Core Insights - Ubiquiti is positioned for sustained, profitable growth, having surpassed previous performance expectations in the last three quarters [1]. Company Performance - Ubiquiti exceeded the high end of performance expectations as noted in the previous analysis from December 2024 [1]. Management Background - Michael Huber, the Founder of Lavien and Portfolio Manager, has over 15 years of experience in private and public equity investing, and serves as President and Managing Principal at Quadrangle Group [1].

Core Insights - Ubiquiti is positioned for sustained, profitable growth, having surpassed the high end of previous performance expectations in the last three quarters [1] Company Overview - Ubiquiti's recent performance indicates strong market positioning and growth potential, suggesting a favorable outlook for investors [1]

Core Insights - The telecom sector has shown an 11% gain in 2024, but it has underperformed compared to the broader market, with the S&P 500 increasing by approximately 25% and the NASDAQ by nearly 30% [1] Industry Overview - The telecom industry has experienced periods of significant revenue growth, initially driven by wireline services and later by mobile connectivity and broadband internet. Outside these high-growth phases, the sector is generally characterized by steady but slower revenue growth, typically in the single digits, with global average dividend yields around 4% [2] - Future expectations for telecom companies include a focus on cost reductions, careful capital spending management, monetizing past investments, and leveraging mergers and acquisitions to enhance value. Companies with a growth focus may seek to accelerate revenue beyond traditional connectivity services [3] Methodology for Stock Selection - The stock selection process involved scanning Insider Monkey's database of nearly 1,000 hedge funds as of Q2 2025, identifying telecom sector stocks that pay dividends, and ranking them based on the number of hedge fund investors [5] Company Highlights - **TELUS Corporation (NYSE:TU)**: - Ranked among Canada's top telecom providers, TELUS benefits from a subscription-driven model that ensures consistent revenue. The company has a strong dividend growth record, having raised payouts for 21 consecutive years, currently offering a quarterly dividend of $0.4163 per share and a dividend yield of 7.66% as of September 24 [7][8] - TELUS is investing approximately $70 billion through 2029 to enhance its 5G and broadband networks, aiming to support customer growth and service quality [9] - The healthcare division, TELUS Health, is experiencing solid momentum due to strategic investments and innovative offerings [10] - **Ubiquiti Inc. (NYSE:UI)**: - A networking technology firm that serves clients in over 75 countries, Ubiquiti employs a community-driven marketing strategy rather than a large direct sales team. The company has maintained a solid dividend policy since 2018, increasing its quarterly dividend by 33.3% to $0.80 per share in August, resulting in a dividend yield of 0.50% as of September 24 [11][13] - **Iridium Communications Inc. (NASDAQ:IRDM)**: - Provides global satellite-based voice and data services through a network of 66 low Earth orbit satellites, focusing on government contracts and expanding into new areas like direct-to-device satellite connectivity. Iridium initiated its dividend policy in 2022, currently offering a quarterly dividend of $0.15 per share and a dividend yield of 3.44% as of September 24 [14][15][16]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Overview: Ubiquiti Inc. (UI) - Ubiquiti Inc. currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [3][4]. - The stock has shown significant price appreciation, with a 53.74% increase over the past quarter and a remarkable 204.99% gain over the last year, compared to the S&P 500's 8.64% and 21.49% respectively [7]. Price Performance - Over the past week, Ubiquiti's shares increased by 9.26%, while the Zacks Wireless Equipment industry rose by 1.17% [6]. - The monthly price change for Ubiquiti is 25.47%, significantly outperforming the industry's 4.77% [6]. Trading Volume - Ubiquiti's average 20-day trading volume is 215,583 shares, which serves as a bullish indicator when combined with rising stock prices [8]. Earnings Outlook - In the last two months, one earnings estimate for Ubiquiti has increased, raising the consensus estimate from $9.23 to $9.29, with no downward revisions during the same period [10]. - For the next fiscal year, one estimate has also moved upwards, indicating positive sentiment regarding future earnings [10]. Conclusion - Given the strong momentum indicators and positive earnings outlook, Ubiquiti Inc. is positioned as a solid momentum pick for investors [12].

