Core Insights - Ubiquiti Inc. (UI) reported strong second-quarter fiscal 2026 results, with both revenue and net income exceeding Zacks Consensus Estimates [1][2] Revenue Performance - Revenues increased by 35.8% year-over-year, reaching $814.9 million, driven by growth in both Enterprise and Service Provider segments [1][3] - Enterprise Technology segment generated $729 million in revenues, up from $518.2 million in the prior-year quarter, with growth across all regions [3] - Service Provider Technology revenues rose to $85.9 million from $81.7 million year-over-year, with expansion in all regions except South America [4] Regional Revenue Breakdown - North America revenues were $443.6 million, up from $321.6 million in the year-ago quarter [5] - Europe, the Middle East, and Africa revenues totaled $280.7 million, an increase from $208.6 million [5] - Asia Pacific revenues grew to $54.5 million from $43.1 million year-over-year [5] - South America revenues increased to $36.1 million from $26.6 million [5] Profitability Metrics - Net income on a GAAP basis was $233.6 million or $3.86 per share, compared to $136.8 million or $2.26 per share in the prior-year quarter [2] - Non-GAAP net income was $235.1 million or $3.88 per share, surpassing the Zacks Consensus Estimate of $2.81 per share [2] Gross Profit and Margins - Gross profit for the quarter was $374 million, with a margin of 45.9%, compared to $247.2 million and a margin of 41.2% in the year-ago quarter [6] - The increase in gross margin was attributed to a favorable product mix, lower shipping costs, and reduced excess and obsolete inventory charges [6] Operating Expenses and Income - Operating expenses rose to $81.1 million from $68.4 million due to higher employee, prototype-related, and marketing expenses [7] - Operating income increased to $292.9 million from $178.8 million in the prior year [7] Cash Flow and Liquidity - Ubiquiti generated $462.4 million in cash from operating activities during the first six months of fiscal 2026, up from $386.1 million in the prior-year period [8] - As of December 31, 2025, the company had $302.8 million in cash and cash equivalents [9]

Ubiquiti Inc. (NYSE:UI) is included among 12 Unstoppable Dividend Stocks to Buy According to Analysts. Barclays Updates Ubiquiti Inc. (UI) Outlook After Q2 Results On February 4, Barclays analyst Tim Long raised the firm’s price recommendation on Ubiquiti Inc. (NYSE:UI) to $527 from $455. The firm maintained an Underweight rating on the shares. The change followed an update to the firm’s model after the fiscal Q2 report. Ubiquiti reported fiscal Q2 2026 earnings on February 8. Revenue came in at $814.8 ...

Core Thesis - Ubiquiti Inc. is facing a bearish outlook due to growing reputational and legal risks associated with its networking equipment being used by Russian forces, despite U.S. and EU sanctions [2][3][6] Company Overview - Ubiquiti Inc. is a $34 billion American technology company that develops networking technology for service providers, enterprises, and consumers [2] Legal and Reputational Risks - Ubiquiti's radio bridge antennae are reportedly critical to Russian drone operations in Ukraine, with Ukrainian officers estimating that approximately 80% of Russian battlefield radio bridges are Ubiquiti devices [3] - Despite commitments to tighten controls, Ubiquiti products remain accessible through Russian vendors and sanctioned intermediaries, with shipments to Russia increasing by 66% post-invasion, including models released after sanctions [4] - The company's distribution network is lightly monitored, and it has a minimal compliance team, creating a high-risk environment for potential legal repercussions [5] Regulatory and Compliance Issues - Ubiquiti faces strict liability under U.S. export controls, which could lead to civil, criminal, or human-rights litigation, regardless of intent [5] - The company's inability to effectively enforce compliance and the circumvention of restrictions by distributors could lead to significant regulatory exposure [6] Financial Implications - The combination of regulatory exposure, reputational damage, and moral scrutiny could materially pressure Ubiquiti's valuation, with ongoing scrutiny potentially amplifying financial and operational consequences [6]

We came across a bearish thesis on Ubiquiti Inc. on Hunterbrook’s Substack. In this article, we will summarize the bears’ thesis on UI. Ubiquiti Inc.'s share was trading at $548.24 as of February 4th. UI’s trailing and forward P/E were 43.55 and 40.00 respectively according to Yahoo Finance. Booz Allen (BAH): William Blair Sees Upside from Growing Influence, Attractive Valuation Africa Studio/Shutterstock.com Ubiquiti Inc. develops networking technology for service providers, enterprises, and consumers ...

