We have a global presence, not only in the U.S., in Arizona, but also Minnesota in terms of design centers, and also in the U.K., in China, in Taiwan as well too. We are basically very rich in RF expertise. That is our forte. That's basically what we came out back in 2003 and what we really evolved as well too. We have a rich portfolio of patents of over 285. As a point of reference, our first half of 2025 sales came up at $25.5 million, roughly speaking, and our market valuation today is about $50 million. Our purpose is really to simplify wireless. This is very important in terms of the approach that we take to our products, but also the approach that we take to our customers as well too. We try to solve very complex wireless challenges. The way we do it is simplified, simple to integrate, deploy, maintain.
This is the foundation of everything we do as a team pretty much every day. Now, in terms of key investment highlights, we are transitioning from a component-based type of a provider to a complex wireless system solution provider. This has been in the works for the past five years. This has allowed us to really double our overall market opportunity from $1.1 million of a SAM in 2024 to $2.2 million of a SAM size in 2025. The way we're doing it is really expanding in our what we call growth platforms, which are two of them: a vehicle gateway and a smart network repeater. Those system solutions have launched last year. In 2025, this has been a year of certifications, but also of customer trials. We're expecting in 2026 to see some shipment ramps in those growth platforms.
While we are focusing all of our R&D and sales and marketing efforts on our growth platform, we also maintain a very strong presence on our existing markets. Those are really the foundation of our investments for our growth platforms. We have no debt. All of that investment became really organic, basically. We have been very specific and very deliberate in our approach to really invest into our embedded antennas and embedded modems who have shown some growth as well too. As a reminder, we are really a scalable asset-light model because we are small, 120 people altogether. Most of our expenses and spend is really on R&D and sales and marketing. Innovation and customer are really key for us. All of our manufacturing is fully outsourced. We have eight contract manufacturers globally in China, Taiwan, in Vietnam, and also Mexico and the U.S. as well too.
We do focus on our robust IP portfolio, patents specifically. We also have a seasoned leadership team, and our focus is really to look at sustainable long-term growth. Speaking of my management team, we have here Jacob Suen on my right, who is our President and CEO. Jacob has been with the company for almost 20 years in a sales capacity for close to 15 years. Over the past five years, he has become CEO with a mission of transitioning us as a company from a component-based to a wireless system solution-based provider. I joined Airgain three years ago exactly. My background is really a semiconductor with small and large public companies. Dr. Ali Sadri is our CTO who came from Intel, actually, where he spent 18 years and more recently on the 5G millimeter wave program. He is one of the foremost thinkers of 5G connectivity technology.
Vic Blair is our SVP of Operations. He's the architect of our CM model and going completely fabless. Evan Jones and Brian Makarowski have joined us over the past couple of years, coming from large companies with very enhanced processes and very expert in the launch of really a complex type of a project, which is exactly where we are at right now with our wireless system solution. Finally, Suzanne Zoumaras has been our Chief People Officer and really a wealth of experience in managing the culture of evolving small and large public companies. A quick note on our evolution. We started out back in 2003 with a concept and the expertise in what we call smart antennas. This allowed us to really get very close to cable operators, MSOs, and Mobile Network Operators, MNOs, in terms of home gateways, whether it's FWA or it's Wi-Fi.
We've been riding along that wave over the past 20 years and being "in the box." Having a very unique type of a model with the service providers providing RF expertise and RF design, but also with the OEM and ODM, specifically in Asia as well too. In 2021, we entered the industrial IoT business with the acquisition of NimbeLink out of Minnesota. Over the past year, we've been very busy with the launch of our AirgainConnect Fleet Vehicle Gateway, along with our Lighthouse platform of Smart Network Repeater . As I mentioned, 2025 has been a year of certifications. AirgainConnect actually received its first Net Trusted from AT&T certification. We also just announced about a month ago the T Priority from T-Mobile certification as well too. Those are for first safety market.