Core Viewpoint - Ubiquiti's recent stock surge of over 30% is attributed to a significant business turnaround after overcoming supply chain challenges, leading to record revenue and improved profitability [2][3][4]. Financial Performance - Ubiquiti reported record quarterly revenue of $759.2 million, exceeding analyst estimates of $618.8 million, marking a 49.6% year-over-year increase [4]. - For the full fiscal year 2025, Ubiquiti achieved $2.6 billion in revenue, a 33.4% increase compared to the previous year, indicating a successful operational recovery [5]. - The company's GAAP gross margin improved to 45.1% from 40.2% a year ago, reflecting enhanced financial health [6]. Management Actions - Ubiquiti announced a 33.3% increase in its quarterly dividend to 80 cents per share, signaling confidence in sustained cash flow [9]. - The company initiated a stock buyback plan, authorizing the repurchase of up to $500 million of its shares, further indicating management's belief in the company's value [9]. Market Sentiment - Prior to the earnings report, over 13% of Ubiquiti's publicly traded shares were sold short, creating a situation where negative sentiment contributed to the stock's explosive rally following the positive earnings announcement [10][11]. - The combination of strong performance and negative sentiment led to a significant market reaction, as short sellers were forced to buy back shares, further driving up the stock price [11]. Future Outlook - With operational issues resolving, profitability restored, and robust demand, Ubiquiti is well-positioned for future growth, marking the beginning of a new chapter in its business story [12][13].

Core Insights - Ubiquiti, Inc. reported strong fourth-quarter fiscal 2025 results, with both revenue and net income exceeding Zacks Consensus Estimates, driven by robust demand in the Enterprise Technology segment [1][10] Financial Performance - Net income for the quarter was $266.7 million or $4.41 per share, a significant increase from $103.8 million or $1.72 per share in the same quarter last year, despite higher operating expenses [2] - For fiscal 2025, net income rose to $711.9 million or $11.76 per share, compared to $349.9 million or $5.79 per share in 2024 [3] Revenue Growth - Net sales in the quarter increased to $759.2 million from $507.5 million year-over-year, surpassing the consensus estimate by $144 million [4][10] - The Enterprise Technology segment generated $680.1 million in revenues, up from $431.7 million in the prior-year quarter, exceeding estimates [5] - Service Provider Technology revenues increased to $79 million from $75.7 million year-over-year, driven by strength in North Europe, the Middle East, and Africa [6] Regional Performance - North America revenues were $379.9 million, up from $253.3 million in the year-ago quarter, while EMEA revenues reached $303.8 million, up from $194.1 million [7] Profitability Metrics - Gross profit for the quarter was $342.7 million, with a margin of 45.1%, compared to $204.1 million and 40.2% margin in the prior year, driven by a favorable product mix [8] - Operating income increased to $261.4 million from $138.3 million year-over-year [9] Cash Flow and Liquidity - Ubiquiti generated $640 million in cash from operating activities in 2025, compared to $541.5 million in the prior year [11]

Core Insights - Ubiquiti Inc. reported strong fiscal Q4 results for the April-June period, with accelerated growth and strong margins that surprised the market, leading to a 31% increase in stock price for the day [1] Financial Performance - The company demonstrated significant growth in its enterprise networking segment, which contributed to the positive market reaction [1] Market Reaction - The stock price surged by 31% following the announcement of the fiscal Q4 results, indicating strong investor confidence and market optimism regarding the company's future prospects [1]

