Airgain AIRG Q1 2026 Earnings Call TranscriptMay 6, 2026
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Date
Wednesday, May 6, 2026 at 5 p.m. ET
Call participants
Chief Executive Officer — Jacob Suen Chief Financial Officer — Michael Elbaz
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Full Conference Call Transcript
Jacob Suen: Good afternoon, everyone, and thank you for joining us. The first quarter marked a solid start to 2026 as we began converting the strategic groundwork we laid last year into broader commercial momentum across the business. Over the past several years, we have been transforming Airgain, Inc. into a higher-value, system-level connectivity company. In Q1, that transformation showed up through customer wins, expanded platform capabilities, and deeper commercial engagements across our core markets and growth platforms. Let me start with our platform initiatives. First, we expanded AirgainConnect's capabilities through the acquisition of the HPUE MEGA 52 assets [inaudible]. This acquisition expands our portfolio and strengthens our vehicle gateway capabilities across public safety, utility, and enterprise fleet applications.
It also broadens what we can offer to our customers. Some customers need a fully integrated vehicle gateway; others want a simpler, high-power router solution. With AirgainConnect, we can now support a wider range of deployment needs. Both AirgainConnect Fleet and AirgainConnect MegaFi 2 are part of the AT&T FirstNet offering, and customers can order these solutions directly through the AT&T Speed Portal. We are also seeing encouraging progress in the AirgainConnect pipeline. In March, we closed a Tier 2 customer in the energy sector that operates across multiple U.S. regions. This customer is deploying AirgainConnect across a fleet of more than 300 maintenance and service vehicles, following field trials that demonstrated improved connectivity performance and ease of installation.
As of last week, our pipeline includes more than 55 Tier 1 and Tier 2 opportunities, up roughly 40% from the approximately [inaudible] Tier 1 and Tier 2 opportunities we mentioned on our last call. The mix is also becoming more attractive, with most of these opportunities now coming from non–first responder markets. Importantly, these opportunities are also advancing through the funnel. More than one-third of our Tier 1 and Tier 2 opportunities are now in trial or post-trial stages, compared to [inaudible] a quarter on our last call. This gives us increasing confidence that the pipeline is not only broader but also moving closer to conversion.
At the same time, Tier 1 engagement continues to deepen, with several opportunities becoming more strategic. While these larger opportunities take longer to convert, we believe the pipeline is moving in the right direction. These emerging opportunities reinforce our view that the strategy we outlined on our last call is working and that AirgainConnect is positioned to become a more meaningful contributor as we move through 2026 and beyond. Second, we continue to advance Lighthouse. In the U.S., we are now working with a business sponsor and a Tier 1 mobile network operator to progress toward a live enterprise trial. This moves Lighthouse from network validation into the business and commercial phase.
Story Continues
If the trial progresses as expected, we believe initial commercialization opportunities could begin toward the end of 2026, with a broader opportunity developing in 2027. This opportunity with the Tier 1 MNO is being driven by clear customer pain points around coverage, capacity, and the course of network upgrades. In many in-building environments, traditional solutions such as DAS or small cells can be expensive, disruptive, and slow to deploy. Lighthouse gives customers a faster and more cost-effective path to upgrading from 4G to 5G coverage. For indoor deployments, the value proposition is straightforward: better coverage, lower cost, and faster deployment. For outdoor use cases, Lighthouse reduces coverage gaps and provides network performance benefits, non-disruptive integration, and scalability.
Based on our engagement with this Tier 1 MNO, we believe indoor deployments could represent the near-term opportunity, with initial deployments targeted toward the end of this year. Outdoor deployments remain an important longer-term opportunity, and I expect them to follow a more extended evaluation and commercialization cycle. In the Middle East, our relationship with Omantel remains an important entry point. Deployment activity was paused due to the conflict in the region, but engagement is now ongoing, and we expect to move forward with initial deployments over the coming months. We continue to advance our roadmap for integrated 4G and 5G coverage solutions designed for challenging indoor and outdoor environments.
This roadmap supports 4G and 5G co-location, expands the range of deployment scenarios we can address, and strengthens the long-term commercial opportunity for Lighthouse. We are seeing customer interest in trialing the combined solution as units become available. As our engagement with the Tier 1 MNO and enterprise customers has progressed, we believe we now have a clear path to commercialization with our current product roadmap. As a result, we have realigned our resources and priorities to focus on accelerating commercialization and revenue generation. Now turning to our core markets.
