INSG

Inseego is a decade-into-a-turnaround micro-cap ($144M market cap) that has traded top-line for quality. Revenue fell 13.1% to $166M in FY2025 and is now well below the FY2021 $262M peak (262→245→167→191→166), yet gross profit actually rose 3.2% to $71.0M (42.7% gross margin) and operating income jumped 151.7% to $4.32M. That divergence is the whole story: the September 2024 telematics divestiture and a pivot to 5G FWA/MiFi plus the CSP SaaS lifecycle product are lifting mix even as unit volume shrinks. Operating cash flow stayed positive at $7.20M. So the business is smaller but structurally healthier than the headline revenue decline suggests.

The balance sheet is the real overhang, and it is being actively repaired. Stockholders' equity is still negative at -$4.04M against a staggering -$908M accumulated deficit, but equity improved 68.5% and the January 2026 Preferred Stock exchange is a genuine positive not yet in the FY2025 figures: 25,000 preferred shares with a $42M liquidation value were forfeited for ~$26M of consideration (a 38% discount), removing a senior claim that had been suppressing common EPS — note net income was positive at $838K yet diluted EPS was -$0.18, the gap being the preferred. The prior 2025 convertible-note restructurings ($146.9M of principal exchanged) and the May 2025 repayment of the residual $14.9M further de-risk the capital structure. Current ratio is a workable 1.32x ($64.1M / $48.4M) and cash is $24.9M, though cash fell 37.2% and OCF dropped 78.5% — liquidity is adequate, not comfortable, and the $10M cash owed on the preferred deal plus CEO/CODM turnover add execution risk.