Ubiquiti(UI) - 2025 Q4 - Annual Results

Financial Highlights 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 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 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 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] - 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] - The company initiated a new stock repurchase program, authorizing the repurchase of up to $500 million of its common stock[5] Detailed Financial Performance Analysis 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 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] Revenues by Product Type 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 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 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] Operating Expenses 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 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] Sales, General and Administrative Expenses 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] Interest Expense and Other, Net 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] Income Taxes 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] Net Income and Earnings Per Share 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] - The difference between GAAP and non-GAAP net income primarily stems from the $53.7 million deferred tax asset immediately recognized under GAAP[18] Company Overview This section provides a brief introduction to Ubiquiti Inc., outlining its mission, product platforms, global presence, and investor contact information About Ubiquiti Inc. 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] - 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] Investor Relations Contact Investors can contact Ubiquiti Inc.'s investor relations department via email at ir@ui.com - Investor Relations contact: ir@ui.com[21] Legal and Financial Disclosures 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 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] - 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] - The company undertakes no obligation to update forward-looking information and advises investors to carefully review risk factors in its SEC filings[24] Condensed Consolidated Statements of Operations and Comprehensive Income 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 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 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 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] - Management uses non-GAAP metrics as primary bases for planning, forecasting future periods, and evaluating operating performance against specific goals and thresholds[30] - 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]