Airgain (NASDAQ:AIRG) reported second-quarter revenue of $13.7 million, up 19% sequentially and 0.7% from a year earlier, as growth in enterprise, automotive and consumer markets helped the wireless connectivity provider post positive adjusted EBITDA.
President and CEO Jacob Suen said the company entered the second half of 2026 with deeper customer engagement, a more mature pipeline and a growing number of programs moving from evaluations into trials and deployments. Airgain’s priorities include expanding its core businesses, converting its AirgainConnect pipeline into revenue, advancing its Lighthouse platform toward commercialization and improving operating leverage.
AirgainConnect Pipeline Moves Toward Deployment
The AirgainConnect portfolio now includes solutions for vehicle, fixed, portable and rapid-response uses, serving first responders, utilities, transportation, energy and other field operations. Suen said Airgain’s carrier relationships help identify customer opportunities, while the company supports demonstrations, trials, integration and customization.
The AirgainConnect pipeline now includes approximately 60 Tier 1 and Tier 2 opportunities, with more than half in trial or post-trial stages, compared with about one-third at the time of the prior earnings call. The opportunity mix was approximately 55% first responder customers and 45% utilities and other commercial fleet applications.
During the second quarter, Airgain secured five Tier 2 AirgainConnect design wins: four with first-responder organizations and one with a utility company. One win involved a countywide public-safety customer with fire, ambulance and police fleets, representing a potential deployment of more than 1,000 vehicles over time.
In response to analyst questions, management said the Tier 2 opportunities generally involve fleets of 50 to 500 vehicles and may take roughly nine to 15 months to convert from initial customer interest to revenue. Tier 1 opportunities involve fleets of more than 500 vehicles and can take 12 to 18 months, according to the company.
Airgain is also in the final sales stage for a Tier 1 first-responder opportunity that it is targeting to close by year-end, although customer-specific certification requirements remain. Suen said the certification investments could also be used with other prospective customers.
The company recently added Jim Buglia, former president of AT&T FirstNet, as a strategic adviser to help deepen relationships with public-safety organizations, the FirstNet Authority and large fleet original equipment manufacturers.
Lighthouse Trials Advance, but Revenue Seen as a 2027 Opportunity
Airgain said its Lighthouse cellular coverage platform is advancing into end-customer trials in the United States. The company has scheduled two U.S. trials that collectively support coverage across all three major carriers.
The first trial is with a large logistics company seeking better cellular coverage across its operating environment. Airgain’s production-ready configuration supports the mid-band spectrum used by AT&T and Verizon. A second trial with a residential community is intended to address coverage gaps in large communities and homeowners associations. That configuration supports T-Mobile spectrum, with pre-production samples expected during the third quarter.
Airgain also secured an international customer trial for an integrated 4G and 5G combination solution, with initial samples expected in the third quarter. Meanwhile, the company said it is working through final certification and approval with a previously disclosed Tier 1 U.S. mobile network operator for an enterprise offering.
Despite the progress, Suen said Lighthouse is primarily a 2027 revenue opportunity. The near-term focus is on completing trials, establishing reference deployments and demonstrating a repeatable commercial model.
Enterprise Growth Offsets Consumer Headwinds
Enterprise IoT was the primary contributor to Airgain’s sequential growth in the second quarter, Suen said. Enterprise sales totaled $6.7 million, up $1.7 million sequentially, driven by higher IoT modem and custom-product sales. Shipments under a previously announced $4 million purchase order accelerated and are expected to be completed by the end of the third quarter.
Airgain expects production shipments for Coco Robotics’ next-generation autonomous delivery vehicles to begin during the third quarter. Initial production shipments for a drone application are also expected this quarter, while a recently secured data-center remote-energy-monitoring design win is expected to begin producing revenue in early 2027.
Consumer sales were $5.8 million, supported by Wi-Fi 7 antenna shipments and Tier 1 service-provider demand. However, Airgain expects consumer revenue to decline sequentially in the third quarter because of a continuing memory shortage and delays in customer product launches following an FCC ruling. Suen said OEM partners have recently received conditional approvals, but the issue delayed shipments during the second half.
Automotive sales were $1.2 million in the second quarter, reflecting higher sales of AirgainConnect vehicle gateways, Chief Financial Officer Michael Elbaz said.
Profitability and Third-Quarter Outlook
Non-GAAP gross margin was 43.6%, compared with 44.2% in the prior quarter, primarily due to product and customer mix. Non-GAAP operating expenses fell to $5.7 million, down $400,000 sequentially and $800,000, or 12%, year over year. GAAP operating expenses included $600,000 in severance expenses tied to a previously disclosed headcount reduction.
Adjusted EBITDA was positive $400,000, improving by $1.3 million sequentially. Non-GAAP earnings per share were $0.02, an improvement of $0.10 from the prior quarter. Cash totaled $7.6 million as of June 30, up $500,000 from the prior quarter, including $1 million in net proceeds from the company’s at-the-market program.
For the third quarter, Airgain forecast revenue of $14.25 million to $16.25 million, with a midpoint of $15.25 million representing 11% sequential growth. The company expects non-GAAP gross margin of 41.5% to 44.5%, non-GAAP operating expenses of about $6 million, non-GAAP EPS of $0.04 at the midpoint and adjusted EBITDA of positive $700,000 at the midpoint.
About Airgain (NASDAQ:AIRG)
Airgain, Inc (NASDAQ: AIRG) is a provider of intelligent wireless connectivity solutions designed to enhance data transmission, network performance and antenna efficiency for a range of devices. Headquartered in San Diego, California, the company develops both embedded and external antenna systems, as well as associated connectivity software, to support wireless applications across cellular, Wi-Fi, machine-to-machine (M2M) and Internet of Things (IoT) markets.
The company’s product portfolio includes modular smart antennas, parallel path phase-diversity antennas and advanced array antenna solutions that are optimized for environments such as smart homes, industrial automation, transportation and enterprise networking.
