(Nasdaq: UCL) 4Q and Full Year 2025 Earnings Conference Call Presentation March 2026 Disclaimer (Nasdaq: UCL) By viewing, accessing, or participating in this presentation, you agree to be bound by the following limitations. Any failure to comply with these restrictions may constitute a violation of applicable securities laws. This presentation has been prepared by UCLOUDLINK GROUP INC. (the "Company") solely for information purposes. This presentation does not constitute an offer to sell or issue or an invi ...

Financial Highlights - In Q3 2025, total revenues reached US$21.1 million[9], while net income was US$9.3 million[9] - Non-Mainland China revenue contribution was 64.9% in Q3 2025[53] - In Q3 2025, the company sold 40k PetPhones[27] Business Line Performance - Life business (including PetPhone) experienced a year-over-year growth of 408.2% in Average Monthly Active Terminals (MAT) in Q3 2025[29] - Life business (excluding PetPhone) Year-over-Year Growth was 369.3% in Average Monthly Active Terminals (MAT) in Q3 2025[22] - SIM Business Line saw a year-over-year growth of 269.5% in Average Monthly Active Terminals (MAT) in Q3 2025, with over 400,000 units sold from Q1 2025 to Q3 2025[32, 33] - IoT Business Line achieved a year-over-year growth of 583.0% in Average Monthly Active Terminals (MAT) in Q3 2025[38] Operational Efficiency - Operating expenses for Q3 2025 were US$9.7 million[65] - R&D accounted for 61% of operating expenses in Q3 2025[65] - G&A accounted for 13% of operating expenses in Q3 2025[65] - S&M accounted for 26% of operating expenses in Q3 2025[65]

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].

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][6]. Financial Highlights - Total revenues were US$21.1 million, a decrease of 16.0% from US$25.2 million in Q3 2024 [4][9]. - Gross profit was US$11.3 million, down 7.1% from US$12.2 million in Q3 2024, with a gross margin of 53.6% compared to 48.4% in the same period last year [4][12]. - Income from operations was US$9.2 million, significantly up from US$3.3 million in Q3 2024 [4][17]. - Net income reached US$9.3 million, compared to US$3.4 million in Q3 2024 [4][19]. - Adjusted net income (non-GAAP) was US$0.7 million, down from US$3.7 million in Q3 2024 [4][20]. - Adjusted EBITDA (non-GAAP) was US$1.4 million, compared to US$4.4 million in Q3 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 Q3 2024 [4]. - Average daily active terminals (DAT) were 332,674, up 3.8% from 320,452 in Q3 2024 [4]. - Average monthly active terminals (MAT) were 706,284, representing a 10.9% increase from 636,673 in Q3 2024 [4]. - The GlocalMe IoT business saw a remarkable increase in average DAT of 1,021.1% from 1,258 in Q3 2024 [4][7]. 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 Q3 2024 [10]. Cost Structure - Cost of revenues was US$9.8 million, down 24.4% from US$13.0 million in Q3 2024, primarily due to a decrease in the cost of products sold [11]. - Total operating expenses were US$11.2 million, compared to US$10.0 million in Q3 2024 [16]. Business Outlook - For Q4 2025, UCLOUDLINK 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 Q4 2024 [26]. - 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 [27].

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].