On Lighthouse, about a month ago we also announced its FCC certification, which allows us to not only be an international player, but also a domestic player as well too. As a summary, on the left side is really our core business, which is primarily made of antennas, both embedded antennas, but also external antennas, and then IoT solutions as well too. In the middle is really our AirgainConnect Fleet 5G Vehicle Gateway. On the right side is our Lighthouse 5G Network Repeater. Now, in terms of the market opportunity, as I mentioned, in 2024 to 2025, we doubled basically our SAM. This is basically a picture of our $1.1 billion or so of our current existing business, which is growing at a single-digit growth rate. The SAM coming up from the vehicle gateway that you see here in 2025 is basically the share of U.S. market fleet that are moving from 4G to 5G gateway.
On the smart network repeater, those are basically the overall pain point that exists right now with 5G coverage. On the markets we are currently serving, which is a GCC Middle East, but also at the end of this year, the U.S. market as well. To go a little bit more into detail on the two growth platforms, this AirgainConnect Vehicle Gateway is really an all-in-one 5G modem, Wi-Fi 6 router, external antenna, having all the standards in terms of communication, including GPS, LTE, Wi-Fi, 5G, and so on and so forth, all into one package that really has the lowest and the smallest form factor that is available today. It also offers an eSIM. This is the first gateway to offer an eSIM capability, which allows us to have downloadable up to four carriers.
Its main competitive advantages are really its high performance and also its quick installation. All in all, it reduces the overall total cost of ownership to our customer. To give you a little bit more of a sense from a graphical standpoint, on the right side is a traditional approach to gateway, which basically comprises an external antenna, which has to be very high performance, especially for low safety, connected to a router in the trunk that has to be carefully mounted, router and modem as well. You have a number of cables, from seven to nine cables, depending on the number of standards that have to be hooked up very carefully as well. Finally, one more cable to the driver's seat.
On the left side is our AirgainConnect, which looks like an external antenna on top of the roof, basically, but that antenna also comprises of the router, modem, and all the standards. From a competitive analysis standpoint, what you see here is that the main competitive factors are the all-in-one form factor, which has received a lot of interest. This is an entrenched market, but it is getting quite a bit of interest because of its novelty. It's also its size as well, and the eSIM support, which is a brand new concept to the vehicle gateway. Finally, the RF performance. RF performance by default is the more cables, the more RF cable loss that takes place. Reducing that physics aspect of it is an inherent overall advantage. Therefore, the total cost of ownership is certainly one of the more compelling ones.
Turning into Lighthouse and the smart network repeater that we currently are coming up with, this has been the work for the past four years. Very, very strong in the overall software associated with this device and the algorithm that it has. In a nutshell, to fully understand what a smart network repeater is all about, is that 5G or the move from 4G to 5G has enabled us to be really going into some very high-frequency bands. Along with the high-frequency bands comes the sensitivity to interference. That interference could be in between two buildings, the shadowing effect, for example, or cement construction of a building. That would cause interference. That would be the reason why a 5G signal would be blocked, basically, because of that interference.
What the current set of solutions would be to resolve this are installing more base stations to provide both coverage and capacity, or installing a 5G cell, which also offers capacity and coverage. If capacity is not the issue, which typically it is not, it's coverage, this is where Lighthouse comes in. The big difference on Lighthouse is that there is no backhaul required. In other words, for a cell tower or for a base station, we need to be able to have permitting, digging of the trenches, laying out the fiber. This may take four to six months of a process altogether. Lighthouse is deployed right away as a standalone basis and can be done in a matter of hours, if not a day. Lighthouse, as with SEM Time, also has its own indoor application. By leveraging the current 4G infrastructure, it can also propagate 5G.
