Airgain (AIRG) Q4 2024 earnings summary

Executive summary

• Achieved a key milestone with the first commercial deployment of Lighthouse, marking a strategic shift from component supplier to high-value wireless system solutions provider and highlighting product innovation and market differentiation.

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

• Secured a multi-year strategic partnership with Omantel, expanding 5G reach in MENA and validating technology.

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

• Focused on scaling deployments, accelerating customer adoption, and expanding into high-value markets in 2025.

Financial highlights

• Q4 2024 sales were $15.1M, up 50% year-over-year but down 6% sequentially due to excess inventories and project delays.

• Full-year 2024 sales reached $60.6M, an 8.1% increase from 2023.

• Q4 gross margin was 43.4% (non-GAAP) and 42.2% (GAAP), the fourth consecutive sequential increase.

• Full-year gross margin improved to 42% (non-GAAP) and 40.9% (GAAP), up from 2023.

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

• Cash balance at year-end was $8.5M, up from $8.0M at prior year-end.

Outlook and guidance

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

• Q1 2025 non-GAAP gross margin expected between 42%-45%; GAAP gross margin expected 40.6%–43.8%; operating expenses around $6.5M.

• Q1 2025 non-GAAP EPS expected to be negative $0.10; GAAP net loss per share expected ($0.11) at midpoint; adjusted EBITDA expected to be negative $1.1M.

• Growth in Airgain Connect and Lighthouse expected to drive margin expansion and sales recovery in the second half of 2025.

• Inventory headwinds in enterprise and automotive expected to persist through H1 2025, with improvement anticipated in H2.