team at this specific carrier, particularly on their enterprise team, which then of course goes to the next thing that you logically do is to revisit your strategy, take a look at how should we go to market and all of that. That process and realignment has taken longer than we expected. We were expecting to see that bounce back already in Q2. Yeah. yeah Look, the movie that played out late last year was a complete overhaul of the leadership team at this specific carrier, particularly on their enterprise team, which then of course goes to the next thing that you logically do is to revisit your strategy, take a look at how should we go to market and all of that. look the movie that played out late last year was a complete overhaul of the leadership team at this specific carrier particularly on their enterprise team which then of course goes to the next thing that you logically do is to revisit your strategy take a look at how should we go to market and all of that That process and realignment has taken longer than we expected. that process and realignment has taken longer than we expected We were expecting to see that bounce back already in Q2. we were expecting to see that bounce back already in q2 I think there's good activity now towards Q3 in getting where we need to be. Then to your point, I think a strong testimonial of the relationship is the new product that we've won an award for and will be launching this year. That product will be the fastest FWA in the market, not only in the portfolio of this carrier, but U.S.-wide. That's technology leadership, strong partnership with the customer. The thing that needs to come back together, like you said, is really the go-to-market motion and making sure that we have the right incentives and programs in play for their field teams. I think there's good activity now towards Q3 in getting where we need to be. i think there's good activity now towards q3 in getting where we need to be Then to your point, I think a strong testimonial of the relationship is the new product that we've won an award for and will be launching this year. then to your point i think a strong testimonial of the relationship is the new product that we've won an award for and will be launching this year That product will be the fastest FWA in the market, not only in the portfolio of this carrier, but U.S.-wide. that product will be the fastest fwa in the market not only in the portfolio of this carrier but u.s.-wide That's technology leadership, strong partnership with the customer. that's technology leadership strong partnership with the customer The thing that needs to come back together, like you said, is really the go-to-market motion and making sure that we have the right incentives and programs in play for their field teams. the thing that needs to come back together like you said is really the go-to-market motion and making sure that we have the right incentives and programs in play for their field teams

Speaker 2: It sounds like then the issues, the delays to the extent that they're delays, were really on the customer side and not execution oriented at Inseego. It sounds like then the issues, the delays to the extent that they're delays, were really on the customer side and not execution oriented at Inseego. it sounds like then the issues the delays to the extent that they're delays were really on the customer side and not execution oriented at inseego

Speaker 1: We had both. We had both. we had both

Speaker 2: Okay. Okay. okay

Speaker 1: The mobile was internal. Let's call it self-inflicted, and something that we've done a lot of work on. I'm sure we'll touch on that later in the conversation. Meanwhile, the FWA performance with the large customer was really external. The mobile was internal. the mobile was internal Let's call it self-inflicted, and something that we've done a lot of work on. let's call it self-inflicted and something that we've done a lot of work on I'm sure we'll touch on that later in the conversation. i'm sure we'll touch on that later in the conversation Meanwhile, the FWA performance with the large customer was really external. meanwhile the fwa performance with the large customer was really external

Speaker 2: Yeah. Yeah. yeah

Speaker 1: Outside of our span of control. Outside of our span of control. outside of our span of control

Speaker 2: To pivot to mobile, you've launched, obviously we've talked about two of the three Tier 1 carrier hotspot models, and now we have the third expected late July, plus we have a new low-tier MiFi win. To pivot to mobile, you've launched, obviously we've talked about two of the three Tier 1 carrier hotspot models, and now we have the third expected late July, plus we have a new low-tier MiFi win. to pivot to mobile you've launched obviously we've talked about two of the three tier 1 carrier hotspot models and now we have the third expected late july plus we have a new low-tier mifi win

Speaker 1: Yeah. Yeah. yeah

Speaker 2: How should investors think about volume versus margin as we sort of ramp up with the lower tier product? How should investors think about volume versus margin as we sort of ramp up with the lower tier product? how should investors think about volume versus margin as we sort of ramp up with the lower tier product

Speaker 3: Yeah. We'll tag team if that's cool. Yeah. yeah We'll tag team if that's cool. we'll tag team if that's cool

Speaker 2: Yeah. Yeah. yeah

Speaker 3: To the conversation we have on mobile specifically, as Juho always says, it's a fixed pie, essentially, and we're growing because we have the better product, and we have new carrier relationships that are coming to fruition. We are winning share and growing the business. The gross margin for mobile that used to be in the 20-something range is now in the teens. There is margin compression on mobile, but there's growth in total revenue because you have unit volume growth. We see a total revenue curve growth, but it's a combination of margin offset by higher volume. To the conversation we have on mobile specifically, as Juho always says, it's a fixed pie, essentially, and we're growing because we have the better product, and we have new carrier relationships that are coming to fruition. to the conversation we have on mobile specifically as juho always says it's a fixed pie essentially and we're growing because we have the better product and we have new carrier relationships that are coming to fruition We are winning share and growing the business. we are winning share and growing the business The gross margin for mobile that used to be in the 20-something range is now in the teens. the gross margin for mobile that used to be in the 20-something range is now in the teens There is margin compression on mobile, but there's growth in total revenue because you have unit volume growth. there is margin compression on mobile but there's growth in total revenue because you have unit volume growth We see a total revenue curve growth, but it's a combination of margin offset by higher volume. we see a total revenue curve growth but it's a combination of margin offset by higher volume

Speaker 2: And so- And so- and so-

Speaker 1: But what really matters- But what really matters- but what really matters-

Speaker 2: Go ahead, sorry. Go ahead, sorry. go ahead sorry

Speaker 1: Well, what do you get out of it on the bottom line, right? How do we drive more margin capture overall? In this case, there is a volume ASP margin trade-off. The other thing I'll say on mobile is that if you look at our market share, let's say last year when we were exiting the year, think 25%. Exiting this year, we'll be at a much higher market share out of that, like Steven Gatoff was saying, FWA. If you call it two million units, our run rate will be around 50% market share at the end of the year. Well, what do you get out of it on the bottom line, right? well what do you get out of it on the bottom line right How do we drive more margin capture overall? how do we drive more margin capture overall In this case, there is a volume ASP margin trade-off. in this case there is a volume asp margin trade-off The other thing I'll say on mobile is that if you look at our market share, let's say last year when we were exiting the year, think 25%. the other thing i'll say on mobile is that if you look at our market share let's say last year when we were exiting the year think 25% Exiting this year, we'll be at a much higher market share out of that, like Steven Gatoff was saying, FWA. exiting this year we'll be at a much higher market share out of that like steven gatoff was saying fwa If you call it two million units, our run rate will be around 50% market share at the end of the year. if you call it two million units our run rate will be around 50% market share at the end of the year

Speaker 2: Wow, okay. Wow, okay. wow okay

Speaker 1: Before we expand the portfolio further. Before we expand the portfolio further. before we expand the portfolio further

Speaker 2: Right. Right. right

Speaker 1: There's also opportunity that we're engaged on the premium tier. There's also opportunity that we're engaged on the premium tier. there's also opportunity that we're engaged on the premium tier

Speaker 2: Wow. Wow. wow

Speaker 1: In addition to the customer expansion and getting all three guys like we've done now with the large carriers, I also want us to see us have a good, better, best lineup in the mobile category. While that market segment is not growing, unlike the FWA, the job really is to drive consolidation in that space. So far we've been trending pretty well. In addition to the customer expansion and getting all three guys like we've done now with the large carriers, I also want us to see us have a good, better, best lineup in the mobile category. in addition to the customer expansion and getting all three guys like we've done now with the large carriers i also want us to see us have a good better best lineup in the mobile category While that market segment is not growing, unlike the FWA, the job really is to drive consolidation in that space. while that market segment is not growing unlike the fwa the job really is to drive consolidation in that space So far we've been trending pretty well. so far we've been trending pretty well

