INSEEGO CORP. 10-Q

Item 1. Financial Statements. INSEEGO CORP. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except par value, share and per share data) September 30, 2025 December 31, 2024 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 14,559 $ 39,596 Accounts receivable, net of allowance for expected credit losses of $ 176 and $ 123 , respectively 27,563 13,803 Inventories 8,602 13,575 Prepaid expenses and other current assets 6,261 5,926 Total current assets 56,985 72,900 Property, plant and equipment, net of accumulated depreciation of $ 29,423 and $ 28,897 , respectively 1,016 1,102 Intangible assets, net of accumulated amortization of $ 37,098 and $ 33,558 , respectively 19,635 18,747 Goodwill 3,949 3,949 Operating lease right-of-use assets 3,663 2,855 Other assets 565 446 Total assets $ 85,813 $ 99,999 LIABILITIES AND STOCKHOLDERS’ DEFICIT Current liabilities: Accounts payable $ 18,783 $ 18,433 Accrued expenses and other current liabilities 25,075 30,133 2025 Convertible Notes, net — 14,905 Total current liabilities 43,858 63,471 Long-term liabilities: Operating lease liabilities 3,161 2,627 Deferred tax liabilities, net 183 174 2029 Senior Secured Notes, net 41,666 41,830 Other long-term liabilities 4,663 4,755 Total liabilities 93,531 112,857 Commitments and contingencies (Note 10.) Stockholders’ deficit: Preferred stock, par value $ 0.001 ; 2,000,000 shares authorized: Preferred stock, par value $ 0.001 ; 39,500 shares designated, 25,000 shares issued and outstanding as of both September 30, 2025 and December 31, 2024 (aggregate liquidation preference of $ 41,043 as of September 30, 2025) — — Common stock, par value $ 0.001 ; 150,000,000 shares authorized, 15,212,522 and 14,990,712 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively 15 15 Additional paid-in capital 899,808 892,534 Accumulated other comprehensive loss 365 218 Accumulated deficit ( 907,906 ) ( 905,625 ) Total stockholders’ deficit ( 7,718 ) ( 12,858 ) Total liabilities and stockholders’ deficit $ 85,813 $ 99,999 See accompanying notes to condensed consolidated financial statements (unaudited). INSEEGO CORP. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (In thousands, except share and per share data) (Unaudited) 4 Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenues: Mobile solutions $ 16,037 $ 32,282 $ 47,499 $ 73,431 Fixed wireless access solutions 17,650 9,723 34,064 37,222 Product 33,687 42,005 81,563 110,653 Software services and other 12,206 12,027 36,226 32,504 Total revenues 45,893 54,032 117,789 143,157 Cost of revenues: Product 25,253 33,592 63,014 86,812 Software services and other 1,556 1,640 4,193 5,492 Total cost of revenues 26,809 35,232 67,207 92,304 Gross profit 19,084 18,800 50,582 50,853 Operating costs and expenses: Research and development 4,878 5,176 14,233 15,032 Sales and marketing 4,198 4,125 12,083 12,176 General and administrative 5,689 4,822 14,882 12,695 Depreciation and amortization 2,164 3,154 5,989 10,098 Impairment of capitalized software — 507 384 927 Total operating costs and expenses 16,929 17,784 47,571 50,928 Operating income (loss) 2,155 1,016 3,011 ( 75 ) Other (expense) income: Interest expense ( 885 ) ( 5,731 ) ( 2,844 ) ( 9,686 ) Loss on extinguishment of revolving credit facility — — — ( 788 ) Gain on debt restructurings, net — 12,366 — 13,690 Other income (expense), net 126 ( 72 ) 611 ( 864 ) Income (Loss) before income taxes 1,396 7,579 778 2,277 Income tax provision (benefit) ( 36 ) 36 9 171 Income (Loss) from continuing operations 1,432 7,543 769 2,106 Income (Loss) from discontinued operations (net of income tax provision (benefit) of $ — , $ 266 , $ 400 and $ 674 , respectively) — 1,426 ( 400 ) 3,032 Net income (loss) 1,432 8,969 369 5,138 Preferred stock dividends ( 903 ) ( 827 ) ( 2,650 ) ( 2,425 ) Net income (loss) attributable to common stockholders $ 529 $ 8,142 $ ( 2,281 ) $ 2,713 Per share data: Net earnings (loss) per share Basic Continuing operations $ 0.03 $ 0.54 $ ( 0.12 ) $ ( 0.03 ) Discontinued operations — 0.12 ( 0.03 ) 0.25 Basic and diluted earnings (loss) per share* $ 0.03 $ 0.66 $ ( 0.15 ) $ 0.23 Diluted Continuing operations $ 0.03 $ ( 0.16 ) $ ( 0.12 ) $ ( 0.03 ) Discontinued operations — 0.11 ( 0.03 ) 0.25 Diluted earnings per share $ 0.03 $ ( 0.06 ) $ ( 0.15 ) $ 0.23 Weighted-average shares used in computation of net earnings (loss) per share Basic 15,142,000 12,336,503 15,056,458 12,036,989 Diluted 15,522,042 13,218,293 15,056,458 12,036,989 Other comprehensive income (loss): Foreign currency translation adjustment 32 ( 1,292 ) 147 ( 1,385 ) Comprehensive income $ 1,464 $ 7,677 $ 516 $ 3,753 *rounding may impact summation of amounts See accompanying notes to condensed consolidated financial statements (unaudited). 5 INSEEGO CORP. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT (In thousands) (Unaudited) Preferred Stock Common Stock Additional Paid-in Capital (*) Accumulated Deficit Accumulated Other Comprehensive (Loss) Income Total Stockholders’ Deficit Shares Amount Shares (*) Amount (*) Balance, June 30, 2024 25 $ — 11,910 $ 12 $ 816,002 ( 912,357 ) $ ( 5,420 ) $ ( 101,763 ) Net loss — — — — — 8,969 — 8,969 Foreign currency translation adjustment — — — — — — ( 1,292 ) ( 1,292 ) Exercises of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan, net of taxes withheld — — 146 — 213 — — 213 Issuance of common stock warrants in connection with debt restructurings — — — — 2,656 — — 2,656 Issuance of common stock in connection with debt restructurings — — 487 1 4,924 — — 4,925 Share-based compensation — — — — 1,229 — — 1,229 Preferred stock dividends — — — — 827 ( 827 ) — — Balance, September 30, 2024 25 $ — 12,543 $ 13 $ 825,851 $ ( 904,215 ) $ ( 6,712 ) $ ( 85,063 ) Balance, June 30, 2025 25 $ — 15,043 $ 15 $ 897,591 $ ( 908,435 ) $ 333 $ ( 10,496 ) Net income — — — — — 1,432 — 1,432 Foreign currency translation adjustment — — — — — — 32 32 Exercises of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan, net of taxes withheld — — 170 — ( 536 ) — — ( 536 ) Share-based compensation — — — — 1,850 — — 1,850 Preferred stock dividends — — — — 903 ( 903 ) — — Balance, September 30, 2025 25 $ — 15,213 $ 15 $ 899,808 $ ( 907,906 ) $ 365 $ ( 7,718 ) (*) Adjusted retroactively for reverse stock split that occurred on January 24, 2024, see Note 1 See accompanying notes to condensed consolidated financial statements (unaudited). 6 INSEEGO CORP. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT (In thousands) (Unaudited) Preferred Stock Common Stock Additional Paid-in Capital (*) Accumulated Deficit Accumulated Other Comprehensive (Loss) Income Total Stockholders’ Deficit Shares Amount Shares (*) Amount (*) Balance, December 31, 2023 25 $ — 11,879 $ 12 $ 810,138 $ ( 906,928 ) $ ( 5,327 ) $ ( 102,105 ) Net income (loss) — — — — — 5,138 — 5,138 Foreign currency translation adjustment — — — — — — ( 1,385 ) ( 1,385 ) Exercises of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan, net of taxes withheld — — 177 — 207 — — 207 Issuance of common stock warrants in connection with debt restructurings — — — — 5,342 — — 5,342 Issuance of common stock in connection with debt restructurings — — 487 1 4,924 — — 4,925 Share-based compensation — — — — 2,815 — — 2,815 Preferred stock dividends — — — — 2,425 ( 2,425 ) — — Balance, September 30, 2024 25 $ — 12,543 $ 13 $ 825,851 $ ( 904,215 ) $ ( 6,712 ) $ ( 85,063 ) Balance, December 31, 2024 25 $ — 14,991 $ 15 $ 892,534 $ ( 905,625 ) $ 218 $ ( 12,858 ) Net income (loss) — — — — — 369 — 369 Foreign currency translation adjustment — — — — — — 147 147 Exercises of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan, net of taxes withheld — — 222 — ( 481 ) — — ( 481 ) Share-based compensation — — — — 5,105 — — 5,105 Preferred stock dividends — — — — 2,650 ( 2,650 ) — — Balance, September 30, 2025 25 $ — 15,213 $ 15 $ 899,808 $ ( 907,906 ) $ 365 $ ( 7,718 ) (*) Adjusted retroactively for reverse stock split that occurred on January 24, 2024, see Note 1 See accompanying notes to condensed consolidated financial statements (unaudited). 7 INSEEGO CORP. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Nine Months Ended September 30, 2025 2024 Cash flows from operating activities: Net income (loss) $ 369 $ 5,138 Adjustments to reconcile net loss to net cash provided by (used in) operating activities: (Income) Loss from discontinued operations, net of tax 400 ( 3,032 ) Depreciation and amortization 6,079 10,214 Loss on extinguishment of revolving credit facility — 788 Gain on debt restructurings, net — ( 13,690 ) Provision for expected credit losses 287 ( 372 ) Impairment of capitalized software 384 927 Provision for excess and obsolete inventory 510 901 Gain on early lease termination ( 443 ) — Impairment of operating lease right-of-use assets — 139 Share-based compensation expense 5,105 2,714 Amortization of debt discount (premium) and debt issuance costs, net ( 120 ) 4,435 Deferred income taxes 9 9 Non-cash operating lease expense 774 738 Changes in assets and liabilities: Accounts receivable ( 14,047 ) 2,962 Inventories 4,463 1,536 Prepaid expenses and other assets ( 1,164 ) 1,993 Accounts payable ( 184 ) 12,021 Accrued expenses and other liabilities ( 5,325 ) 14,146 Operating lease liabilities ( 952 ) ( 888 ) Operating cash flows from continuing operations ( 3,855 ) 40,679 Operating cash flows from discontinued operations ( 908 ) 7,031 Net cash provided by (used in) operating activities ( 4,763 ) 47,710 Cash flows from investing activities: Purchases of property, plant and equipment ( 321 ) ( 30 ) Additions to capitalized software development costs and purchases of intangible assets ( 6,121 ) ( 3,608 ) Investing cash flows from continuing operations ( 6,442 ) ( 3,638 ) Investing cash flows from discontinued operations 710 ( 16 ) Net cash used in investing activities ( 5,732 ) ( 3,654 ) Cash flows from financing activities: Payments related to repayments of 2025 Convertible Notes ( 14,949 ) ( 33,781 ) Proceeds from issuance of short-term loan and warrants, net of issuance costs — 19,350 Net repayments on revolving credit facility — ( 4,882 ) Repayments on short-term loan — ( 13,500 ) Proceeds from stock option exercises and employee stock purchase plan, net of taxes 308 2 Financing cash flows from continuing operations ( 14,641 ) ( 32,811 ) Financing cash flows from discontinued operations — — Net cash used in financing activities ( 14,641 ) ( 32,811 ) Effect of exchange rates on cash 99 ( 1,682 ) Net increase (decrease) in cash and cash equivalents ( 25,037 ) 9,563 Cash and cash equivalents, beginning of period 39,596 2,409 Cash and cash equivalents, end of period $ 14,559 $ 11,972 Supplemental disclosures of cash flow information: Cash paid during the year for: Interest $ 2,103 $ 4,283 Income taxes $ 1,440 $ 269 Supplemental disclosures of non-cash investing and financing activities: Capital expenditures financed through accounts payable or accrued liabilities $ 1,068 $ 262 Equity value issued in exchange for 2025 Convertible Notes $ — $ 7,088 Right-of-use assets obtained in exchange for operating leases liabilities $ 2,042 $ 146 See accompanying notes to condensed consolidated financial statements (unaudited). 8 INSEEGO CORP. Notes to Condensed Consolidated Financial Statements (Unaudited) Note 1. Nature of Business and Significant Accounting Policies Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements (“Financial Statements”) have been prepared by Inseego Corp. (the “Company”, “we”, “us” or “our”) in accordance with accounting principles generally accepted in the U.S. (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The Financial Statements include the accounts of the Company and its consolidated subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. These Financial Statements should be read in conjunction with the audited consolidated financial statements and notes as of and for the year ended December 31, 2024, included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 (the “Form 10-K”). The condensed consolidated balance sheet as of December 31, 2024 was derived from the audited consolidated financial statements as of that date, but does not include all disclosures required by GAAP. In management’s opinion, the accompanying Financial Statements reflect all normal recurring adjustments necessary for their fair presentation. Other than described below, there have been no changes to the Company’s significant accounting policies described in the Form 10-K that have had a material impact on the Company’s Financial Statements. The results of operations for the interim periods presented are not necessarily indicative of results to be expected for any other interim period or for the year as a whole. Divestiture of the Telematics Business On November 27, 2024, the Company completed the previously announced sale of its telematics solutions business, which has operations in the United Kingdom, Europe, Australia and New Zealand (the “Telematics Business”). The sale of the Telematics Business was completed pursuant to the Share Purchase Agreement, which was entered into on September 16, 2024 with Light Sabre SPV Limited (the “Purchase Agreement”). Pursuant to the terms of the Purchase Agreement, Ctrack Holdings (the “Purchaser”), as assignee of Light Sabre SPV Limited, acquired the entire issued share capital of the Company’s Inseego International Holdings Limited subsidiary for $ 52.0 million in an all-cash transaction (the “Sale Transaction”). The Purchase Agreement provided for a working capital adjustment, which was determined in December 2024 and funded in January 2025, resulting in an increase to the initial purchase consideration of $ 0.7 million as a result of changes in closing working capital and net debt. In accordance with the authoritative guidance for discontinued operations (Accounting Standards Codification (“ASC”) 205-20), the Company determined that the Telematics Business met the held-for sale and discontinued operations accounting criteria at the end of the third quarter of 2024. Accordingly, within these consolidated financial statements, the assets and liabilities associated with the Telematics Business disposal group prior to its sale have been classified as held for sale within the Condensed Consolidated Balance Sheets and its operations and cash flows have been classified as discontinued operations within the Condensed Consolidated Statements of Operations and Comprehensive Income and Condensed Consolidated Statements of Cash Flows. Refer to Note 2 – Discontinued Operations and Held for Sale for additional information regarding the Telematics Business, including the assets and liabilities divested and income from discontinued operations. Unless otherwise noted, disclosures within these remaining Notes to Condensed Consolidated Financial Statements relate solely to the Company's continuing operations. Held for Sale and Discontinued Operations The Company classifies assets and liabilities to be sold (disposal group) as held for sale in the period when all of the applicable criteria are met, including: (i) management commits to a plan to