Dividends - The company declared a cash dividend of $0.60 per share payable on September 9, 2024, with plans to pay regular quarterly cash dividends of at least $0.60 per share during each remaining quarter of fiscal 2025[188] Revenue Distribution - Sales to distributors accounted for 62% and 64% of revenues during the years ended June 30, 2024 and 2023, respectively, while webstore sales accounted for 38% and 36% of revenues during the same periods[198] Warehousing and Logistics - The company operates warehouses in the U.S., Europe, and Asia Pacific, and outsources logistics warehousing and order fulfillment functions in Vietnam and other countries[200] Tariffs - The company's products imported into the U.S. from China are subject to tariffs ranging between 7.5% and 25%, which have affected operating results and margins[201] Research and Development - Research and development expenses are expected to increase as the company continues to invest in developing new products and new versions of existing products[203] - R&D expenses increased by $14.6 million, or 10.1%, from $145.2 million in fiscal 2023 to $159.8 million in fiscal 2024[231] Sales, General, and Administrative Expenses - Sales, general, and administrative expenses are expected to increase due to continued growth in headcount, expansion of trademark and patent efforts, and support for business operations[204] - SG&A expenses increased by $10.0 million, or 14.1%, from $71.0 million in fiscal 2023 to $81.0 million in fiscal 2024[232] Revenue Recognition - The company recognizes revenue when control of goods or services is transferred to customers, with revenue for post-contract customer support (PCS) recognized ratably over time[208] - The company uses a cost-plus margin approach to estimate the standalone selling price of implied PCS obligations, considering the activities of specific employees engaged in support and software enhancements[212] Inventory Management - Inventories are stated at the lower of actual cost or net realizable value (NRV), with write-downs for estimated obsolescence or lack of marketability not reversed until the related inventory is sold or scrapped[213] - Net cash provided by operating activities for fiscal 2024 was $541.5 million, driven by net income of $350.0 million and a decrease in inventories by $250.7 million[239] - Net cash used in operating activities for fiscal 2023 was $145.4 million, primarily due to a $487.9 million increase in inventory[240] Revenue Performance - Total revenues decreased by $12.0 million, or 0.6%, from $1,940.5 million in fiscal 2023 to $1,928.5 million in fiscal 2024[221] - Enterprise Technology revenues decreased by $3.8 million, or 0.2%, from $1,621.4 million in fiscal 2023 to $1,617.7 million in fiscal 2024[222] - Service Provider Technology revenues decreased by $8.3 million, or 2.6%, from $319.1 million in fiscal 2023 to $310.8 million in fiscal 2024[223] - Revenues in North America increased by $24.2 million, or 2.6%, from $922.2 million in fiscal 2023 to $946.4 million in fiscal 2024[226] - Revenues in EMEA decreased by $19.3 million, or 2.5%, from $759.4 million in fiscal 2023 to $740.1 million in fiscal 2024[227] - Revenues in the Asia Pacific region decreased by $20.6 million, or 13.9%, from $148.5 million in fiscal 2023 to $127.9 million in fiscal 2024[228] Gross Profit Margin - Gross profit margin decreased to 38.4% in fiscal 2024 from 39.2% in fiscal 2023[230] Interest and Other Expenses - Interest expense and other, net expenses increased by $16.9 million, or 29.1%, from $58.2 million in fiscal 2023 to $75.2 million in fiscal 2024[233] - A 200-basis-point increase in interest rates would result in an incremental charge of $14.2 million to income before taxes over the next twelve months[256] Cash Flow Activities - Cash outflows from investing activities in fiscal 2024 were $12.0 million, mainly for capital expenditures[241] - Cash outflows from financing activities in fiscal 2024 totaled $518.0 million, including $215.0 million in debt repayments and $145.1 million in common stock dividends[242] - Cash inflows from financing activities in fiscal 2023 were $145.0 million, supported by $291.9 million in borrowings to increase inventories[243] Purchase Commitments - The company had $981.7 million in purchase commitments with third-party manufacturers as of June 30, 2024[251] Tax Obligations - Transition tax obligations totaled $50.6 million as of June 30, 2024, with payments of $22.5 million expected in fiscal 2025 and $28.1 million in fiscal 2026[252] - Unrecognized tax benefits amounted to $33.0 million as of June 30, 2024, with an additional $4.8 million in accrued interest[254] Currency Fluctuations - A 10% fluctuation in the U.S. dollar relative to other currencies would impact income before taxes by approximately $1.9 million for fiscal 2024[257] - A 10% appreciation or depreciation in the value of the U.S. dollar relative to other currencies would result in a charge or benefit to income before taxes of approximately $1.9 million for fiscal year June 30, 2024[257] - A 10% appreciation or depreciation in the value of the U.S. dollar relative to other currencies in which bank accounts are denominated would result in a charge or benefit to income before taxes of approximately $4.7 million for fiscal year June 30, 2024[257] Internal Control - The company maintained effective internal control over financial reporting as of June 30, 2024[260] - The effectiveness of internal control over financial reporting as of June 30, 2024 has been audited by KPMG LLP[261] - There were no changes in the company's internal control over financial reporting during the quarter ended June 30, 2024 that materially affected or are reasonably likely to materially affect internal control over financial reporting[262]

Shares of Ubiquiti Inc. (UI) have surged 39.1% over the past six months, driven by an accretive customer base and healthy revenues on the back of a flexible business model. With healthy fundamentals, this Zacks Rank #2 (Buy) wireless equipment manufacturer appears to be a solid investment option at the moment. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Image Source: Zacks Investment Research Growth Drivers With the wide proliferation of the Internet and exponential grow ...