Group 1 - Ubiquiti Inc. reported quarterly earnings of $3.54 per share, exceeding the Zacks Consensus Estimate of $1.94 per share, and showing an increase from $1.74 per share a year ago, resulting in an earnings surprise of +82.47% [1] - The company achieved revenues of $759.15 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 23.43%, compared to $507.46 million in the same quarter last year [2] - Ubiquiti has consistently outperformed consensus EPS estimates over the last four quarters, with a favorable trend in estimate revisions leading to a Zacks Rank 2 (Buy) for the stock [6] Group 2 - The current consensus EPS estimate for the upcoming quarter is $2.21 on revenues of $629.43 million, and for the current fiscal year, it is $9.29 on revenues of $2.5 billion [7] - The Wireless Equipment industry, to which Ubiquiti belongs, is currently ranked in the top 33% of over 250 Zacks industries, indicating a strong potential for outperformance compared to lower-ranked industries [8]

Core Insights - Ubiquiti Inc. reported quarterly earnings of $3.57 per share, significantly exceeding the Zacks Consensus Estimate of $1.94 per share, and up from $1.74 per share a year ago, representing an earnings surprise of +84.02% [1] - The company achieved revenues of $759.15 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 23.43%, compared to $507.46 million in the same quarter last year [2] - Ubiquiti has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The sustainability of Ubiquiti's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3] - The current consensus EPS estimate for the upcoming quarter is $2.21 on revenues of $629.43 million, and for the current fiscal year, it is $9.29 on revenues of $2.5 billion [7] Industry Context - The Wireless Equipment industry, to which Ubiquiti belongs, is currently ranked in the top 33% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Ubiquiti's stock performance [5][6]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) This section summarizes Ubiquiti Inc.'s key financial performance for Q4 and full fiscal year 2025, including revenue, earnings per share, and capital allocation decisions [Fourth Quarter Fiscal 2025 Financial Summary](index=1&type=section&id=Fourth%20Quarter%20Fiscal%202025%20Financial%20Summary) Ubiquiti Inc. achieved record revenue of $759.2 million in Q4 FY2025, with GAAP diluted EPS of $4.41 and non-GAAP diluted EPS of $3.54 | Metric | F4Q25 (million USD) | F3Q25 (million USD) | F4Q24 (million USD) | | :-------------------------- | :------------------ | :------------------ | :------------------ | | Revenue | 759.2 | 664.2 | 507.5 | | Enterprise Technology Revenue | 680.1 | 585.7 | 431.7 | | Service Provider Technology Revenue | 79.0 | 78.4 | 75.7 | | Gross Profit | 342.7 | 295.9 | 204.1 | | Gross Margin (%) | 45.1% | 44.5% | 40.2% | | Total Operating Expenses | 81.3 | 69.0 | 65.8 | | Operating Income | 261.4 | 226.9 | 138.4 | | GAAP Net Income | 266.7 | 180.4 | 103.8 | | GAAP Diluted EPS | 4.41 | 2.98 | 1.72 | | Non-GAAP Net Income | 214.4 | 181.8 | 105.1 | | Non-GAAP Diluted EPS | 3.54 | 3.00 | 1.74 | [Full Fiscal 2025 Financial Summary](index=1&type=section&id=Full%20Fiscal%202025%20Financial%20Summary) The company achieved $2.6 billion in revenue for the full fiscal year 2025, with GAAP diluted EPS of $11.76 and non-GAAP diluted EPS of $10.96 | Metric | FY2025 (billion USD) | | :---------------- | :------------------- | | Revenue | 2.6 | | GAAP Diluted EPS | 11.76 | | Non-GAAP Diluted EPS | 10.96 | [Additional Financial Highlights](index=1&type=section&id=Additional%20Financial%20Highlights) The board declared a cash dividend of $0.80 per share and plans to pay at least $0.80 quarterly in FY2026, while also initiating a new $500 million stock repurchase program - The board declared a cash dividend of **$0.80 per share**, payable on September 8, 2025, to shareholders of record as of the close of business on September 2, 2025[5](index=5&type=chunk) - The company plans to pay a regular quarterly cash dividend of at least **$0.80 per share** in fiscal year 2026, with all subsequent dividends subject to quarterly board review[5](index=5&type=chunk) - The company initiated a new stock repurchase program, authorizing the repurchase of up to **$500 million** of its common stock[5](index=5&type=chunk) [Detailed Financial Performance Analysis](index=2&type=section&id=Detailed%20Financial%20Performance%20Analysis) This