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SAN DIEGO - Inseego Corp. (NASDAQ: INSG), a company specializing in 5G mobile broadband and fixed wireless access solutions with a current market capitalization of $122 million, is slated for preliminary inclusion in the Russell 2000 Index, a notable benchmark for U.S. small-cap equities. According to InvestingPro data, the stock has experienced significant volatility, declining 32% over the past six months. The announcement followed the May 23, 2025, preliminary list released by FTSE Russell, with final index membership to be confirmed after the market closes on June 28, 2025.
The Russell 2000 Index, which is part of the larger Russell 3000 Index, is closely monitored by investors and includes the smallest 2,000 U.S. companies. Inseego’s addition to the index is anticipated to boost its visibility among institutional investors and index funds that focus on small-cap stocks. InvestingPro analysis suggests the stock is currently undervalued, with analysts setting a consensus high target of $16.50.
Juho Sarvikas, CEO of Inseego, expressed that this inclusion marks a significant achievement for the company, highlighting the team’s efforts over the past year. Steven Gatoff, Inseego’s CFO, also noted the company’s strategic moves to revamp its capital structure, fortify its balance sheet, and enhance shareholder value. The company maintains a current ratio of 1.12 and has achieved a strong Piotroski Score of 8, indicating solid financial health. Discover more detailed financial insights with a comprehensive Pro Research Report, available exclusively on InvestingPro.
The company is currently expanding its fixed wireless access (FWA) and mobile broadband business, alongside growing its software platforms to provide cloud-managed connectivity solutions for various sectors, including enterprise, SMB, industrial, and IoT. While analysts anticipate an 8% revenue decline this year, they project the company will return to profitability, with forecasted earnings per share of $0.36 for 2025. With a comprehensive U.S.-developed IP portfolio and established relationships with Tier-1 carriers, Inseego aims to leverage the increasing demand for secure, high-performance wireless broadband.
FTSE Russell will be moving to a semi-annual reconstitution schedule for its indexes starting in 2026, with updates occurring in June and November each year.
Inseego Corp. prides itself as a leader in 5G Enterprise cloud WAN solutions, serving a wide customer base that includes individuals, enterprises, and SMBs. Their 5G Edge Cloud platform combines top 5G technology with advanced cloud networking features and edge applications to facilitate new business experiences, secure enterprise data, and improve operational outcomes through a 5G network.
This news is based on a press release statement from Inseego Corp.
In other recent news, Inseego Corp reported its financial results for the first quarter of 2025, showing significant growth in its services and mobile revenue streams. The company’s services revenue grew nearly 50% year-over-year, and it achieved a record gross margin of 47.5%. Adjusted EBITDA more than doubled compared to the previous year, reaching $3.7 million. Despite these positive developments, TD Cowen maintained a Hold rating on Inseego but reduced the price target from $13.00 to $10.00, citing growth concerns, particularly in the Fixed Wireless Access (FWA) segment.
Lance Vitanza of TD Cowen pointed to concentrated carrier exposure in the Mobile business as a factor leading to a reduction in future estimates. Inseego’s revenue was within guidance for Q1 2025, and the company provided a revenue guidance range of $37-$40 million for the second quarter, along with an adjusted EBITDA guidance of $2.5-$3.5 million. The company aims for positive free cash flow for the year. CEO Yuho Sarvikas emphasized the company’s strategic shift towards becoming a solutions company, highlighting partnerships and engineering capabilities as key drivers of performance.
Inseego’s recent financial report indicated a balance between positive developments and challenges, with the company’s ability to surpass adjusted EBITDA expectations tempered by softness in the FWA segment. The adjustment in Inseego’s valuation by TD Cowen reflects revised expectations for the company’s financial performance in the coming years. Investors are likely to monitor these developments closely as Inseego positions itself for growth amid competitive and economic challenges.
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