Speaker 2: It sounds like it's not just adding customer. Adding customers is huge, it's also doing more with the existing customers. It sounds like it's not just adding customer. it sounds like it's not just adding customer Adding customers is huge, it's also doing more with the existing customers. adding customers is huge it's also doing more with the existing customers

Speaker 1: Correct. Correct. correct

Speaker 2: Is that- Is that- is that-

Speaker 1: Yeah. Yeah. yeah

Speaker 2: Okay. Okay. okay

Speaker 1: That's where we have the new value segment win is with one of the existing customers. That's where we have the new value segment win is with one of the existing customers. that's where we have the new value segment win is with one of the existing customers

Speaker 2: Just to go back to something that, Steven, you said about the margin compression from the mid-30s. I think you said it was from mid-30s to mid-20s today. I know that this has been happening for forever, but for those of us that are less familiar with that trend, is this just the unending price compression on the unit basis that we've seen at least, I feel like I've seen my entire career? Or is there something specific? Just to go back to something that, Steven, you said about the margin compression from the mid-30s. just to go back to something that steven you said about the margin compression from the mid-30s I think you said it was from mid-30s to mid-20s today. i think you said it was from mid-30s to mid-20s today I know that this has been happening for forever, but for those of us that are less familiar with that trend, is this just the unending price compression on the unit basis that we've seen at least, I feel like I've seen my entire career? i know that this has been happening for forever but for those of us that are less familiar with that trend is this just the unending price compression on the unit basis that we've seen at least i feel like i've seen my entire career Or is there something specific? or is there something specific

Speaker 3: Yeah, on mobile hotspot, yes. Yeah, on mobile hotspot, yes. yeah on mobile hotspot yes

Speaker 2: Yes. Yes. yes

Speaker 3: It's different. It is a little bit kind of Tale of Two Cities where mobile hotspot is what you said. It's different. it's different It is a little bit kind of Tale of Two Cities where mobile hotspot is what you said. it is a little bit kind of tale of two cities where mobile hotspot is what you said

Speaker 2: Okay. Okay. okay

Speaker 3: We see continued strong gross margin on the organic FWA business. That's more enterprise, a little bit of channel. It's higher, in the mid to high 20s. We see continued strong gross margin on the organic FWA business. we see continued strong gross margin on the organic fwa business That's more enterprise, a little bit of channel. that's more enterprise a little bit of channel It's higher, in the mid to high 20s. it's higher in the mid to high 20s

Speaker 2: Okay. Okay. okay

Speaker 3: That's a higher gross margin business by nature. That's a higher gross margin business by nature. that's a higher gross margin business by nature

Speaker 2: On the compression piece, that's not something you can plan your way around. It's not something. On the compression piece, that's not something you can plan your way around. on the compression piece that's not something you can plan your way around It's not something. it's not something

Speaker 1: I think it goes also with the maturity of the technology cycle. I think it goes also with the maturity of the technology cycle. i think it goes also with the maturity of the technology cycle

Speaker 2: Right. Right. right

Speaker 1: 5G is now what? Almost at 6G. We're a couple of years out. 5G is now what? 5g is now what Almost at 6G. almost at 6g We're a couple of years out. we're a couple of years out

Speaker 2: Yeah. Oh, God. Yeah. yeah Oh, God. oh god

Speaker 1: What's very typical is that with the technology cycle, you also see- What's very typical is that with the technology cycle, you also see- what's very typical is that with the technology cycle you also see-

Speaker 2: Right. Right. right

Speaker 1: ... effect on the gross margin, right? ... effect on the gross margin, right? ... effect on the gross margin right

Speaker 2: Yeah. Yeah. yeah

Speaker 1: We have historically done the best when things get really difficult, very complicated, and it's early adoption of new technology. Now the new muscle for the company that we've been building since. We have historically done the best when things get really difficult, very complicated, and it's early adoption of new technology. we have historically done the best when things get really difficult very complicated and it's early adoption of new technology Now the new muscle for the company that we've been building since. now the new muscle for the company that we've been building since

Speaker 2: Yeah. Yeah. yeah

Speaker 1: I joined beginning of last year is the ability to drive scale and win at scale in the marketplace. I joined beginning of last year is the ability to drive scale and win at scale in the marketplace. i joined beginning of last year is the ability to drive scale and win at scale in the marketplace

Speaker 2: How does the software piece, how does that impact margins and what can we expect, or how much of that was baked into the commentary a minute ago when you said that you think that there's a sort of the margin offset? How does the software piece, how does that impact margins and what can we expect, or how much of that was baked into the commentary a minute ago when you said that you think that there's a sort of the margin offset? how does the software piece how does that impact margins and what can we expect or how much of that was baked into the commentary a minute ago when you said that you think that there's a sort of the margin offset

Speaker 3: Yeah, the software has two pieces to it. It has the Inseego Connect, which is our call it device management software for Inseego devices, and then there's Subscribe, which is the subscriber management across all devices for carriers. We've taken the latter from what used to be historically at Inseego as a professional services function for a carrier, and we've really, over the last year, productized that and turned that into a platform that we're having conversations with other carriers about. Yeah, the software has two pieces to it. yeah the software has two pieces to it It has the Inseego Connect, which is our call it device management software for Inseego devices, and then there's Subscribe, which is the subscriber management across all devices for carriers. it has the inseego connect which is our call it device management software for inseego devices and then there's subscribe which is the subscriber management across all devices for carriers We've taken the latter from what used to be historically at Inseego as a professional services function for a carrier, and we've really, over the last year, productized that and turned that into a platform that we're having conversations with other carriers about. we've taken the latter from what used to be historically at inseego as a professional services function for a carrier and we've really over the last year productized that and turned that into a platform that we're having conversations with other carriers about

Speaker 1: The other key push that we have from a product strategy standpoint of view in the hotspot or mobile category is that it now has the same routing capability as our FWA. It's actually very disruptive looking from a capability standpoint of view compared to the previous generations. With that, what we're targeting also to do to see if we can drive a higher attach also in mobile. Meanwhile, in FWA, when our key customers sell it typically comes bundled with our cloud solution. That reduces the friction when the end enterprise is taking it to adoption. Quite frankly, if you're doing an enterprise deployment, you need the manageability to begin with. The other key push that we have from a product strategy standpoint of view in the hotspot or mobile category is that it now has the same routing capability as our FWA. the other key push that we have from a product strategy standpoint of view in the hotspot or mobile category is that it now has the same routing capability as our fwa It's actually very disruptive looking from a capability standpoint of view compared to the previous generations. it's actually very disruptive looking from a capability standpoint of view compared to the previous generations With that, what we're targeting also to do to see if we can drive a higher attach also in mobile. with that what we're targeting also to do to see if we can drive a higher attach also in mobile Meanwhile, in FWA, when our key customers sell it typically comes bundled with our cloud solution. meanwhile in fwa when our key customers sell it typically comes bundled with our cloud solution That reduces the friction when the end enterprise is taking it to adoption. that reduces the friction when the end enterprise is taking it to adoption Quite frankly, if you're doing an enterprise deployment, you need the manageability to begin with. quite frankly if you're doing an enterprise deployment you need the manageability to begin with

Speaker 2: As the attach rates go up, though, there should be a natural uplift on margins overall, right? As the attach rates go up, though, there should be a natural uplift on margins overall, right? as the attach rates go up though there should be a natural uplift on margins overall right

Speaker 1: There's definitely- There's definitely- there's definitely-

Speaker 2: Just as the mix shift. Just as the mix shift. just as the mix shift

Speaker 1: There's definitely an installed base- There's definitely an installed base- there's definitely an installed base-

