Airgain, Inc. (AIRG) Q2 2026 Earnings: Revenue $14M (+0.6%)
AIRG — Q2 2026 Financial Report Analysis
Q2 · Fiscal year 2026 · Published by Pham Hop
Airgain's Q2 2026 sales rebounded 19% from Q1 to $13.7M but were flat year over year; adjusted EBITDA turned positive at $0.4M while GAAP net loss was $1.7M and first-half operating cash burn reached $2.6M.
Revenue
$14M
+0.6% YoY
Net income
-$1.7M
Diluted EPS
$-0.13
Operating margin
-12.3%
This period vs a year ago
Same period last year
This period
Revenue▲+0.6%
≈$14M
$14M
Year-ago figures (≈) are worked out from the growth rate the company reported. Each row has its own scale.
Airgain's second quarter of 2026 (three months to June 30) was a rebound from a weak first quarter rather than real growth over last year: sales rose 19% from Q1 to $13.7 million but were essentially flat against Q2 2025 ($13.6 million). The more meaningful change is underneath. Higher shipments of enterprise IoT modems (the cellular radios built into connected industrial and commercial devices) and vehicle gateways pushed the company to a small positive adjusted EBITDA (versus losses on that measure in Q1 2026 and Q2 2025), even as it still lost $1.7 million under standard accounting (GAAP).
Airgain designs antennas, embedded modems and complete wireless connectivity products, and sells into three markets it reports separately: enterprise, consumer (mostly Wi-Fi and broadband antennas for home equipment) and automotive (fleet and vehicle gateways under its AirgainConnect brand).
At a glance
$13.7M sales, +0.6% year over year, +19% vs Q1: the quarter recovered from a seasonally weak Q1 (the company says Q1 is usually lower because of Lunar New Year factory closures), but the business did not grow meaningfully against last year.
Adjusted EBITDA of +$0.4M vs –$0.4M a year ago: on management's preferred measure the business roughly broke even, beating its own $0.2M forecast. On a GAAP basis it still lost $1.7M.
Operating cash outflow of $2.6M in the first half: cash went the wrong way, partly because customers owed the company $1.7M more than at year-end. Cash held steady at $7.6M only because the company sold new shares and employees exercised options.
Results
Metric
Q2 2026
Q2 2025
YoY Change
Sales
$13.7M
$13.6M
+0.6%
Gross margin (GAAP)
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42.3%
42.9%
–0.6 pts
Operating expenses (GAAP)
$7.5M
$7.8M
–4.7%
Operating margin (GAAP)
–12.3%
–14.7%
+2.4 pts
Net income (loss)
–$1.7M
–$1.5M
Loss widened by $0.23M
Diluted EPS
–$0.13
–$0.12
Loss widened by $0.01
Adjusted EBITDA (non-GAAP)
+$0.4M
–$0.4M
Swung to positive
Non-GAAP EPS
$0.02
–$0.04
Swung to positive
Gross margin is the share of sales left after paying to manufacture the products (Airgain outsources production to contract manufacturers). Operating margin is what's left after also paying for research, sales and administration, before interest and tax; Airgain's is still negative, meaning the business spends more to run than it earns in gross profit.
Sales by market
Market
Q2 2026
Q2 2025
YoY Change
Q1 2026
Enterprise
$6.73M
$7.15M
–5.9%
$4.95M
Consumer
$5.80M
$5.65M
+2.7%
$5.61M
Automotive
$1.17M
$0.82M
+42.3%
$0.95M
Total
$13.70M
$13.62M
+0.6%
$11.51M
Enterprise drove the sequential rebound (+$1.7M vs Q1, from higher IoT modem shipments) but is still down 5.9% on last year. The 10-Q attributes the year-over-year drop to "lower enterprise antenna sales, partially offset by higher IoT modem sales" — the product mix is shifting from standalone antennas toward modems.
Consumer rose 2.7% on higher Wi-Fi 7 antenna shipments (antennas for the latest generation of home routers and cable-company gateways). For the first half it is still down $0.6M on lower shipments of antennas to mobile network operators and broadband providers.
Automotive is the smallest market but grew fastest, +$0.4M on higher vehicle gateway shipments.
