UCLOUDLINK GROUP INC. Announces Unaudited Third Quarter 2025 Financial Results

Core Viewpoint - UCLOUDLINK GROUP INC. reported its unaudited financial results for the third quarter of 2025, highlighting a decrease in total revenues but an increase in net income, indicating a mixed performance amid challenging macroeconomic conditions [1][5]. Financial Highlights - Total revenues were US$21.1 million, a decrease of 16.0% from US$25.2 million in the third quarter of 2024 [4][7]. - Gross profit was US$11.3 million, down 7.1% from US$12.2 million in the same period of 2024, with a gross margin of 53.6% compared to 48.4% in the prior year [4][10]. - Net income increased to US$9.3 million from US$3.4 million in the third quarter of 2024 [4][19]. - Adjusted net income (non-GAAP) was US$0.7 million, down from US$3.7 million in the same period of 2024 [4][20]. - Adjusted EBITDA (non-GAAP) was US$1.4 million, compared to US$4.4 million in the third quarter of 2024 [4][21]. Operational Highlights - Total data consumed through the platform was 49,044 terabytes, an increase of 9.0% from 44,994 terabytes in the third quarter of 2024 [4]. - Average daily active terminals (DAT) were 332,674, up 3.8% from 320,452 in the same period of 2024 [4]. - Average monthly active terminals (MAT) were 706,284, representing a 10.9% increase from 636,673 in the third quarter of 2024 [4]. - The GlocalMe IoT business saw a significant increase in average DAT, rising 1,021.1% from 1,258 to 14,104 [4]. Geographic Distribution - Revenue contributions by region included 35.1% from mainland China, 33.2% from Japan, 15.4% from North America, and 16.3% from other regions, compared to 27.8%, 46.6%, 12.8%, and 12.8% respectively in the same period of 2024 [8]. Cost and Expenses - Cost of revenues was US$9.8 million, down 24.4% from US$13.0 million in the same period of 2024 [9]. - Total operating expenses increased to US$11.2 million from US$10.0 million in the third quarter of 2024 [12]. Business Outlook - For the fourth quarter of 2025, the company expects total revenues to be between US$22.0 million and US$26.5 million, indicating a potential decrease of 15.4% to an increase of 1.9% compared to the same period of 2024 [25]. - The company anticipates full-year revenues for 2025 to be in the range of US$81.3 million to US$85.8 million, reflecting adjustments due to ongoing macroeconomic challenges [26].