In a regulatory filing, Ubiquiti (UI) disclosed: “On February 2, 2026, Ax Wireless, LLC filed a complaint against the Company with the U.S. International Trade Commission (“ITC”) alleging infringement of certain U.S. patents related to Wi-Fi 6 technology, including U.S. Patent Nos. 10,079,707; 10,917,272; 11,646,927; 11,777,776; and 11,812,134. The complainant seeks a limited exclusion order and a cease and desist order that would prohibit the Company from importing into the United States, and selling in t ...

Ubiquiti Inc. (NYSE:UI) reported earnings of $3.88 per share, significantly beating the Zacks Consensus Estimate.The company's revenue reached $814.87 million for the quarter, exceeding expectations by 13.18%.Ubiquiti's stock has seen a notable increase, with a yearly high of $803.60 and a dividend announcement of $0.80 per share.Ubiquiti Inc. (NYSE:UI), a leading name in the wireless equipment industry, is renowned for its cutting-edge networking technology solutions. The company has consistently demonstra ...

Financial Performance - Revenues for Q2 Fiscal 2026 reached $814.9 million, a 35.8% increase year-over-year[4] - GAAP diluted earnings per share (EPS) was $3.86, reflecting a 70.8% increase from the prior year[18] - Non-GAAP diluted EPS was $3.88, also up 70.2% compared to the same period last year[18] - Gross profit for the quarter was $374.0 million, with a gross margin of 45.9%, up from 41.2% year-over-year[9] - Income from operations was $292.9 million, up from $178.8 million in the same quarter last year[4] - Ubiquiti Inc. reported a net income of $233,610,000 for the three months ended December 31, 2025, compared to $207,876,000 for the previous quarter, representing an increase of 12.5%[25] - Non-GAAP net income for the same period was $235,059,000, up from $209,310,000 in the prior quarter, reflecting a growth of 12.3%[25] - For the six months ended December 31, 2025, net income was $441,486,000, significantly higher than $264,783,000 for the same period in 2024, indicating a year-over-year increase of 66.8%[25] - Non-GAAP net income for the six months ended December 31, 2025, was $444,369,000, compared to $267,416,000 in the prior year, reflecting a growth of 66.1%[25] Expenses - Research and development (R&D) expenses increased to $50.8 million, up from $40.0 million in the same quarter last year[11] - Sales, general and administrative (SG&A) expenses rose to $30.3 million, compared to $28.5 million in the prior year[13] - Total operating expenses for the quarter were $81.1 million, compared to $68.4 million in the prior year[4] Revenue Sources - North America contributed $443.6 million to total revenues, a significant increase from $321.6 million in the prior year[7] Dividends - The company declared a cash dividend of $0.80 per share, payable on February 23, 2026[3] Non-GAAP Financial Measures - The company emphasizes the importance of non-GAAP financial measures for evaluating operating performance and planning future periods[29] - Adjustments to GAAP results include share-based compensation expenses and the tax effects of these adjustments, which are excluded to provide a clearer view of operational performance[30] - Management believes that non-GAAP measures facilitate comparability of operating performance across periods, aiding in investor analysis[29] - The company aims to provide investors with insights into its financial condition and operational trends through the use of non-GAAP financial information[28]

NEW YORK--(BUSINESS WIRE)--Ubiquiti Inc. (NYSE: UI) ("Ubiquiti" or the "Company") today announced its financial results for the second quarter ended December 31, 2025. Second Quarter Fiscal 2026 Financial Summary Revenues of $814.9 million GAAP diluted EPS of $3.86 Non-GAAP diluted EPS of $3.88 Additional Financial Highlight The Company's Board of Directors declared a $0.80 per share cash dividend payable on February 23, 2026 to shareholders of record at the close of business on February 17, 20. ...

