Airgain (AIRG) Q4 2024 earnings summary

Executive summary

• Achieved first commercial deployment of Lighthouse, marking a strategic shift to high-value wireless system solutions and product innovation, with expansion into higher-margin markets.

• Strategic partnership with Omantel expands 5G reach in MENA, validating Lighthouse's technology and enabling regional expansion.

• Launched new products including ATFlight for healthcare, advanced rail car asset trackers, Lantern (5G FWA), and AirgainConnect Fleet (5G vehicle gateway), with certifications from major North American carriers.

• Expanded serviceable addressable market from $1.1B in 2024 to $2.6B in 2025, driven by new launches and partnerships.

• Introduced Lighthouse Solar, an off-grid, solar-powered network repeater targeting rural and challenging urban environments.

Financial highlights

• Q4 2024 sales were $15.1M, up 50% year-over-year but down 6% sequentially; full-year 2024 sales reached $60.6M, up 8.1% from 2023.

• Q4 gross margin improved to 43.4% (non-GAAP) and 42.2% (GAAP); full-year gross margin was 42% (non-GAAP) and 40.9% (GAAP), both up from 2023.

• Q4 adjusted EBITDA was $0.2M; full-year adjusted EBITDA was negative $0.8M, a significant improvement from negative $4.5M in 2023.

• Q4 non-GAAP EPS was break-even; Q4 GAAP net loss was $2.0M or ($0.17) per share; full-year GAAP net loss was $8.7M or ($0.79) per share.

• Year-end cash and equivalents were $8.5M, up from $8.0M at prior year-end.

Outlook and guidance

• Q1 2025 sales projected at $11M–$13M, reflecting a 20% sequential decline due to seasonal and inventory impacts.

• Q1 2025 non-GAAP gross margin expected at 42%–45%; GAAP gross margin 40.6%–43.8%; operating expenses around $6.5M; non-GAAP EPS expected at negative $0.10; adjusted EBITDA at negative $1.1M.

• Inventory headwinds in consumer and automotive expected to persist through H1 2025, with growth initiatives anticipated to drive recovery and margin expansion in H2 2025.

• Plans to deploy Lighthouse across 50+ sites in 2025, with larger-scale rollouts expected in 2026.