section provides an in-depth analysis of Ubiquiti Inc.'s financial results, covering revenue breakdown, gross margin drivers, operating expenses, interest, taxes, and net income [Revenues](index=2&type=section&id=Revenues) Q4 FY2025 revenue reached $759.2 million, increasing 14.3% sequentially and 49.6% year-over-year, with full-year revenue at $2.6 billion, up 33.4%, primarily driven by enterprise technology platforms | Metric | F4Q25 (million USD) | F3Q25 (million USD) | F4Q24 (million USD) | Sequential Growth | Year-over-Year Growth | | :----- | :------------------ | :------------------ | :------------------ | :---------------- | :-------------------- | | Revenue | 759.2 | 664.2 | 507.5 | 14.3% | 49.6% | | Metric | FY2025 (billion USD) | FY2024 (billion USD) | Year-over-Year Growth | | :----- | :------------------- | :------------------- | :-------------------- | | Revenue | 2.6 | 1.9 | 33.4% | - Revenue growth was primarily driven by increased Enterprise Technology platform revenue, with contributions from the Service Provider Technology platform as well[8](index=8&type=chunk) [Revenues by Product Type](index=2&type=section&id=Revenues%20by%20Product%20Type) This subsection details Ubiquiti Inc.'s revenue distribution across enterprise technology and service provider segments for quarterly and annual periods | Product Type | Three Months Ended June 30, 2025 (thousand USD) | Three Months Ended June 30, 2024 (thousand USD) | Twelve Months Ended June 30, 2025 (thousand USD) | Twelve Months Ended June 30, 2024 (thousand USD) | | :------------------ | :-------------------------------------------- | :-------------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | | Enterprise Technology | 680,147 | 431,733 | 2,254,254 | 1,617,665 | | Service Provider | 79,006 | 75,728 | 319,291 | 310,825 | | **Total Revenue** | **759,153** | **507,461** | **2,573,545** | **1,928,490** | [Revenues by Geographical Area](index=2&type=section&id=Revenues%20by%20Geographical%20Area) This subsection presents Ubiquiti Inc.'s revenue breakdown by major geographical regions for both quarterly and annual performance | Geographical Area | Three Months Ended June 30, 2025 (thousand USD) | Three Months Ended June 30, 2024 (thousand USD) | Twelve Months Ended June 30, 2025 (thousand USD) | Twelve Months Ended June 30, 2024 (thousand USD) | | :------------------------ | :-------------------------------------------- | :-------------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | | North America | 379,899 | 253,274 | 1,295,515 | 946,428 | | Europe, Middle East, and Africa | 303,796 | 194,102 | 999,384 | 740,113 | | Asia Pacific | 47,344 | 32,087 | 168,843 | 127,901 | | South America | 28,114 | 27,998 | 109,803 | 114,048 | | **Total Revenue** | **759,153** | **507,461** | **2,573,545** | **1,928,490** | [Gross Margin](index=2&type=section&id=Gross%20Margin) Q4 FY2025 GAAP gross profit was $342.7 million with a 45.1% gross margin, increasing 0.6% sequentially and 4.9% year-over-year, while full-year GAAP gross margin was 43.4%, up 5.0%, driven by favorable product mix, lower obsolete inventory charges, and indirect operating expenses, partially offset by higher tariffs | Metric | F4Q25 (million USD) | F3Q25 (million USD) | F4Q24 (million USD) | Sequential Change | Year-over-Year Change | | :----------- | :------------------ | :------------------ | :------------------ | :---------------- | :-------------------- | | GAAP Gross Profit | 342.7 | 295.9 | 204.1 | +46.8 | +138.6 | | GAAP Gross Margin | 45.1% | 44.5% | 40.2% | +0.6% | +4.9% | | Metric | FY2025 (million USD) | FY2024 (million USD) | Year-over-Year Change | | :----------- | :------------------- | :------------------- | :-------------------- | | GAAP Gross Profit | 1,117.5 | 739.8 | +377.7 | | GAAP Gross Margin | 43.4% | 38.4% | +5.0% | - Gross margin growth was primarily driven by a favorable product mix, lower obsolete inventory charges, reduced freight costs, and lower indirect operating expenses, partially offset by higher tariffs[10](index=10&type=chunk) [Operating Expenses](index=2&type=section&id=Operating%20Expenses) Total operating expenses for Q4 FY2025 were $81.3 million, increasing