Speaker 2: Okay. Okay. okay

Speaker 1: ... at play here where over time we'll have growth in Connect. Like Steven was saying, I think the Subscribe is like a crown jewel that we likely should be talking more about. ... at play here where over time we'll have growth in Connect. ... at play here where over time we'll have growth in connect Like Steven was saying, I think the Subscribe is like a crown jewel that we likely should be talking more about. like steven was saying i think the subscribe is like a crown jewel that we likely should be talking more about

Speaker 2: Okay. Okay. okay

Speaker 1: The work that we've done now to make what essentially was a professional services with a single large customer to a true platform and engaging the broader community. We're getting really good feedback. The work that we've done now to make what essentially was a professional services with a single large customer to a true platform and engaging the broader community. the work that we've done now to make what essentially was a professional services with a single large customer to a true platform and engaging the broader community We're getting really good feedback. we're getting really good feedback

Speaker 2: Let's get to the fun stuff, the Nokia piece. At least for me, that is Inseego. You've called this a transformational acquisition. Obviously, it more than doubles revenue. It makes you global instantly. What do you think, though, there's a lot of different benefits from my standpoint, but what do you think is the most important strategic benefit? I'm thinking you've got the global customer access, you've got portfolio breadth,- Let's get to the fun stuff, the Nokia piece. let's get to the fun stuff the nokia piece At least for me, that is Inseego. at least for me that is inseego You've called this a transformational acquisition. you've called this a transformational acquisition Obviously, it more than doubles revenue. obviously it more than doubles revenue It makes you global instantly. it makes you global instantly What do you think, though, there's a lot of different benefits from my standpoint, but what do you think is the most important strategic benefit? what do you think though there's a lot of different benefits from my standpoint but what do you think is the most important strategic benefit I'm thinking you've got the global customer access, you've got portfolio breadth,- i'm thinking you've got the global customer access you've got portfolio breadth,-

Speaker 1: Yeah. Yeah. yeah

Speaker 2: ... platform unification, or is it something else? ... platform unification, or is it something else? ... platform unification or is it something else

Speaker 1: I think the first thing is the global reach. Second, I would mention synergies. Maybe Steven, you can talk into that a bit more in terms of what do we expect on that front. I think the first thing is the global reach. i think the first thing is the global reach Second, I would mention synergies. second i would mention synergies Maybe Steven, you can talk into that a bit more in terms of what do we expect on that front. maybe steven you can talk into that a bit more in terms of what do we expect on that front

Speaker 2: Yeah. Yeah. yeah

Speaker 1: Look, the big thing here is that CEO of a company of our size might wake up in the morning worrying about how to grow the company. We won't have to worry about that because now we have these large global anchor customers that we're going to use as a base to build or reinforce a global go-to-market machine and the associated capabilities. With that, we can expand the Nokia FWA business as it is, which I expect we'll be able to do, very importantly, cross-sell our mobile products and our enterprise FWA to the global market. Look, the big thing here is that CEO of a company of our size might wake up in the morning worrying about how to grow the company. look the big thing here is that ceo of a company of our size might wake up in the morning worrying about how to grow the company We won't have to worry about that because now we have these large global anchor customers that we're going to use as a base to build or reinforce a global go-to-market machine and the associated capabilities. we won't have to worry about that because now we have these large global anchor customers that we're going to use as a base to build or reinforce a global go-to-market machine and the associated capabilities With that, we can expand the Nokia FWA business as it is, which I expect we'll be able to do, very importantly, cross-sell our mobile products and our enterprise FWA to the global market. with that we can expand the nokia fwa business as it is which i expect we'll be able to do very importantly cross-sell our mobile products and our enterprise fwa to the global market Meanwhile, we can take the Nokia, which is more residential product. It's an excellent portfolio indoor and outdoor, their end market has been more residential. To deploy that with the large customers here in the U.S. where we have excellent relationships. I really think that this global reach, global anchor customers is something that will be a really valuable strategic asset for us that goes beyond the conversation that we're having here as we look at future strategic optionality. Meanwhile, we can take the Nokia, which is more residential product. meanwhile we can take the nokia which is more residential product It's an excellent portfolio indoor and outdoor, their end market has been more residential. it's an excellent portfolio indoor and outdoor their end market has been more residential To deploy that with the large customers here in the U.S. where we have excellent relationships. to deploy that with the large customers here in the u.s where we have excellent relationships I really think that this global reach, global anchor customers is something that will be a really valuable strategic asset for us that goes beyond the conversation that we're having here as we look at future strategic optionality. i really think that this global reach global anchor customers is something that will be a really valuable strategic asset for us that goes beyond the conversation that we're having here as we look at future strategic optionality

Speaker 2: Anything to add? No. Okay. From a cultural standpoint, I know you obviously used to work at Nokia. How do you think that this is likely to play out? Have you had conversations with the team there, and if so, how would you describe the energy level, excitement level? Are people pleased? Anything to add? anything to add No. no Okay. okay From a cultural standpoint, I know you obviously used to work at Nokia. from a cultural standpoint i know you obviously used to work at nokia How do you think that this is likely to play out? how do you think that this is likely to play out Have you had conversations with the team there, and if so, how would you describe the energy level, excitement level? have you had conversations with the team there and if so how would you describe the energy level excitement level Are people pleased? are people pleased

Speaker 1: The big thing for me here is that I know the Nokia engineering capability, but also the quality of their processes across the board. I think there's a lot there where it's not going to be one where we're going to do things Inseego way, but we're going to pick the best of both worlds. The way I look at it is that, yes, we have a strong, robust company as we are today in Inseego, but it's an opportunity to create something new as well by adopting best practices from both companies. The other thing is just from an employee experience standpoint of view, the Capital Markets Day was in November, where it was announced that there's this portfolio of businesses that will be divested from Nokia. The big thing for me here is that I know the Nokia engineering capability, but also the quality of their processes across the board. the big thing for me here is that i know the nokia engineering capability but also the quality of their processes across the board I think there's a lot there where it's not going to be one where we're going to do things Inseego way, but we're going to pick the best of both worlds. i think there's a lot there where it's not going to be one where we're going to do things inseego way but we're going to pick the best of both worlds The way I look at it is that, yes, we have a strong, robust company as we are today in Inseego, but it's an opportunity to create something new as well by adopting best practices from both companies. the way i look at it is that yes we have a strong robust company as we are today in inseego but it's an opportunity to create something new as well by adopting best practices from both companies The other thing is just from an employee experience standpoint of view, the Capital Markets Day was in November, where it was announced that there's this portfolio of businesses that will be divested from Nokia. the other thing is just from an employee experience standpoint of view the capital markets day was in november where it was announced that there's this portfolio of businesses that will be divested from nokia

Speaker 2: Yeah. Yeah. yeah

Speaker 1: Which of course, was a lot of uncertainty for the employee base. Now they have certainty. They know that they have a good home. As a part of the due diligence, we had the chance to meet with the teams globally, at least the key leadership. I'm actually traveling the next two weeks, so is Steven, to meet with some of our new European colleagues. I think it's great. Which of course, was a lot of uncertainty for the employee base. which of course was a lot of uncertainty for the employee base Now they have certainty. now they have certainty They know that they have a good home. they know that they have a good home As a part of the due diligence, we had the chance to meet with the teams globally, at least the key leadership. as a part of the due diligence we had the chance to meet with the teams globally at least the key leadership I'm actually traveling the next two weeks, so is Steven, to meet with some of our new European colleagues. i'm actually traveling the next two weeks so is steven to meet with some of our new european colleagues I think it's great. i think it's great The question is that how do you harness this process discipline structure and the capability that they have to operate at a large scale? Because they are number one globally in FWA. I like to think of ourselves as American technology entrepreneurs, if you will. How do you create the perfect blend where you're aggressive, you're innovating, you're bold, you're making moves, at the same time, adopt the best practices from our new colleagues at Nokia? The question is that how do you harness this process discipline structure and the capability that they have to operate at a large scale? the question is that how do you harness this process discipline structure and the capability that they have to operate at a large scale Because they are number one globally in FWA. because they are number one globally in fwa I like to think of ourselves as American technology entrepreneurs, if you will. i like to think of ourselves as american technology entrepreneurs if you will How do you create the perfect blend where you're aggressive, you're innovating, you're bold, you're making moves, at the same time, adopt the best practices from our new colleagues at Nokia? how do you create the perfect blend where you're aggressive you're innovating you're bold you're making moves at the same time adopt the best practices from our new colleagues at nokia

