Airgain (AIRG) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales reached $12.0M, with momentum in scaling Lighthouse and Airgain Connect platforms and expanding global presence through the Omantel partnership and Lighthouse Solar launch.

• Transitioned from low ASP components to high-value system solutions, expanding the addressable market from $1.1B in 2024 to $2.6B.

• Net loss narrowed to $1.5M from $2.5M in Q1 2024, aided by a $1.5M employee retention credit refund.

• Achieved commercial certifications for Airgain Connect with all major US carriers, including AT&T FirstNet.

• Cash and cash equivalents were $7.4M as of March 31, 2025, with management expecting sufficient liquidity for at least 12 months.

Financial highlights

• Q1 2025 sales: $12M, down 15.6% year-over-year, in line with guidance midpoint.

• Consumer sales: $6.4M (up year-over-year); Automotive: $1.3M (down); Enterprise: $4.3M (down).

• Gross margin: 44.3% non-GAAP, 43.0% GAAP, up from 39.2% year-over-year.

• Operating expenses: $8.3M GAAP, $6.6M non-GAAP; Adjusted EBITDA: -$1.2M; Non-GAAP EPS: -$0.11.

• Cash balance: $7.4M, down $1.1M sequentially, up $0.2M YoY.

Outlook and guidance

• Q2 2025 sales guidance: $12.5M–$14.5M (midpoint $13.5M), ~12% sequential growth.

• Non-GAAP gross margin expected at 42%–45% (midpoint 43.5%).

• Operating expenses expected at $6.6M non-GAAP; Non-GAAP EPS at -$0.06 midpoint; Adjusted EBITDA at -$0.6M midpoint.

• At least $500K in ERC refunds expected in Q2 to offset EBITDA loss.

• Targeting positive adjusted EBITDA in Q3 2025.