from both the prior quarter and the prior year, with full-year operating expenses growing to $281.2 million from FY2024 | Metric | F4Q25 (million USD) | F3Q25 (million USD) | F4Q24 (million USD) | | :----------------- | :------------------ | :------------------ | :------------------ | | Total Operating Expenses | 81.3 | 69.0 | 65.8 | | Metric | FY2025 (million USD) | FY2024 (million USD) | | :----------------- | :------------------- | :------------------- | | Total Operating Expenses | 281.2 | 240.8 | [Research and Development Expenses](index=2&type=section&id=Research%20and%20Development%20Expenses) This subsection outlines Ubiquiti Inc.'s research and development expenditures for the reported periods, highlighting key drivers of change | Metric | F4Q25 (million USD) | F3Q25 (million USD) | F4Q24 (million USD) | | :------------------ | :------------------ | :------------------ | :------------------ | | Research and Development Expenses | 47.5 | 44.3 | 44.1 | | Metric | FY2025 (million USD) | FY2024 (million USD) | | :------------------ | :------------------- | :------------------- | | Research and Development Expenses | 169.7 | 159.8 | - The increase in research and development expenses was primarily due to higher prototype-related and employee-related expenses, with the full year also reflecting increased depreciation and software expenses[12](index=12&type=chunk) [Sales, General and Administrative Expenses](index=3&type=section&id=Sales%2C%20General%20and%20Administrative%20Expenses) This subsection details Ubiquiti Inc.'s sales, general, and administrative expenses, identifying factors contributing to their fluctuations | Metric | F4Q25 (million USD) | F3Q25 (million USD) | F4Q24 (million USD) | | :------------------ | :------------------ | :------------------ | :------------------ | | SG&A Expenses | 33.9 | 24.8 | 21.7 | | Metric | FY2025 (million USD) | FY2024 (million USD) | | :------------------ | :------------------- | :------------------- | | SG&A Expenses | 111.5 | 81.0 | - The increase in SG&A expenses was primarily due to higher allowance for doubtful accounts, credit card processing fees from incremental web store sales, professional fees, marketing expenses, and employee-related expenses[14](index=14&type=chunk) [Interest Expense and Other, Net](index=3&type=section&id=Interest%20Expense%20and%20Other%2C%20Net) Q4 FY2025 interest expense and other, net, was $3.2 million, decreasing from both the prior quarter and prior year, with the full-year expense significantly reduced by $44.6 million from FY2024 due to lower borrowings and interest rates | Metric | F4Q25 (million USD) | F3Q25 (million USD) | F4Q24 (million USD) | | :-------------------------- | :------------------ | :------------------ | :------------------ | | Interest Expense and Other, Net | 3.2 | 5.4 | 16.8 | | Metric | FY2025 (million USD) | FY2024 (million USD) | | :-------------------------- | :------------------- | :------------------- | | Interest Expense and Other, Net | 30.6 | 75.2 | - The decrease in interest expense and other, net, was primarily due to lower borrowings and interest rates, along with a foreign exchange gain in Q4 FY2025 compared to a foreign exchange loss in the prior year period[16](index=16&type=chunk) [Income Taxes](index=3&type=section&id=Income%20Taxes) Q4 FY2025 GAAP income tax benefit was $8.5 million, primarily from the transfer of intangible assets from foreign subsidiaries to the U.S., resulting in a $53.7 million R&D expenditure recognized as a U.S. deferred tax asset | Metric | F4Q25 (million USD) | F4Q24 (million USD) | | :---------------------- | :------------------ | :------------------ | | Income Tax (Benefit)/Expense | (8.5) | 17.8 | | Metric | FY2025 (million USD) | FY2024 (million USD) | | :--------------- | :------------------- | :------------------- | | Income Tax Expense | 93.7 | 73.9 | - The Q4 income tax benefit was primarily due to the company's transfer of certain intangible assets held by foreign subsidiaries to the U.S., resulting in a **$53.7 million** R&D expenditure recognized as a U.S. deferred tax asset and immediately recognized[17](index=17&type=chunk) [Net Income and Earnings Per