sell, (ii) the disposal group is available to sell in its present condition, (iii) there is an active program to locate a buyer, (iv) the disposal group is being actively marketed at a reasonable price in relation to its fair value, (v) significant changes to the plan to sell are unlikely, and (vi) the sale of the disposal group is generally probable of being completed within one year. Management performs an assessment at least quarterly or when events or changes in business circumstances indicate that a change in classification may be necessary. Assets and liabilities held for sale are presented separately within the Condensed Consolidated Balance Sheets with any adjustments necessary to measure the disposal group at the lower of its carrying value or fair value less costs to sell. Depreciation of property, plant and equipment and amortization of intangible and right-of-use assets are not recorded while these assets are classified as held for sale. For each period the disposal group remains classified as held for sale, its 9 INSEEGO CORP. Notes to Condensed Consolidated Financial Statements (Unaudited) recoverability is reassessed and any necessary adjustments are made to its carrying value. No impairment upon classification as held for sale was recorded during the year ended December 31, 2024. The Company reports the results of operations of a business as discontinued operations if a disposal represents a strategic shift that will have a major effect on its operations and financial results. The results of discontinued operations are reported as Income from discontinued operations, net of tax in the Condensed Consolidated Statements of Operations and Comprehensive Income for the current and prior periods commencing in the period in which the held for sale criteria are met. Income from discontinued operations, net of tax includes direct costs attributable to the divested business and excludes any cost allocations associated with any shared or corporate functions unless otherwise dedicated to the divested business. Income from discontinued operations, net of tax will include any gain or loss recognized upon disposition or from adjustment of the carrying amount to fair value less costs to sell while classified as held for sale. Transactions between the businesses held for sale and businesses held for use that are expected to continue after the disposal are not eliminated in order to appropriately reflect the continuing operations as well as the activity to be disposed of. Interest costs are included as a component of Income from discontinued operations, net of tax for debt specifically attributable to the discontinued operation or debt that is obligated to be repaid in connection with the completion of the divestiture. Activity within comprehensive income directly associated with a divested business is not realized as a component of Income from discontinued operations, net of tax until completion of the sale or disposition. Reverse Stock Split On January 24, 2024, the Company completed a 1-for-10 reverse stock split of its issued and outstanding common stock (the “Reverse Stock Split”). As a result of the Reverse Stock Split, each share of common stock issued and outstanding immediately prior to January 24th was automatically converted into one-tenth (1/10) of a share of common stock. The Reverse Stock Split affected all common stockholders uniformly and did not alter any stockholder's percentage interest in the Company's equity, except to the extent that the Reverse Stock Split would result in a stockholder owning a fractional share. No fractional shares were issued in connection with the Reverse Stock Split. Stockholders who otherwise would be entitled to receive a fractional share instead were entitled to receive cash in lieu of such fractional share. The Reverse Stock Split did not change the par value of the common stock or the authorized number of shares of common stock. All outstanding convertible notes entitling their holders to purchase or obtain or convert into shares of our common stock were adjusted, as required by the terms of these securities. All common share and per-share amounts in this Form 10-Q have been retroactively restated to reflect the effect of the Reverse Stock Split. Segment Information The Company has one reportable segment. The Company’s Executive Chairman, who was the Company’s Chief Operating Decision Maker (“CODM”) as of December 31, 2024, left the Company in February 2025, at which point, the Company’s CODM became its Chief Executive Officer (“CEO”). Neither of these CODMs manage any part of the Company separately, and the allocation of resources and assessment of performance is based solely on the Company’s consolidated operations and financial results . See Note 9 – Segment, Geographic, and Concentrations of Risk Information for more information. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent liabilities. Actual results could differ materially from these estimates. Estimates are assessed each period and updated to reflect current information. Significant estimates include revenue recognition, capitalized software costs, allowance for credit losses, provision for excess and obsolete inventory, accrued liabilities related to our contract manufacturers, valuation of tangible and intangible long-lived assets, valuation of goodwill, valuation of derivatives, accruals relating to litigation, income taxes and share-based compensation expense. Reclassifications Certain amounts recorded in the prior period consolidated financial statements have been reclassified to conform to the current period financial statement presentation. These reclassifications had no effect on previously reported operating results. 10 INSEEGO CORP. Notes to Condensed Consolidated Financial Statements (Unaudited) Recent Accounting Pronouncements Not Yet Adopted In July 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets . ASU 2025-05 provides a practical expedient related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under Accounting Standards Codification Topic 606: Revenue from Contracts with Customers . The practical expedient permits an entity to assume that current conditions as of the balance sheet date do not change for the remaining life of the current accounts receivable and current contract assets. This ASU is effective for fiscal years beginning after December 15, 2025 on a prospective basis, and for interim periods within fiscal years beginning after December 15, 2025, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this pronouncement on its consolidated financial statements. In September 2025, the FASB issued ASU No. 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. ASU 2025-06 updates the recognition and capitalization framework to reflect current software development practices, including iterative and agile methodologies, by removing references to "development stages". It also clarifies the criteria for capitalization, which begins when both of the following occur: (1) management has authorized and committed to funding the software project and (2) it is probable that the project will be completed and the software will be used to perform the function intended. The amendments in ASU 2025-06 are effective for annual periods beginning after December 15, 2027, and interim periods within those annual periods, which for the Company would be the fiscal first quarter ending February 28, 2029. Early adoption is permitted as of the beginning of an annual reporting period. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures. 11 INSEEGO CORP. Notes to Condensed Consolidated Financial Statements (Unaudited) Note 2. Discontinued Operations and Held for Sale As noted in Note 1 – Nature of Business and Significant Accounting Policies , on September 16, 2024 , the Company entered into the Purchase Agreement to sell its Telematics Business. On November 27, 2024, the Company completed the sale of its Telematics Business. The operating results of the discontinued operations only reflect revenues and expenses that are directly attributable to the Telematics Business. The following table summarizes Income from discontinued operations, net of tax included in the Condensed Consolidated Statements of Operations and Comprehensive Income for the three and nine months end ed September 30, 2025 and 2024 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Software services and other revenues $ — $ 7,862 $ — $ 22,895 Software services and other cost of revenues — 3,222 — 9,876 Gross profit from discontinued operations — 4,640 — 13,019 Operating costs and expenses: Research and development — 293 — 967 Sales and marketing — 1,289 — 3,625 General and administrative — 1,884 — 4,799 Depreciation and amortization — 360 — 1,060 Total operating costs and expenses — 3,826 — 10,451 Operating income from discontinued operations — 814 — 2,568 Other (expense) income: Interest income, net — 3 — 10 Other income (expense), net — 875 — 1,128 Income from discontinued operations before income taxes — 1,692 — 3,706 Income tax provision — 266 400 674 Income (loss) from discontinued operations, net of tax $ — $ 1,426 $ ( 400 ) $ 3,032 Income taxes related to discontinued operations in the nine months ended September 30, 2025 relate to the deregistration process for the Company’s remaining subsidiaries in South Africa, which do not have operations. As the sale of the Telematics Business was completed on November 27, 2024, there were no assets or liabilities held for sale as of either September 30, 2025 or December 31, 2024. 12 INSEEGO CORP. Notes to Condensed Consolidated Financial Statements (Unaudited) Note 3. Financial Statement Details Inventories Inventories consist of the following (in thousands): September 30, 2025 December 31, 2024 Finished goods $ 8,602 $ 13,531 Raw materials and components — 44 Total inventories $ 8,602 $ 13,575 Prepaid expenses and other Prepaid expenses and other consists of the following (in thousands): September 30, 2025 December 31, 2024 Rebate receivables $ 3,388 $ 3,495 Software licenses 1,215 1,034 Other 1,658 1,397 Total prepaid expenses and other $ 6,261 $ 5,926 Accrued expenses and other current liabilities Accrued expenses and other current liabilities consist of the following (in thousands): September 30, 2025 December 31, 2024 Deferred revenue $ 7,339 $ 9,245 Payroll and related expenses 6,325 7,997 Accrued contract manufacturing liabilities 4,870 4,772 Operating lease liabilities 941 1,346 Royalties 912 954 Accrued interest 1,830 926 Other 2,858 4,893 Total accrued expenses and other current liabilities $ 25,075 $ 30,133 Other long-term liabilities Other long-term liabilities consist of the following (in thousands): September 30, 2025 December 31, 2024 Long-term deferred revenue $ 4,516 $ 4,608 Other 147 147 Total other long-term liabilities $ 4,663 $ 4,755 As of September 30, 2025, of the $ 4.5 million long-term deferred revenue balance, $ 3.7 million relates to performance obligations expected to be satisfied between one and two years, and $ 0.8 million relates to performance obligations expected to be satisfied between two and three years from September 30, 2025. 13 INSEEGO CORP. Notes to Condensed Consolidated Financial Statements (Unaudited) Note 4. Fair Value Measurements The following table sets forth the fair value of the financial assets and liabilities measured on a recurring basis and indicates the fair value hierarchy utilized to determine such fair value (in thousands): September 30, 2025 Total Level 1 Level 2 Level 3 Assets: Cash equivalents: Money market funds 13,885 13,885 — — Total cash equivalents 13,885 13,885 — — No transfers between levels occurred during the three or nine months ended September 30, 2025 or September 30, 2024. The Company also had an interest make-whole payment derivative liability on its 2025 Convertible Notes (as defined in Note 5 – Debt ) that was measured at fair value on a recurring basis prior to the maturity and full repayment of the 2025 Convertible Notes on May 1, 2025. The fair value of that liability was zero as of December 31, 2024. The interest make-whole payment derivative liability was a Level 3 instrument and was valued using a Monte Carlo model. During the nine months ended September 30, 2025 and 2024, there were no conversions of the 2025 Convertible Notes into shares of the Company’s common stock. There were also no changes in the fair value of the interest make-whole liability during the nine months ended September 30, 2025 or September 30, 2024. Other Financial Instruments The carrying values of the Company’s other financial assets and liabilities approximate their fair values because of their short-term nature, with the exception of the 2029 Senior Secured Notes (as defined in Note 5 – Debt ) and 2025 Convertible Notes. The 2029 Senior Secured Notes and 2025 Convertible Notes are carried at amortized cost, with the 2025 Convertible notes being adjusted for changes in fair value of the embedded interest make-whole payment derivative. Note 5. Debt Working Capital Facility On August 5, 2025, the Company entered into a Credit and Security Agreement (the “Working Capital Facility Agreement”) with BMO Bank N.A. (“BMO”) that provides up to a maximum $ 15.0 million secured asset-backed revolving credit facility (the “Working Capital Facility”). The facility matures on August 5, 2028 and contains certain financial and non-financial covenants. The Company was in compliance with all covenants under the Working Capital Facility Agreement as of September 30, 2025. Obligations under the Working Capital Facility are secured by a continuing security interest in substantially all property of Inseego Corp. and certain of its subsidiaries, subject to customary exclusions. Availability under the Working Capital Facility is determined monthly as the excess of a borrowing base (“Borrowing Base”), comprised of a percentage of eligible accounts receivable and eligible inventory, over the total loans outstanding under the Working Capital Facility. If the aggregate outstanding amount of the Working Capital Facility exceeds the Borrowing Base at any time, the excess amount shall be payable on demand by BMO. Priority of the obligations of the Company with respect to the Working Capital Facility is senior to the priority of the obligations of the Company with respect to the 2029 Senior Secured Notes on the assets of the Company which constitute current assets and junior to the priority to the obligations of the company with respect to the 2029 Senior Secured Notes on the assets of which company which are not current assets, as set forth in the Working Capital Facility Agreement. The Working Capital Facility contains customary events of default, including a cross-default and cross-payment default for certain indebtedness in an aggregate principal amount in excess of $ 1.0 million and a cross-default for certain termination events under 14 INSEEGO CORP. Notes to Condensed Consolidated Financial Statements (Unaudited) Swap Contracts with a termination value (determined in accordance with the terms of the Working Capital Facility Agreement) in excess of $ 1.0 million, as set forth in the Working Capital Facility Agreement. Loans made under the Working Capital Facility bear interest at a Term Secured Overnight Financing Rate (“SOFR”), as defined in the Working Capital Facility Agreement, plus an applicable margin ranging from 1.00 - 2.50 %, subject to certain exceptions. Interest on loans made under the Working Capital Facility are paid in cash, in arrears, on a semi-annual basis. In conjunction with the Working Capital Facility Agreement, the Company incurred $ 0.2 million of debt issuance costs that were recorded to prepaid expenses and other current assets and are being amortized to interest expense over the term of the facility. As of September 30, 2025, outstanding borrowings and availability to borrow under the Working Capital Facility were $ 0.0 million and $ 14.5 million, respectively. 2029 Senior Secured Notes On November 6, 2024, the Company issued to multiple noteholders approximately $ 40.9 million in principal amount of new senior secured notes due in 2029 (the “2029 Senior Secured Notes”). The 2029 Senior Secured Notes bear interest at 9.0 % per annum, to be paid in cash, in arrears, on a semi-annual basis, and have a maturity date of May 1, 2029. The Company may, subject to certain provisions, issue additional principal amounts of the 2029 Senior Secured Notes with the same terms as the notes issued on November 6, 2024, with the exception of the first date on which interest expense begins to accrue. The 2029 Senior Secured Notes are secured by a first priority lien on substantially all of the Company’s assets. The Company may redeem all or part of the 2029 Senior Secured Notes at any time prior to May 1, 2029 at a redemption price equal to 100 % of the principal amount of the 2029 Senior Secured Notes to be redeemed, plus the present value of the sum of all required interest payments from such redemption date through May 1, 2029 at such redemption date, plus accrued and unpaid interest on such 2029 Senior Secured Notes to, but excluding, the redemption date. As of September 30, 2025, $ 40.9 million of principal of the 2029 Senior Secured Notes was outstanding, $ 31.8 million of which was held by related parties. The 2029 Senior Secured Notes, net consists of the following (in thousands): September 30, 2025 December 31, 2024 Principal gross amount $ 40,879 $ 40,879 Add: unamortized debt premium 1,341 1,621 Less: unamortized issuance costs ( 554 ) ( 670 ) Net carrying amount $ 41,666 $ 41,830 2025 Convertible Notes In 2020, the Company completed both a registered public offering and a privately negotiated exchange agreement that resulted in the issuance of 3.25 % convertible senior notes due in 2025 (the “2025 Convertible Notes”). The 2025 Convertible Notes matured on May 1, 2025. The 2025 Convertible Notes were senior unsecured obligations of the Company and bore interest at an annual rate of 3.25 %, which was payable semi-annually in arrears on May 1 and November 1 of each year. Repurchases and Exchanges of 2025 Convertible Notes Throughout the year ended December 31, 2024, the Company entered into a series of repurchase and exchange agreements with various holders of the Company’s 2025 Convertible Notes, some of whom were considered related parties of the Company. In summary, as a result of these repurchase and exchange agreements, the Company exchanged $ 146.9 million of outstanding principal of the 2025 Convertible Notes in exchange for $ 33.8 million of cash, $ 40.9 million of principal of the 2029 Senior Secured Notes, 2.9 million shares of the Company’s common stock, and warrants to purchase an aggregate of approximately 2.5 million shares of the Company’s common stock. As of December 31, 2024, $ 14.9 million of principal amount of the 2025 Convertible Notes was outstanding, none of which was held by related parties. The remaining 2025 Convertible Notes matured on May 1, 2025, at which time all outstanding principal of $ 14.9 million and related accrued interest was repaid. 15 INSEEGO CORP. Notes to Condensed Consolidated Financial Statements (Unaudited) The 2025 Convertible Notes as of December 31, 2024 consisted of the following (in thousands): December 31, 2024 Principal $ 14,949 Less: unamortized debt discount $ ( 25 ) Less: unamortized issuance costs $ ( 19 ) Net carrying amount $ 14,905 Prior Credit Facility In August 2022, the Company entered into a Loan and Security Agreement (as subsequently amended, the “Credit Agreement”), by and among Siena Lending Group LLC, as lender (“Lender”), Inseego Wireless, Inc., a Delaware corporation (“Inseego Wireless”), a subsidiary of the Company, and Inseego North America LLC, an Oregon limited liability company and indirect subsidiary of the Company, as borrowers (together with Inseego Wireless, the “Borrowers”), and the Company, as guarantor (together with the Borrowers, the “Prior Credit Facility Parties”). The Credit Agreement established a secured asset-backed revolving credit facility which was comprised of a maximum $ 50 million revolving credit facility (“Prior Credit Facility”), with a minimum borrowing amount for interest calculations of $ 4.5 million upon execution of the Credit Agreement. Availability under the Prior Credit Facility was determined monthly by a borrowing base comprised of a percentage of eligible accounts receivable and eligible inventory of the Borrowers. Outstanding amounts exceeding the borrowing base were to be repaid immediately. The Borrowers’ obligations under the Credit Agreement were guaranteed by the Company. The Prior Credit Facility Parties’ obligations under the Credit Agreement were secured by a continuing security interest in all property of each Prior Credit Facility Party, subject to certain Excluded Collateral (as defined in the Credit Agreement). On May 2, 2023, (1) two related parties, South Ocean Funding, LLC and North Sound Ventures, LP (collectively, the “Prior Credit Facility Participants”) collectively purchased a $ 4.0 million last-out subordinated participation interest in the Credit Agreement (the “Prior Credit Facility Participation Interest”) from the Lender, and (2) the Borrowers entered into an amendment to the Credit Agreement which increased the borrowing base under the Prior Credit Facility by $ 4.0 million, increased the minimum borrowing amount for interest calculations to $ 8.5 million, and modified certain covenants. In connection with the purchase of the Prior Credit Facility Participation Interest, we agreed to pay the Prior Credit Facility Participants an aggregate exit fee (the “Exit Fee”) ranging from 7.5 % to 12.5 % of the amount of the Prior Credit Facility Participation Interest, payable upon the earlier to occur of (a) the maturity date of the Prior Credit Facility, (b) termination of the Lender’s commitment to make revolving loans prior to the scheduled maturity date of the Prior Credit Facility, and (c) the early redemption of the Prior Credit Facility Participation Interest, as applicable. Further, the purchase of the Prior Credit Facility Participation Interest granted an option for the Prior Credit Facility Participants to purchase the subject revolving loan or to redeem its Prior Credit Facility Participation Interest under certain circumstances. The Prior Credit Facility Participants are each affiliates of beneficial holders of greater than five percent of our outstanding common stock. Effective April 18, 2024, the Company exercised its right to voluntarily pay-off and terminate the Prior Credit Facility. Interest