Speaker 2: Financial stuff aside, how long of an integration do you expect this will be? Is this something that, multiple years, or is it six months and done? Financial stuff aside, how long of an integration do you expect this will be? financial stuff aside how long of an integration do you expect this will be Is this something that, multiple years, or is it six months and done? is this something that multiple years or is it six months and done

Speaker 3: Think of it, we're targeting October 1 to close. Think of it, we're targeting October 1 to close. think of it we're targeting october 1 to close

Speaker 2: Yeah. Yeah. yeah

Speaker 3: Right now we're kind of in pre-integration planning, and to you, it's a good point. There's a ton of work, and you asked earlier, they're very engaged. We meet multiple times a week. They have dedicated integration managers and leads, a dozen people from the Nokia side who work with us constantly. We're doing all the work now to get to closing, then you'll have integration. Our view is really approaching that as kind of a one-year timeframe to, as we've said publicly before, to get to breakeven, and to turn the business, and to the conversation earlier around synergies on the cost side, because it is about running the company as a global engineering and a global product management, a global supply chain. It is putting two businesses together that have an unbelievably high amount of overlap in cost and people. Right now we're kind of in pre-integration planning, and to you, it's a good point. right now we're kind of in pre-integration planning and to you it's a good point There's a ton of work, and you asked earlier, they're very engaged. there's a ton of work and you asked earlier they're very engaged We meet multiple times a week. we meet multiple times a week They have dedicated integration managers and leads, a dozen people from the Nokia side who work with us constantly. they have dedicated integration managers and leads a dozen people from the nokia side who work with us constantly We're doing all the work now to get to closing, then you'll have integration. we're doing all the work now to get to closing then you'll have integration Our view is really approaching that as kind of a one-year timeframe to, as we've said publicly before, to get to breakeven, and to turn the business, and to the conversation earlier around synergies on the cost side, because it is about running the company as a global engineering and a global product management, a global supply chain. our view is really approaching that as kind of a one-year timeframe to as we've said publicly before to get to breakeven and to turn the business and to the conversation earlier around synergies on the cost side because it is about running the company as a global engineering and a global product management a global supply chain It is putting two businesses together that have an unbelievably high amount of overlap in cost and people. it is putting two businesses together that have an unbelievably high amount of overlap in cost and people

Speaker 1: What I really like about the discussion with Justin and the Nokia leadership team was that we were immediately on the same page in terms of how important the business and customer continuity is. What was important for them, now as they're focusing very successfully so on the infrastructure side of the AI super cycle, making sure that there's a good home for the edge. Of course, the partnership, the whole concept of the deal reflects all of that, right? They will benefit from our success. Like Steven was saying, we have that one-year period to make sure that we do a great job with the integration, associated TSAs. I think we feel good about the risk mitigation activities and the plan and the journey ahead. What I really like about the discussion with Justin and the Nokia leadership team was that we were immediately on the same page in terms of how important the business and customer continuity is. what i really like about the discussion with justin and the nokia leadership team was that we were immediately on the same page in terms of how important the business and customer continuity is What was important for them, now as they're focusing very successfully so on the infrastructure side of the AI super cycle, making sure that there's a good home for the edge. what was important for them now as they're focusing very successfully so on the infrastructure side of the ai super cycle making sure that there's a good home for the edge Of course, the partnership, the whole concept of the deal reflects all of that, right? of course the partnership the whole concept of the deal reflects all of that right They will benefit from our success. they will benefit from our success Like Steven was saying, we have that one-year period to make sure that we do a great job with the integration, associated TSAs. like steven was saying we have that one-year period to make sure that we do a great job with the integration associated tsas I think we feel good about the risk mitigation activities and the plan and the journey ahead. i think we feel good about the risk mitigation activities and the plan and the journey ahead

Speaker 2: Any risk to whether or not this transaction closes? Any risk to whether or not this transaction closes? any risk to whether or not this transaction closes

Speaker 3: Not that we see, no. Not that we see, no. not that we see no

Speaker 1: Yeah. We don't believe that there's any regulatory or other major considerations. Yeah. yeah We don't believe that there's any regulatory or other major considerations. we don't believe that there's any regulatory or other major considerations

Speaker 2: In terms of the economic bridge, and I know it's obviously early, I'm not going to ask you about what to look for on the back end of the merger, but you do have a one-year $38 million of sort of a guaranteed EBITDA backstop, so to speak. In terms of the economic bridge, and I know it's obviously early, I'm not going to ask you about what to look for on the back end of the merger, but you do have a one-year $38 million of sort of a guaranteed EBITDA backstop, so to speak. in terms of the economic bridge and i know it's obviously early i'm not going to ask you about what to look for on the back end of the merger but you do have a one-year $38 million of sort of a guaranteed ebitda backstop so to speak

Speaker 3: Yep. Yep. yep

Speaker 2: from Nokia, and then there's a profit-sharing on the back end of that. I think there may be, in some of the conversations that I've had, there's some confusion about the extent to which the incentives for Nokia are tied to revenue versus tied to profitability. from Nokia, and then there's a profit-sharing on the back end of that. from nokia and then there's a profit-sharing on the back end of that I think there may be, in some of the conversations that I've had, there's some confusion about the extent to which the incentives for Nokia are tied to revenue versus tied to profitability. i think there may be in some of the conversations that i've had there's some confusion about the extent to which the incentives for nokia are tied to revenue versus tied to profitability

Speaker 3: Sure, yeah. The make whole, to your point, the first year, run the business, deliver the products, transition, put them together. That make whole is based on the EBITDA of the acquired business. What that business does is, to your point, backstop to get to zero. That's year one. Year two is a profit sharing of the profitability EBITDA from that business with Nokia that is based on the revenue of that business. If they hit the revenue numbers that we entered the deal into, very simple, like there was management presentations, there's awesome, you do that, and then we'll share the EBITDA with you that they can get upwards of 50% of that EBITDA if it hits the number, and if it doesn't, it could be zero. Sure, yeah. sure yeah The make whole, to your point, the first year, run the business, deliver the products, transition, put them together. the make whole to your point the first year run the business deliver the products transition put them together That make whole is based on the EBITDA of the acquired business. that make whole is based on the ebitda of the acquired business What that business does is, to your point, backstop to get to zero. what that business does is to your point backstop to get to zero That's year one. that's year one Year two is a profit sharing of the profitability EBITDA from that business with Nokia that is based on the revenue of that business. year two is a profit sharing of the profitability ebitda from that business with nokia that is based on the revenue of that business If they hit the revenue numbers that we entered the deal into, very simple, like there was management presentations, there's awesome, you do that, and then we'll share the EBITDA with you that they can get upwards of 50% of that EBITDA if it hits the number, and if it doesn't, it could be zero. if they hit the revenue numbers that we entered the deal into very simple like there was management presentations there's awesome you do that and then we'll share the ebitda with you that they can get upwards of 50% of that ebitda if it hits the number and if it doesn't it could be zero