Share](index=3&type=section&id=Net%20Income%20and%20Earnings%20Per%20Share) Q4 FY2025 GAAP net income was $266.7 million and non-GAAP net income was $214.4 million, increasing 156.9% and 104.1% year-over-year respectively, with GAAP diluted EPS at $4.41 and non-GAAP diluted EPS at $3.54, driven by increased revenue, improved gross margin, and an income tax benefit | Metric | F4Q25 (million USD) | F4Q24 (million USD) | Year-over-Year Growth | | :------------------ | :------------------ | :------------------ | :-------------------- | | GAAP Net Income | 266.7 | 103.8 | 156.9% | | Non-GAAP Net Income | 214.4 | 105.1 | 104.1% | | GAAP Diluted EPS | 4.41 | 1.72 | 156.4% | | Non-GAAP Diluted EPS | 3.54 | 1.74 | 103.4% | - The increase in net income and EPS was primarily driven by increased revenue, improved gross margin, and an income tax benefit[18](index=18&type=chunk) - The difference between GAAP and non-GAAP net income primarily stems from the **$53.7 million** deferred tax asset immediately recognized under GAAP[18](index=18&type=chunk) [Company Overview](index=3&type=section&id=Company%20Overview) This section provides a brief introduction to Ubiquiti Inc., outlining its mission, product platforms, global presence, and investor contact information [About Ubiquiti Inc.](index=3&type=section&id=About%20Ubiquiti%20Inc.) Ubiquiti Inc. is dedicated to making networking technology accessible globally, providing high-capacity distributed internet access and unified IT management through its UISP and UniFi software platforms across over 200 countries and territories - Ubiquiti Inc. focuses on making networking technology accessible globally, creating network infrastructure in over **200 countries and territories**[19](index=19&type=chunk) - The company's specialized networking products are powered by its UISP and UniFi software platforms, offering high-capacity distributed internet access and unified information technology management, respectively[19](index=19&type=chunk) [Investor Relations Contact](index=3&type=section&id=Investor%20Relations%20Contact) Investors can contact Ubiquiti Inc.'s investor relations department via email at ir@ui.com - Investor Relations contact: **ir@ui.com**[21](index=21&type=chunk) [Legal and Financial Disclosures](index=4&type=section&id=Legal%20and%20Financial%20Disclosures) This section covers Ubiquiti Inc.'s legal disclaimers regarding forward-looking statements and presents its condensed consolidated statements of operations and comprehensive income [Safe Harbor for Forward-Looking Statements](index=4&type=section&id=Safe%20Harbor%20for%20Forward-Looking%20Statements) This press release contains forward-looking statements regarding future dividend payments, stock repurchases, and financial performance, which are subject to various risks and uncertainties that could cause actual results to differ materially from expectations, urging investors to review SEC filings for detailed risk factors - Forward-looking statements include intentions regarding quarterly cash dividend payments, stock repurchases, and future events and financial performance[22](index=22&type=chunk) - These statements are subject to various risks and uncertainties that could cause actual future results to differ materially from expectations, including tariff impacts, public health concerns, fluctuations in product demand, political and economic conditions, competition, technological developments, supply chain reliance, legal compliance costs, and reliance on the management team[23](index=23&type=chunk) - The company undertakes no obligation to update forward-looking information and advises investors to carefully review risk factors in its SEC filings[24](index=24&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) This section presents Ubiquiti Inc.'s condensed consolidated statements of operations and comprehensive income for the three and twelve months ended June 30, 2025, and 2024, detailing key financial data including revenue, costs, gross profit, operating expenses, net income, and EPS | Metric | Three Months Ended June 30, 2025 (thousand USD) | Three Months Ended June 30, 2024 (thousand USD) | Twelve Months Ended June 