Inseego Forecasts $56M-$65M Q4 Revenue After FastMile Deal

Inseego Corp. (Nasdaq: INSG) projected fourth-quarter 2026 revenue of $56 million to $65 million after completing its acquisition of Nokia’s FastMile fixed wireless access business, significantly expanding the company’s revenue base and geographic reach. The outlook includes contributions from FastMile and calls for total adjusted EBITDA of between breakeven and $2 million, following a $1 million adjusted EBITDA loss in the third quarter.

The wireless broadband company reported third-quarter revenue of $33.3 million for its legacy North American business, above the midpoint of its $28 million-to-$35 million guidance range. Adjusted EBITDA was negative $1 million, at the high end of the company’s guided range of negative $2 million to negative $1 million.

Revenue declined from $44 million in the second quarter, when results benefited from a large fixed wireless access purchase by Inseego’s newest U.S. Tier-1 carrier customer. In the latest quarter, FWA shipments to the company’s largest customer were low, while orders from the newer carrier fell following its outsized second-quarter purchase.

Inseego posted a third-quarter GAAP loss from continuing operations of $8.1 million, compared with an $8.4 million loss in the preceding quarter. Its non-GAAP gross margin was 34%, little changed from 34.4% in the second quarter but below 48.9% in the first quarter.

Mobile revenue offsets weaker FWA orders

Mobile Solutions revenue increased 11% sequentially to $19.1 million as carriers made purchases ahead of anticipated memory price increases and supply constraints. FWA Solutions revenue was $4.2 million, down from $14.4 million in the second quarter, reflecting the carrier-ordering patterns described by the company.

Product revenue totaled $23.3 million, while software services and other revenue contributed $10 million, or 30% of total revenue.

Inseego also secured a premium-tier MiFi award from a Tier-1 U.S. carrier for the first-responder market. The ruggedized, high-powered device is expected to begin shipping in mid-2027.

Lower expenses partly offset the pressure from revenue mix and gross margin. Non-GAAP operating expenses excluding depreciation and amortization fell to $12.4 million from $14.6 million in the second quarter. In October, Inseego reduced headcount and contractor spending in a move it expects to lower annual expenditures by $8 million. The company also appointed Nick Lambourne as chief technology officer to lead a restructuring of its global engineering organization.

Cash stood at $6.6 million on Sept. 30. Inseego said its liquidity increased after quarter-end through payments associated with the Nokia transaction.

FastMile acquisition reshapes fourth-quarter outlook

Inseego completed the FastMile acquisition on Oct. 1, adding indoor, outdoor and millimeter-wave FWA products for residential and business customers. The transaction also brought carrier relationships across Europe, the Middle East, Asia and Oceania, along with engineering and customer-support operations that include an international headquarters in Amsterdam and a development center in Athens.

For the fourth quarter, Inseego expects its North American business to generate revenue of $21 million to $25 million. The acquired FastMile operation is expected to contribute $35 million to $40 million, resulting in the total company forecast of $56 million to $65 million.

The adjusted EBITDA outlook includes an expected $12 million to $14 million of contra expense from Nokia to support FastMile. It also reflects lower capitalization of internal-use software development costs, consistent with Nokia’s historical treatment of the acquired operation. Inseego said software capitalization will continue, but at lower levels.

Nokia invested $10 million in Inseego on Oct. 1 and received an ownership stake of about 11%, excluding warrants. Nokia made a further $10 million engineering-support payment on Oct. 15 and may provide up to $38 million of capped and conditional support for FastMile’s first-year operations. The companies also plan to collaborate on FWA opportunities, market development and wireless-edge technology.

FastMile’s pre-acquisition results indicate the scale of the acquired business but also show its historically low gross margins. The operation generated unaudited revenue of $326.6 million in 2025 with a 9% gross margin. Revenue was $42.6 million in the second quarter of 2026, with a gross margin of 3.6%. Inseego cautioned that these carve-out figures were not prepared under its accounting policies and are not indicative of future performance.

Execution now centers on integrating FastMile, developing the combined product roadmap, supporting customers and pursuing growth across both businesses. Key uncertainties include Inseego’s ability to retain customers and employees, integrate the acquired operation, manage growth profitably and realize expected cost savings and other synergies. The company also identified customer concentration, component costs and availability, pricing pressure, reliance on third-party manufacturers, tariffs, foreign-exchange movements and geopolitical instability among its broader risks.