Inseego Shares Plunge as Weak Q1 Forecast Offsets Sales Beat

The stock dropped 15% to $9 in premarket trading, extending a difficult period for the San Diego-based company. Before Friday’s slide, shares had already shed 16% of their value over the past year. Investors reacted sharply to a forecast that suggests a significant slowdown in the coming months, despite the company’s recent efforts to stabilize its balance sheet.

Divergence in Growth Projections

For the first quarter, Inseego expects revenue between $33 million and $36 million, missing the $41.8 million consensus estimate compiled by FactSet. The company’s profitability outlook was equally muted, with adjusted EBITDA projected at $1 million to $2 million, compared to the $3.1 million analysts had modeled.

While the short-term view disappointed, management offered a slightly more optimistic outlook for the full year. Inseego anticipates annual revenue of approximately $190 million, marginally higher than the $188.5 million expected by Wall Street. However, the company cautioned that this guidance does not account for potential shifts in the global tariff environment.

The weak forecast overshadowed a fourth quarter where Inseego actually outperformed expectations. Revenue rose 0.6% to $48.4 million, beating the $46.9 million estimate. On an adjusted basis, the company reported earnings of 12 cents per share, a sharp turnaround from the heavy losses recorded during the same period a year earlier.