In consumer, we secured a multiyear, multimillion-dollar embedded antenna design win for a next-generation 5G home connectivity platform with a Tier 1 North American MNO, with production units anticipated later this year. As expected, consumer revenue declined sequentially due to seasonality. Looking into Q2, we expect consumer revenue to remain relatively stable with underlying demand still healthy. The primary factor we are monitoring in the near term is a supply constraint at the gateway level, particularly around memory availability and pricing. This is impacting our OEM's ability to ship finished systems and, in turn, affects the timing of our antenna shipments. At this point, this dynamic is limited to a single OEM serving cable operators.
Based on feedback from this OEM, they are actively working to address the issue, and we believe the impact is temporary. As we mentioned earlier, we have secured two Tier 1 MNO design wins, and we remain on track for those programs to lift in the second half of the year. In enterprise IoT, momentum is building. We received a $4 million purchase order from a longstanding IoT solution customer, with shipments expected to be completed this year, including initial shipments in Q2. This order reflects the resumption of demand from this customer and improves our near-term visibility. We are also seeing continued traction across our embedded modem portfolio, expanding opportunities in emerging applications.
We increased our IoT presence in robotics through a new design win with Cocoa Robotics. We are seeing additional activity in adjacent areas such as [inaudible], including pre-production shipments in Q2 for a new customer program focused on autonomous VTOL [inaudible] with [inaudible] in commercial applications. [inaudible] Q1 reflects progress across our growth platforms and our core markets. Both enterprise and automotive grew sequentially. IoT momentum improved, AirgainConnect engagement progressed, and product Lighthouse moved into more focused commercialization discussions. Our consumer business remains supported by strong Tier 1 relationships. Importantly, our pipeline is broader and continues to expand. We enter this next phase with a more focused operating model, improving visibility, and clear opportunities to convert customer engagement into revenue.
With that, I will turn the call over to Michael.
Michael Elbaz: Thank you, Jacob. Before diving into the numbers, please note that my review of our financial results and guidance refers to non-GAAP figures. Information about the non-GAAP financial measures, including GAAP to non-GAAP reconciliations, can be found in our earnings release. Now let's turn to our first quarter results. Q1 sales came in at $11.5 million, which was at the midpoint of our guidance range. Enterprise sales were $5 million, up $0.7 million sequentially, driven by higher embedded modem sales. Automotive sales were $0.9 million, up $0.4 million sequentially, reflecting higher sales of AirgainConnect vehicle gateways. Consumer sales came in at $5.6 million, sequentially down $1.7 million, primarily due to seasonal impact.
Non-GAAP gross margin for the first quarter was 44.2%, compared to 46.3% in the prior quarter and relatively flat year over year. The sequential decline was primarily due to a lower enterprise margin rate driven by an unfavorable product mix. Non-GAAP operating expenses for the first quarter amounted to $6.1 million. While modestly higher sequentially due to typically higher first-quarter marketing and trade show activities, operating expenses declined by 8%, or $0.5 million, year over year as we continue to optimize our OpEx model. In Q1, adjusted EBITDA was negative $0.9 million, or $2 million lower than the midpoint of guidance. Non-GAAP EPS was negative $0.80, compared to negative $0.07 at the midpoint of guidance.
As of 03/31/2026, our cash balance was $7.1 million, relatively flat sequentially. Net cash proceeds from our ATM were $0.6 million. Now moving to our outlook for the second quarter ending 06/30/2026. As a reminder, we provide quarterly guidance for sales, non-GAAP gross margin and expenses, non-GAAP EPS, and adjusted EBITDA as we believe these metrics to be key indicators for the overall performance of our business. For Q2 2026, we project sales to range from $12.5 million to $14.5 million, with a midpoint of $13.5 million. The midpoint represents a 17% sequential increase driven by enterprise and automotive.
We believe our outlook reflects improving demand visibility across the business and continued progress in converting the commercial traction Jacob discussed into revenue. We expect non-GAAP gross margin for the second quarter to be in the range of 42.5% to 45.5%, or 44% at the midpoint. We project operating expenses to decrease sequentially to approximately $5.8 million. Non-GAAP EPS is expected to be positive $0.10 at the midpoint of our guidance. Adjusted EBITDA is expected to be positive $2 million at the midpoint of our guidance. Overall, the actions we have taken over the past few quarters have improved our operating leverage and positioned us to convert top-line growth more effectively into profitability.
