Core Viewpoint - UCLOUDLINK GROUP INC. reported its unaudited financial results for the fourth quarter and full year ended December 31, 2025, highlighting a decrease in total revenues but an increase in net income and operational metrics, indicating resilience and growth potential in its business model. Financial Highlights Fourth Quarter 2025 - Total revenues were US$22.1 million, a decrease of 14.6% from US$26.0 million in Q4 2024 [5] - Gross profit was US$11.4 million, an increase of 2.3% from US$11.2 million in Q4 2024 [5] - Net loss was US$3.1 million, compared to a net loss of US$1.5 million in Q4 2024 [5][23] - Adjusted net income (non-GAAP) was US$1.0 million, compared to an adjusted net loss of US$3.1 million in Q4 2024 [5][27] - Adjusted EBITDA (non-GAAP) was US$3.1 million, compared to negative US$2.3 million in Q4 2024 [5][21] Full Year 2025 - Total revenues were US$81.4 million, a decrease of 11.1% from US$91.6 million in 2024 [31] - Gross profit was US$42.7 million, a decrease of 3.8% from US$44.4 million in 2024 [36] - Net income was US$6.3 million, an increase of 38.2% from US$4.6 million in 2024 [41] - Adjusted net income (non-GAAP) was US$2.7 million, compared to US$4.5 million in 2024 [42] - Adjusted EBITDA (non-GAAP) was US$7.2 million, compared to US$7.1 million in 2024 [39] Operational Highlights Fourth Quarter 2025 - Total data consumed through the platform was 46,511 terabytes, an increase of 9.2% from 42,577 terabytes in Q4 2024 [5] - Average daily active terminals (DAT) were 328,847, an increase of 6.6% from 308,386 in Q4 2024 [5] - Average monthly active terminals (MAT) were 704,393, an increase of 11.1% from 634,245 in Q4 2024 [5] Full Year 2025 - Total data consumed through the platform was 184,175 terabytes, an increase of 6.5% from 172,912 terabytes in 2024 [6] - Average daily active terminals (DAT) were 322,169, an increase of 1.7% from 316,688 in 2024 [6] - Average monthly active terminals (MAT) were 681,672, an increase of 8.0% from 631,137 in 2024 [9] Geographic Distribution - In Q4 2025, Japan contributed 43.6% to total revenues, Mainland China 26.8%, North America 11.2%, and other regions 18.4% [14] - For the full year 2025, Japan contributed 37.8%, Mainland China 31.5%, North America 13.6%, and other regions 17.1% [32] Executive Commentary - The CEO highlighted strong financial and operational momentum, with net income increasing and total revenues from Mainland China surging 16.5%, indicating a solid market position and consumer adoption of their services [8]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $21.1 million, a decrease of 16% from $25.2 million in Q3 2024 [18] - Net income for Q3 2025 was $9.3 million, compared to $3.4 million in the same period of 2024 [21] - Gross profit was $11.3 million in Q3 2025, down from $12.2 million in Q3 2024, but gross margins improved to 53.6% from 48.4% [20] - Revenue from services was $17 million, a slight decrease of 1.4% from $17.3 million in Q3 2024, contributing 80.6% of total revenue [19] Business Line Data and Key Metrics Changes - GlocalMe LINE business line saw average monthly active terminals reach 3,903, an increase of 408.2% year-over-year [7] - GlocalMe IoT recorded a year-over-year increase of 583.0% in average monthly active terminals [9] - GlocalMe SIM surpassed 400,000 cumulative cars sold, with a 269.5% year-over-year increase in average monthly active terminals [10] - Average monthly active users (MAUs) for GlocalMe IoT, GlocalMe SIM, and GlocalMe Life increased by 593.3%, 188.2%, and 382.3%, respectively [18] Market Data and Key Metrics Changes - Geographically, Japan contributed 33.2%, Mainland China 35.1%, North America 15.4%, and other regions 16.3% to total revenue in Q3 2025 [19] - The revenue from Mainland China has increased significantly, becoming the largest market, driven by the recovery of Chinese outbound travel [33][34] Company Strategy and Development Direction - The company is focused on overcoming digital divides through innovative connectivity solutions, including AI-powered technology for pet communication [6] - Investment in R&D and marketing is prioritized to accelerate innovation and enhance user experience [6] - The company plans to develop pet tech as a standalone application, integrating social entertainment and a comprehensive pet ecosystem [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic challenges while maintaining operational profitability [5] - For Q1 2025, total revenues are expected to be between $22 million and $26.5 million, reflecting a potential decrease of 15.4% to an increase of 1.9% compared to Q1 2024 [14] - The company anticipates continued growth in user numbers and revenue contributions from new product lines despite current challenges [41][42] Other Important Information - The company maintained a solid balance sheet with cash and cash equivalents of $28.5 million as of September 30, 2025 [22] - Average daily active terminals (DAT) were 332,674, reflecting a 3.8% increase from Q3 2024 [17] Q&A Session Summary Question: Sources of $9 million in other income - The $9 million gain was attributed to changes in fair values of other investments [24] Question: Reasons for decline in product sales - Product sales decreased by $4 million, primarily due to low-margin products and delayed orders from a Japanese customer [25][26] Question: Drivers behind revenue increase in Mainland China - The increase was driven by the recovery of Chinese outbound travel and higher adoption of 5G services [33][34] Question: Impact of trade tensions on the market - Limited impact anticipated, with expectations for growth in the U.S. market due to new product launches [39] Question: Details on in-car infotainment system orders - The company has secured orders from multiple providers, covering major markets including North America and Europe [54]

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]