Airgain Q2 2026 earnings: Sequential growth restores positive adjusted EBITDA

Airgain (NASDAQ: AIRG) reported Q2 2026 sales of $13.7 million, up 0.7% from $13.6 million a year earlier, while GAAP diluted EPS was $(0.13), compared with $(0.12). Sales increased 19.1% sequentially as enterprise IoT modem shipments accelerated, helping adjusted EBITDA turn positive at $0.4 million despite continued GAAP losses and modest gross-margin pressure.

Core earnings data

The quarter showed a sharper improvement from Q1 than from the prior-year period. Revenue rose by $2.2 million sequentially, non-GAAP net income returned to positive territory, and adjusted EBITDA improved by $1.3 million from Q1.

On a GAAP basis, lower operating expenses narrowed the operating loss year over year. Net loss still widened because Q2 2025 included $0.5 million from an employee retention credit refund and generated $0.5 million of total other income, compared with $49,000 of other expense in the latest quarter.

Airgain’s non-GAAP measures exclude items including stock-based compensation, intangible-asset amortization, severance and exit costs, and acquisition-related costs. They should therefore be considered separately from the company’s GAAP net loss.

Business and segment performance

Enterprise was the primary source of sequential growth, increasing by approximately $1.7 million as IoT modem shipments rose. Automotive added about $0.3 million through higher vehicle gateway shipments, while consumer sales increased by about $0.2 million due to Wi-Fi 7 antenna shipments.

The comparison with Q2 2025 was more mixed. Enterprise revenue remained approximately $0.5 million lower, but automotive increased by about $0.4 million and consumer rose by about $0.2 million, leaving total sales only modestly higher.

Airgain also expanded its AirgainConnect portfolio with new MegaFi 2 and MegaGo 2 products for public safety and other field operations. Production shipments for new robotics and drone opportunities are expected to begin in the second half of 2026, while a data-center energy-monitoring design win is expected to begin generating revenue in 2027. These opportunities were not quantified in the quarterly results.

Sequential scale improved adjusted profit, while mix compressed margins

The 19.1% sequential revenue increase produced better adjusted profitability, but it did not expand gross margin. GAAP gross profit rose to $5.8 million from $5.0 million in Q1, while GAAP gross margin declined to 42.3% from 43.2%. Management attributed the decline to an unfavorable customer mix and a less favorable consumer product mix.

Cost movements also differed between GAAP and adjusted results. GAAP operating expenses increased sequentially to $7.5 million, primarily because of severance expense, while non-GAAP operating expenses fell to $5.7 million from $6.1 million. The combination of higher revenue and lower adjusted expenses helped adjusted EBITDA improve from a $0.9 million loss in Q1 to positive $0.4 million.

Cash flow and balance sheet

Airgain used $2.6 million of operating cash during the first six months of 2026, compared with $0.9 million in the same period of 2025. This was a year-to-date figure rather than a standalone Q2 result. Working-capital movements included a $1.7 million increase in accounts receivable, a $0.6 million increase in inventory, and a $1.2 million reduction in accounts payable, partially offset by a $2.2 million increase in accrued liabilities and other items.

Cash and cash equivalents ended June at $7.6 million, up from $7.4 million at the end of 2025 despite the operating cash outflow. The difference was supported by $2.9 million of financing inflows, including $1.6 million from an at-the-market stock offering and $1.3 million from employee stock purchases and option exercises. Capital expenditures were $90,000 during the first half.

Q3 2026 guidance

For the quarter ending September 30, 2026, Airgain expects continued sequential revenue growth and positive adjusted EBITDA. Management cited enterprise IoT modems and vehicle gateways as expected drivers, while warning that near-term supply constraints could affect the consumer business.

The revenue midpoint represents approximately 11.3% sequential growth. The GAAP gross-margin midpoint is unchanged from Q2, while the non-GAAP midpoint is slightly lower, indicating that the company is not assuming meaningful near-term margin expansion despite higher projected sales.

Recent insider transactions

The provided six-month insider summary reports purchases of 129,099 shares across 10 transactions and sales of 95,500 shares across 14 transactions, resulting in net purchases of 33,599 shares. Total insider holdings were reported at approximately 2.71 million shares, with net purchases equal to 1.30% of insider holdings. These aggregate figures should not be conflated with the reported transaction values in the individual records below.

The latest 10 individual records consist of nine sales and one derivative-security exercise. The data alone does not establish the insiders’ reasons for completing these transactions.

Risks investors should monitor

• Consumer supply constraints: Management expects near-term industry supply limitations to affect the consumer business, creating a potential headwind to sales and product availability in Q3.
• Sales mix and margin pressure: Revenue increased sharply from Q1, but GAAP and non-GAAP gross margins both declined sequentially because of customer and product mix. The Q3 guidance does not assume a clear margin rebound.
• Operating cash usage: First-half operating cash outflow increased to $2.6 million as receivables and inventory rose. Equity-related financing kept the cash balance stable, making future cash conversion an important operating measure.
• Execution on new opportunities: Robotics and drone shipments are expected later in 2026, while the data-center monitoring design win is not expected to contribute revenue until 2027. Trial commitments and design wins still require successful conversion into production revenue.
• Limited year-over-year growth: Q2 sales rose just 0.7% from the prior year, and enterprise revenue remained lower year over year. Continued sequential momentum will need to translate into sustained annual growth.

Summary

Airgain’s Q2 2026 results showed a meaningful sequential recovery led by enterprise IoT modems and automotive gateways, allowing adjusted EBITDA and non-GAAP net income to turn positive. However, year-over-year revenue growth remained limited, unfavorable mix pressured gross margin, and first-half operating cash usage increased. Q3 guidance calls for another sequential sales increase and higher adjusted EBITDA, with consumer supply constraints, margin performance, and the conversion of new IoT opportunities remaining the main items to monitor.