Now I would like to turn the call back over to Jacob for his closing thoughts.
Jacob Suen: Thanks, Michael. As we look ahead, we have good visibility into Q2 and see positive momentum for both our core and growth platforms for the rest of the year. Beyond Q2, we see a broader set of drivers. Demand in our consumer business remains healthy, and we expect improvement as supply constraints ease. IoT continues to build momentum through repeat orders and new application design wins. AirgainConnect is progressing from engagement toward conversion, with growing activity across utility and enterprise markets. And Lighthouse is moving toward targeted commercial deployment in the U.S. and Middle East.
Taken together, these drivers reflect a more focused and better-positioned business with a stronger platform portfolio, a broader pipeline, and an operating model positioned for improved leverage as revenue scales. Our focus is execution: converting pipeline into deployments, driving growth, and improving profitability as we move through 2026. Operator, we are now ready to take questions.
Operator: We will now open the call for questions. Thank you. We will now be taking questions from Airgain, Inc.'s sell-side analysts. Our first question is from Anthony Stoss with Craig Hallum Capital Group. Please proceed.
Anthony Stoss: Great. Thank you. Good afternoon, Jacob and Michael. Michael, I was trying to write as fast as I could. Can you just give me the revenue split? So I got consumer $5.6 million, but I missed auto and enterprise. —of revenue in the quarter that came from auto and same question for enterprise.
Michael Elbaz: So auto would be about—
Jacob Suen: —40% approximately. I do not have the other numbers in front of me.
Michael Elbaz: And enterprise would be about—higher, actually—50%.
Anthony Stoss: Enterprise 50, auto 40, and consumer 10?
Jacob Suen: No. No. Consumer is $5.6 million.
Michael Elbaz: Yes, I will have to come back to you on this, Tony. I do not have those numbers. But the bottom line is, on enterprise and automotive—
Jacob Suen: —we are seeing sequential growth, and we expect that momentum to continue. And consumer in Q1 was due to seasonality; we also expect consumer to improve throughout the year.
Anthony Stoss: Perfect. And then, Jacob, just—
Michael Elbaz: Tony, the number is 49% on consumer, 8% on automotive, and 43% on enterprise in Q1.
Anthony Stoss: Perfect. Thank you. Related to the memory shortages, I get it. A lot of people are talking about it. It is going to get worse throughout the remainder of the year. But given that, I guess the first part of the question is how much of your revenue was affected in Q1 as a result of not being able to ship? And then, Jacob, more longer-term picture, when do you think—Which quarter? Is it this year? Is it next year?—when you can get back to the kind of $7 million to $10 million in quarterly revenue on the consumer side?
Michael Elbaz: So yes, Tony, this is Michael. In terms of Q1 impact, we had no revenue impact from the shortages. We had no gross margin impact from the shortages. In Q2, we are being conservative on the consumer. Typically, you would see that seasonal down in Q1, which we saw, and a rebound in Q2. Right now, we are expecting to be relatively flat, mainly because one specific OEM is being impacted. They believe it is a temporary blip right now, and it will be worked out by the end of the quarter. But again, we have been conservative on that.
Jacob Suen: Yes. And regarding your questions about the consumer revenue, certainly, as we indicated, the good news is that we always have the stability regarding the MSOs. We are now adding the MNOs. We are now working on two major MNOs in the U.S., so that should help us be well-positioned for the rest of the year. Are we able to get to the $7 million to $8 million range like we used to have? We do have the path for that. Now, is that going to be happening this year or next year? We do not know that yet, although it is trending very positively.
We mentioned the design win with the MNO that should start shipping in the latter part of this year.
Anthony Stoss: Got it. And then my last question related to AirgainConnect. Are you seeing a speeding up of some of these trials or your ability to convert? It is great to see that Tier 2 energy customer. What is your feel on how quickly you can convert the trials into more signed deals?
Michael Elbaz: So on the Tier 1–type customers, we mentioned before 12 to 18 months of cycle time, and we are in the cycle time. The good news here is that the pipeline is changing favorably for us quarter over quarter. For example, we mentioned on the call that we have a current pipeline of over 55 deals in Tier 1 and Tier 2 customers. Twenty percent of that is Tier 1 customers, and another 20% of that—the vast majority—are for non–first responders. So they tend to be moving quicker; however, because those tend to be also strategic-type deals, they also very much have multilayer meetings, engagements, trials taking place.