Buildings will have typically a 4G DAS, a 4G infrastructure. To go into 5G, we'll have to rip up the 4G infrastructure and replace it with a 5G DAS or infrastructure. In this specific case, you don't have to install a 5G DAS. You basically have Lighthouse hooking up to the 4G infrastructure through a cable, basically, and then being able to propagate 5G coverage. This is, again, a competitive analysis to some of the more affordable type of solutions, not the cell tower or base stations, but more affordable type of solution here. We're talking, again, the simplicity of installation, the simplicity of maintenance, the deployment time, and therefore the total cost of ownership as well too. A quick reference point on our financials. In Q1, we closed a quarter at $12 million. We did incur a loss of $1.2 million of adjusted EBITDA.
Adjusted EBITDA is a pretty good proxy for our free cash flow because we are basically a variable model. There is no CapEx. We don't have any debt, so there is no interest, and our taxes are being offset by NOLs as well too. In Q2 of 2025, we also closed at slightly higher revenues, and our EBITDA loss shrunk to $0.4 million negative. We have guided at the midpoint of the guidance a $14 million revenue in Q3 with a breakeven to positive EBITDA. The gross margin, I should note, has improved over the past few years. It was about 38% two years ago, 42% last year on the average, and t his year, we're running around the 44% level.
While the OpEx has also come down quite a bit from two years ago to this year, despite the fact that we have really recentralized and recycled our R&D and sales and marketing expenses toward the growth platforms. Overall, our breakeven point has been lowered down to about $14 million on a quarterly basis compared to about $60 million last year or $80 million, $90 million two to three years ago. This is allowing us to have the runway to be able to have the revenue shipment ramp that we expect to have on 2026 on both AirgainConnect and also Lighthouse. Why invest? Innovative technologies driving differentiation. That's what we're all about.
The growth platform expanding the overall market opportunities, as I mentioned, our SAM opportunity doubled. It is really a compelling operational model that will be able to leverage any type of revenue coming from the growth platform into accretive gross margin, but also accretive EBITDA. Thank you very much. If you have any questions, happy to answer them. Same with Jacob as well too. Yes, please.
Sorry. What do you guys see as being the main constriction or limiting factor for your continued growth?
The growth factor is going to be those growth platforms. The roadblocks to that are, in both cases, we are dealing with an entrenched type of a market, but we also have the differentiation. We really believe it's just a question of time to come up with and enhance our brand and our relationship with the overall ecosystem, which means carriers, VARs, system integrators, and direct customers as well. This is just more of a question of time for us.
Are you guys planning a consumer product as well?
No, we're not. We choose not to go into the consumer product level. We do have on our embedded antennas the home gateways, but our growth platform, we do not see right now the need for consumer because of the profitability that we have with the enterprise and the leverage we can have. You could see where, for example, a vehicle gateway could become an OEM-based type of a product if it shrinks in terms of size and cost. This could be something that you and I could be having in our car as well too. Yes, please.
The repeater product you showed.
Yes.
All it needs is power, I guess?
Yes. All it needs is power. The Lighthouse itself has echo cancellation, noise interference, and also smart antenna s. It can direct itself automatically to wherever the best signal is being offered.
Electronic street steering of the antennas, I guess?
It's a repeater, basically capturing the base station signal and being able to extend it, basically, to the roadblocks.
Right. It actually decodes the signal and resends it, or it's just RF amplifying?
I don't believe it's RF amplifying. Is it, Jacob?
No, I mean, you have a smart antenna array to capture the signals and insert it. I mean, this is going to be an analog-to-digital conversion for sure.
Okay.
That helps. Now, to your point about needing power, we did have announced a solar version of this. I should mention that for the past two years, we've been very close to Omantel, Oman's telecommunication provider, one of them, and been doing a lot of customer trials both indoor and outdoor as well too. We also closed a strategic partnership with Omantel earlier this year. This picture actually is the hospital, one of the hospitals where we had a trial. One of the trials was using solar because of dunes and because of the lack of power grids around that, and it worked beautifully. That was actually presented at the MWC in Barcelona this past few months.
This technology possibly could be also useful for a campus area Wi-Fi or something.