Speaker 1: Of the acquired business. Of the acquired business. of the acquired business

Speaker 3: It's the EBITDA- It's the EBITDA- it's the ebitda-

Speaker 1: Of the acquired business. That's right. Of the acquired business. of the acquired business That's right. the acquired business that's right

Speaker 3: Yeah, there's no way for them to load up on unprofitable consumer FWA and then claw back EBITDA dollars- Yeah, there's no way for them to load up on unprofitable consumer FWA and then claw back EBITDA dollars- yeah there's no way for them to load up on unprofitable consumer fwa and then claw back ebitda dollars-

Speaker 2: No. No. no

Speaker 3: ... that were generated [into you] Right. ... that were generated [into you] Right. ... that were generated [into you] right

Speaker 2: No. It's profits generated from the acquired business to the extent they got it. No. no It's profits generated from the acquired business to the extent they got it. it's profits generated from the acquired business to the extent they got it

Speaker 1: And look- And look- and look-

Speaker 2: Yeah. Yeah. yeah

Speaker 1: ... you know the lead times in the industry. If we close October 1- ... you know the lead times in the industry. ... you know the lead times in the industry If we close October 1- if we close october 1-

Speaker 2: Right. Right. right

Speaker 1: ... it will be a year before- ... it will be a year before- ... it will be a year before-

Speaker 2: Right. Right. right

Speaker 1: ... we're all one joined hardware platform, software platform, and device roadmap. it's really designed- ... we're all one joined hardware platform, software platform, and device roadmap. it's really designed- ... we're all one joined hardware platform software platform and device roadmap it's really designed-

Speaker 2: Yeah. Yeah. yeah

Speaker 1: ... to protect and give us the time to do it properly and create a profitable new business. ... to protect and give us the time to do it properly and create a profitable new business. ... to protect and give us the time to do it properly and create a profitable new business

Speaker 2: I know it's obviously early, you haven't closed the transaction yet, but is it possible to think about which of the synergies you expect you'll get first? I would assume it's go-to-market, you know. Probably, the two big pieces, there's the revenue go-to-market selling. Revenue-generating synergies, if you will, but then there's also the cost-saving synergies. I know it's obviously early, you haven't closed the transaction yet, but is it possible to think about which of the synergies you expect you'll get first? i know it's obviously early you haven't closed the transaction yet but is it possible to think about which of the synergies you expect you'll get first I would assume it's go-to-market, you know. i would assume it's go-to-market you know Probably, the two big pieces, there's the revenue go-to-market selling. R evenue-generating synergies, if you will, but then there's also the cost-saving synergies. probably the two big pieces there's the revenue go-to-market selling. r evenue-generating synergies if you will but then there's also the cost-saving synergies

Speaker 1: Yeah. Yeah. yeah

Speaker 2: Of putting two businesses together, that's likely the first to come to fruition. Right as you close the business and you put together two engineering teams and product management teams, those are probably the biggest, two biggest areas. Of putting two businesses together, that's likely the first to come to fruition. of putting two businesses together that's likely the first to come to fruition Right as you close the business and you put together two engineering teams and product management teams, those are probably the biggest, two biggest areas. right as you close the business and you put together two engineering teams and product management teams those are probably the biggest two biggest areas

Speaker 1: We're not going to go and discontinue committed customer programs- We're not going to go and discontinue committed customer programs- we're not going to go and discontinue committed customer programs-

Speaker 2: Sure. Sure. sure

Speaker 1: ... day one to be able to drive the synergy. We need to have that complete. ... day one to be able to drive the synergy. ... day one to be able to drive the synergy We need to have that complete. we need to have that complete

Speaker 2: Right. Right. right

Speaker 1: Transition to one team, one platform, and everything else. Transition to one team, one platform, and everything else. transition to one team one platform and everything else

Speaker 2: Okay. Okay. okay

Speaker 1: On the go-to-market side, in the U.S., we have very robust sales teams, or I should say North America, and customer relationships. For APAC, Europe, Middle East, Africa, some of the key markets, we're building virtually brand new. There's people and key roles that are coming over from the transaction, there's also new ones to resource. The go-to-market, I think the sales motion, global perspective, less synergistic, like Steven was saying from a revenue synergy with the cross-sell. On the go-to-market side, in the U.S., we have very robust sales teams, or I should say North America, and customer relationships. on the go-to-market side in the u.s we have very robust sales teams or i should say north america and customer relationships For APAC, Europe, Middle East, Africa, some of the key markets, we're building virtually brand new. for apac europe middle east africa some of the key markets we're building virtually brand new There's people and key roles that are coming over from the transaction, there's also new ones to resource. there's people and key roles that are coming over from the transaction there's also new ones to resource The go-to-market, I think the sales motion, global perspective, less synergistic, like Steven was saying from a revenue synergy with the cross-sell. the go-to-market i think the sales motion global perspective less synergistic like steven was saying from a revenue synergy with the cross-sell We do expect. We're not assuming in the base scenario any of the revenue synergies than the cross-selling, but that's obviously something that we have a keen eye on. We do expect. we do expect We're not assuming in the base scenario any of the revenue synergies than the cross-selling, but that's obviously something that we have a keen eye on. we're not assuming in the base scenario any of the revenue synergies than the cross-selling but that's obviously something that we have a keen eye on

Speaker 2: I know that you mentioned that when Nokia announced that they were going to do something with this business, right, I would imagine that that certainly put a damper on the revenue growth and maybe even turned the revenue growth to negative revenue growth. Do you think that is it possible that that gets turned around before you take over, or would that be too optimistic? I know that you mentioned that when Nokia announced that they were going to do something with this business, right, I would imagine that that certainly put a damper on the revenue growth and maybe even turned the revenue growth to negative revenue growth. i know that you mentioned that when nokia announced that they were going to do something with this business right i would imagine that that certainly put a damper on the revenue growth and maybe even turned the revenue growth to negative revenue growth Do you think that is it possible that that gets turned around before you take over, or would that be too optimistic? do you think that is it possible that that gets turned around before you take over or would that be too optimistic

Speaker 1: Our $200 million number that we put out there- Our $200 million number that we put out there- our $200 million number that we put out there-

Speaker 2: Yeah. Yeah. yeah

Speaker 1: ... is assuming existing run rate. ... is assuming existing run rate. ... is assuming existing run rate

Speaker 2: Okay. Okay. okay

Speaker 1: That's not assuming any growth, new customer, existing run rate. That's not assuming any growth, new customer, existing run rate. that's not assuming any growth new customer existing run rate

Speaker 2: At closing, $200 million, or no? Now. At closing, $200 million, or no? at closing $200 million or no Now. now

Speaker 3: Now. Now. now

Speaker 2: Okay. Okay. okay

Speaker 3: Now. Now. now

Speaker 1: Yes. Yes. yes

Speaker 2: It would be Q1, $200 million based on the Q1 run rate. It would be Q1, $200 million based on the Q1 run rate. it would be q1 $200 million based on the q1 run rate

Speaker 1: Yeah, Q1 times four. Yeah, Q1 times four. yeah q1 times four

Speaker 2: More the same. More the same. more the same

Speaker 1: $200 million. $200 million. $200 million

Speaker 2: You're not making any statement as to whether or not that number will be higher, lower, or the same in October when you close? You're not making any statement as to whether or not that number will be higher, lower, or the same in October when you close? you're not making any statement as to whether or not that number will be higher lower or the same in october when you close

Speaker 3: That's right. That's right. that's right

Speaker 1: Yeah. The key thing here really is that we also know which customers walked away. Yeah. yeah The key thing here really is that we also know which customers walked away. the key thing here really is that we also know which customers walked away