And so we are basically on track to what we had mentioned about the 12 to 18–month cycle. On Tier 2, we just mentioned that we closed a Tier 2 customer. Overall, the velocity of the design wins that we have—primarily on Tier 3 and Tier 2 so far—is accelerating. Last year, we would be closing one deal per month, and this year so far, up until May, it has been about two deals per month. I hope this is helpful.
Anthony Stoss: Yeah. No. Very helpful. And—
Jacob Suen: Yeah. Tony, I also had the Tier 1 opportunity size [inaudible].
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Airgain AIRG Q1 2026 Earnings Call Transcript was originally published by The Motley Fool
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Airgain Q1 Earnings Call HighlightsMay 6, 2026
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Key Points
Airgain says it's converting strategic groundwork into commercial momentum as Airgain Connect expands via the acquisition of HPUE MegaFi 2 assets and inclusion in AT&T FirstNet, with a pipeline of >55 tier 1/2 opportunities (up ~40%) and more than one-third now in trial or post-trial stages. Lighthouse is moving from validation toward a live enterprise trial with a tier‑1 MNO and a business sponsor, targeting initial commercialization late 2026 and broader opportunities in 2027, while international engagement with Omantel has resumed. Financially, Q1 revenue was $11.5M (non‑GAAP gross margin 44.2%, adjusted EBITDA -$0.9M, cash $7.1M); Q2 guidance is $12.5M–$14.5M (midpoint $13.5M) with expected positive non‑GAAP EPS of $0.01 and adjusted EBITDA of $0.2M at the midpoint. Interested in Airgain, Inc.? Here are five stocks we like better.
Airgain (NASDAQ:AIRG) reported first-quarter 2026 results that management described as a “solid start” to the year, pointing to expanding commercial activity across its core markets and growth platforms, including Airgain Connect and Lighthouse. President and CEO Jacob Suen said the company is “began converting the strategic groundwork we laid last year into broader commercial momentum across the business,” as it continues its shift toward “a higher value system-level connectivity company.”
Airgain Connect expands through acquisition and growing pipeline
Suen highlighted expanded Airgain Connect capabilities following the acquisition of the “HPUE MegaFi 2 assets from Nextivity,” which he said strengthens Airgain’s vehicle gateway portfolio for public safety, utilities, and enterprise fleet applications. He said the addition enables Airgain to serve customers seeking either “a fully integrated vehicle gateway” or “a simpler high-power router solution.”
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According to Suen, both AirgainConnect Fleet and AirgainConnect MegaFi 2 are part of the AT&T FirstNet offering and can be ordered through AT&T’s SPID portal.
On commercial progress, Suen said Airgain closed a tier 2 energy-sector customer in March that is deploying Airgain Connect across “more than 300 maintenance and service vehicles” after field trials showed improved connectivity and ease of installation.
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He also said the Airgain Connect pipeline has expanded and advanced:
More than 55 tier 1 and tier 2 opportunities, up about 40% from roughly 40 cited on the prior call. More than one-third of tier 1 and tier 2 opportunities are now in trial or post-trial stages, up from a quarter on the prior call. Most opportunities are now coming from non-first responder markets, which Suen said makes the mix “more attractive.”
Story Continues
During Q&A, Suen said tier 1 sales cycles remain “12 to 18 months,” and the company is “in the cycle time.” He added that tier 2 and tier 3 deal velocity has increased, saying that in 2025 the company closed “one deal per month,” while in 2026 year-to-date “it’s been about two deals per month.” Suen also said opportunity sizes are increasing as the company pursues larger non-first responder fleets that can involve “10,000s of vehicles.”
Lighthouse moves toward enterprise trial and commercialization discussions
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Suen said Airgain is progressing Lighthouse in the U.S. by working with “a business sponsor and a tier 1 Mobile Network Operator” toward a live enterprise trial, which he characterized as a move “from network validation into the business and commercial base.” If the trial proceeds as expected, Suen said initial commercialization could begin toward the end of 2026, with a broader opportunity developing in 2027.
He cited customer challenges including “coverage, capacity, and the cost of network upgrades,” and said Lighthouse can offer a faster and more cost-effective option than traditional in-building systems such as DAS or small cells. Suen said indoor deployments represent the near-term opportunity, with initial deployments “targeted toward the end of this year,” while outdoor use cases are expected to follow a longer evaluation cycle.