Financial Data and Key Metrics Changes - Total revenue for 2024 increased by 7.1% year-over-year to $91.6 million, with net income of $4.6 million and net cash flow from operations of $9.2 million, representing a significant 41.2% increase from the previous year [8][34]. - Total revenue for the fourth quarter was $26 million, a 19.5% increase from $21.7 million in Q4 2023 [29]. - Overall gross margin was 48.4% in 2024, stable compared to 49% in 2023, while gross margin on service increased to 60.8% from 58.5% [33]. Business Line Data and Key Metrics Changes - Revenue from data connectivity services for 2024 was $47.6 million, a 1.9% increase from $46.6 million in 2023, with international data connectivity service revenue rising to $39.5 million from $37 million [32]. - Average daily active terminals in Q4 were 308,386, with 54.3% from international data connectivity and 45.7% from local data connectivity [27]. - Revenue from service in Q4 was $15 million, representing 57.8% of total revenue, down from 68.7% in the same period of 2023 [29]. Market Data and Key Metrics Changes - In Q4 2024, Japan contributed 53.6% to total revenue, Mainland China contributed 20%, North America contributed 12.1%, and other regions contributed 14.3% [30]. - Revenue from Mainland China increased by 97.4% year-over-year, indicating strong adoption of international data connectivity solutions among Chinese consumers [9]. Company Strategy and Development Direction - The company is expanding its GlocalMe ecosystem and leveraging AI to enhance operational efficiency and user experience [11]. - New product launches, including PetPhone and CloudSIM Kit, are aimed at tapping into emerging markets and enhancing connectivity solutions [12][14]. - The company aims to build an integrated global mobile data traffic sharing marketplace, creating long-term sustainable value for shareholders [24]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of international travel, projecting a growth of 10% to 20% in 2025 due to this recovery [65]. - The company anticipates that new business lines will contribute significantly to revenue growth in 2025, alongside the recovery of legacy businesses [66]. - Management highlighted the importance of investments in marketing and branding to support long-term growth and user acquisition [72]. Other Important Information - The company received approval for pilot operations of value-added telecommunication services in China, which is expected to enhance its domestic market presence [12][77]. - The company has a diversified user base and is actively negotiating partnerships to expand its retail channels [21][22]. Q&A Session Summary Question: What is the benefit of the PetPhone? - The PetPhone allows pets to communicate their needs to their owners, enhancing interaction and creating a pet community [39][41]. Question: Will the PetPhone have the biggest impact in 2025? - Management believes the PetPhone will significantly impact the market due to its unique features and the attention it garnered at MWC 2025 [46][47]. Question: What assumptions were made about international travel in the revenue forecast? - The guidance for 2025 includes a recovery in international travel, contributing to projected revenue growth [65]. Question: Can you elaborate on trends in the cost structure? - Increased sales and marketing expenses were due to investments in new business initiatives, which are expected to yield returns in 2025 [70][72]. Question: What were the key drivers of revenue growth from Mainland China last year? - The growth was primarily driven by the increase in Chinese outbound travelers using the company's services, supported by strong branding [76][79].

Financial Data and Key Metrics Changes - Total revenue for 2024 increased by 7.1% year-over-year to $91.6 million, with net income of $4.6 million and net cash flow from operations of $9.2 million, representing a significant 41.2% increase from the previous year [8][34]. - Total revenue for the fourth quarter was $26 million, a 19.5% increase from $21.7 million in Q4 2023 [29]. - Overall gross margin was 48.4% in 2024, stable compared to 49% in 2023 [33]. Business Line Data and Key Metrics Changes - Revenue from data connectivity services for 2024 was $47.6 million, up 1.9% from $46.6 million in 2023, with international data connectivity service revenue rising to $39.5 million [32]. - Revenue from service in Q4 2024 was $15 million, representing an increase of 0.6% from $14.9 million in Q4 2023 [29]. - Average daily active terminals in Q4 were 308,386, with 54.3% from international data connectivity and 45.7% from local data connectivity [27]. Market Data and Key Metrics Changes - In Q4 2024, Japan contributed 53.6% to total revenue, while Mainland China contributed 20%, North America 12.1%, and other regions 14.3% [30]. - Revenue from Mainland China increased by 97.4% year-over-year, indicating strong adoption of international data connectivity solutions among Chinese consumers [9]. Company Strategy and Development Direction - The company is expanding its GlocalMe ecosystem and leveraging AI to enhance operational efficiency and user experience [11]. - New product launches, including PetPhone and CloudSIM Kit, are aimed at tapping into emerging markets and enhancing connectivity solutions [12][14]. - The company aims to build an integrated global mobile data traffic sharing marketplace, creating long-term sustainable value for shareholders [24]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of international travel, projecting a growth of 10% to 20% in 2025 due to increased travel activity [65]. - The company anticipates total revenue for 2025 to be between $95 million and $130 million, driven by both new business lines and recovery in international travel [24][66]. - Management highlighted the importance of investments in marketing and branding to support long-term growth and user acquisition [72][74]. Other Important Information - The company received approval for pilot operations of value-added telecommunication services in China, which is expected to enhance its domestic market presence [12][77]. - The company has a diversified user base and is actively negotiating partnerships to expand its retail channels [21][22]. Q&A Session Summary Question: What is the benefit of the PetPhone? - The PetPhone allows pets to communicate their needs to owners, enhancing interaction and creating a pet community [39][41]. Question: Will the PetPhone have the biggest impact in 2025? - Management believes the PetPhone will significantly impact the market due to its unique features and the attention it garnered at MWC 2025 [46][47]. Question: What assumptions were made about international travel in the revenue forecast? - The guidance for 2025 includes a recovery in international travel, contributing to expected revenue growth [65]. Question: Can you elaborate on trends in the cost structure? - Increased sales and marketing expenses were due to investments in new business initiatives, which are expected to yield returns in 2025 [70][72]. Question: What were the key drivers of revenue growth from Mainland China last year? - The growth was primarily driven by the increase in Chinese outbound travelers using the company's services, supported by strong branding [76][79].