Speaker 2: Yeah. Yeah. yeah

Speaker 1: Of course, it will be a great idea to go have an intro discussion with those customers and say, "Hey, we're here. Here's what we do. Here's the partnership with Nokia, and here's how much more we can do for you now on the back of the broader portfolio- Of course, it will be a great idea to go have an intro discussion with those customers and say, "Hey, we're here. of course it will be a great idea to go have an intro discussion with those customers and say "hey we're here Here's what we do. here's what we do Here's the partnership with Nokia, and here's how much more we can do for you now on the back of the broader portfolio- here's the partnership with nokia and here's how much more we can do for you now on the back of the broader portfolio-

Speaker 2: Sure. Sure. sure

Speaker 1: ... broader engagement. Let's talk." That has been key, of course, we'll wait for October 1 before we operate the business or do any of that, these initial introductions, I think really favorable reception. Western player, known brand, known technology leader in the industry. ... broader engagement. ... broader engagement Let's talk." That has been key, of course, we'll wait for October 1 before we operate the business or do any of that, these initial introductions, I think really favorable reception. let's talk." that has been key of course we'll wait for october 1 before we operate the business or do any of that these initial introductions i think really favorable reception Western player, known brand, known technology leader in the industry. western player known brand known technology leader in the industry

Speaker 2: No reason to stop to wait to have those conversations. It sounds like those are already ongoing. No reason to stop to wait to have those conversations. no reason to stop to wait to have those conversations It sounds like those are already ongoing. it sounds like those are already ongoing

Speaker 1: Yeah, we've definitely done the introductions. Yeah, we've definitely done the introductions. yeah we've definitely done the introductions

Speaker 2: Just, when you say walk away, I had the sense that it wasn't so much that people walking away as it was just saying like, "Hey, we're going to take a pause here, and we're going to just wait to see how things shake out." Is that sort of more accurate or no? Is it really the case that people sort of said like, "Hey, I'm moving away from Nokia," and now you got to go get them and bring them back? Just, when you say walk away, I had the sense that it wasn't so much that people walking away as it was just saying like, "Hey, we're going to take a pause here, and we're going to just wait to see how things shake out." Is that sort of more accurate or no? just when you say walk away i had the sense that it wasn't so much that people walking away as it was just saying like "hey we're going to take a pause here and we're going to just wait to see how things shake out." is that sort of more accurate or no Is it really the case that people sort of said like, "Hey, I'm moving away from Nokia," and now you got to go get them and bring them back? is it really the case that people sort of said like "hey i'm moving away from nokia," and now you got to go get them and bring them back

Speaker 3: Well, some deals that were getting done- Well, some deals that were getting done- well some deals that were getting done-

Speaker 2: Yeah. Yeah. yeah

Speaker 3: ... in the December, January, February timeframe that were in process- ... in the December, January, February timeframe that were in process- ... in the december january february timeframe that were in process-

Speaker 2: Yeah. Yeah. yeah

Speaker 3: ... got paused and got done away. ... got paused and got done away. ... got paused and got done away

Speaker 2: Okay. I see. Okay. okay I see. i see

Speaker 3: Because they needed to fulfill a deal in January. Because they needed to fulfill a deal in January. because they needed to fulfill a deal in january

Speaker 2: I see. I see. i see

Speaker 3: I don't know what's going to happen. I don't know what's going to happen. i don't know what's going to happen

Speaker 2: It wasn't just pushing stuff to the right necessarily. It wasn't just pushing stuff to the right necessarily. it wasn't just pushing stuff to the right necessarily

Speaker 3: Right. Right. right

Speaker 1: Combination. Combination. combination

Speaker 2: Okay. Okay. okay

Speaker 1: Yeah. Yeah. yeah

Speaker 2: I got you. Okay. Maybe just in terms of some additional upside drivers, looking ahead here, software services, we talked about that just a little bit, but I want to kind of come back to that. You highlighted Nokia's global footprint, and that obviously has the ability to really expand that with strong reception so far. What's the plan to broaden software and services beyond the existing customer base and how should we be thinking about how relevant that might ultimately be to the broader story? I got you. i got you Okay. okay Maybe just in terms of some additional upside drivers, looking ahead here, software services, we talked about that just a little bit, but I want to kind of come back to that. maybe just in terms of some additional upside drivers looking ahead here software services we talked about that just a little bit but i want to kind of come back to that You highlighted Nokia's global footprint, and that obviously has the ability to really expand that with strong reception so far. you highlighted nokia's global footprint and that obviously has the ability to really expand that with strong reception so far What's the plan to broaden software and services beyond the existing customer base and how should we be thinking about how relevant that might ultimately be to the broader story? what's the plan to broaden software and services beyond the existing customer base and how should we be thinking about how relevant that might ultimately be to the broader story

Speaker 1: I think twofold. One, our Inseego Connect, and Inseego Subscribe for that matter, centers around the carrier, and now we have all of a sudden access to all of the large carriers globally. I think it will be very nice to develop a broader strategy from where we're today with Inseego Connect, which is device and network management for our own enterprise products. Now we'll be participating in residential, and we could do something broader with that same carrier audience when it comes to device network management. I'm sure you can name multiple consumer-facing features, whether it's content filtering or other elements. There's a lot. There's a rich domain that we can now look at with a much broader lens than we've done previously. That's something that we're exploring. I think twofold. i think twofold One, our Inseego Connect, and Inseego Subscribe for that matter, centers around the carrier, and now we have all of a sudden access to all of the large carriers globally. one our inseego connect and inseego subscribe for that matter centers around the carrier and now we have all of a sudden access to all of the large carriers globally I think it will be very nice to develop a broader strategy from where we're today with Inseego Connect, which is device and network management for our own enterprise products. i think it will be very nice to develop a broader strategy from where we're today with inseego connect which is device and network management for our own enterprise products Now we'll be participating in residential, and we could do something broader with that same carrier audience when it comes to device network management. now we'll be participating in residential and we could do something broader with that same carrier audience when it comes to device network management I'm sure you can name multiple consumer-facing features, whether it's content filtering or other elements. i'm sure you can name multiple consumer-facing features whether it's content filtering or other elements There's a lot. there's a lot There's a rich domain that we can now look at with a much broader lens than we've done previously. there's a rich domain that we can now look at with a much broader lens than we've done previously That's something that we're exploring. that's something that we're exploring On Inseego Subscribe, now that we've done the investment and made it a true platform in a sense, we're getting really good feedback in segments where you have the most complicated customers. Large enterprises with difficult customization requirements, unique billing requirements, and then anything really that has to do with government or federal/SLED categories where we have a lot of unique IP in understanding how the contracting works, how the spend management works and everything else. Those discussions we've already started some time ago in the U.S. to identify areas where we can add value to new partners with that solution. On Inseego Subscribe, now that we've done the investment and made it a true platform in a sense, we're getting really good feedback in segments where you have the most complicated customers. on inseego subscribe now that we've done the investment and made it a true platform in a sense we're getting really good feedback in segments where you have the most complicated customers Large enterprises with difficult customization requirements, unique billing requirements, and then anything really that has to do with government or federal/SLED categories where we have a lot of unique IP in understanding how the contracting works, how the spend management works and everything else. large enterprises with difficult customization requirements unique billing requirements and then anything really that has to do with government or federal/sled categories where we have a lot of unique ip in understanding how the contracting works how the spend management works and everything else Those discussions we've already started some time ago in the U.S. to identify areas where we can add value to new partners with that solution. those discussions we've already started some time ago in the u.s to identify areas where we can add value to new partners with that solution