Expense, Summary The following table sets forth total interest expense, annualized effective interest rate, and interest expense related to related parties, if applicable, for each of the debt instruments detailed above (in thousands, except for percentages): 16 INSEEGO CORP. Notes to Condensed Consolidated Financial Statements (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 2029 Senior Secured Notes Contractual interest expense $ 920 $ — $ 2,760 $ — Amortization of debt issuance costs 37 — 114 — Amortization of debt discount/(premium) ( 93 ) — ( 280 ) — Total interest expense $ 864 $ — $ 2,594 $ — Related party interest expense $ 672 $ — $ 2,017 $ — Working Capital Facility Contractual interest expense 6 — 6 — Amortization of debt issuance costs 5 — 5 — Total interest expense $ 11 $ — $ 11 $ — 2025 Convertible Notes Contractual interest expense $ — $ 879 $ 163 $ 3,499 Amortization of debt issuance costs — 110 20 438 Amortization of debt discount/(premium) — 138 25 550 Total interest expense $ — $ 1,127 $ 208 $ 4,487 Related party interest expense $ — $ 837 $ — $ 2,512 Short-Term Loan Contractual interest expense $ — $ 1,271 $ — $ 1,271 Amortization of debt discount/premium — 3,329 — 3,329 Total interest expense $ — $ 4,600 $ — $ 4,600 Related party interest expense $ — $ 4,600 $ — $ 4,600 Prior Credit Facility Contractual interest expense $ — $ — $ — $ 312 Accretion of exit fee — — — 75 Amortization of debt issuance costs — — — 117 Total interest expense $ — $ — $ — $ 504 Other interest expense $ 10 $ 4 $ 31 $ 95 Consolidated interest expense $ 885 $ 5,731 $ 2,844 $ 9,686 The annualized effective interest rates, including the impact of non-cash interest expense, for the 2029 Senior Secured Notes and 2025 Convertible Notes for the nine months ended September 30, 2025 was 8.5 % and 4.2 %, respectively. The annualized effective interest rates, including the impact of non-cash interest expense, for the 2025 Convertible Notes, Short-Term Loan, and Prior Credit Facility for the nine months ended September 30, 2024 was 4.2 %, 112.5 % and 36.1 %, respectively. 17 INSEEGO CORP. Notes to Condensed Consolidated Financial Statements (Unaudited) Note 6. Share-based Compensation During the nine months ended September 30, 2025 and 2024 , the Company granted awards under the 2018 Omnibus Incentive Compensation Plan, previously named the Amended and Restated 2009 Omnibus Incentive Compensation Plan (the “2018 Plan”), and the 2015 Incentive Compensation Plan (the “2015 Plan”). The Compensation Committee of the Board of Directors administers the plans. Under the 2018 Plan, shares of common stock may be issued upon the exercise of stock options, in the form of restricted stock, or in settlement of restricted stock units (“RSUs”) or other awards, including awards with alternative vesting schedules such as performance-based criteria. The 2018 Plan authorizes 5,775,308 shares, of which 2,069,777 remain available for future grants as of September 30, 2025 . The following table presents total share-based compensation expense within each functional line item on the condensed consolidated statements of operations for the three and nine months end ed September 30, 2025 and 2024 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Cost of revenues $ 93 $ 23 $ 200 $ 75 Research and development 258 196 792 437 Sales and marketing 200 103 489 314 General and administrative 1,299 871 3,624 1,888 Income from discontinued operations, net of tax — 36 — 101 Total $ 1,850 $ 1,229 $ 5,105 $ 2,815 Stock Options The Compensation Committee of the Board of Directors determines eligibility, vesting schedules and exercise prices for stock options granted. The Company generally uses the Black-Scholes option pricing model to estimate the fair value of its stock options, which generally only include time-based vesting requirements. Stock options generally have a term of ten years and vest over a three to four-year period. The following table summarizes the Company’s stock option activity for the nine months ended September 30, 2025: Outstanding — December 31, 2024 269,851 Granted 1,300,100 Exercised ( 9,836 ) Canceled ( 74,426 ) Outstanding — September 30, 2025 1,485,689 Exercisable — September 30, 2025 144,061 During the nine months ended September 30, 2025, the Company granted stock options to the CEO in connection with his hiring on January 6, 2025. These stock options contain a requirement that in order to be exercisable, the Company’s closing stock price must exceed the exercise price of the awards for 20 of the 30 trading-days immediately prior to the requested exercise date. The Company granted a total of 850,000 of these options to the CEO at a weighted average exercise price of $ 18.46 . The total grant-date fair value of the options was $ 6.7 million and will be expensed over the four-year vesting term of the awards. These options granted to the Company’s CEO were valued using a Monte Carlo simulation model. The following table details the key assumptions utilized in the Monte Carlo simulation model used to calculate the grant-date fair value of the awards: 18 INSEEGO CORP. Notes to Condensed Consolidated Financial Statements (Unaudited) January 6, 2025 Valuation date stock price $ 11.23 Simulation term (years) 10 Risk-free interest rate 4.57 % Volatility 84.00 % Expected dividend yield — % At September 30, 2025, total unrecognized compensation expense related to stock options was $ 6.7 million, which is expected to be recognized over a weighted-average period of 3.37 years. Restricted Stock Units Pursuant to the 2018 Plan and the 2015 Plan, the Company may issue RSUs that, upon satisfaction of vesting conditions, allow recipients to receive common stock. Issuances of such awards reduce common stock available under the 2018 Plan and 2015 Plan for stock incentive awards. The Company measures compensation cost associated with grants of RSUs at fair value, which is generally the closing price of the Company’s stock on the date of grant. RSUs generally vest over a three - to four-year period. The following table summarizes the Company’s RSU activity for the nine months ended September 30, 2025: Non-vested — December 31, 2024 1,111,841 Granted 700,062 Vested ( 327,317 ) Forfeited ( 115,542 ) Non-vested — September 30, 2025 1,369,044 During the nine months ended September 30, 2025, the Company granted RSUs to the CEO in connection with his hiring on January 6, 2025. The Company granted the CEO 124,347 RSUs that contain a time-based vesting requirement (“Time-based CEO RSUs”) with a total grant-date fair value of $ 1.4 million that vest over four years . The Company also granted the CEO RSUs that contain a market-based vesting condition in addition to a time-based vesting requirement (“Market-based CEO RSUs”). The Company granted 167,910 of these Market-based CEO RSUs with a total grant-date fair value of $ 3.2 million that will be expensed over the three-year vesting term of the awards. The actual number of shares to be issued upon completion of the time-based vesting requirement of the Market-based CEO RSUs is dependent upon the Company’s share price performance relative to the total shareholder return of Russell Microcap Index (“rTSR”) over the vesting period, ranging from 0 % to 200 % of the number of market-based RSUs granted. The following table details the key assumptions utilized in the Monte Carlo simulation model used to calculate the grant-date fair value of the Market-based CEO RSUs: January 6, 2025 Valuation date stock price $ 11.23 Simulation term (years) 3 Risk-free interest rate 4.25 % Volatility 105.63 % Expected dividend yield — % Correlation coefficient 0.3741 At September 30, 2025, total unrecognized compensation expense related to RSUs, including the RS Us with a market based condition discussed above, was $ 10.9 million, which is expected to be recognized over a weighted-average period of 2.92 years. Note 7. Earnings (Loss) per Share Basic earnings (loss) per share (“EPS”) excludes dilution and is computed by dividing net loss attributable to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential 19 INSEEGO CORP. Notes to Condensed Consolidated Financial Statements (Unaudited) dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock using the treasury stock method. Potentially dilutive securities (consisting primarily of the 2025 Convertible Notes calculated using the if-converted method and warrants, stock options and RSUs calculated using the treasury stock method) are excluded from the diluted EPS computation in loss periods and when their effect would be anti-dilutive. The calculation of basic and diluted EPS was as follows (in thousands, except per share data): Income/(Loss) (Numerator) Shares* (Denominator) Per-Share Amount** For the three months ended September 30, 2025 Basic EPS Income (loss) from continuing operations $ 1,432 Less: preferred stock dividends ( 903 ) Income (loss) from continuing operations attributable to common stockholders 529 15,142 $ 0.03 Income from discontinued operations, net of tax — 15,142 $ — Income (loss) attributable to common stockholders $ 529 15,142 $ 0.03 Diluted EPS Income (loss) from continuing operations attributable to common stockholders $ 529 15,142 Effect of dilutive stock options and unvested restricted stock 380 Diluted EPS from continuing operations $ 529 15,522 $ 0.03 Income from discontinued operations, net of tax $ — 15,142 Effect of dilutive stock options and unvested restricted stock 380 Diluted EPS from discontinued operations $ — 15,522 $ — Income (loss) attributable to common stockholders $ 529 15,142 Effect of dilutive stock options and unvested restricted stock — 380 Diluted EPS from net income $ 529 15,522 $ 0.03 For the three months ended September 30, 2024 Basic EPS Income (loss) from continuing operations $ 7,543 Less: preferred stock dividends ( 827 ) Income (loss) from continuing operations attributable to common stockholders 6,716 12,337 $ 0.54 Income from discontinued operations, net of tax 1,426 12,337 $ 0.12 Income (loss) attributable to common stockholders $ 8,142 12,337 $ 0.66 Diluted EPS Income (loss) from continuing operations attributable to common stockholders $ 6,716 12,337 Effect of dilutive 2025 Convertible Notes ( 8,879 ) 882 Diluted EPS from continuing operations $ ( 2,163 ) 13,218 $ ( 0.16 ) Income from discontinued operations, net of tax $ 1,426 12,337 Effect of dilutive 2025 Convertible Notes 882 Diluted EPS from discontinued operations $ 1,426 13,218 $ 0.11 Income (loss) attributable to common stockholders $ 8,142 12,337 Effect of dilutive 2025 Convertible Notes ( 8,879 ) 882 Diluted EPS from net income $ ( 737 ) 13,218 $ ( 0.06 ) For the nine months ended September 30, 2025 Basic and Diluted EPS Income (Loss) from continuing operations $ 769 Less: preferred stock dividends ( 2,650 ) 20 INSEEGO CORP. Notes to Condensed Consolidated Financial Statements (Unaudited) Income (loss) from continuing operations attributable to common stockholders ( 1,881 ) 15,056 $ ( 0.12 ) Income from discontinued operations, net of tax ( 400 ) 15,056 $ ( 0.03 ) Income (loss) attributable to common stockholders $ ( 2,281 ) 15,056 $ ( 0.15 ) For the nine months ended September 30, 2024 Basic and Diluted EPS Income (Loss) from continuing operations $ 2,106 Less: preferred stock dividends ( 2,425 ) Income (loss) from continuing operations attributable to common stockholders ( 319 ) 12,037 $ ( 0.03 ) Income from discontinued operations, net of tax 3,032 12,037 $ 0.25 Income (loss) attributable to common stockholders $ 2,713 12,037 $ 0.23 (*) Adjusted retroactively for reverse stock split that occurred on January 24, 2024, see Note 1. (**) Rounding may affect summation. The following is a summary of outstanding anti-dilutive potential shares of common stock that have been excluded from diluted net loss per share attributable to common stockholders because their inclusion would have been anti-dilutive as of September 30, 2025 and 2024 (in thousands): As of September 30, 2025 2024 2025 Convertible Notes* — 847 Common stock warrants 3,018 875 Stock options* 1,486 318 Restricted stock units* 1,369 1,139 Employee stock purchase plan 35 — Total 5,908 3,179 (*) The impact of the non-qualified stock options and restricted stock units were included in the computation of diluted EPS for the three months ended September 30, 2025 as it was dilutive for the period. The impact of the 2025 Convertible Notes was included in the computation of diluted EPS for the three months ended September 30, 2024 as it was dilutive for the period. 21 INSEEGO CORP. Notes to Condensed Consolidated Financial Statements (Unaudited) Note 8. Stockholders' Equity (Deficit) Warrants In connection with various debt restructuring agreements entered into during the year ended December 31, 2024, the Company issued warrants to purchase an aggregate of 3.0 million shares of the Company’s common stock, including the warrants noted in Note 5 – Debt . The warrants expire four years from their date of issuance and are exercisable on a cash basis at any time before their expiration dates. The warrants are subject to adjustment for stock splits, reverse stock splits, stock dividends and similar transactions and contain customary registration rights with respect to the shares of common stock issuable upon exercise of the warrants. The warrants issued during the year ended December 31, 2024 are the only outstanding warrants as of both September 30, 2025 and December 31, 2024. As of September 30, 2025, none of the warrants had been exercised. The number and exercise price of the warrants issued and outstanding as of September 30, 2025 are as follows: Issuance Date Number of Shares to Purchase with Warrants Exercise price June 28, 2024 550,000 $ 12.12 July 18, 2024 236,074 $ 13.37 August 2, 2024 88,534 $ 11.03 October 24, 2024 20,646 $ 12.34 November 6, 2024 180,000 $ 11.27 November 6, 2024 1,543,363 $ 12.12 November 6, 2024 29,687 $ 12.34 November 6, 2024 370,000 $ 15.77 Total 3,018,304 Preferred Stock The Company has a total of 2,000,000 shares of preferred stock authorized for issuance at a par value of $ 0.001 per share, 150,000 of which have been designated Series D Preferred Stock and 39,500 of which have been designated Series E Preferred Stock. As of September 30, 2025 and December 31, 2024, the Company had 25,000 shares of Series E preferred stock issued and outstanding. Dividends declared, but not paid, related to the Series E Preferred Stock resulted in $ 16.0 million and $ 13.4 million of dividends accrued, approximating $ 641.72 and $ 535.71 per preferred share, as of September 30, 2025 and December 31, 2024, respectively. The aggregate liquidation preference of the issued and outstanding shares of Series E Preferred Stock as of September 30, 2025 was $ 41.0 million. Note 9. Segment, Geographic, and Concentrations of Risk Information Segment Information As previously detailed in Note 1 – Nature of Business and Significant Accounting Policies , the Company operates as one reportable segment. As of September 30, 2025, the Company’s CODM was its CEO. The Company’s CODM does not manage any part of the Company separately, and the allocation of resources and assessment of performance is based solely on the Company’s consolidated operations and financial results. The accounting policies of our single reportable segment are the same as those described in Note 1 – Nature of Business and Significant Accounting Policies . The CODM uses net income (loss) in evaluating the performance of our single reportable segment and determining how to allocate resources of the Company as a whole, including investing in our products, services and customers. As the Company only has one reportable segment, the measure of segment assets is reported on the balance sheet as total consolidated assets. The following table details the revenues, significant expenses and other segment items regularly provided to the CODM: 22 INSEEGO CORP. Notes to Condensed Consolidated Financial Statements (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenues $ 45,893 $ 54,032 $ 117,789 $ 143,157 Less: Adjusted cost of revenues (1) 26,716 35,209 67,007 92,229 Adjusted research and development (2) 4,620 4,980 13,441 14,595 Adjusted sales and marketing (2) 3,998 4,022 11,594 11,862 Adjusted general and administrative (3) 4,833 3,144 11,701 9,548 Adjusted depreciation and amortization (4) 2,164 2,824 5,673 9,108 Capitalizable software development expenditures 2,445 1,359 6,806 2,922 Capitalized software development expenditures ( 2,445 ) ( 1,359 ) ( 6,806 ) ( 2,922 ) Share-based compensation 1,850 1,193 5,105 2,714 Amortization of purchased intangible assets related to business combinations — 330 316 990 Impairment of capitalized software — 507 384 927 Right-of-use asset impairment — 138 — 138 Gain on early lease termination ( 443 ) — ( 443 ) — Debt restructuring costs — 669 — 1,121 Gain on debt restructurings, net — ( 12,366 ) — ( 13,690 ) Loss on extinguishment of revolving credit facility — — — 788 Interest expense 885 5,731 2,844 9,686 Other (income) expense, net ( 126 ) 72 ( 611 ) 864 Income tax provision (benefit) ( 36 ) 36 9 171 Segment net income (loss) $ 1,432 $ 7,543 $ 769 $ 2,106 Reconciliation of profit or loss Income from discontinued operations, net of tax — 1,426 ( 400 ) 3,032 Consolidated net income (loss) $ 1,432 $ 8,969 $ 369 $ 5,138 (1) Excludes any share-based compensation expense. (2) Excludes any depreciation and amortization or share-based compensation expense. (3) Excludes any depreciation and amortization, share-based compensation expense, right-of-use asset impairments, gain on early lease terminations, or debt restructuring costs. (4) Excludes amortization of purchased intangible assets. Geographic Information The following table details the Company’s revenues by geographic region based on shipping destination (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 United States and Canada $ 45,832 $ 51,072 $ 117,582 $ 137,356 Europe (including United Kingdom) $ — $ 2,866 19 4,243 Australia $ 61 $ 90 188 1,541 Other $ — $ 4 — 17 Total $ 45,893 $ 54,032 $ 117,789 $ 143,157 Substantially all of the Company’s long-term assets are located within the United States. Concentrations of Credit Risk 23 INSEEGO CORP. Notes to Condensed Consolidated Financial Statements (Unaudited) Customer Concentrations For the three months ended September 30, 2025, two customers accounted for 71.6 % and 23.6 % of revenues, respectively. For the three months ended September 30, 2024, two customers accounted for 38.6 % and 36.7 % of revenues, respectively. For the nine months ended September 30, 2025, two customers accounted for 63.9 % and 26.9 % of revenues, respectively. For the nine months ended September 30, 2024, two customers accounted for 43.3 % and 31.9 % of revenues, respectively. As of September 30, 2025, two customers accounted for 82.2 % and 12.9 % of accounts receivable, net, respectively. As of December 31, 2024, three customers accounted for 33.6 %, 22.8 %, and 18.8 % of accounts receivable, net, respectively. Concentrations in the Available Sources of Supply of Materials and Product Our services use hardware and software from various third parties, some of which are procured from sole-source suppliers. For example, our MiFi mobile hotspots and fixed wireless access devices rely substantially on chipsets from Qualcomm. From time to time, certain components used in our products or solutions have been in short supply or their anticipated commercial introduction has been delayed or their availability has been interrupted for reasons outside our control. In addition, many of our suppliers are located outside of the United States and therefore can be impacted by additional government regulations, such as import tariffs. Note 10. Commitments and Contingencies Noncancellable Purchase Obligations The Company typically enters into commitments with its contract manufacturers that require future purchases of goods or services in the three to four quarters following the balance sheet date. Such commitments are noncancellable (“noncancellable purchase obligations”). As of September 30, 2025, future payments under these noncancellable purchase obligations were approximately $ 110.2 million. Legal The Company is, from time to time, party to various legal proceedings arising in the ordinary course of business. The Company is regularly required to directly or indirectly participate in other U.S. patent infringement actions pursuant to its contractual indemnification obligations to certain customers. Based on an evaluation of these matters the Company currently believes that liabilities arising from, or sums paid in settlement of these existing matters, if any, would not have a material adverse effect on its consolidated results of operations or financial condition. Indemnification In the normal course of business, the Company periodically enters into agreements that require the Company to indemnify and defend its customers for, among other things, claims alleging that the Company’s products infringe upon third-party patents or other intellectual property rights. The Company’s maximum exposure under these indemnification provisions cannot be estimated but the Company does not believe that there are any matters individually or collectively that would have a material adverse effect on its consolidated results of operations or financial condition. Note 11. Income Taxes Income taxes for both periods consisted primarily of foreign income taxes at certain of the Company’s international entities and state taxes for its U.S.-based entities. The Company’s income tax expense differs from the expected expense based on statutory rates primarily due to full valuation allowances at all of its U.S.-based entities and to state tax expense adjustments related to final returns filed for the 2024 tax year. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law which, among other things, provided a permanent extension of certain tax measures initially established under the 2017 Tax Cuts and Jobs Act, which were set to expire at the end of 2025, and modified tax legislation affecting bonus depreciation rules and the tax treatment of research and development expenses and interest deductions. Specifically, the OBBBA provides for 100% bonus depreciation and eliminates the requirement under Internal Revenue Code Section 174 to capitalize and amortize U.S. based research and experimental expenditures over five years, making these expenditures fully deductible in the period incurred beginning after 2024. The Company currently does not expect the OBBBA to have a material impact to our effective tax. 24