Absolutely. Campuses, large venues, for example, we try to stay away from consumer, but from an enterprise standpoint, the way we position that, this is not a direct comparator to a base station or the cell tower or a DAS system. It's not. It really augments basically the overall ecosystem, basically.
It really has an indoor element to it and then an outdoor element. Indoor, many times, like in this building here, typically you have a DAS system, Distributed Antenna System, right? However, when there's a 4G to 5G upgrade taking place, it's really expensive for indoor to upgrade the DAS system to 5G. Case in point, we work with one of the customers where it would take them roughly six to eight months and about $2 million to upgrade the convention center. Versus the solution we provide, it's a few hundred thousand dollars. It's really about one-fifth or even one-eighth of the cost and only takes two weeks versus six to eight months, right? That's what's so unique for the indoor application. When we talk about the outdoor, there are really two areas where we can help. One is what you call the extension.
It means you already have the coverage. You need to extend another half a mile to reach that neighborhood. You can put a base station. You can put a small cell there, but there's a cost factor. It's only about 50, 20 neighbors. That may not be justifiable. By putting a Lighthouse there, it's going to be able to help you extending that range. What we're seeing in another major benefit of the Lighthouse product is to really help addressing what we call the coverage gaps. That means you already have the base station within the neighborhood. Let's say, you know what, you have a base station covering up to two or three miles or whatnot, but there are pockets within that coverage that you still have issues. All of us have experienced that, right? That could be the buildings, the shadowing effect. That could be the hills, right?
All of that. When you call the carriers and say, "You know what, I have a problem, either cellular or data." They'll be like, "I'm sorry." Y ou know, within my coverage. They're not going to go out there to another base station, another small cell when it's already within that coverage. This is where a product such as a Lighthouse can really come into play. We're spending $10,000, $20,000 in that small area, putting a Lighthouse there, really now address that coverage. Does that help?
Yes, thank you.
Thank you.
Do you guys manufacture your own semiconductors or buy your own or work with other semiconductors?
No, we work with chipset manufacturers.
Like Omantel or something?
Yes, yep. Yes, sir.
How does the reporting kind of separate the antenna revenue and your growth module revenue anytime soon?
Once we see meaningful revenues, we'll be thinking about changing some of our reporting, but not at the time being. Yep.
Is there any loss in terms of signal strength associated with the Lighthouse kind of model? Like, are you losing or degrading any type of signal that's being sent, and then you need to reamplify some of that?
No, no.
Or is it just because when you're passing it through, it's getting decoded, and going over a certain amount of distance, that signal strength must be deteriorating somewhere somehow, right?
No, that's actually the benefit of the Lighthouse. The questions were about is actually degrading the signal by going through this length. No, the beauty of the Lighthouse, it's actually to amplify. That's why it has, that's why the smart antenna technology really comes into play, is to be able to regenerate through our smart antenna system to be able to go through. It's actually extending. That's why we're able to boost the signal strength.
Okay. T he data rate for itself that's going through, that doesn't change. It's maintained through the antenna itself, right?
That's correct. It would be zeros and ones, right? Okay.
One last question. Yes.
In your future guidance, you're showing some growth of the supply chain year- over- year. Is that purely because the modules are starting up, or is it purely for the antenna still?
The growth platform will take some time to really ramp up. What you're seeing is primarily driven by the existing business. We expect to see that in 2026. Okay.
I add a little bit more color to it, which I think is important. Airgain, in some ways, is pretty unique that we have existing business that are highly profitable, that's been there for the last 15 years, that's been the engine to help support. That's the bloodline. That's what we put the bread and the butter under the table. We've actually been able to use the profit generated from the existing business to support this highly innovative, disruptive technology, the gateway, the vehicle gateway we call AC- Fleet, and the Lighthouse Smart Network Repeater, s ometimes we call it intelligent node. Because of that, with the product being available now we can really accelerate what we're going to be able to do with the new product initiatives. I know we're up against the cloud.
Thank you very much for your interest.
Thank you Sbahi .