30, 2025 (thousand USD) | Twelve Months Ended June 30, 2024 (thousand USD) | | :---------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | | Revenue | 759,153 | 507,461 | 2,573,545 | 1,928,490 | | Cost of Revenue | 416,423 | 303,320 | 1,456,094 | 1,188,728 | | **Gross Profit** | **342,730** | **204,141** | **1,117,451** | **739,762** | | Operating Expenses: | | | | | | Research and Development | 47,455 | 44,076 | 169,672 | 159,768 | | Sales, General and Administrative | 33,873 | 21,695 | 111,499 | 80,997 | | **Total Operating Expenses** | **81,328** | **65,771** | **281,171** | **240,765** | | **Operating Income** | **261,402** | **138,370** | **836,280** | **498,997** | | Interest Expense and Other, Net | 3,191 | 16,813 | 30,628 | 75,169 | | **Income Before Income Taxes** | **258,211** | **121,557** | **805,652** | **423,828** | | Income Tax (Benefit)/Expense | (8,494) | 17,753 | 93,730 | 73,868 | | **Net Income** | **266,705** | **103,804** | **711,922** | **349,960** | | Net Income Per Common Share: | | | | | | Basic | 4.41 | 1.72 | 11.77 | 5.79 | | Diluted | 4.41 | 1.72 | 11.76 | 5.79 | | Weighted-Average Shares Used in Computing Net Income Per Common Share: | | | | | | Basic | 60,491 | 60,462 | 60,480 | 60,454 | | Diluted | 60,545 | 60,466 | 60,534 | 60,458 | [Non-GAAP Financial Information](index=5&type=section&id=Non-GAAP%20Financial%20Information) This section explains Ubiquiti Inc.'s non-GAAP financial measures, providing reconciliations to GAAP and clarifying their purpose and limitations for financial analysis [Reconciliation of GAAP to Non-GAAP Net Income](index=5&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Net%20Income) The company provides a reconciliation of GAAP to non-GAAP net income, primarily adjusting for stock-based compensation expenses and their tax impact, along with a deferred tax benefit from an internal intangible asset reorganization | Metric | Three Months Ended June 30, 2025 (thousand USD) | Three Months Ended March 31, 2025 (thousand USD) | Three Months Ended June 30, 2024 (thousand USD) | Twelve Months Ended June 30, 2025 (thousand USD) | Twelve Months Ended June 30, 2024 (thousand USD) | | :---------------------------------------------- | :-------------------------------------------- | :----------------------------------------------- | :-------------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | | Net Income | 266,705 | 180,435 | 103,804 | 711,922 | 349,960 | | Stock-based Compensation: | | | | | | | Cost of Revenue | 65 | 62 | 45 | 238 | 159 | | Research and Development | 1,331 | 1,351 | 1,264 | 5,238 | 4,831 | | Sales, General and Administrative | 476 | 435 | 378 | 1,732 | 1,368 | | Tax Impact of Non-GAAP Adjustments for Stock-based Compensation | (462) | (454) | (441) | (1,772) | (1,560) | | Deferred Tax Benefit from Intangible Asset Reorganization Transaction | (53,668) | — | — | (53,668) | — | | **Non-GAAP Net Income** | **214,447** | **181,829** | **105,050** | **663,690** | **354,758** | | Non-GAAP Diluted EPS | 3.54 | 3.00 | 1.74 | 10.96 | 5.87 | [Use and Usefulness of Non-GAAP Financial Information](index=5&type=section&id=Use%20and%20Usefulness%20of%20Non-GAAP%20Financial%20Information) The company uses non-GAAP net income and diluted EPS to supplement GAAP results, providing additional insights into non-cash and significant items for understanding financial and business trends, with management relying on these metrics for planning and performance evaluation, while acknowledging their limitations as non-GAAP alternatives - Non-GAAP net income and diluted EPS provide supplemental information regarding non-cash expenses and significant items, aiding in understanding financial and business trends[30](index=30&type=chunk) - Management uses non-GAAP metrics as primary bases for planning, forecasting future periods, and evaluating operating performance against specific goals and thresholds[30](index=30&type=chunk) - Non-GAAP measures are not substitutes for GAAP, may differ significantly from similar non-GAAP measures used by other companies, and do not reflect certain items that could have a material impact on reported financial results[31](index=31&type=chunk)