Internationally, Suen said Airgain’s relationship with Omantel in the Middle East remains “an important entry point,” noting deployment activity had been paused due to conflict in the region, but engagement has resumed and the company expects to move forward with initial deployments “over the coming months.”
In response to an analyst question, Suen said technology validation has been completed through prior trials and the company is now working with the MNO’s sales team to identify one or two enterprise customers for a live trial. He described target customers as those where the MNO previously “had to walk away from deals” due to budget constraints and said Airgain’s approach could offer a solution at “a fraction of” legacy costs.
Core markets: consumer design win, IoT order, and new robotics and drone activity
In consumer, Suen said Airgain secured a “multi-year, multi-million dollar embedded antenna design win” for a next-generation 5G home connectivity platform with a tier 1 North American mobile network operator, with production units anticipated later in 2026. He said consumer revenue declined sequentially due to seasonality, and the company expects Q2 consumer revenue to remain “relatively stable” while it monitors a gateway-level supply constraint tied to memory availability and pricing at a single OEM serving cable operators.
CFO Michael Elbaz said the company saw “no revenue impact” and “no gross margin impact” from the memory-related shortages in Q1, and said the company is being conservative in Q2 expectations because the impacted OEM believes the issue is temporary and “will be worked out by the end of the quarter.”
During Q&A, Suen said Airgain has a “path” to returning to prior consumer revenue levels of $7 million to $8 million per quarter, but added the timing is uncertain: “Is that gonna be happening this year or next year? We don’t know that yet, although it’s trending very positively.”
In enterprise IoT, Suen said Airgain received a $4 million purchase order from a long-standing customer, with shipments expected to be completed in 2026 and initial shipments in Q2. He also pointed to a new design win with Coco Robotics and said the company is seeing activity in adjacent areas such as drones, including “pre-production shipments in Q2” for a program involving autonomous VTOL rotorcraft for defense and commercial applications.
Q1 financial results and Q2 outlook
Elbaz reported first-quarter sales of $11.5 million, which he said was at the midpoint of guidance. By segment, he reported enterprise sales of $5.0 million, automotive sales of $0.9 million, and consumer sales of $5.6 million. During Q&A, Suen clarified Q1 revenue mix as 49% consumer, 8% automotive, and 43% enterprise.
Non-GAAP gross margin was 44.2%, down from 46.3% in the prior quarter, which Elbaz attributed primarily to “an unfavorable product mix.” Non-GAAP operating expenses were $6.1 million, modestly higher sequentially due to first-quarter marketing and trade show activity, but down 8% year-over-year as the company worked to optimize its operating model.
Adjusted EBITDA was negative $0.9 million, while non-GAAP EPS was negative $0.08. Airgain ended the quarter with $7.1 million in cash, which Elbaz said was relatively flat sequentially, including $0.6 million in net cash proceeds from its at-the-market offering.
For the second quarter ending June 30, 2026, Elbaz guided for sales of $12.5 million to $14.5 million, with a $13.5 million midpoint, representing 17% sequential growth at the midpoint driven by enterprise and automotive. The company expects non-GAAP gross margin of 42.5% to 45.5% (44% at the midpoint) and operating expenses of about $5.8 million. Elbaz said non-GAAP EPS is expected to be positive $0.01 at the midpoint, with adjusted EBITDA expected to be positive $0.2 million at the midpoint.
In closing remarks, Suen said the company has “good visibility into Q2” and sees momentum across consumer demand, IoT repeat orders and new design wins, Airgain Connect conversions, and Lighthouse deployment activity. “Our focus is execution,” he said, including converting pipeline into deployments and improving profitability through 2026.
About Airgain (NASDAQ:AIRG)
Airgain, Inc (NASDAQ: AIRG) is a provider of intelligent wireless connectivity solutions designed to enhance data transmission, network performance and antenna efficiency for a range of devices. Headquartered in San Diego, California, the company develops both embedded and external antenna systems, as well as associated connectivity software, to support wireless applications across cellular, Wi-Fi, machine-to-machine (M2M) and Internet of Things (IoT) markets.
The company's product portfolio includes modular smart antennas, parallel path phase-diversity antennas and advanced array antenna solutions that are optimized for environments such as smart homes, industrial automation, transportation and enterprise networking.
The article "Airgain Q1 Earnings Call Highlights" was originally published by MarketBeat.
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