HONG KONG, Oct. 10, 2025 (GLOBE NEWSWIRE) -- UCLOUDLINK GROUP INC. (“UCLOUDLINK” or the “Company”) (NASDAQ: UCL), the world’s first and leading mobile data traffic sharing marketplace, announced that its GlocalMe solutions received a total of nine awards at IFA 2025 in Berlin. The Company’s groundbreaking PetPhone – the world's first smartphone for pets – earned four as an Honoree in the Communications and Connectivity category of the inaugural IFA Innovation Awards and “Best of IFA 2025” distinctions from ...

Core Insights - UCLOUDLINK GROUP INC. has launched PetPhone, the world's first smartphone for pets, in partnership with HKT's CSL brand, marking a significant milestone in its global expansion strategy [1][2][3] - The PetPhone integrates features such as real-time communication, advanced tracking, and health monitoring, aimed at enhancing pet care and connectivity between pets and their owners [1][3] - The partnership with HKT will leverage its robust network and retail presence in Hong Kong to provide reliable connectivity for pet owners [2][3] Company Overview - UCLOUDLINK is recognized as the world's first and leading mobile data traffic sharing marketplace, pioneering a sharing economy model in the telecommunications sector [4] - The company offers unique value propositions to various stakeholders, including mobile data users and network operators, through its innovative cloud SIM technology [4] - UCLOUDLINK aims to build a comprehensive global mobile data traffic sharing marketplace, diversifying its revenue streams through value-added services and mobile data solutions [3][4]

Company Overview - uCloudlink Group Inc's consumer brand GlocalMe is launching PetPhone, an AI-powered device aimed at enhancing connectivity between pets and their owners as part of its U.S. expansion strategy [1][2] - The company anticipates that revenue from the U.S. market will double by 2025 following its re-entry into the market last year [1] Product Features - PetPhone enables pets to "call" their owners through AI recognition of actions and sounds, allowing owners to check in remotely, play calming music, or issue commands [2] - Early pilot families in the U.S. have demonstrated strong engagement with the product, indicating its practical utility [3] Market Positioning - uCloudlink has secured a strategic partnership with Chewy, becoming its exclusive PetPhone service provider, and is planning launch events in major U.S. cities [4] - The U.S. pet care industry is valued at over $140 billion, with increasing household spending on pet care as pet ownership becomes more ingrained in American lifestyles [4] Industry Trends - The U.S. market is receptive to "humanization" trends in pet care, with consumers willing to adopt technology that enhances pets' health, safety, and emotional well-being [5] Financial Performance - uCloudlink has sold 4 million Wi-Fi devices globally and supports 300,000 daily active terminals, with the U.S. previously contributing around 20% of group revenue [6] - The company reported a net profit of $10 million in 2023, with plans to reinvest much of this into new product development and U.S. marketing [7] Future Outlook - The company envisions PetPhone evolving into a platform that combines communication, entertainment, and social interaction for pets, likening it to a "pet WeChat" or "pet TikTok" [8] - Plans for optional camera and GPS features are in development, tailored to meet U.S. regulatory requirements [8] Strategic Resilience - Despite U.S.–China trade tensions, uCloudlink is confident in its ability to navigate policy challenges due to its diversified manufacturing and R&D structure [9] - The U.S. market is viewed as a core growth engine, supported by a large consumer base willing to spend on premium pet care [9][10]

Company Overview - uCloudlink Group Inc's consumer brand GlocalMe is launching PetPhone, an AI-powered device aimed at enhancing connectivity between pets and their owners as part of its U.S. expansion strategy [1][2] - The company anticipates that revenue in the U.S. will double again by 2025 following its re-entry into the market last year [1] Product Features - PetPhone allows pets to "call" their owners using AI-enabled recognition of actions and sounds, while owners can remotely check in, play calming music, or issue commands [2] - Early pilot families in the U.S. have demonstrated strong engagement with the product, indicating its practical utility [3] Market Positioning - The U.S. pet care industry is valued at over $140 billion, with increasing household spending as pet ownership becomes more ingrained in American lifestyles [4] - The U.S. market is receptive to "humanization" trends in pet care, with consumers willing to adopt technology that enhances pets' health, safety, and emotional well-being [5] Strategic Partnerships - GlocalMe has secured a strategic partnership with Chewy, becoming its exclusive PetPhone service provider within three months of negotiations [4] Financial Performance - The company previously derived around 20% of its group revenue from the U.S. before disruptions caused by legal issues and the pandemic [6] - After resolving patent disputes and re-entering the U.S. market in 2023, the company has expanded its U.S. workforce and tailored products for American consumers [7] - The company reported a net profit of $10 million in 2023, with plans to reinvest much of this into new product development and U.S. marketing [7] Growth Potential - Margins in the U.S. are attractive, with gross margins cited at 60% and limited direct competition [7] - The company aims to build a scalable business model around PetPhone, indicating strong acceptance in the U.S. market [8]

Core Insights - GlocalMe, under uCloudlink Group Inc., introduced the 3-3-5 Digital Inclusion Framework at IFA 2025, aimed at addressing global digital divides through innovative products and technologies [1][3] - The framework focuses on closing three key digital gaps: between carrier networks, local and international users, and between people and pets, utilizing three breakthrough technologies: CloudSIM®, AI HyperConn®, and 6-Layer Precision Positioning [1][2] - GlocalMe's product lines reflect a dual connectivity approach, providing high-performance 5G where available while ensuring inclusive 4G coverage [2] Product Lines - The product lines include: - **Pet Network**: Featuring PetPhone, the first smartphone for pets, recognized as an IFA2025 Innovative Honoree [5] - **Personal Network**: Includes eSIM Trio, the first universal SIM for iOS and Android [5] - **Travel Network**: High-performance hotspots like Numen Air, the world's first SIM-free 5G mobile hotspot, and MeowGo G40 Pro, designed for in-flight and home use [5] - **Life Network**: Multi-functional hotspot-enabled devices such as UniCord Pro, which has won multiple awards [5] - **Home Network**: GuardFlex Pro (5G) for uninterrupted internet access, expanding IoT applications [5] Company Vision - The CEO of uCloudlink, Jeff Chen, emphasized that the 3-3-5 framework is a practical roadmap for developing impactful products, showcasing that inclusive connectivity is a measurable reality [3] - GlocalMe aims to bridge digital divides through patented technology and design, enabling affordable mobile internet across over 200 countries and regions [4]

Group 1 - GlocalMe's PetPhone is a groundbreaking smart device that enables real-time communication between pets and their owners, setting a new standard in the pet tech market [2][3] - The device utilizes a multi-modal positioning system and AI behavior recognition technology, allowing for high-precision tracking and two-way phone communication even in high-mobility scenarios like walking or traveling [2][3] - The global pet industry is expanding, with increasing emotional interaction and safety needs among pet owners, yet the issue of lost pets remains significant, with an average of 1 in 6-7 pets going missing [3][4] Group 2 - PetPhone addresses the common risk of pets going missing in urban settings by providing real-time alerts to owners when pets leave designated safe areas, enhancing pet safety [3][4] - The product is designed to foster emotional connections between pets and owners, moving beyond mere functionality to become a source of comfort and security [4] - Jeff Chen, CEO of GlocalMe, emphasizes that the goal of PetPhone is to bridge the digital gap between pets and owners, allowing pets to be seen, heard, and understood [4]

