Airgain, Inc.

Q2 sales were $13.7 million, up 19% sequentially and 0.7% year over year. Non-GAAP gross margin was 43.6%, versus 44.2% in the prior quarter and roughly flat year over year. Non-GAAP operating expenses were $5.7 million, down $400 thousand sequentially and down $800 thousand, or 12%, year over year. Adjusted EBITDA was $400 thousand, up $1.3 million sequentially, and non-GAAP EPS was $0.02, up $0.10 from the prior quarter. Cash was $7.6 million at 6/30/2026, up $500 thousand sequentially, including $1 million of net cash proceeds from the ATM. For Q3 2026, management guided sales to $14.25 million-$16.25 million, gross margin to 41.5%-44.5%, operating expenses to about $6 million, non-GAAP EPS to $0.04 at the midpoint, and adjusted EBITDA to $700 thousand at the midpoint.

Jacob Suen said Q2 was another meaningful step forward, emphasizing that the company entered the second half with a stronger foundation, a deeper customer pipeline, and more programs moving from evaluation to trial and deployment. He highlighted AirgainConnect as an execution story, with design wins, phased deployments, and carrier-enabled selling through FirstNet and AT&T, while saying Lighthouse is progressing but is mainly a 2027 revenue opportunity. His tone was constructive and increasingly confident, but he repeatedly framed the next phase as one of conversion and consistent execution rather than near-term step-change revenue.

Michael Elbaz focused on the financial leverage in the quarter: sales rose to $13.7 million, gross margin was 43.6%, operating expenses fell to $5.7 million, and adjusted EBITDA improved to $400 thousand. He said the company took $600 thousand of severance charges in GAAP operating expenses tied to headcount reduction, aligning resources with priority programs, and noted cash ended at $7.6 million with $1 million of ATM proceeds. On the outlook, he pointed to Q3 sales growth driven by enterprise and automotive, gross margin of 41.5%-44.5%, operating expenses of about $6 million, and positive non-GAAP EPS and adjusted EBITDA at the midpoint.

Analysts focused heavily on AirgainConnect conversion timing and deal size. Management said the 60 tracked opportunities are roughly 70% Tier 2 and 30% Tier 1, that Tier 2 cycles run about 9-15 months and Tier 1 about 12-18 months, and that Q2’s 5 design wins are already showing deployment activity; Jacob said the goal is to convert at least a third of the pipeline every quarter, though timing is not precise. Questions also covered the IoT/modem opportunity set, where management said robotics, drones, and data center monitoring could become 2027 reference points, and that the overall AirgainConnect opportunity set is in the tens of thousands of vehicles.