This article first appeared on GuruFocus .
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Net Revenue:$1.0 million for Q2 2026, down 18% from $1.2 million in Q2 2025, due to a $2.2 million decrease in service revenues.
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Cost of Net Revenues:$1.2 million for Q2 2026, up 49% from $0.8 million in Q2 2025, driven by increased unit volume.
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Gross Margin:Negative for Q2 2026, compared to 32% in Q2 2025; expected to improve as 5G product sales increase.
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R&D Expenses:$3.3 million for Q2 2026, down from $3.5 million in Q2 2025, due to completion of the 5G chip design project.
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Sales and Marketing Expenses:$1.0 million for Q2 2026, consistent with $1.1 million in Q2 2025.
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General and Administrative Expenses:$2.8 million for Q2 2026, down from $3.4 million in Q2 2025.
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Net Loss:$20.4 million for Q2 2026, compared to $13.5 million in Q2 2025, including $12.3 million in losses from changes in fair value of warrant liabilities.
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Adjusted EBITDA Loss:$6.6 million for Q2 2026, slightly improved from $6.7 million in Q2 2025.
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5G Chipset Shipments:More than 5,100 units in Q2 2026, representing approximately 71% sequential growth.
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Cash and Cash Equivalents:$30.2 million at quarter end.
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Net Accounts Receivable:$1.1 million.
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Net Inventory:$1.5 million.
Release Date: August 10, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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5G chipset shipments grew 71% sequentially to over 5,100 units in Q2 2026, reflecting strong customer engagement.
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Pipeline diversification across three strategic pillars (terrestrial broadband, satellite/NTN, and IoT/specialized networking) reduces dependence on any single customer.
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New customer signed post-quarter for UAV and defense-related connectivity, validating platform flexibility and expanding market reach.
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Secured production capacity through Q1 2027, ensuring readiness for anticipated ramp and mitigating supply chain risks.
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Adjusted EBITDA loss stabilized at $6.6 million in Q2 2026, indicating improved cost management despite early-stage commercialization.
Negative Points
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Net revenues decreased 18% year-over-year to $1.0 million in Q2 2026, with a shift to 5G services impacting service revenue.
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Gross margin turned negative in Q2 2026, reflecting early-stage product mix and increased costs from higher unit volume.
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Net loss widened to $20.4 million in Q2 2026, driven by $12.3 million in non-cash fair value losses on warrant liabilities.
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Customer deployment schedules shifted modestly, causing meaningful revenue shortfalls in the quarter and uncertainty in timing.
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Cash burn is expected to increase to $9-$9.5 million per quarter due to tight supply chain prepayments, pressuring liquidity.
Q & A Highlights
Q: Can you provide more color on the customer deployment shifts that impacted Q2 results, and how significant were they from a unit or revenue standpoint? A: John Schlaefer (CEO): The shifts were meaningful in the quarter, and we had expected significantly higher revenue. However, these programs remain very much alive and viable, and we believe we will see the impact in the later part of the year. The delays are primarily due to customers pushing out launch schedules by one to two quarters, often due to their own corporate restructuring or factors outside their control, rather than a change in product strategy.
Q: How many customers did the 5,100 chipsets ship to in Q2, and what applications were they for? A: John Schlaefer (CEO): The shipments went to primarily four customers across four different applications: FWA, aviation, mobile hotspot, and a push-to-talk phone application. This demonstrates the broadening interest in our 5G solutions beyond any single customer or market.
Q: Can you elaborate on the production capacity you've secured through Q1 2027 and the associated financial exposure if customer launches slip further? A: John Schlaefer (CEO) and Edmond Cheng (CFO): We secured wafer capacity through Q1 2027, which is critical given the tight fab environment. If launches slip, we can slow down future purchases, and the wafers are not perishable. CFO Edmond Cheng added that Q2 cash burn was impacted by $7 million to $7.5 million due to prepaying for supply chain capacity. Going forward, we anticipate quarterly cash burn of $9 million to $9.5 million per quarter due to the tight supply chain, up from a normalized $8 million to $8.5 million, but we can rebalance based on inventory and demand.
Q: Where do you see the greatest near-term volume interest across your three strategic pillars (terrestrial broadband, satellite/NT, and IoT/specialized networking)? A: John Schlaefer (CEO): The most significant near-term revenue uptake will come from terrestrial broadband and satellite/non-terrestrial connectivity, as these are more mature applications we've been working on for a while. The IoT and specialized networking space has the most breadth of applications, but ASPs are lower than in FWA and satellite. We expect the highest volume between now and Q1 2027 to be roughly equally split between the first two pillars.
Q: Can you describe the new customer signed after quarter-end in the UAV and defense space, and what applications it covers? A: John Schlaefer (CEO): The new customer is in the UAV space with applications across consumer and defense. Our device is flexible and useful for control telemetry. Due to confidentiality provisions, we cannot name the customer today, but they have not yet announced the product. This relationship validates the flexibility of our platform and extends our reach into another attractive vertical.
Q: When will you be able to disclose the name of the satellite communications provider you're working with? A: John Schlaefer (CEO): We will disclose the name once we receive their green light, as we have NDAs to honor. We expect they will be less sensitive about disclosure once they launch, which could be as soon as Q4 2026 or Q1 2027.
Q: How should we think about quarterly cash burn over the next four to six quarters, and will you need to spend more to hit the commercialization inflection point? A: Edmond Cheng (CFO): We anticipate quarterly cash burn of $9 million to $9.5 million per quarter due to the tight supply chain environment, up from a normalized $8 million to $8.5 million. We have already paid for production through the end of the year, which increased Q2 cash burn. We can adjust future wafer payments based on inventory and demand to manage cash flow effectively.
Q: Can you provide more detail on the customer restructuring and evolving deployment schedules that shifted timing? A: John Schlaefer (CEO) and Edmond Cheng (CFO): The shifts were due to customers pushing out launch schedules by one to two quarters, often due to their own corporate restructuring and refocus, even though their product strategy is unchanged. Edmond clarified it's more about deployment plan changes than restructuring. These are not related to their supply chain problems, though they face their own challenges in that area.
Q: How many customer programs do you have line of sight to through Q1 2027, and can you provide unit guidance for the second half? A: John Schlaefer (CEO): We're hesitant to provide specific guidance at this point due to front-end variability in customer programs. However, we have secured wafer supply through Q1 2027 in anticipation of what we believe is a relatively large ramp. We continue to expect second-half shipments to exceed first-half levels as commercialization progresses.
Q: Can you quantify the number of customers you're seeing across all three strategic pillars compared to the 50+ potential customers at Mobile World Congress? A: John Schlaefer (CEO): While we didn't provide a specific number, the breadth of customer engagement continues to expand across all three pillars. The terrestrial broadband and satellite/NT spaces have the most mature activity with high expectations, while IoT and specialized networking has the most breadth of applications, though with lower ASPs.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
