The inversion of electromagnetic induction data to a conductivity profile is an ill-posed problem. Regularization improves the stability of the inversion and, based on Occam's razor principle, a smoothing constraint is typically used. However, the conductivity profiles are not always expected to be smooth. Here, we develop a new inversion scheme in which we transform the model to the wavelet space and impose a sparsity constraint. This sparsity constrained inversion scheme will minimize an objective function with a least-squares data misfit and a sparsity measure of the model in the wavelet domain.A model in the wavelet domain has both temporal as spatial resolution, and penalizing small-scale coefficients effectively reduces the complexity of the model. Depending on the expected conductivity profile, an optimal wavelet basis function can be chosen. The scheme is thus adaptive. Finally, we apply this new scheme on a frequency domain electromagnetic sounding (FDEM) dataset, but the scheme could equally apply to any other 1D geophysical method.