Ubiquiti Q2 Earnings Surpass Estimates on Solid Revenue Growth

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]