Revenue and Sales Performance - The company operates as a single reportable segment, with revenues primarily derived from the sale of networking hardware [103]. - For the six months ended December 31, 2025, sales to distributors accounted for 55% of revenues, while direct sales contributed 45% [105]. - Total revenues increased by $215.0 million, or 36%, from $599.9 million in Q4 2024 to $814.9 million in Q4 2025 [116]. - Enterprise Technology revenue increased by $210.8 million, or 41%, from $518.2 million in Q4 2024 to $729.0 million in Q4 2025 [118]. - Revenues in North America increased by $121.9 million, or 38%, from $321.6 million in Q4 2024 to $443.6 million in Q4 2025 [123]. - Revenues in EMEA increased by $72.1 million, or 35%, from $208.6 million in Q4 2024 to $280.7 million in Q4 2025 [125]. - Revenues in Asia Pacific increased by $11.4 million, or 26%, from $43.1 million in Q4 2024 to $54.5 million in Q4 2025 [127]. - Revenues in South America increased by $9.5 million, or 36%, from $26.6 million in Q4 2024 to $36.1 million in Q4 2025 [129]. Cost and Expense Management - Gross profit margins may be affected by factors such as product mix, tariffs, and competitive pricing pressures, with recent tariff changes increasing product costs significantly [109]. - Research and development expenses are expected to rise as the company continues to invest in new product development and enhancements to existing products [112]. - Operating expenses are classified into research and development and sales, general and administrative expenses, with an anticipated increase in absolute dollars due to growth in headcount and market expansion [110]. - Research and Development expenses increased by $10.9 million, or 27%, from $40.0 million in Q4 2024 to $50.8 million in Q4 2025 [132]. - Sales, General and Administrative expenses increased by $1.8 million, or 6%, from $28.5 million in Q4 2024 to $30.3 million in Q4 2025 [135]. - I&O expenses decreased by $17.2 million, or 78%, from $22.0 million in the six months ended December 31, 2024, to $4.8 million in the six months ended December 31, 2025, representing 0% of revenue [139]. Financial Position and Cash Flow - Net cash provided by operating activities for the six months ended December 31, 2025, was $462.4 million, compared to $386.1 million for the same period in 2024, reflecting a significant increase [145]. - Cash and cash equivalents increased to $302.8 million as of December 31, 2025, from $149.7 million as of June 30, 2025 [144]. - Net cash used in financing activities was $300.5 million during the six months ended December 31, 2025, which included $202.5 million repaid under credit facilities and $96.8 million for dividends [149]. - The company had $1,263.8 million in purchase commitments with third-party manufacturers as of December 31, 2025 [159]. Tax and Interest Rate Implications - Provision for income taxes increased by $27.1 million, or 89%, from $30.6 million for the three months ended December 31, 2024, to $57.7 million for the three months ended December 31, 2025, with an effective tax rate increase to 19.8% [141]. - The effective tax rate increase was primarily driven by changes in the mix of income earned in various tax jurisdictions [143]. - An instantaneous and sustained 200-basis-point increase in interest rates would result in an incremental charge of approximately $1.0 million to income before income taxes over the next twelve months [167]. - A 10% appreciation or depreciation in the value of the U.S. dollar relative to other currencies would result in a charge or benefit of approximately $5.5 million for income before income taxes for the three months ended December 31, 2025 [168]. - A 10% appreciation or depreciation in the value of the U.S. dollar relative to other currencies in bank accounts would result in a charge or benefit of approximately $3.3 million for income before income taxes for the three months ended December 31, 2025 [169]. Operational Challenges and Market Conditions - The company has experienced periodic volatility in the supply of components, leading to increased delivery lead times and costs, which may impact future operations [100]. - The company is monitoring geopolitical tensions, including the Russia-Ukraine conflict and China-Taiwan tensions, which may impact operations and supply chains [101][102]. - The company has a broad portfolio of networking products targeting wireless internet service providers, enterprises, and smart homes, differentiated by proprietary software and hardware design [95]. - The company does not employ a traditional sales force but relies on online marketing and community engagement to drive brand awareness and customer interaction [94].

NEW YORK--(BUSINESS WIRE)---- $UI #investigation--Scott+Scott Attorneys at Law LLP ("Scott+Scott†), an international securities and consumer rights litigation firm, is investigating whether the leadership of Ubiquiti Inc. ("Ubiquiti†) (NYSE: UI) breached their fiduciary duties to Ubiquiti and its shareholders. CLICK HERE TO LEARN MORE Scott+Scott is investigating whether members of Ubiquiti's board of directors or senior management failed to manage Ubiquiti in an acceptable manner, in breach of their fi ...