Speaker 2: What about the sort of the impact potentially of tariffs and/or kind of Buy American increasing sentiment that that's something that's a strategic priority, at least for the administration that's in the White House these days? I'm thinking about that as more of a potential positive for your base business than anything else. Are you seeing any positive or negatives from either the tariffs or? What about the sort of the impact potentially of tariffs and/or kind of Buy American increasing sentiment that that's something that's a strategic priority, at least for the administration that's in the White House these days? what about the sort of the impact potentially of tariffs and/or kind of buy american increasing sentiment that that's something that's a strategic priority at least for the administration that's in the white house these days I'm thinking about that as more of a potential positive for your base business than anything else. i'm thinking about that as more of a potential positive for your base business than anything else Are you seeing any positive or negatives from either the tariffs or? are you seeing any positive or negatives from either the tariffs or

Speaker 1: Look, I think the FCC ruling- Look, I think the FCC ruling- look i think the fcc ruling-

Speaker 2: Yeah. Yeah. yeah

Speaker 1: ... that started with residential routers. ... that started with residential routers. ... that started with residential routers

Speaker 2: Yeah. Yeah. yeah

Speaker 1: If you have a router that's intended for residential use case as a primary end market, needs to be designed, developed, and manufactured in the U.S. I think you might already know this, but there's limited manufacturing in the U.S. today. We are unique in that we have design and development resources- If you have a router that's intended for residential use case as a primary end market, needs to be designed, developed, and manufactured in the U.S. if you have a router that's intended for residential use case as a primary end market needs to be designed, developed and manufactured in the u.s I think you might already know this, but there's limited manufacturing in the U.S. today. i think you might already know this but there's limited manufacturing in the u.s today We are unique in that we have design and development resources- we are unique in that we have design and development resources-

Speaker 2: Right. Right. right

Speaker 1: ... in the U.S. So that is- ... in the U.S. ... in the u.s So that is- so that is-

Speaker 2: To create that. To create that. to create that

Speaker 1: Yes. Then manufacturing, I'm not going to say it's super easy, but it's easy. The industry just needs to agree that now we're going to increase the manufacturing value add, and everybody needs to accept that fact. We're already doing the difficult stuff. We can easily move our production to U.S. Let's see how that environment develops. The way it works today is that if you already have FCC approval, you don't need to do anything. It's only on new products that you plan to take to U.S. It's going to catch potential future competition devices trying to enter U.S. that do not tick those three boxes, which none of them would, no one in the industry does today. I think that's a really interesting thing that we're watching super closely. The other thing I'll mention is that today our end market is enterprise. Yes. yes Then manufacturing, I'm not going to say it's super easy, but it's easy. then manufacturing i'm not going to say it's super easy but it's easy The industry just needs to agree that now we're going to increase the manufacturing value add, and everybody needs to accept that fact. the industry just needs to agree that now we're going to increase the manufacturing value add and everybody needs to accept that fact We're already doing the difficult stuff. we're already doing the difficult stuff We can easily move our production to U.S. we can easily move our production to u.s Let's see how that environment develops. let's see how that environment develops The way it works today is that if you already have FCC approval, you don't need to do anything. the way it works today is that if you already have fcc approval you don't need to do anything It's only on new products that you plan to take to U.S. it's only on new products that you plan to take to u.s It's going to catch potential future competition devices trying to enter U.S. that do not tick those three boxes, which none of them would, no one in the industry does today. it's going to catch potential future competition devices trying to enter u.s that do not tick those three boxes which none of them would no one in the industry does today I think that's a really interesting thing that we're watching super closely. i think that's a really interesting thing that we're watching super closely The other thing I'll mention is that today our end market is enterprise. the other thing i'll mention is that today our end market is enterprise If you look at our mobile, over 60% sales channels to an enterprise end customer. Our FWA is exclusively enterprise. As we approach FCC with filings, which we've done since all of this came to effect, we have our literature, we have our end market, we have everything pointed towards enterprise. We have not had any reason to engage on this. If you look at our mobile, over 60% sales channels to an enterprise end customer. if you look at our mobile over 60% sales channels to an enterprise end customer Our FWA is exclusively enterprise. our fwa is exclusively enterprise As we approach FCC with filings, which we've done since all of this came to effect, we have our literature, we have our end market, we have everything pointed towards enterprise. as we approach fcc with filings which we've done since all of this came to effect we have our literature we have our end market we have everything pointed towards enterprise We have not had any reason to engage on this. we have not had any reason to engage on this

Speaker 2: Now you do. Now you do. now you do

Speaker 1: Nokia residential products, when the time comes, we'll engage on that discussion, but we have very flexible resourcing strategy. Nokia residential products, when the time comes, we'll engage on that discussion, but we have very flexible resourcing strategy. nokia residential products when the time comes we'll engage on that discussion but we have very flexible resourcing strategy We can choose to do the work in the U.S., and we'll continue to closely monitor how the manufacturing ecosystem develops. We can choose to do the work in the U.S., and we'll continue to closely monitor how the manufacturing ecosystem develops. we can choose to do the work in the u.s and we'll continue to closely monitor how the manufacturing ecosystem develops

Speaker 2: It's amazing that two years ago, we could not have gotten 25 minutes into a conversation about Inseego without talking about balance sheet and liquidity. Now it's easy to ignore, but I do want to just ask you, as we think about liquidity sources of working capital and so forth over the balance of the year, obviously we're not worried, but what should investors expect to see, if anything, in terms of sources of liquidity, whether or not there's credit facilities that get drawn to support- It's amazing that two years ago, we could not have gotten 25 minutes into a conversation about Inseego without talking about balance sheet and liquidity. it's amazing that two years ago we could not have gotten 25 minutes into a conversation about inseego without talking about balance sheet and liquidity Now it's easy to ignore, but I do want to just ask you, as we think about liquidity sources of working capital and so forth over the balance of the year, obviously we're not worried, but what should investors expect to see, if anything, in terms of sources of liquidity, whether or not there's credit facilities that get drawn to support- now it's easy to ignore but i do want to just ask you as we think about liquidity sources of working capital and so forth over the balance of the year obviously we're not worried but what should investors expect to see if anything in terms of sources of liquidity whether or not there's credit facilities that get drawn to support-

Speaker 1: Yeah. Yeah. yeah

Speaker 2: ... pending merger or capital raising and so forth? ... pending merger or capital raising and so forth? ... pending merger or capital raising and so forth

Speaker 3: Yeah. You just named them all. That's spot on. Those two pieces, one, when the acquisition closes, we in Inseego receive a $10 million investment from Nokia, so that's helpful. That's incoming cash. We also are making investment in inventory and in the launch of new products and derive the growth that we see in the back half of the year, so that is a use of capital, and we are funding that and would expect to start drawing on credit facility. We have a $20 million revolver that was put in place many months ago. That is part of the capitalization over the next six months. Yeah. yeah You just named them all. you just named them all That's spot on. that's spot on Those two pieces, one, when the acquisition closes, we in Inseego receive a $10 million investment from Nokia, so that's helpful. those two pieces one when the acquisition closes we in inseego receive a $10 million investment from nokia so that's helpful That's incoming cash. that's incoming cash We also are making investment in inventory and in the launch of new products and derive the growth that we see in the back half of the year, so that is a use of capital, and we are funding that and would expect to start drawing on credit facility. we also are making investment in inventory and in the launch of new products and derive the growth that we see in the back half of the year so that is a use of capital and we are funding that and would expect to start drawing on credit facility We have a $20 million revolver that was put in place many months ago. we have a $20 million revolver that was put in place many months ago That is part of the capitalization over the next six months. that is part of the capitalization over the next six months

Speaker 2: Got you. Got you. got you

Speaker 1: The other- The other- the other-

Speaker 2: Yeah, go ahead. Yeah, go ahead. yeah go ahead

Speaker 1: ... key thing to note is with the memory dynamic. ... key thing to note is with the memory dynamic. ... key thing to note is with the memory dynamic