What the headline numbers hide
The wider net loss is a comparison effect; the operating business actually improved. Q2 2025 included a $0.5M one-time employee retention credit refund (a pandemic-era payroll tax credit), and interest income has fallen from $100K to $14K as the cash pile earns less. Strip those out and the operating loss narrowed from $2.0M to $1.7M. Still, much of that improvement is accounting rather than spending discipline: amortization of acquired intangibles (the gradual write-off of the value of past acquisitions, a non-cash charge) in operating expenses fell from $653K to $144K as older acquisition assets finished amortizing. That $509K drop is larger than the $365K fall in total operating expenses — excluding it, spending rose, and the 10-Q cites "higher personnel expenses." Research and development rose 13% to $2.9M.
GAAP vs adjusted: a roughly $2.0M gap. The move from a $1.7M GAAP loss to $0.3M of non-GAAP net income comes from excluding $0.9M of stock-based compensation (paying staff in shares, a real cost to existing shareholders through dilution), $0.6M of severance from a workforce reduction, $0.25M of acquisition and integration costs, and $0.2M of amortization. Severance and integration costs are plausibly one-offs; stock compensation recurs every quarter, and it rose from $0.6M a year ago to $0.9M.
A first-quarter gain from a free acquisition. On February 20, 2026 Airgain took over Nextivity's high-power user equipment (HPUE) product line — radios that boost signal for public-safety and field users — for no cash, shares or other payment. Because the assets were valued above the zero price, Airgain booked a $0.34M "bargain purchase" gain in Q1. It isn't in Q2's numbers, but it flatters first-half results, and the 10-Q says the acquired business has not yet contributed material revenue.
Cash conversion is poor. First-half operating cash outflow was $2.55M, against a net loss of $3.6M; a year earlier the outflow was only $0.9M. The working-capital drag is visible on the balance sheet: trade receivables (money customers owe) grew 13% since December to $14.5M — more than the whole quarter's sales — while first-half sales fell 1.7%, and inventory rose 17% to $4.2M. A $2.2M rise in accrued liabilities (bills recorded but not yet paid) cushioned the outflow; that tends to reverse.
Funded partly by new shares. Cash rose slightly to $7.6M only because of $1.6M of net at-the-market stock sales (313,139 shares sold into the market) and $1.3M from option exercises and the employee stock plan. Weighted shares were up 8.4% year over year (12.8M vs 11.8M), which is why per-share loss widened faster than the dollar loss. $2.9M remains available under the at-the-market program. Management says existing cash is enough for at least the next 12 months.
Customer concentration rose. Three customers made up 43% of Q2 sales (19%, 14% and 10%), versus a single customer above 10% (at 19%) a year earlier. The 10-Q doesn't name them.
Guidance track record this quarter: mixed. Against the Q2 outlook issued in May, sales ($13.7M vs $13.5M midpoint) and adjusted EBITDA ($0.38M vs $0.2M) came in ahead, but GAAP operating expenses ($7.5M vs about $6.6M guided) and GAAP EPS (–$0.13 vs –$0.07) missed, mostly because of the unplanned severance charge.
Takeaway: Airgain reached adjusted breakeven in Q2 on a sales level it already hit a year ago, so the improvement came from lower amortization and a cheaper cost base rather than growth. The next test is whether the enterprise modem and vehicle gateway ramp lifts sales into the $15M range management is guiding to — without it, the company keeps funding operating cash burn by issuing shares.
Outlook
For Q3 2026 management guided to:
Sales of $14.25M–$16.25M ($15.25M midpoint, about 11% above Q2)
GAAP gross margin of 40.8%–43.8%; GAAP operating expenses of about $6.8M
GAAP net loss of about $0.03 per share at the midpoint; non-GAAP EPS of $0.04
Adjusted EBITDA of about $0.7M at the midpoint
Management attributes the expected growth to enterprise IoT modems and vehicle gateways, and points to robotics and drone shipments starting in the second half and a data-center energy-monitoring design win with revenue from 2027. Its Lighthouse 5G repeater platform (a box that extends mobile coverage without wired connections) has two U.S. enterprise trials lined up but no meaningful revenue yet.
The main stated risk is supply: the 10-Q says "we anticipate memory-driven supply shortages to constrain our consumer market," and the risk factors note that suppliers may redirect semiconductors toward higher-margin AI applications. With consumer at 42% of sales, a shortage there could offset enterprise gains.
Our read: the guidance implies GAAP operating expenses falling about $0.7M from Q2 as severance and integration costs drop out, which makes a near-breakeven GAAP quarter plausible if sales land near the midpoint. What to watch in the Q3 report: whether enterprise revenue gets back above its Q2 2025 level of $7.2M, whether receivables start turning into cash, and whether the company keeps selling shares under its at-the-market program. A quarter with positive operating cash flow would say more about the business than another adjusted-EBITDA beat.