Industry Overview - The 27th Asia Pet Expo held in Shanghai attracted over 130,000 professional visitors and 390,000 pet enthusiasts, with more than 2,600 exhibitors, setting a new record [1][3] - The pet economy in China is experiencing significant growth, with the urban pet (dog and cat) consumption market expected to reach 300.2 billion yuan in 2024, a year-on-year increase of 7.5% [1][4] Market Trends - The number of urban pet owners is projected to reach 76.89 million in 2024, a 2.4% increase from 2023, with pet dog and cat populations growing by 1.6% and 2.5% respectively [4] - Pet food remains the primary consumption market, holding a market share of 52.8% [4] Company Performance - Several listed pet companies reported growth in the first half of 2025, with Guai Bao Pet achieving revenue of 3.221 billion yuan, a 32.72% increase, and a net profit of 378 million yuan, up 22.55% [5] - Tian Yuan Pet reported revenue of 1.435 billion yuan, a 14.59% increase, and a net profit of 37.46 million yuan, up 20.14% [5] - Petty Co. focused on its domestic brand "Jue Yan," which saw nearly 50% revenue growth in the first half of 2025 [5] Competitive Landscape - The pet industry is witnessing a rise in private label competition, with companies increasingly focusing on their own brands as a key development strategy [6] - Sales expenses for major companies like Guai Bao Pet, Tian Yuan Pet, and Petty Co. increased significantly, reflecting the competitive nature of the market [6][7] Technological Innovations - The Asia Pet Expo showcased the world's first pet smartphone, PetPhone, which supports AI real-time communication and health monitoring, indicating advancements in pet technology [8] Insurance Sector Growth - The pet insurance market is rapidly expanding, with Zhong An Online reporting a total premium scale of approximately 563 million yuan, a year-on-year increase of over 51.3% [10] - The pet insurance market in China is projected to reach 3.2 billion yuan by 2025, with a penetration rate nearing 10% [10]

Financial Performance - In Q2 2025, total revenues were US$194 million [9], a decrease of 133% year-over-year [45] - Net income for Q2 2025 was US$07 million [9] - Non-Mainland China revenue contribution was 668% in Q2 2025 [42] - Gross margin from services is consistently higher than overall gross margin [50] Business Strategy and Highlights - The company is accelerating three transformative lines: GlocalMe Life, SIM, and IoT, investing in R&D, go-to-market strategies, and brand building [11] - The company is fortifying its traditional line, GlocalMe MBB, offsetting tariff uncertainty and supply chain adjustments [11] - PetPhone is undergoing global expansion with launches and branding in several countries in Q3 2025 and potential partnerships with over 20 strategic partners [16] - eSIM TRIO has sold over 300,000 units from Q1 2024 to Q2 2025, establishing a competitive advantage in the market [24] - GlocalMe IoT is experiencing rapid growth, with a 10+ times year-over-year growth in Average Daily Active Terminals (DAT) [32] Operational Metrics - Daily Active Terminals (DAT) for uCloudlink 20 increased from 43% in Q2 2024 to 45% in Q2 2025 [37] - In Q2 2025, IoT accounted for 27% of the DAT breakdown, while SIM accounted for 30%, Life for 15% and MBB for 28% [37]

Core Viewpoint - UCLOUDLINK GROUP INC. reported its unaudited financial results for the second quarter of 2025, highlighting a decrease in total revenues and net income compared to the same period in 2024, while emphasizing ongoing investments in product innovation and market capabilities to sustain long-term growth [1][4][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][9]. - Net income was US$0.7 million, compared to US$2.2 million in Q2 2024 [4][18]. - Adjusted net income (non-GAAP) was US$0.5 million, down from US$2.6 million in Q2 2024 [4][19]. - Adjusted EBITDA (non-GAAP) was US$1.4 million, compared to US$3.3 million in Q2 2024 [4][16]. 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]. - Average monthly active terminals (MAT) were 663,197, representing a 5.6% increase from 628,125 in Q2 2024 [4]. Revenue Breakdown - Revenues from services were US$14.6 million, an increase of 3.3% from US$14.2 million in Q2 2024 [6]. - Revenues from data connectivity services were US$11.5 million, up 2.1% from US$11.2 million in Q2 2024, driven by international data connectivity services [6]. - Revenues from sales of products were US$4.8 million, a decrease of 42.0% from US$8.2 million in Q2 2024 [13]. Geographic Distribution - Japan contributed 33.6% to total revenues, mainland China contributed 33.2%, North America contributed 15.3%, and other regions contributed 17.9% [7]. Cost and Expenses - Cost of revenues was US$9.2 million, down 19.5% from US$11.4 million in Q2 2024 [8]. - Total operating expenses were US$10.4 million, compared to US$9.1 million in Q2 2024 [11]. Business Outlook - For Q3 2025, UCLOUDLINK expects total revenues 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 [23]. - The company revised its full-year revenue guidance for 2025 to a range of US$85 million to US$95 million, down from a previous range of US$95 million to US$130 million due to macroeconomic challenges [24].

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].