Speaker 2: Oh, right. Oh, right. oh right

Speaker 1: I keep saying that I'm actually very happy with what the team has done in terms of creating a buffer. I keep saying that I'm actually very happy with what the team has done in terms of creating a buffer. i keep saying that i'm actually very happy with what the team has done in terms of creating a buffer

Speaker 2: But- But- but-

Speaker 1: That's also informing- That's also informing- that's also informing-

Speaker 2: Yeah. Yeah. yeah

Speaker 1: ... the cash conversation, of course. ... the cash conversation, of course. ... the cash conversation of course

Speaker 2: Yeah. Yeah. yeah

Speaker 1: How do you strike the perfect balance? We'll see what the prices are first half of next year. How do you strike the perfect balance? how do you strike the perfect balance We'll see what the prices are first half of next year. we'll see what the prices are first half of next year

Speaker 2: Right. Right. right

Speaker 1: Not sure if they will be coming down yet. Not sure if they will be coming down yet. not sure if they will be coming down yet

Speaker 2: Actually you got me thinking of Nokia now, right? They're at 11% shareholder, I think you've said- Actually you got me thinking of Nokia now, right? actually you got me thinking of nokia now right They're at 11% shareholder, I think you've said- they're at 11% shareholder i think you've said-

Speaker 1: That's right. That's right. that's right

Speaker 2: ... on the back end of this transaction. ... on the back end of this transaction. ... on the back end of this transaction

Speaker 1: Yep. Yep. yep

Speaker 2: What does that mean in terms of their involvement, corporate governance? Are they on the board? What does that mean in terms of their involvement, corporate governance? what does that mean in terms of their involvement corporate governance Are they on the board? are they on the board

Speaker 3: No. No. no

Speaker 2: How voting? How voting? how voting

Speaker 3: No. They're not, no board seat. They're a common stockholder, so there's no preference on their shares or super voting rights or anything. No. no They're not, no board seat. they're not no board seat They're a common stockholder, so there's no preference on their shares or super voting rights or anything. they're a common stockholder so there's no preference on their shares or super voting rights or anything

Speaker 2: They're a passive- They're a passive- they're a passive-

Speaker 3: They're a passive. They're a passive. they're a passive

Speaker 2: ... commercial partner- ... commercial partner- ... commercial partner-

Speaker 3: Yeah. Yeah. yeah

Speaker 2: ... but passive shareholder. ... but passive shareholder. ... but passive shareholder

Speaker 3: Passive shareholder. Passive shareholder. passive shareholder

Speaker 1: And also- And also- and also-

Speaker 2: Common. Common. common

Speaker 1: ... from a strategic standpoint of view, two important things. One is this go to market collaboration, which we announced. ... from a strategic standpoint of view, two important things. ... from a strategic standpoint of view two important things One is this go to market collaboration, which we announced. one is this go to market collaboration which we announced

Speaker 2: Sure. Sure. sure

Speaker 1: We'll have a joint sales pipeline incentive training program. We'll have a joint sales pipeline incentive training program. we'll have a joint sales pipeline incentive training program

Speaker 2: Yeah. Yeah. yeah

Speaker 1: where we'll continue to leverage the big Nokia machine. They're super deep across all of the global carrier accounts, so that's going to be helpful for us. Secondly, technology collaboration. As we get towards the AI RAN, distributed AI computing infrastructure, 6G, all of that, the CPE will become more of an integrated part of the network. Because if you look at today, the network and the CPE kind of know what one another are doing, but it's not a part of the same management stack. It's not pervasive. There's a lot of opportunity for us to lead and also differentiate together with Nokia. where we'll continue to leverage the big Nokia machine. where we'll continue to leverage the big nokia machine They're super deep across all of the global carrier accounts, so that's going to be helpful for us. they're super deep across all of the global carrier accounts so that's going to be helpful for us Secondly, technology collaboration. secondly technology collaboration As we get towards the AI RAN, distributed AI computing infrastructure, 6G, all of that, the CPE will become more of an integrated part of the network. as we get towards the ai ran distributed ai computing infrastructure 6g all of that the cpe will become more of an integrated part of the network Because if you look at today, the network and the CPE kind of know what one another are doing, but it's not a part of the same management stack. because if you look at today the network and the cpe kind of know what one another are doing but it's not a part of the same management stack It's not pervasive. it's not pervasive There's a lot of opportunity for us to lead and also differentiate together with Nokia. there's a lot of opportunity for us to lead and also differentiate together with nokia

Speaker 2: We just have another couple of seconds, but before we finish, I do want to ask you, what is, if there's just one thing that you want to leave in the mind of the investor that's maybe taking a fresh look or a new look at Inseego, how would you characterize the opportunity? We just have another couple of seconds, but before we finish, I do want to ask you, what is, if there's just one thing that you want to leave in the mind of the investor that's maybe taking a fresh look or a new look at Inseego, how would you characterize the opportunity? we just have another couple of seconds but before we finish i do want to ask you what is if there's just one thing that you want to leave in the mind of the investor that's maybe taking a fresh look or a new look at inseego how would you characterize the opportunity

Speaker 1: Look, I think we've done a great job in what we said a year ago, which is to diversify the revenue base and take a very predominant role at the enterprise wireless edge here in U.S. Now what we're doing on top of that is that we're unlocking this global opportunity with strong anchor customers that we can build, that will fund the investment and build the required global infrastructure as a huge benefit, doubling the company revenue and enabling the cross-sell. If you look at from addressable market that we have now, than what we've been talking about just a couple of months ago, completely different picture. There's good path to further expansion with what I would consider our organic business. This new global opportunity that will materialize 1st October really changes the company from addressable market growth trajectory, everything else standpoint of view. Look, I think we've done a great job in what we said a year ago, which is to diversify the revenue base and take a very predominant role at the enterprise wireless edge here in U.S. look i think we've done a great job in what we said a year ago which is to diversify the revenue base and take a very predominant role at the enterprise wireless edge here in u.s Now what we're doing on top of that is that we're unlocking this global opportunity with strong anchor customers that we can build, that will fund the investment and build the required global infrastructure as a huge benefit, doubling the company revenue and enabling the cross-sell. now what we're doing on top of that is that we're unlocking this global opportunity with strong anchor customers that we can build that will fund the investment and build the required global infrastructure as a huge benefit doubling the company revenue and enabling the cross-sell If you look at from addressable market that we have now, than what we've been talking about just a couple of months ago, completely different picture. if you look at from addressable market that we have now than what we've been talking about just a couple of months ago completely different picture There's good path to further expansion with what I would consider our organic business. there's good path to further expansion with what i would consider our organic business This new global opportunity that will materialize 1st October really changes the company from addressable market growth trajectory, everything else standpoint of view. this new global opportunity that will materialize 1st october really changes the company from addressable market growth trajectory everything else standpoint of view I think we're super excited. I think we're super excited. i think we're super excited

Speaker 2: Yeah. Yeah. yeah

Speaker 1: On the journey ahead, now it's really all we need to do is to execute. On the journey ahead, now it's really all we need to do is to execute. on the journey ahead now it's really all we need to do is to execute

Speaker 2: Thank you very much for being here. We're going to have to leave it here, but I really look forward to continuing to follow the progress of the company. Thank you very much for being here. thank you very much for being here We're going to have to leave it here, but I really look forward to continuing to follow the progress of the company. we're going to have to leave it here but i really look forward to continuing to follow the progress of the company

Speaker 3: Awesome. Awesome. awesome

Speaker 1: Thanks so much, Lance. Thanks so much, Lance. thanks so much lance

Speaker 3: Thanks, Lance. Thanks, Lance. thanks lance

Speaker 2: Thank you. Thank you. thank you