Core Viewpoint - UCLOUDLINK GROUP INC. reported a decrease in total revenues and net income for the second quarter of 2025, while operational metrics showed growth in data consumption and active terminals, indicating resilience amid macroeconomic challenges [1][5]. Financial Highlights - Total revenues were US$19.4 million, a decrease of 13.3% from US$22.4 million in Q2 2024 [4][6]. - Gross profit was US$10.2 million, down 7.0% from US$11.0 million in Q2 2024 [4][8]. - Net income was US$0.7 million, compared to US$2.2 million in Q2 2024 [4][17]. - Adjusted net income (non-GAAP) was US$0.5 million, down from US$2.6 million in Q2 2024 [4][18]. - Adjusted EBITDA (non-GAAP) was US$1.4 million, compared to US$3.3 million in Q2 2024 [4][15]. Operational Highlights - Total data consumed through the platform was 45,441 terabytes, an increase of 7.9% from 42,133 terabytes in Q2 2024 [4]. - Average daily active terminals (DAT) were 317,957, up 3.8% from 306,289 in Q2 2024 [4]. - Significant growth in DAT from GlocalMe IoT business (1,078.9% increase) and GlocalMe SIM business (164.0% increase) [4]. Revenue Breakdown - Revenues from services were US$14.6 million, an increase of 3.3% from US$14.2 million in Q2 2024, primarily due to data connectivity services [6]. - Revenues from data connectivity services were US$11.5 million, up 2.1% from US$11.2 million in Q2 2024 [11]. - Revenues from sales of products were US$4.8 million, a decrease of 42.0% from US$8.2 million in Q2 2024 [11]. Cost and Expenses - Cost of revenues was US$9.2 million, down 19.5% from US$11.4 million in Q2 2024 [7]. - Total operating expenses were US$10.4 million, compared to US$9.1 million in Q2 2024 [10]. Business Outlook - For Q3 2025, total revenues are expected to be between US$22.0 million and US$26.0 million, reflecting a potential decrease of 12.7% to an increase of 3.2% compared to Q3 2024 [22]. - Full-year revenue guidance for 2025 has been revised to a range of US$85 million to US$95 million, down from US$95 million to US$130 million due to ongoing macroeconomic challenges [23].

Financial Performance - In Q1 2025, total revenues reached US$18.7 million[9] - Adjusted Net Income was US$0.4 million in Q1 2025[9] - Net Operating Cash Inflow amounted to US$0.2 million in Q1 2025[9] - Revenues from services accounted for 75.7% of total revenues in Q1 2025, while sales of products made up 24.3%[67] - Gross margin on services was 57.3% in Q1 2025[70] Business Development & Solutions - Five new solutions unveiled at MWC 2025 Barcelona are scheduled for commercial deployment from May to June 2025[11] - The company is targeting promotion of new solutions at MVNOs World Congress 2025[20] - The company has 169 patents approved and 14 patent applications pending approval as of March 31, 2025[104, 111] User & Market Trends - The company plans to initiate regular disclosure of key metrics, including the number of user accounts by different business lines, starting in Q3 2025[17] - The company has business across 63 countries and regions as of March 31, 2025[103, 104] - In Q1 2025, the company experienced a 3.4% year-over-year increase in revenues from services[65]