INSEEGO CORP.INSG
INSEEGO CORP. Segments Disclosure
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 December 31, 2024, the Company’s Chief Operating Decision Maker (“CODM”) was its Executive Chairman. The Company’s Executive Chairman 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. As such, our operations constitute a single operating segment and one reportable segment. The accounting policies of our one 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:
| Year Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Revenues | $ | 166,188 | $ | 191,244 | |||||||
| Less: | |||||||||||
Adjusted cost of revenues (1) | 94,817 | 122,321 | |||||||||
Adjusted research and development (2) | 18,778 | 19,905 | |||||||||
Adjusted sales and marketing (2) | 16,574 | 15,522 | |||||||||
Adjusted general and administrative (3) | 15,985 | 13,203 | |||||||||
Adjusted depreciation and amortization (4) | 8,020 | 11,048 | |||||||||
| Capitalizable software development expenditures | 10,047 | 4,248 | |||||||||
| Capitalized software development expenditures | (10,047) | (4,248) | |||||||||
| Share-based compensation | 7,441 | 3,823 | |||||||||
| Amortization of purchased intangible assets related to business combinations | 316 | 1,320 | |||||||||
| Impairment of capitalized software | 384 | 927 | |||||||||
| Gain on early lease termination | (443) | — | |||||||||
| Right-of-use asset impairment | — | 138 | |||||||||
| Debt restructuring costs | — | 1,322 | |||||||||
| Loss on debt restructurings, net | — | 2,851 | |||||||||
| Loss on extinguishment of revolving credit facility | — | 788 | |||||||||
| Interest expense, net | 3,771 | 10,906 | |||||||||
| Other income (expense), net | (737) | 850 | |||||||||
| Income tax provision | 44 | 689 | |||||||||
| Segment net income (loss) | $ | 1,238 | $ | (14,369) | |||||||
| Reconciliation of profit or loss | |||||||||||
| Income (Loss) from discontinued operations, net of tax | (400) | 18,941 | |||||||||
| Consolidated net income (loss) | $ | 838 | $ | 4,572 | |||||||
| (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, 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):
| Year Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| United States and Canada | $ | 164,257 | $ | 184,324 | |||||||
| Europe (including United Kingdom) | 1,699 | 5,298 | |||||||||
| Other | 232 | 1,622 | |||||||||
| Total | $ | 166,188 | $ | 191,244 | |||||||
Substantially all of the Company’s long-term assets are located within the United States.
Concentrations of Risk
Customer Concentrations
For the year ended December 31, 2025, two customers accounted for 62.2% and 26.4% of revenues, respectively. For the year ended December 31, 2024, two customers accounted for 41.9% and 33.6% of revenues, respectively.
At December 31, 2025, two customers accounted for 52.9% and 16.0% of total accounts receivable, net, respectively. At December 31, 2024, three customers accounted for 33.6%, 22.8% and 18.8% of total 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 single 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.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Mar 3, 2023 | |
| 2020 | Mar 1, 2021 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.