Financial Performance - Revenues for Q3 fiscal 2024 were $493.0 million, an increase of 6.0% from the prior quarter and 7.7% from the same period last year[8]. - GAAP diluted earnings per share (EPS) for Q3 fiscal 2024 was $1.26, reflecting a decrease of 22.7% compared to the same period last year[19]. - Non-GAAP diluted EPS for Q3 fiscal 2024 was $1.28, down 22.4% from the comparable prior year period[19]. - Gross profit for Q3 fiscal 2024 was $174.1 million, with a gross margin of 35.3%, down from 38.2% in the prior quarter and 41.2% in the same period last year[10]. - Net income for the three months ended March 31, 2024, was $76,290,000, a decrease of 7% from $82,116,000 in the previous quarter[27]. - Non-GAAP net income for the same period was $77,555,000, down 7% from $83,261,000 quarter-over-quarter[27]. - For the nine months ended March 31, 2024, net income totaled $246,156,000, down 19% from $303,964,000 in the same period last year[27]. - Non-GAAP net income for the nine months ended March 31, 2024, was $249,708,000, a decrease of 18% from $306,557,000 year-over-year[27]. Expenses - Research and development (R&D) expenses increased to $42.5 million in Q3 fiscal 2024, up from $36.9 million in the prior quarter and $38.2 million in the same period last year[12]. - Sales, general and administrative (SG&A) expenses were $20.4 million in Q3 fiscal 2024, compared to $19.6 million in the prior quarter and $16.7 million in the same period last year[14]. - Interest expense and other net expenses were $18.9 million in Q3 fiscal 2024, an increase from $18.3 million in the prior quarter and $16.5 million in the same period last year[16]. - The company reported share-based compensation expenses of $1,664,000 for the three months ended March 31, 2024, compared to $1,506,000 in the previous quarter[27]. Revenue Segmentation - Total revenues from the Enterprise Technology segment were $414.3 million, while Service Provider Technology revenues were $78.7 million in Q3 fiscal 2024[4]. - North America generated $242.5 million in revenues, while Europe, the Middle East, and Africa contributed $200.7 million in Q3 fiscal 2024[7]. Dividends - The Company declared a cash dividend of $0.60 per share, payable on May 28, 2024[3]. Non-GAAP Financial Measures - Management uses non-GAAP financial measures to evaluate operating performance and facilitate comparability of results across periods[31]. - Non-GAAP measures are adjusted to exclude certain costs, including share-based compensation and tax effects, to provide a clearer view of operational performance[32]. - The company emphasizes that non-GAAP financial measures should not be considered a substitute for GAAP measures, as they have limitations in reflecting certain items impacting financial results[32].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-35300 UBIQUITI INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorp ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-35300 UBIQUITI INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of inc ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-35300 UBIQUITI INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of in ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File No. 001-35300 UBIQUITI INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of i ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR For the transition period from to Commission File No. 001-35300 UBIQUITI INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Delaware 32-0097377 (I.R.S. Employer Identification No.) 685 Third Avenue, 27th Floor, New York, NY 10017 (Addre ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR For the transition period from to Commission File No. 001-35300 UBIQUITI INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of inc ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 For the transition period from to Commission File No. 001-35300 UBIQUITI INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURI ...