Inseego Repurchases All of Its Outstanding Preferred Stock, Further Strengthening Capital Structure

Rhea-AI Summary

Inseego (Nasdaq: INSG) completed the repurchase and retirement of 100% of its Fixed-Rate Cumulative Perpetual Preferred Stock, Series E, which had a $42.0 million liquidation preference as of December 31, 2025. The Company exchanged the Preferred Stock for $26.0 million aggregate consideration (a 38% discount): $10.0 million cash, $8.0 million aggregate principal of existing 9.0% senior secured notes due 2029, and ~767,000 shares of common stock.

Cash will be paid in three equal installments at closing, six months, and 12 months; the issued common shares carry customary registration rights. An affiliate of Mubadala Capital held the Preferred Stock and now holds a minority common position.

Positive

• Retired 100% Series E preferred with $42.0M liquidation preference
• Retirement executed for $26.0M aggregate consideration (38% discount)
• Cash consideration structured in three equal installments over 12 months

Negative

• Issued approximately 767,000 common shares to former preferred holder
• Assumed $8.0M principal of 9.0% senior secured notes due 2029

News Market Reaction – INSG

+9.36% 2.3x vol

20 alerts

+9.36% News Effect

+6.1% Peak in 6 hr 18 min

+$16M Valuation Impact

$181M Market Cap

2.3x Rel. Volume

On the day this news was published, INSG gained 9.36%, reflecting a notable positive market reaction. Argus tracked a peak move of +6.1% during that session. Our momentum scanner triggered 20 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $16M to the company's valuation, bringing the market cap to $181M at that time. Trading volume was elevated at 2.3x the daily average, suggesting notable buying interest.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Preferred liquidation preference: $42 million Exchange consideration: $26 million Discount to preference: 38% +5 more

8 metrics

Preferred liquidation preference $42 million Series E Preferred Stock as of Dec 31, 2025

Exchange consideration $26 million Aggregate consideration paid to retire preferred stock

Discount to preference 38% Discount versus $42 million liquidation preference

Cash component $10 million Cash portion of preferred stock repurchase

Senior notes component $8 million Principal amount of 9.0% Senior Secured Notes due 2029

Common shares issued approximately 767,000 shares Common stock issued in preferred exchange

Interest rate 9.0% Coupon on Senior Secured Notes due 2029 used in exchange

Preferred retired 100% Portion of Series E Preferred Stock repurchased

Market Reality Check

Price: $12.40 Vol: Volume 95,450 is below th...

low vol

$12.40 Last Close

Volume Volume 95,450 is below the 20-day average of 169,499 (relative volume 0.56). low

Technical Shares at $10.62, trading slightly above the 200-day MA of $10.30, and about 41% below the 52-week high of $18.11.

Peers on Argus

INSG is down 2.03% while peers are mixed: LTRX (-2.3%), CRNT (-1.33%), but BKTI ...

INSG is down 2.03% while peers are mixed: LTRX (-2.3%), CRNT (-1.33%), but BKTI (+5.8%), AUDC (+0.23%), SILC (+1.72%). Moves are not uniformly in one direction, suggesting a stock-specific reaction.

Historical Context

5 past events · Latest: Dec 04 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 04	Nasdaq bell ceremony	Positive	+4.4%	Marked 25th Nasdaq listing anniversary with closing bell event.
Dec 03	Commercial partnership	Positive	+6.6%	Kajeet selected Inseego 5G FWA for SmartFailover service.
Nov 06	Earnings report	Positive	+1.6%	Q3 2025 revenue growth, EBITDA improvement and positive net income.
Nov 03	Board expansion	Positive	-2.0%	Added experienced directors in carrier, AI and SaaS domains.
Oct 28	Product launch	Positive	+3.3%	Introduced FX4200 5G router and upgraded Inseego Connect SaaS.

Pattern Detected

Across the last five news events, four positive announcements coincided with positive 24-hour price moves, with only one divergence on a board expansion release.

Recent Company History

Over the last few months, Inseego has highlighted commercial traction and corporate development. Q3 2025 results showed $45.9M in revenue, $5.8M Adjusted EBITDA and $1.4M GAAP net income, alongside improved gross margins. The company launched the enterprise-focused FX4200 5G router and enhanced Inseego Connect SaaS, signed a 5G FWA deal for Kajeet SmartFailover, and expanded its board with carrier and AI/SaaS expertise. A December 2025 Nasdaq closing bell event marked its 25th anniversary as a listed company. Today’s capital-structure clean-up follows these operational milestones.

Regulatory & Risk Context

Active S-3 Shelf · $50,000,000

Shelf Active

Active S-3 Shelf Registration 2025-10-14

$50,000,000 registered capacity

An effective S-3 shelf filed on Oct 14, 2025 would allow Inseego to issue up to $50,000,000 of various securities, with proceeds for general corporate purposes and working capital. As of Sep 30, 2025, shares outstanding were 15,212,522 and warrants outstanding were approximately 3,018,304 with a weighted average exercise price of $12.59. No takedowns have been recorded in the provided context.

Market Pulse Summary

The stock moved +9.4% in the session following this news. A strong positive reaction would align wit...

Analysis

The stock moved +9.4% in the session following this news. A strong positive reaction would align with Inseego’s recent pattern where favorable news, such as product launches and commercial wins, often coincided with gains. Fully retiring preferred stock at a 38% discount to its $42 million liquidation preference and eliminating that overhang could be seen as materially strengthening the balance sheet. However, investors would still need to monitor future use of the $50,000,000 S-3 shelf and any equity issuance given existing common stock and warrants outstanding.

Key Terms

fixed-rate cumulative perpetual preferred stock, preferred stock, senior secured notes, liquidation preference, +1 more

5 terms

fixed-rate cumulative perpetual preferred stock financial

"has completed the repurchase of all of its outstanding Fixed-Rate Cumulative Perpetual Preferred Stock, Series E"

A fixed-rate cumulative perpetual preferred stock is a type of investment that pays a set dividend rate indefinitely and does not have a scheduled maturity date. If the issuer skips a dividend payment, the unpaid amounts accumulate and must be paid later before common shareholders get dividends, so it behaves like a never-ending bond with priority over common stock; investors value it for steady income and relative safety but should watch issuer credit and interest-rate sensitivity.

preferred stock financial

"repurchase of all of its outstanding Fixed-Rate Cumulative Perpetual Preferred Stock, Series E (the “Preferred Stock”)"

Preferred stock is a type of ownership in a company that typically offers investors higher and more consistent dividend payments than common stock. Unlike regular shares, preferred stock usually doesn’t come with voting rights but provides a priority claim on the company’s assets and profits, making it a more stable and predictable investment option. This makes preferred stock attractive to those seeking steady income with lower risk.

senior secured notes financial

"in exchange for a combination of cash, common stock of the Company and senior secured notes"

Senior secured notes are loans a company sells to investors that are backed by specific assets and given first priority for repayment if the company defaults. Because they have a claim on collateral and are paid before other debts, they usually offer lower risk and correspondingly lower interest than unsecured debt; investors use them to judge how safe repayment and recovery of principal might be, like holding a mortgage instead of an unsecured credit card balance.

liquidation preference financial

"which had a liquidation preference of $42 million as of December 31, 2025"

A liquidation preference is a rule that determines who gets paid first and how much they receive when a company is sold, goes bankrupt, or distributes its assets. It gives certain investors a priority claim—often returning their original investment plus any agreed multiple—before other owners receive money, which shapes how much common shareholders and founders ultimately get; think of it as a front-of-the-line pass that affects payout order and investor returns.

registration rights regulatory

"The common stock issued in the exchange is subject to customary registration rights."

Registration rights are contractual promises that let investors require a company to file paperwork with securities regulators so those investors can sell their shares to the public. They matter because they create a path to liquidity and an exit plan—without them, investors may be stuck holding shares for a long time. Think of them like a reserved ticket that guarantees access to a public marketplace when the holder is ready to sell.

AI-generated analysis. Not financial advice.

Company exchanges outstanding preferred stock for combination of cash, common stock and senior notes

SAN DIEGO, Jan. 14, 2026 (GLOBE NEWSWIRE) -- Inseego Corp. (Nasdaq: INSG) (the “Company”), a global leader in 5G mobile broadband and 5G fixed wireless access (FWA) solutions, today (the “Closing Date”) announced that it has completed the repurchase of all of its outstanding Fixed-Rate Cumulative Perpetual Preferred Stock, Series E (the “Preferred Stock”) in exchange for a combination of cash, common stock of the Company and senior secured notes.

Under the terms of the exchange, the Company retired 100% of the Preferred Stock, which had a liquidation preference of $42 million as of December 31, 2025, in exchange for $26 million of aggregate consideration, representing a 38% discount, and consisting of $10 million in cash, $8 million aggregate principal amount of the Company’s existing 9.0% Senior Secured Notes due 2029, and approximately 767,000 shares of the Company’s common stock.

The cash consideration will be paid in three equal installments, with one-third paid at the Closing Date, one-third payable six months following the Closing Date, and the remaining one-third payable 12 months following the Closing Date. The common stock issued in the exchange is subject to customary registration rights.

“This transaction is another step in the deliberate work we’ve been doing to simplify and strengthen Inseego’s capital structure,” said Steven Gatoff, CFO of Inseego. “By fully retiring the Preferred Stock at a discount to its aggregate liquidation preference, we are reducing long-term obligations, further improving the balance sheet and continuing to increase stockholder value.”

The Preferred Stock was held by an affiliate of Mubadala Capital. As a result of the exchange, that affiliate now holds a minority position in the Company’s common stock.

“We’re honored to have Mubadala Capital in our long-term journey and value creation mission as common stockholders,” said Juho Sarvikas, CEO of Inseego. “Our focus remains on executing our strategy, scaling the business, and delivering durable growth for our stockholders.”

About Inseego Corp.
Inseego Corp (Nasdaq: INSG) is a leading provider of cloud-managed, wireless broadband connectivity solutions. Inseego’s comprehensive hardware portfolio, combined with its Software-as-a-Service (SaaS) platform for device, network, and subscriber management, enables seamless business connectivity and simplifies subscription management, wireless deployments, and network operations for Fixed Wireless Access (FWA), IoT, and mobile networking. As an early pioneer in mobile broadband and a leading innovator in 5G for business, Inseego has delivered over 10 generations of solutions that provide unmatched speed, security, and reliability for businesses, government agencies, and educational institutions. For more information about Inseego, visit www.inseego.com.

Cautionary Note Regarding Forward-Looking Statements
Some of the information presented in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements often address expected future business and financial performance and often contain words such as “may,” “estimate,” “anticipate,” “believe,” “expect,” “intend,” “plan,” “project,” “will” and similar words and phrases indicating future results. The information presented in this news release related to the Company, future business outlook, and other statements that are not purely historical facts are forward-looking. These forward-looking statements are based on management’s current expectations, assumptions, estimates, and projections. They are subject to significant risks and uncertainties that could cause results to differ materially from those anticipated in such forward-looking statements. The Company, therefore, cannot guarantee future results, performance, or achievements. Actual results could differ materially from the Company’s expectations.

Factors that could cause actual results to differ materially from the Company’s expectations include: (1) the Company’s dependence on a small number of customers for a substantial portion of its revenues; (2) the future demand for wireless broadband access to data and device management software and services and the Company’s ability to accurately forecast; (3) the growth of wireless wide-area networking and device management software and services; (4) customer and end-user acceptance of the Company’s current product and service offerings and market demand for the Company’s anticipated new product and service offerings; (5) the Company’s ability to develop sales channels and to onboard channel partners; (6) increased competition and pricing pressure from participants in the markets in which the Company is engaged; (7) dependence on third-party manufacturers and key component suppliers worldwide; (8) the impact of fluctuations of foreign currency exchange rates; (9) the impact of supply chain challenges on the Company’s ability to source components and manufacture the Company’s products; (10) unexpected liabilities or expenses; (11) the Company’s ability to introduce new products and services in a timely manner, including the ability to develop and launch 5G products at the speed and functionality required by its customers; (12) litigation, regulatory and IP developments related to the Company’s products or components of its products; (13) the Company’s ability to raise additional financing when the Company requires capital for operations or to satisfy corporate obligations; (14) the Company’s plans and expectations relating to acquisitions, divestitures, strategic relationships, international expansion, software and hardware developments, personnel matters, and cost containment initiatives, including restructuring activities and the timing of their implementations; (15) the global semiconductor shortage and any related price increases or supply chain disruptions, (16) the potential impact of COVID-19 or other global public health emergencies on the business, (17) the impact of high rates of inflation and rising interest rates, (18) the impact of import tariffs on the Company’s materials and products, and (19) the impact of geopolitical instability on the Company’s business.

These factors, as well as other factors set forth as risk factors or otherwise described in the reports filed by the Company with the SEC (available at www.sec.gov), could cause results to differ materially from those expressed in the Company’s forward-looking statements. The Company assumes no obligation to update publicly any forward-looking statements, even if new information becomes available or other events occur in the future, except as otherwise required under applicable law.

Inseego Investor Relations Contact:
Matt Glover
ir@inseego.com

FAQ

What did Inseego (INSG) announce on January 14, 2026 about its preferred stock?

Inseego announced it repurchased and retired 100% of Series E preferred stock on January 14, 2026.

How much was the Series E preferred liquidation preference and what was the exchange value for INSG?

The Series E had a $42.0M liquidation preference and was exchanged for $26.0M aggregate consideration.

What did INSG provide as consideration to retire the preferred stock?

Consideration consisted of $10.0M cash, $8.0M existing 9.0% senior secured notes due 2029, and ~767,000 common shares.

When will Inseego pay the cash portion of the preferred repurchase?

Cash will be paid in three equal installments: at closing, six months after closing, and 12 months after closing.

Does the common stock issued in the INSG exchange have registration rights?

Yes, the common stock issued in the exchange is subject to customary registration rights.

Who held the Series E preferred and what is their position after the exchange?

An affiliate of Mubadala Capital held the Series E preferred and now holds a minority common stock position in Inseego.